E-Banking Charges and Financial Performance of Deposit Money Banks in Nigeria: Perception of Customers
DOI:
https://doi.org/10.37075/FABA.2026.1.09Keywords:
E-Banking Charges, Customers Deposits,, Bank Lending Ratio, financial performanceAbstract
Purpose: This study investigates the effect of electronic bank charges on the financial performance of deposit money banks in Nigeria.
Design/Methodology/Approach: This study examined variables such as e-banking charges, bank lending ratios, customer deposits, return on assets, and return on equity. Using an ex-post factor research design, the study population consisted all the fourteen (14) registered deposit money banks in Nigeria licensed by the Central Bank of Nigeria as at 31st December 2023 for secondary data collection purpose. The primary data population comprised all the residents in Ijebu North local government in Ogun State, out of which 200 residents were selected by simple random sampling technique as the sample size and a sample of 10 DMBs through purposive sampling method. Data were collected via questionnaires and annual reports of all the sampled DMBs over a 10-year period between 2014 and 2023, yielding a panel data of 100 observations.
Findings: The results show that EBC has a negative effect on ROE (t = − 0.3586, p = 0.0508) and ROA (t = − 14.7071, p = 0.0000). In addition, CD has a statistically significant positive effect on ROE (t = 1.55E-07; p = 0.0430), while BLR has an insignificant effect on ROE. Furthermore, there have been reports of an insignificant effect of CD and BLR on ROA.
Practical Implications: The study concluded that although customers generally perceive electronic banking services as convenient and beneficial, concerns about the transparency, fairness, and affordability of banking charges remain significant. Banks should be cautious not to prioritise revenue generation from service charges at the expense of customer experience.
Originality/Value: Despite growing reliance on digital revenue, limited scholarly attention has been paid to the comprehensive evaluation of how e-banking charges influence banks’ financial performance in emerging markets.
Paper type: Research paper
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