Abstract
The effect of computerization in banks became of concern to the researcher as its adoption in banking sector and its application has become a major concern to all banks who are deliberating on whether to fully go technological or use partial manual and technology. This study aim to examine the effect of e- banking on ROA of which a survey was carried out on three banks listed on the Nigerian stock Exchange, using panel data of 10 years ranging from 2009 – 2018; while ATM value and volume were used as measurement tool for e-banking, ROA were used as a tool for bank performance. Descriptive analysis was used to ascertain the mean (1.865608; ATM volume, 666288.8; ATM value, 4.514933; ROA) median, Maximum, Minimum. Correlation was carried out and a positive and strong relationship between ATM volume and Value with the performance indicators of selected banks in Nigeria were generated.Regression was carried out on all variables, and hausman test was used to determine which of either pool, random and fixed model to pick, and fixed was picked. Using fixed regression on the effect of e-banking on ROA, the result of the estimated model shows that (ROA) has positive relationship and statistically significant effect on ATM volume in the long run.The work suggests that Management of Nigerian quoted banks should increase their commitments into e- banking channels in order to improve returns from their business transaction. Keywords : Computerization, Technology, E- Banking, Measurement, Performance. DOI: 10.7176/RJFA/11-16-17 Publication date: August 31 st 2020
Highlights
In this 21st century, the use of computers in banking system in managing personal and business finances has become more prominent
It is obvious that Nigerian banks have increased speed, shorten processing periods, improve the flexibility of business transactions and reduced costs associated with having personnel serve customers physically; agreeing that computerization is paramount
The result of the estimated model shows that (ROA) has positive relationship and statistically significant effect on Automated Teller Machines (ATM) volume in the long run since sig value. This indicates that an increase in the volume of the ATM transaction being a channel of the electronic banking will lead to 484% increase in return on asset
Summary
In this 21st century, the use of computers in banking system in managing personal and business finances has become more prominent. In the bid to catch up with global developments and improve the quality of their service delivery, Nigerian banks have no doubt invested much on technology; and have widely adopted electronic and telecommunication networks for delivering a wide range of value added products and services They have in the last few years transformed from manual to automated systems. In Indian context (Malhotra, P.; Singh, B., 2009) studied the effects of electronic banking on performance of Indian commercial banks and found no significant relationship between the profitability performance and the adoption of the internet/ electronic banking It could be seen from the above explained empirical literatures that the impact of Electronic banking as a means of the computerization on banks’ performance that it provides mixed evidences and inconclusive. Yit : Represent banks’ performance represented by ROA of bank. α0: means the Constant factor β1(ATMV) it : the volume of ATM amongst the selected banks Ε- error term
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