DEPOSIT MONEY BANKS’ PERFORMANCE: DOES VIRTUAL AND DIGITAL BANKING MATTER?

This study focused on evaluating the impact of digital and virtual banking on the operations of Nigerian deposit money banks. It used a retrospective or ex post facto design analyzing some financial data from the banking industry to achieve the research goals. The analysis and testing were conducted using the Ordinary Least Squares (OLS) multiple regression technique. The results indicated that the performance of Nigerian deposit money banks was positively correlated with ATMs, although the correlation was not statistically significant. Similarly, while not statistically significant, internet banking appeared to enhance the performance of these banks. Additionally, there was a positive and significant relationship between the use of point of sale (POS) systems and manufacturing sector output in Nigeria. Based on these findings, the study recommended that the public banking sector should be extensively educated by monetary authorities about the benefits, practicality, and importance of electronic banking channels. Furthermore, banks should actively adopt electronic banking products to align with the objectives of Central Bank policies.