Article Type : Research Article
Authors : Oyedokun GE and Oyetunji AR
Keywords : Deposit money banks; Electronic banking service; internal control system; Organisational performance
This
study examines the effect of electronic banking service quality and internal
control systems on the performance of selected deposit money banks in Nigeria.
The study adopts a survey design. A validated questionnaire was used to collect
data, 460 copies of the questionnaire were administered to bank customers. The
Cronbach’s alpha reliability coefficients for the constructs ranged from 0.72
to 0.91. The study employed descriptive statistics as well as inferential
statistics. Multiple regression analysis was used to test the hypotheses
formulated. The result shows that E-banking service quality and internal
control system has a significant effect on the organizational performance of
DMBs in Nigeria. This study concluded that there was a statistically
significant effect of E-banking service quality (E-banking service efficiency,
safety, and transaction support) and internal control system (control
environment, control activities, and risk assessment) on each of the measures
of organizational performance which include customer satisfaction, operational
efficiency. Hence, the study recommended that management effort is required to
continue to give assurance to bank customers that E-banking platforms are safe,
also the management of DMBs in Nigeria should continue to adopt up-to-date
control systems using innovative technology and as much, as improve their
control environment to ensure operational efficiency.
The banking sector plays a vital role in the economy of many nations, and this is because banks serve as financial intermediaries connecting the surplus and deficit economic agents, thereby driving economic growth. Hence, it is important that as the world is experiencing a significant level of disruptions to business operation occasioned by the coronavirus pandemic, US-China trade wars, and Russia-Ukraine war, banks must find innovative means to meet customer expectations in service to guaranty operating as a going-concern organization. The global banking sector outlook suggests that US banks, compared to their European, Asia-Pacific, South America, and the Middle East and Africa (MEA) counterparts, are ahead on multiple measures. Aggressive governmental interventions and stringent regulations aided in bringing US banks back into balance more swiftly (Mon & Mon, 2019). More recently, positive GDP growth, tax cuts, and higher interest rates have improved the industry's position. Total assets in the United States reached a peak of $17.5 trillion. Capital levels are up as well, with the average tier 1 capital ratio standing at 13.14 percent. Return on equity (ROE) for the industry is at a post-crisis high of 11.83 percent. Efficiency ratios are also at their optimum. Similarly, the US banking system is strong in terms of nonperforming loans and the number of failing institutions [1]. In Nigeria the ripple effect of the pandemic, rising security challenges and separationist movement across the country, and Federal government policy inconsistencies have created tougher times for many Nigerian businesses including banks and this has negatively affected the performance of the banking sector in the country. In addition, the proshare economy report stressed that Deposit money banks (DMBs) continue to grapple with significant Non-Performing Loans (NPLs), regulatory hurdles, and an unstable economic environment [2]. Also, the ripple effect of bank employees getting involved in insider-related fraud activities could be responsible for overall bank efficiency. These issues raised have been attributed to the inability of the bank operators to conduct comprehensive risk management for loan applications, engaging in unethical practices which cloud due process in the administration of banking financial activities in the loan application [3]. To address these issues in Nigeria’s banking sector for the better, both the industry regulator and banking experts suggested that the bank's internal control mechanisms can be used as a frame to address the challenges. This is because internal control ensures compliance with the code of best practices. More so, internal control mechanisms ensure the comprehensive risk assessment of financial activities and operational compliance following ethical practice, while ensuring the delivery of sound banking services that maximize shareholders' wealth. In addition, KPMG in a survey on customer experience opined that all the DMBs in Nigeria had not met all the six thresholds (personalization, integrity, expectation, time & effort, resolution, and empathy) for measuring excellent customer experience at the desired level [4]. This means bank customers are merely getting by, given the lack of credible alternatives to keep their funds safe. Changing times need banks to take significant steps to modernize, capitalize on changing technologies, keep ahead of new competitors, and satisfy client demands. To achieve this, banks must develop and implement agile electronic banking mechanisms. This will address the many customer dissatisfying experiences with long frustrating queues at the banks. It is important to stress that the sector is battling problems ranging from inefficient service delivery, people’s distrust for the banking sector, and rising bad loans. It is against this backdrop of events that this study evaluated the effect of electronic banking service quality and internal control systems on the performance of selected deposit money banks in Nigeria. This study examines the effect of electronic banking service quality and internal control systems on the performance of selected deposit money banks in Nigeria. The specific objectives are to:
Organization performance
Organizational performance can thus be defined as the
measure of the outcome compared to the target or inputs within an organization
for it to reach its goals (Mon & Mon, 2019). This suggests that
organizational performance is a complete view of a company within a certain
period regarding the results of its company's operational activities.
Organizational performance is a broad term referring to an assessment of the
overall success or failure of the organization.
