Year: 2025
Type: article
Abstract: Using time series yearly data from 2002 to 2023, the research aims to examine how online banking affects deposit money banks' profitability in Nigeria. The Central Bank of Nigeria Statistical Bulletin, 2023, provided the secondary data that the researchers used in their ex-post facto design. The study's dependent variable is the return on assets, whereas the independent variables are the value of online transactions, POS transactions, and ATM transactions. We tested the hypotheses using the ordinary least squares estimation approach. The values of WEB transactions have a negligible and adverse effect on Nigerian commercial banks' return on assets. The value of point-of-sale transactions significantly reduces the return on assets (ROA) for Nigerian banks. Additionally, the ROA of Nigerian commercial banks is positively and significantly affected by the value of automated teller machine transactions. The research comes to the conclusion that online banking significantly improves the viability of Nigerian banks. In order to prevent financial loss at the hands of hackers, the research suggested that bank management periodically educate users about online banking, its advantages, risk exposure, and physical and technological security. Additionally, bank employees should get brief training to familiarize themselves with the latest advancements in cutting-edge technology in these dynamic times.
Institution: Niger Delta University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7220137271