Effect of electronic banking on financial performance of deposit money banks in Nigeria

Madugba, Joseph Ugochukwu; Ben-Caleb, Egbide; Jossy, Dike Wozuru; Agburuga, Uche Toby; Chibunna, Onwubiko Onyebuchi

doi:10.21511/bbs.16(3).2021.07

Cited by 8 publications

(10 citation statements)

References 13 publications

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“…Based on these findings, we drew a conclusion that technological innovations have both positive and negative impacts on the bank performance in West Africa. This is in line with various findings made by scholars such as Flavian et al (2014), Gan et al (2006), Le & Ngo (2020), Lee et al (2011) and Madugba et al (2021) among others.…”

Section: Estimated Ardl Results For Long Run Relationshipsupporting

confidence: 92%

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Enoruwa,

Onwumere,

Ibunor

et al. 2023

J. Professional Business Review

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Purpose: Technological innovations are understood as new or improved processes, products or services, the technical characteristics of which are significantly different from the previous ones. Technological innovations in the banking sector have undoubtedly improved the functionality and performance of banks across the globe including West African countries such as Nigeria, Ghana and Coted’Ivoire. It has redefined the way and regime in banking operation in West Africa. It enables banks to improve the quality of service delivery to their numerous customers and makes it easy for customers to access banking services at the lowest cost possible. This study, therefore, focused on examining the impact of technological innovations on bank performance in West Africa. Method: A set of annual time series covering the period 1997 to 2020 and a multiple regression analysis including an autoregressive distributed lag (ARDL) model, a fully modified OLS (FMOLS) model and a dynamic OLS (DOLS) model were used. Bank performance was measured using bank return on assets (ROA) and bank return on equity (ROE), while technological innovation was measured using indicators such as Internet Banking (INB), Automated Teller Machines (ATM), Mobile Banking (MBN) and Point of Sale (POS) whose control variables are inflation rate (INFR) and exchange rate (EXR). Results and conclusion: Findings from the ARDL panel results show that both positive and negative long-term relationships exist between technological innovation and bank performance in West Africa. We thoroughly verified the results from the ARDL model with FMOLS and DOLS and the findings show that technological innovation has a positive and negative long-run relationship with bank performance in West Africa and the results were the same for Nigeria, Ghana and Ivory Coast. Originality/Value: This study, therefore, recommends that improving the quality of technologically innovative tools of banks such as internet banking, ATMs, POS and mobile banking with quality apparatus can lead to improved bank performance. Banks should also invest in cyber security to ensure funds deposited in banks are safe which will boost investor and customer confidence, acceptance and lead to increased bank performance.

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Section: Estimated Ardl Results For Long Run Relationshipsupporting

confidence: 92%

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Enoruwa,

Onwumere,

Ibunor

et al. 2023

J. Professional Business Review

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“…According to the report, deposit money institutions should put in more ATMs to shorten lineups. To counteract the detrimental effects of mobile payment on deposit money the financial results of deposit money banks should work with telecoms network providers and security forces to stop and imprison hackers [8]. Saving money banks in Nigeria experience major financial performance changes as a result of electronic banking.…”

Section: Literature Reviewmentioning

confidence: 99%

“…An ex-post facto research design and a normality test were undertaken to determine the quality of the collection. To improve bank performance, the study advised Nigerian banks to teach their clients more about how to utilize NEFT, WEB, and POS, as well as to boost the number of ATM withdrawals [9].…”

Section: Literature Reviewmentioning

confidence: 99%

The financial and sustainability impact of fintech on Indian deposit money institutions: A study of the last decade

Kaur,

Pathak

2023

E3S Web Conf.

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The study was related to finding out how the financial results of Indian banks are affected by Artificial intelligence. Secondary data from 2017 to 2022 was taken from the Data release of the Reserve Bank of India (Monthly Bank wise ATM/POS/NEFT/Mobile banking) and for Return on Assets, the website of the Indian Banking Association was used. The validity of the data was assessed using a normalcy test, and the Controlled variables passed from the multicollinearity statistics tests and Partial least square (PLS) regression. Results depict that ATM, Mobile banking, and NEFT have a considerable impact on Return on assets (ROA). While point of sale (POS) services have negligible impact. To improve bank performance, the study suggested that Indian deposit money institutions should teach their customers more about how to utilize National Electronic Fund Transfer (NEFT), Mobile banking, and POS, as well as boost the number of Automatic Teller Machines (ATM) withdrawals. Even the different retail outlets must increase options to pay money so that the customers can pay as they want, and POS gets increased. Policymakers got a fair idea from this study regarding how to draft policies relating to fintech and improve the environment or social sustainability.

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“…The recent collapse of high-profile organizations the world over have ushered in a great deal of nervousness in corporations, permitting the skill of corporate managers as crucial in corporate financial management. On the other hand, the nascent advancement in technology experienced in the corporate sector has also introduced a shift in corporate decision-making to concentrate on intellectual capital rather than traditional factors of production (Adesina, 2019;Madugba, Egbide, Jossy, Agburuga, Chibunna 2021;Raze 2011;Borneinan, 1999;Ekwe 2013;Ifsu, Fang, 2010).…”

Section: Introductionmentioning

confidence: 99%

Intellectual Capital Value Addition and the Efficient Assets Management of Listed Manufacturing Firms in Nigeria

Madugba,

Egbide,

Uzondu

et al. 2023

Folia Oeconomica Stetinensia

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Research background One crucial area that has not received good research attention is intellectual property. Even organizations engage the services of recruiting firms to get the best labour, and some workers earn more than others. But intellectual value addition is not ascertained. Purpose The goal of this study is to examine the effect of intellectual capital value addition on the efficient asset management of manufacturing firms in Nigeria. Research methodology Data was sourced from the published annual accounts of 24 manufacturing firms. The VAIC was adapted to measure Intellectual capital value addition which is the predictor variable, while Return on Assets was used as a determinant of efficient assets management. The ordinary least square regression of the panel data was used to test the hypothesis. Result The outcome of the regression revealed that HC is a determinant of ROA with a co-efficient of regression and a significant value of (0.102 > 0.5). SC has an adverse and noteworthy influence on ROA as indicated (–0.046 > 0.05) while CEE has a positive and significant influence on ROA (0.825 > 0.50). The paper affirmed that a weighty and constructive relationship exists amid intellectual capital and efficient assets management of the manufacturing companies and endorsed that listed manufacturing businesses in Nigeria should efficiently and effectively manage intellectual capital. Novelty This has contributed to extant literature as it’s the first study to investigate the effect of intellectual capital addition on efficient assets management in listed manufacturing companies in Nigeria. There is no study of this nature in Nigeria that has successfully adopted VAIC and it has proved that corporations consider hiring the best-skilled labour because of its contribution which improves the performance of such business. Again, this study covered 240 firm years, that is, ten years each of twenty-four companies, which no other previous study has done.

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Effect of electronic banking on financial performance of deposit money banks in Nigeria

Cited by 8 publications

References 13 publications

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

The financial and sustainability impact of fintech on Indian deposit money institutions: A study of the last decade

Intellectual Capital Value Addition and the Efficient Assets Management of Listed Manufacturing Firms in Nigeria

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