Importance of Electronic Banking Operations and Deposit Money Banks’ Performance: A Study of Polaris Bank Limited, Lagos

Abstract

This paper investigates the importance of electronic banking technologies and their applications to enhance better delivery of banking services by the deposit money banks in Lagos State, Nigeria. All Nigerian banks have invested heavily in sophisticated computer soft and hardware facilities with the ultimate aim to deliver efficient and effective services to their numerous customers. The study investigates how various electronic channels and computer applications are being used to carry out different banking operations to render superior services to delight their customers.

The study employed survey research design and two hundred and forty-two (242) copies of research instruments were administered to the staff of Polaris Bank made up of senior, middle level and junior staff of the institution. The response rate was 214 which represents 88.4% of the instruments distributed. The Statistical Package for Social Sciences (SPSS) software was used to analyse the data.

The result of the multiple regression analysis showed that electronic banking has a significant effect on customer satisfaction (? = 0.665, t = 12.955, p<0.05), electronic payment has a significant effect on sales growth (? = 0.709, t = 7.125, p<0.05) and electronic marketing has a significant effect market share of Polaris bank (? = 0.156, t = 2.991, p<0.05).

The study concluded that electronic banking operations have a positive effect on deposit money banks performance.

It is recommended that for banks to enhance their performance, they need to invest in acquisition of modern technologies to drive their operations to enable them render seamless transactions processing on continuous basis. Such application of appropriate technologies wold also improve the quality of overall service and its positive multiplier effects on the overall development of financial institutions in the country.