EFFECT OF ELECTRONIC BANKING ON BANKS PERFORMANCE IN NIGERIA

This study examines the impact of electronic banking on banks’ profitability and general performance in Nigeria between 2000 and 2024. The fundamental objectives of the study are to evaluate the effect of technological infrastructure on banks’ profitability, analyze the influence of security measures on general performance, and assess the role of user experience in enhancing both profitability and operational outcomes. The study adopted a survey research design and made use of both primary and secondary data. A total of 55 structured questionnaires were distributed to managerial staff in selected traditional and digital banks, out of which 50 were correctly completed and returned. Secondary data were also sourced from annual reports, customer feedback surveys, and Central Bank of Nigeria (CBN) publications. The study focused on traditional banks (First Bank, Access Bank, and Zenith Bank). Data analysis involved descriptive statistics, Pearson correlation, and multiple regression analysis. The findings revealed that electronic banking has had a significant positive impact on profitability and performance, particularly in banks with robust technological infrastructure and user-friendly platforms. Among the three factors analyzed, technological infrastructure had the strongest influence, followed by user experience and security measures. The study concludes that electronic banking is a critical driver of improved bank performance and profitability in Nigeria. It recommends increased investment in digital infrastructure, stronger cybersecurity frameworks, and continued innovation in user experience. It also encourages regulatory support and collaboration with fintech companies to ensure sustained growth and competitiveness in the banking sector.