Effect of Digital Banking on Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract

This study investigated the impact of the digital banking on the financial performance of Deposit Money Banks (DMBs) in Nigeria, focusing on the role of key electronic banking platforms, namely Automated Teller Machines (ATMs), Point of Sale (POS) systems and Mobile Banking. Using an ex-post facto research design, the study examines time series data from 2014 to 2024, drawn from reputable sources such as the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS). A multiple regression model is employed. The findings indicate that all three electronic banking platforms have a positive and statistically significant impact on the financial performance of Nigerian banks. The study's recommends that Banks should continue to invest in and expand their ATM networks and online banking to improve customer accessibility to banking services, particularly in underserved areas. The operational efficiency and customer convenience provided by ATMs, online banking and POS contribute to both customer satisfaction and increased profitability. Banks should also focus on upgrading their ATM infrastructure to include advanced features like mobile money integration and better security measures to mitigate potential fraud risks.