It can also be defined as how an organization successfully transforms
its inbound logistics into meaningful outputs to accomplish a specific result
[5]. However, it could also be defined as the capability of a firm to produce
desirable outcomes. Another scholar stated that organizational performance is a
measure of financial capability in terms of profit level, sales turnover
growth, and the investment value of an organization [6]. Business performance
can be defined and measured in many different ways, and it is a
multi-dimensional concept [7]. Organizational performance is defined as the
extent to which the organization can meet the needs of its stakeholders and its
own needs for success and survival. As a result, while meeting a description of
performance may result in a high market share, a specific profit margin, or
having the greatest products, these factors are not appropriately equated with
performance. Organizational performance is influenced by many elements that are
combined in unique ways to both enhance and detract from performance. Organizational
performance can also be defined from the angle of customer results, people
result, operational results, and growth results. Organizational performance
compares the expected results with the actual ones, investigates deviations
from plans, evaluates individual performance, and examines the progress made
towards meeting the targeted objectives.
Customer satisfaction
Customer Satisfaction is the emotional and
psychological result of individual customer experiences. In the same vein,
Customer Satisfaction is considered as the resultant effect of evaluating the
cost-benefit derived from buying and consuming a firm's product. Customer
satisfaction is the customer's fulfilment response. It is a judgment that a
product or service feature provides a pleasurable level of consumption related
to fulfilment, including elements of under or fulfilment. In another way,
customer satisfaction refers to the extent to which customers/clients are happy
with the products or services provided by a business or an organization [8].
Customer satisfaction refers to the customer's general intention and perception
based on their consumption or user experience of a product or service. It
examines if the product or service performance matched the customer's
expectations and assesses whether the product or service performance met the
customer's expectations. If the product or service does not meet the customer's
needs or desires, the customer will be unsatisfied; nevertheless, if the
service performance meets the customer's expectations, the customer will be
happy and satisfied. Customer satisfaction is defined as a response (cognitive
or affective) to a specific topic (a purchase experience and or associated
product) that occurs at a specific time (post-purchase, post-consumption). Customer
satisfaction is the total utility derived from the post usage of products and
services. Customer satisfaction is proxy by service quality:
reliability—responsiveness, tangibility, assurance, and empathy. Customer
Satisfaction is viewed as an emotional response, which results from a cognitive
process of evaluating the service received against the costs of obtaining the
service.
Operational
efficiency
Operational efficiency is to do with achieving maximum
satisfaction with minimum or no cost [9]. On the other hand, operational
efficiency refers to the capability of an organization to deliver products or
services to its customers in the most cost-effective manner possible while
still ensuring the high quality of its products, service, and support. Operational
efficiency occurs when appropriate and suitable people, processes, and
technology are combined to deliver products or services to its customers by
organizing the core processes in response to the changes in market forces. It
is a valuable measure utilized in managing the available resources [10].
Operational efficiency is the ability of a service sector to deliver goods or
services to its users in the most cost-effective manner possible while still
ensuring the high quality of its products, service, and support [11].
Efficiency is obtaining the maximum possible performance for any given
expenditure of resources. In addition, efficiency had been categorized into
economic efficiency, production efficiency, technical efficiency, and
operational efficiency. Primarily, organizational efficiency is determined by
various factors, one of which is human resource capability. There are several
types of efficiency: technical efficiency, dynamic efficiency, allocative and
productive efficiency, and social efficiency [12]. One benefit of firm
efficiency is that economic value and social welfare are created whenever a
firm produces a set of outputs valued by customers at a rate more than the
value of the inputs consumed to produce the outputs [13]. Operational efficiency
enhances the continuous improvement of the business and its products on
offerings; increases efficiency and profit through enhanced innovative
activities and higher productivity at reduced costs; increases product/service
quality through innovation; and culture shift to one of continuous improvement
which gives the firm a distinct advantage in the competitive marketplace.
Operational efficiency plays a vital role in improving organizations' current
and future performance regardless of the industry and sector within which the
organization operates [14]. The economic cost incurs due to operational
inefficiency is a cause of concern for an organization that lacks operational
efficiency.
First conceived and developed in Finland, E-Banking,
or the distribution of financial services via electronic systems, has spread
among customers due to rapid improvement in IT and through competition between
banks [15]. E-Banking services are a variety of e-channels for making bank
transactions through the Internet, TV, mobile, telephone, and computer. Banking
customers' service demands and expectations are growing as technology
progresses and improves. Nowadays, the client wants to be able to operate and
conduct banking transactions from any location without having to go to the
bank, at any time without being restricted to the bank's working hours, and to
do all payments (buying, bills, stocks) in a timely and cost-effective manner.
