Online Banking and Deposit Money Banks in Nigeria: A Financial Appraisal

Abstract

This is a quantitative study that examined the financial appraisal of online banking on deposit money banks in Nigeria between 1991 and 2015. The study adopted Fully Modified Ordinary Least Squares (Fully Modified OLS) to measure the relationship among the variables. The findings of the study showed that interaction of online banking and Deposit Asset Ratio has positive significant impact on the profitability of the Deposit Money Banks in Nigeria in the long run, and that interaction of online banking and Loans to Asset Ratio has significant impact on the profitability of the Deposit Money Banks in Nigeria in the long run. The study therefore recommends that Deposit Money Banks should make stronger efforts to encourage the continuous use of online banking.