Electronic Banking's Impact on First Bank Limited's Performance in Nigeria

Authors : Salihu Mohammed Hassan; Adewusi Olusegun Adegoke

Volume/Issue : Volume 8 - 2023, Issue 9 - September

Google Scholar : https://bit.ly/3TmGbDi

Scribd : https://tinyurl.com/d2fx45cd

DOI : https://doi.org/10.5281/zenodo.8406295

This study looks at how Nigeria's First Bank Ltd. performs after implementing e-banking. Quarterly secondary data for the years 2009Q1 through 2022Q2 were obtained from the NBS and CBN bulleting. Pier- wise Granger causality and ARDL bond test cointegration were used as analysis methods. The results show that First Bank Ltd.'s performance in Nigeria is positively impacted by the coefficient of ATM, MBK, and POS. While First Bank Ltd.'s performance in Nigeria is negatively correlated with INTBK. However, the ARDL bound test for cointegration reveals that there is long- term cointegration between E-banking and commercial bank performance in Nigeria. ATM and POS are statistically significant at the 1% significant level. Similar to this, granger causality shows that there is a one-way relationship between POS and MBK and ATM and PFBN. The relationship between MBK and PFBN, POS and ATM, and MBK and ATM, on the other hand, is reciprocal. Thus, the alternative hypothesis is accepted while the null hypothesis is rejected, and the study effort comes to the conclusion that there is a causal association between E-Banking and First Bank Ltd.'s performance over the time period under consideration. However, as indicated by an f-statistics probability of (0.000000), the entire variable was jointly and simultaneously crucial in raising First Bank Ltd.'s and E-banking's performance in Nigeria. The R2 demonstrates the model's suitability and dependability for policy design. The study stated that in order to achieve the goal of the cashless policy in Nigeria, the government should establish and improve monetary policies (cashless policy) focused at promoting E-banking. Additionally, in order to achieve the goals of a cashless economy or society, the government, monetary authorities ((Central Bank of Nigeria, Ministry of Finance,) and commercial banks should inform and educate the public about the benefits of using E-banking products (POS, Mobile Application, and online banking).

Keywords : POS, ATM, MBK ARDL


Paper Submission Last Date
31 - December - 2023

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