To fulfil these objectives, financial service quality should be defined by
independence, elasticity, freedom, and adaptability [16]. E-banking in Lebanon
is currently limited mainly to the Internet and mobile phones. This is owing,
in part, to the country's delayed development of IT infrastructure. Keeping
this in mind, we define it as the ability to conduct banking and financial
activities electronically via the Internet or mobile telephone applications.
The concept of e-banking is a delivery channel for banking services. Banks have
electronic channels to communicate and transact business with both
international and domestic corporate customers. With the development of the
Internet, banks are increasingly using electronic channels to receive
instructions and deliver their products and services to their customers. Although
the variety of products and services provided by banks via the electronic
channel varies greatly in content, capability, and sophistication, this type of
banking is commonly referred to as e-banking or Internet banking. The automated
distribution of new and classic banking products and services directly to
customers via electronic, interactive communication channels is referred to as
e-banking. The definition of e-banking varies according to study, in part
because electronic banking refers to a variety of services that allow bank
clients to seek information and perform most retail banking transactions
through a computer, television, or mobile phone [17]. E-banking is defined as
an electronic connection between a bank and a customer to prepare, manage, and
control financial transactions. Electronic banking can also refer to the
following platforms: Internet banking (or online banking), telephone banking,
television-based banking, mobile phone banking, and e-banking are all forms of
banking (or offline banking). E-banking refers to the systems that allow users
of financial institutions, whether people or corporations, to access accounts,
acquire information on financial products, and transact business, or services
over a private or public network, such as the internet on a computer or mobile
phone. Customers use an intelligent electronic device, such as an Automated
Teller Machine (ATM), Personal Computer (PC), Personal Digital Assistant (PDA),
kiosk, or telephone, to access e-banking services [18]. While some sources
confine the phrase to internet banking, others limit it to retail banking or
both retail and corporate banking [19]. E-banking is defined as the delivery of
retail and low-value banking products and services via electronic channels.
Deposits, lending, financial advice, electronic bill payment, account
management, and the provision of other electronic payment products and services
are examples of such products and services [20]. Banks can provide financial
services via a variety of electronic distribution channel technologies,
including Internet technology, telephone banking technology, video banking
technology, and WAP technology. They also indicated that Internet technology is
the main electronic distribution channel in the banking industry. In other
terms, e-banking is an online banking service that includes accessing accounts,
transferring funds across accounts, and providing an online financial service
[21]. In the 1990s e-banking was under-utilized as business organizations used
it only to market their products and services [22]. Electronic banking is a
cutting-edge platform that allows financial institutions and clients to access
their records, move payments, and obtain the most up-to-date information about
their monetary goods via public or private systems, such as the internet.
Internet banking controls sales, deals, and access to services without
requiring the client to be on the bank premises. Among other advantages,
e-banking saves time, eliminates the need for clients to visit a bank office,
and allows banks to expand their customer base, resulting in increased earnings
[23].
The internal control system is enshrined in the
concept of Risk management; because it involves discovering risks, assessing
their effects, selecting a series of processes, and evaluating the results.
Risk management is the determination, classification, and prioritization of
risks followed by the unified and efficient utilization of resources to lessen,
monitor, and manipulate the quantity and/or effect of disastrous events [24].
Risks can arise from uncertainness in business markets, projection flops,
statutory liabilities, credit risk, accidents, physical causes and disasters as
well as wilful attacks from an antagonist. Risk is broad, complex, and
frequently interconnected, necessitating management rather than panic. Risk can
be avoided as well as managed [25]. Risk management helps to assure that an
organization identifies and understands the risks to which it is unprotected.
Furthermore, risk management can be implemented through sourcing, stockpiling,
insurance, supplement creation, contractual obligations, collaborative
activities, and careful supplier selection. Operational risk, decision risk,
supplier base erosion, Globalization, acquisition mergers and alliances,
inertia, and just-in-time relationship hazards are examples of risks. Assessing
risks is an ongoing process thus risk management involves risk identification,
risk estimation, risk analysis/assessment, risk evaluation, risk reporting and
communication, and then risk monitoring /control and review [26]. The risk of
loss caused by inadequate or failing internal systems or external events is
defined as operational risk. This operational risk refers to as operational
expenses that reduce the profitability of banks. Liquidity risk occurs when the
probability of a bank lacking cash when needed for operational activities and
settling the credit request of customers is evident [27]. The inability to
obtain funds on time may result in customer loss and lower earnings. When
consumers fail to pay their loans, the bank suffers losses, which might
eventually deplete its capital [28]. Risk identification, estimation, analysis,
evaluation, and control are all part of risk management. Determine the effect
and profitability of potential supply chain risks by understanding the nature
of the risk. When the risk analysis process is completed, the estimated risk
must be compared to the risk criteria defined by the organization to have a
corrective mechanism in place to improve the firm's profitability levels [29].
