Digital Banking Channels and Performance of Deposit Money Banks in Nigeria

ABSTRACT

Here,the study examined the relationship between digital banking channels and performance of deposit money banks in Nigeria by adopting data sourced from the Central Bank of Nigeria (CBN) bulletin for the period 2009 to 2021. The performance of the deposit money banks was proxied by Return on Asset while transaction values of Automated Teller Machine (ATM Debit Cards), Unstructured Supplementary Service Data (USSD), Mobile Banking Apps and Internet Banking were used as proxy for digital banking channels . The study adopted an ex-post facto research design and regression analysis was used to test the strength and nature of relationship between the dependent and independent variable. The study found that Internet Banking, Mobile Banking Apps and Unstructured Supplementary Service Data (USSD) have a positive and significant relationship with performance, while Automated Teller Machine (ATM) have a positive and insignificant relationship with performance. Finally, the study therefore recommends that Deposit Money Banks can enhance internet banking services, expand mobile banking offerings, optimize USSD services, diversify ATM services by making the interface more user friendly, provide seamless integration with other financial services and ensuring that they are widely accessible and well maintained to encourage customer usage. Keywords: Automated Teller Machine, Unstructured supplementary service data, Mobile Banking Apps, Internet Banking, Return on Assets.