EFFECT OF ONLINE BANKING ON THE FINANCIAL PERFORMANCE OF LISTED NIGERIAN BANKS IN NIGERIA

This study examines the effect of online banking on the financial performance of listed Deposit Money Banks (DMBs) in Nigeria. The analysis focuses on three aspects of online banking: Online Web Transactions (WEB), National Electronic Funds Transfer (NEFT), and Mobile Money Operator (MMO). The study utilizes regression analysis to investigate the effect of online banking components on Profit after-tax growth (PATG) for DMBs. The findings indicate that Online Web Transactions (WEB) have a negative and statistically significant impact on PATG. This suggests that an increase in online web transactions is associated with a decrease in financial growth for DMBs in Nigeria. In contrast, National Electronic Funds Transfer (NEFT) demonstrates a positive and statistically significant influence on PATG, indicating that an increase in NEFT is associated with an increase in financial growth. On the other hand, Mobile Money Operator (MMO) shows a negative and statistically significant effect on PATG, implying that an increase in MMO usage is associated with a decrease in financial growth. These findings highlight the complex relationship between online banking and financial growth in the Nigerian banking industry. The study provides valuable insights for banks, policymakers, and stakeholders to make informed decisions and develop strategies that maximize the benefits of online banking while mitigating potential challenges. The recommendations include enhancing online web transactions, leveraging NEFT services and addressing challenges posed by MMOs. By implementing these recommendations, DMBs can navigate the digital banking landscape, optimize their online banking services, and achieve sustainable financial growth in Nigeria