Electronic Banking and Profitability in the Nigerian Banking Industry

  • Uchenna Aduaka University of Roehampton, London.
  • Prof. Olawumi D. Awolusi Department of Accounting and Finance, College of Economics and Management, Kampala International University, Kampala, Uganda https://orcid.org/0000-0003-2220-7080


The primary objective of this study was to assess the impact of electronic banking on profitability in the Nigeria banking industry. An inferential survey research design was adopted. Primary data were collected through questionnaires from both staff and customers of the surveyed bank. It was complemented with secondary data sourced from the company’s audited financial statements for the period 2010 to 2017. Data collected were analyzed using both descriptive and inferential statistics while testing of the hypotheses was done using multiple regression analysis. The study revealed that cards play a significant role more than other channels and immediately followed by ATM. Also, it was observed that E-Banking channels contributed to Bank's profitability, that E-banking services (EBS) had an influence on the retention and loyalty of bank's customers and that the quality of service, security, reliability and efficiency have a definite impact on the usage of the services of e-banking. It was recommended that the Nigerian banking industry should invest more in card products, followed by ATM amongst other electronic channels; as they generate more revenues for the bank. The study also recommended further development of other channels (Mobile, Corporate Payments, POS and internet banking) to further enhance their contribution to the bank's profitability. Nigerian banks should also create a business strategy that is customer-centric by being continuously innovative in identifying the needs of their customers and improving on their products offering while developing new ones, to retain and keep the loyalty of their existing customers while attracting new ones.


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How to Cite
Aduaka, U., & Awolusi, O. D. (2020). Electronic Banking and Profitability in the Nigerian Banking Industry. Information Management and Business Review, 12(2(I), 20-37. https://doi.org/10.22610/imbr.v12i2(I).3086
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