Abstract
In this study, the effect of digital banking on the performance of Commercial Banks was examined from 2010 to 2019. The study applied the Autoregressive Distributive Lag (ARDL) framework to examine the relationship between point of sales machine (POSG), Banking Transactions made through unstructured supplementary service data (USSDG), Web banking (WEBG) and Return on Assets (ROA) of commercial banks in Nigeria. The data were obtained from the statistical bulletins of the Central Bank of Nigeria (CBN) and annual reports of Nigeria Deposit Insurance Corporation (NDIC). The result of the analysis revealed that digital banking has positive and insignificant effect on the performance of commercial banks in Nigeria. . In the light of this findings, the study recommends the need for relatively stable network: In other to reduce number of failed transactions, banks are hereby encouraged to liaise with network providers and their engineers to develop a standardized network platform exclusively for each of the digital banking channels. Also there is need for digital banking education to bank customers on the benefits of digital banking. Equally there is need for all banks to have 24 hours working cyber security department in order to ensure that the channels are not hijacked by cyber criminals.
Highlights
The Nigerian banking industry has undergone and still undergoing operational, legislative and technological changes (Oyewole & El-maude, 2013)
IMPLICATION Technology Acceptance Theory states that perceived ease of use and usefulness of technological tool determines the extent of consumer acceptance
Various studies on this topic have been undertaken by various researchers and their results are contradictory as such the study tends to fill the knowledge gap in literature by studying the effect of digital banking and performance of commercial banks in Nigeria from 2010 to 2019
Summary
The Nigerian banking industry has undergone and still undergoing operational, legislative and technological changes (Oyewole & El-maude, 2013). Deposit acceptance and granting of money loans are consummated outside the halls of the bank with the platforms provided by digital banking (Eze & Egoro, 2016). Digital banking is the broad range of banking services accessed and delivered through digital channels, like Mobile phones, Personal Computers, the Internet or Cards linked to a reliable digital payment system (Ukoh, 2019). Such services include Payments, Withdrawals, Deposits and Credits, Remittances and Funds transfers, Balance enquiry, Airtime Top-Ups and even credit transactions (Ukoh, 2019). Obtaining cash for petty transactions is at the doorstep of the people
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