Authors : Utulu, Emmanuel C

Volume/Issue : Volume 10 - 2025, Issue 9 - September

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DOI : https://doi.org/10.38124/ijisrt/25sep911

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Abstract : This study critically investigates the impact of electronic banking on the profitability of banks in Nigeria, a case study of Access Bank and Gtbank. The specific objectives are to examine the impact of automated teller machine (ATM) on profitability of banks, to investigate the influence of Point of sale (POS) on profitability of banks and to critically analyse the effect of mobile banking transaction on the profitability of banks. The theory that underpinned the study are Theory of Planned Behavior (TPB) and Technology Acceptance Theory (TAT). This study adopted an inductive approach with a qualitative research design which involves the reviewing of journals, and articles related to the subject matter “Electronic banking and profitability”. The study employed only pertinent secondary data ranging from 2017- 2023. Based on the findings for the first objective, the study found that a growth in the utilisation of electronic banking technology has a favourable effect on profitability while simultaneously having an unfavourable effect on costs. For the second objective the study found out that bank management which are reluctant to embrace innovations, to settle in and utilise a variety of innovations in their business practices to bolster their financial success. Banks should offer point of sale (POS) cards to all of its customers, especially those running a variety of business types, in order to promote the Central Bank of Nigeria's cashless policy. For the last objective the study reveals that the ease of use, assurance of security, and adaptability that come with mobile banking make it a compelling option to more conventional banking methods. The study recommends that management of banks should adopt new technologies to move in and implement various innovations in their business practices in order to increase their profitability. In conclusion, banks should continue using innovative technology that will increase their profit margins.

Keywords : Electronic Banking, Profitability, Automated Teller Machine (ATM), Point of Sale (POS), Mobile Banking.

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