ABSTRACT

This research work examined how electronic banking affects the performance of commercial banks in Nigeria. The specific objectives discussed are effect of electronic banking (Automated Teller Machine; point of sale) on return on assets and the effect of electronic banking (Automated Teller Machine; point ofsale) on return on equity. Regression was used in the data analysis. The analysis based on the Return on Assets (ROA) model reveals that the use of automated teller machine (ATM) is negatively signed, although statistically significant in explaining the adoption of CBN's cashless policy in Nigeria. This implies that despite the initial slow embrace of the use of ATM by customers, there is still a high prevailing usage which in tum increases the asset of the banks and key positively into the CBN's electronic banking. This explains that as ATM usage volume increase, it increases the ROA of the bank through a cashless approach. Also, the point of sales (POS) is positively signed and statistically significant in explaining the adoption of CBN's electronic banking in relation to the Return on Assets (ROA). This means that as point of sales facilities increase, it discourages cash handling by individuals and encourages the electronic banking of the CBN. The researcher recommends that electronic banking policy should be strengthened and all bottle necks like poor power supply and a/I loopholes that could lead to fraudulent exposure be tactically proactively tackled. Also electronic payment devices like ATM and POS should be acquired and installed in remote areas to facilitate quick banking transactions and banking inclusion while the (CBN) as well as commercial banks should increase its awareness to the Nigerian public and encourage literacy among bank customers to enable them appreciate and embrace policies that rely on information technology for banking transactions.