THE EFFECT OF ELECTRONIC BANKING SERVICES ON BANK PROFITABILITY IN NIGERIA (THE STUDY OF SELECTED BANKS)

ABSTRACT

Banking has come a long way from the time of ledger cards and other manual filing systems. Most banks today have electronics systems to handle their daily voluminous task of information retrieval, storage and processing. The purpose of this research is to examine the contribution of electronic banking services to bank profitability in Nigeria. The descriptive research design was employed in this research. The annual report and account of the banks was used for the period of study, 10 years from 2008 to 2017. Data analysis was done using ordinary least square multiple regression method. Multiple regression models were employed. The research shows that adoption of electronic banking strategies has a positive effect on banks’ profits. The study concludes that electronic banking has contributed positively to the profitability of banks in Nigeria. It is recommended among other things that commercial banks should increase their efforts towards adoption of electronic banking to automate their service delivery to customers. This follows the positive effect that electronic banking usage has on the profitability of Nigeria’s banks.

TABLE OF CONTENT

Title page ﾿ i

Declaration ﾿ ii

Certification ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of Contents ﾿ vi

List of Tables ﾿ vii

List of Figure ﾿ x

Abstract ﾿ xi

CHAPTER ONE

INTRODUCTION

1.1 ﾿ Background of the Study ﾿ 1

1.2 ﾿ Statement of Problem ﾿ 4

1.3 ﾿ Objectives of the Study ﾿ 5

1.4 ﾿ Research questions ﾿ 5

1.5 ﾿ Research hypotheses ﾿ 6

1.6 ﾿ Scope of the Study ﾿ 6

1.7 ﾿ Limitations of the Study ﾿ 6

1.8 ﾿ Significance of the study ﾿ 6

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 ﾿ Conceptual Framework ﾿ 10

2.1.1 ﾿ Types of Electronic Banking ﾿ 11

2.1.2 ﾿ Application of Electronic Banking ﾿ 12

2.1.3 ﾿ Challenges faced by the banks while using E-banking ﾿ 15

2.1.4 ﾿ Benefits of E-banking ﾿ 15

2.2 ﾿ Theoretical Review ﾿ 17

2.3 ﾿ Empirical Review ﾿ 18

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 ﾿ Research Design ﾿ 25

3.2 ﾿ Population of the Study ﾿ 25

3.3 ﾿ Data Collection ﾿ 25

3.4 ﾿ Method of Data Analysis ﾿ 26

3.4.1 ﾿ Model Specification ﾿ 26

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 ﾿ Presentation of Descriptive Statistics ﾿ 28

4.2 ﾿ Presentation of Correlation Analysis ﾿ 28

4.3 ﾿ Presentation of Regression Result ﾿ 29

4.3.1 ﾿ Model Summary ﾿ 31

4.3.2 ﾿ ANOVA (Analysis of Variance) ﾿ 32

4.3.3 ﾿ Coefficient of Table ﾿ 32

4.4 ﾿ Discussion of Results ﾿ 33

4.5 ﾿ Test of Hypotheses ﾿ 34

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 ﾿ Summary of Findings ﾿ 36

5.2 ﾿ Conclusion ﾿ 37

5.3 ﾿ Recommendations ﾿ 37

APPENDIX I

LIST OF TABLE

Table 4.1: Presentation of Descriptive Statistics

Table 4.2: Presentation of Correlation Analysis

Table 4.3: Model Summary

Table 4.4: ANOVA (Analysis of Variance)

Table 4.5: Table of coefficient

LIST OF FIGURE

Figure 1.1 Conceptual framework