Impact of Electronic Banking on the Performance of Financial Institutions in Nigeria (A Study of First Bank Plc)

This work investigated the impact of electronic banking on the performance of financial institutions in Nigeria. Three research objectives guided this study and they sought to: determine the effect of pre and post electronic banking adoption on net profit margin; ascertain the effect of pre and post electronic banking adoption on return on assets; and evaluate the effect of pre and post electronic banking adoption on return on equity of deposit money banks in Nigeria. The study adopted the ex-post facto research design, wherein data from First Bank Plc were collected for a cumulative period of twenty-eight years – 1994 to 2007 for pre-adoption era and 2008 to 2021 for post-adoption era. Comparative analysis was used for test of hypotheses, wherein the mean of the performance indicators are compared between pre- and post- adoption era. Findings revealed that there is significant difference in the effect of pre adoption era and post adoption era of electronic banking on net profit margin (NPM) of First Bank Plc; there is insignificant difference in the effect of pre adoption era and post adoption era of electronic banking on return on assets (ROA) of First Bank Plc; and that there is insignificant difference in the effect of pre adoption era and post adoption era of electronic banking on return on equity (ROE) of First Bank Plc. This implies that electronic banking has significant effect on NPM but insignificant effect on ROA and ROE. Consequently, it was recommended that commercial banks should sustain and improve on the use of electronic banking systems in Nigeria.