The Impact of Internet Banking on Profitability of Commercial Banks in Nigeria (a Case Study of Fidelity Bank Plc)
CHAPTER ONE
OBJECTIVES OF THE STUDY
The main objective of this study is to examine the impact of internet banking on profitability of commercial banks in Nigeria, using Fidelity bank plc as a case study. Specific objectives of the study are:
- To examine the relationship between Automated Teller Machines Installed and profitability of Fidelity bank plc.
- To examine the relationship Point on Sale Channels issued and profitability of fidelity bank plc.
- To examine the relationship between debit/credit cards issued to customers and profitability of Fidelity bank plc.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Concept of Internet Banking
Internet Banking offers several types of services through which customers of the bank can request for, get information and can also carry out most of their banking transactions through their smart devices and computers (Suriya, Mahalakshmi & Karthik, 2012). Chang and Hamid (2010) defined Internet Banking as the process through which customers complete banking transactions electronically without visiting the banks physically or without visiting brick and mortar bank. Alsajja and Dennis (2010) defined Internet Banking as the process of providing banking services through technology without using physical resources of banks as well as staff. According to Gerrard and Cunningham (2003) Internet Banking is defined as the usage of Internet and Telecommunication networks to deliver banking services to customers. Kim et al (2006) defined Internet Banking as the process whereby the customer is able to access, control and use his or her account over the Internet. They described Internet Banking as the act of conducting financial intermediation on the internet. According to Arunachalam and Sivasubramanian (2007), Internet Banking is where a customer can access his or her bank account via the Internet using personal computer (PC) or mobile phone and web-browser. The growing acceptance of the digital lifestyle as stated in Salehi and Alipour (2010),has brought a significant transformation in customers expectations from their financial service providers.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of internet banking on profitability of commercial banks in Nigeria (A case study of Fidelity Bank PLC)
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of internet banking on profitability of commercial banks in Nigeria (A case study of Fidelity Bank PLC) In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of internet banking on profitability of commercial bank in Nigeria
Summary
This study was on the impact of internet banking on profitability of commercial banks in Nigeria (A case study of Fidelity Bank PLC). Three objectives were raised which included; To examine the relationship between Automated Teller Machines Installed and profitability of Fidelity bank plc, to examine the relationship Point on Sale Channels issued and profitability of fidelity bank plc and to examine the relationship between debit/credit cards issued to customers and profitability of Fidelity bank plc. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of fidelity bank in Uyo was selected randomly. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up human resource managers, accountants, customer care officers and marketers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
In this study, we evaluated the impact of internet banking on the profitability of Commercial Bank of fidelity Bank Plc. in Nigeria. From our findings, a positive and significant relationship was established between return on asset (ROA), return on equity (ROE), net income margin (NMG) and internet banking service expenses (IBSE).
Recommendation
The empirical results of the study have revealed significant relationship between the log of internet banking services expenses (IBSE) and return on asset (ROA).We therefore, advocate for more ATM facilities which should be placed at strategic location for easy access.
- Marketing and education of internet banking service and products should be intensified to attract more customers which enhances profitability.
- The bank should conduct more research to find new internet banking product to attract and to retain her potential customers.
References
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