Digital channels and internet banking as drivers of financial performance in Nigerian deposit money banks

Authors

  • Nnanyelugo Onyedikachi Eze University of Nigeria, Nsukka, Nigeria
  • Robinson Onuora Ugwoke University of Nigeria, Nsukka, Nigeria
  • Obioma Vivian Ugwoke University of Nigeria, Nsukka, Nigeria
  • David Chidi Ozor University of Nigeria, Nsukka, Nigeria
  • Amara Priscilia Ozoji University of Nigeria, Nsukka, Nigeria

Keywords:

Digital channels, internet banking, financial performance, Digital channels, internet banking, financial performance, ATM, POS, ROA, ROE, Nigeria., POS, ROA, ROE, Nigeria

Abstract

This study investigates whether digital channels and internet banking are associated with the financial performance of deposit money banks (DMBs) in Nigeria. Over the last decade, the rollout of automated teller machines (ATMs), point-of-sale (POS) infrastructure, and web-based banking platforms has reshaped how Nigerian banks deliver services and interact with customers, prompting sustained interest in whether this infrastructure translates into stronger profitability. Drawing on secondary data for the period 2009 to 2024, obtained from the Central Bank of Nigeria (CBN), the Nigeria Inter-Bank Settlement System (NIBSS), and the annual reports of sampled banks, the study applies multiple regression analysis to examine how digital channel deployment and internet banking usage relate to two profitability indicators: return on assets (ROA) and return on equity (ROE). The results show that digital channels and internet banking are each positively and significantly associated with bank profitability. This suggests that expanding digital infrastructure and deepening online banking adoption go hand in hand with stronger profitability, greater operational efficiency, and improved competitive positioning. The study concludes that well-managed digital infrastructure is a meaningful contributor to operational efficiency and recommends that Nigerian banks sustain investment in digital transformation.

Author Biography

Robinson Onuora Ugwoke, University of Nigeria, Nsukka, Nigeria

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Published

2026-09-03

How to Cite

Eze, N. O., Ugwoke, R. O., Ugwoke, O. V., Ozor, D. C., & Ozoji, A. P. (2026). Digital channels and internet banking as drivers of financial performance in Nigerian deposit money banks. International Journal of Economic Perspectives, 20(9), 970–982. Retrieved from https://www.ijeponline.org/index.php/journal/article/view/1377

Issue

Vol. 20 No. 9 (2026)

Section

Peer Review Articles
Copyright & Licensing

Copyright (c) 2026 Nnanyelugo Onyedikachi Eze, Robinson Onuora Ugwoke, Obioma Vivian Ugwoke, David Chidi Ozor, Amara Priscilia Ozoji

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