The Influence of Online Transactions on Customers Deposit and Operating Expenses of License Deposit Money Banks (DMBs) In Nigeria

Online transactions policy has gained significant traction over the years, with the increasing acceptability of electronic transaction channels such as Global Pay System (GPS), Corporate Internet Banking (CIB), Mobile Banking System (MBS), Pay-Direct System (PDS), and Remita (RMT). Therefore, this study examines the influence of online transactions policy on customers' deposits and bank operating expenses in Nigeria. Using mixed method sources of data and ex post factor research design, the SEM-PLS models reveal that CIB (p = 0.000), GPS (p = 0.000), MBS (p = 0.029), and PDS (p = 0.000) strongly influence customers' deposits and operating expenses of DMBs in Nigeria. However, the panel regression models indicate that online transaction systems have no significant influence on customers' deposits, and only GPS, with a p-value of 0.021 and MBS, with a p-value of 0.095, increases operating expenses of the sampled DMBs. The study therefore suggests that improved online banking facilities, user education, and policy alignment are required to achieve the full benefit of online transactions policies in Nigeria. The study further recommends that DMBs should avoid a one-size-fits-all digital strategy. Instead, they should tailor digital tools to specific performance objectives such as deposit mobilisation, cost efficiency, and profitability.