Inherent risk management is its advantages. Risk management addresses the risks
attached to their activities to achieve sustained benefits within each activity
and across the portfolio of all activities [30]. It also serves as a defensive
mechanism. In addition, risk introduces the thought of the probability of how
an unpleasant situation can be minimized. Efficient risk management seeks to
increase the benefits related to a venture commonly a reduction in the period
or outlay while decreasing the risk itself. In addition, effective risk
assessment allows the organizations to better understand their risk profile and
most effectively target risk management resources that will help the banking firms
avoid or reduce risks hence improving their performance.
The theoretical background for this study is the
Knowledge-Based Theory. The knowledge-based theory originated from the
literature on strategic management. It is an extension of the resource-based
view theory which was developed by Penrose (1959) and expanded by Wernerfelt
(1984,) Barney (1991), Conner (1991) [31, 32]. The knowledge-based theory of
the company regards knowledge as a firm's most strategically crucial resource.
Knowledge base theory assumes that firms use knowledge to produce goods and
services that knowledge is the most strategically important of a firm's
resources, that knowledge is created and held by individuals rather than
organizations, and that firms exist because market forces are incapable of
coordinating the knowledge of individual specialists. This is the role of
management within a corporation. Furthermore, the following assumptions are
made in this theory: Firms employ knowledge to produce goods and services;
knowledge is the most strategically essential of a firm's resources; knowledge
is developed and kept by individuals, not organizations; firms exist because
markets are incapable of combining the knowledge of individual specialists.
This is the role of the management within a firm; Knowledge-based resources are
characterized by difficulty of imitation and social complexities; Knowledge
draws strategic significance from its appreciative value as opposed to other
traditional factors of production, which depreciate. The critics of the
knowledge-based theory believe that knowledge is not enough for a firm to
achieve or gain a competitive advantage over its rivals. To the critics, other
factors could aid an organization to gain a competitive advantage over its
rivals [33]. Its proponents say that because knowledge-based resources are
typically difficult to mimic and socially complex, organizations' varied
knowledge bases and capacities are the primary determinants of sustained
competitive advantage and better corporate performance [34]. This theory is
also backed by the fact that knowledge is embedded and transmitted through
various entities such as corporate culture and identity, policies, routines,
documents, systems, and personnel. This perspective, which comes from the
strategic management literature, builds on and expands on the resource-based
view of the firm (RBV). Knowledge is a key intangible resource that is the
primary source of a sustainable competitive advantage [35]. The firm's role is
not only to acquire a variety of resources and talents but to develop
organizational knowledge to produce a lasting competitive advantage. The
knowledge-based theory is founded on the notion that superior access to and
integration of specialized information results in resource and capability-based
advantages [36]. Individuals produce and hold knowledge, but it can become
embedded inside an organization as organizational processes and routines are
repeated [37]. Firms can thus be considered as knowledge bundles, with knowledge
serving as a source of differentiation and competitive advantage. Creation and
transfer are two essential knowledge activities in organizations connected with
knowledge bundling [38]. The knowledge-based theory states that the
capabilities of an organization's knowledge are the only resource that may help
in gaining and maintaining a competitive advantage, and, therefore
organizations must put focus on building their knowledge capabilities in terms
of sensing capability, seizing capability, reconfiguration capability, network
capability, and innovation capability. Organizations need to integrate and
provide a system and structural arrangements for coordination and cooperation
among its capability.
Examined the effect of E-banking on the performance of
deposit money banks in Nigeria, through the use of eight selected deposit money
banks categorized with international authorization in Nigeria [39]. This study
adopted an ex-post facto research design because data were collected from secondary
sources through annual reports and the statistical bulletin of the Central Bank
of Nigeria over the period 2011 to 2020. Mobile banking, online banking,
automated teller machines, and point of sale were used to assess e-banking,
while Return on Assets (ROA) was used to assess bank performance. The study
applied ordinary least squares (OLS) in its analysis to determine the effect of
E-Banking on the performance of deposit money banks in Nigeria. The study's
findings revealed that mobile banking (MB) and point of sale (POS) had a
substantial impact on the performance of Nigerian deposit money banks while
online banking (OB) and automated teller machine (ATM) did not have a
significant influence on the performance of deposit money banks in Nigeria. Some
of the recommendations are that deposit money bank management should deliver
service excellence and increase service quality. Governments at all levels
should create an enabling environment and social infrastructures, such as
reliable power supply, high-quality telecommunications, and affordable and
reliable internet access. Examine the connection between Electronic Banking
service quality and customer satisfaction [40]. The study used a survey
research approach. 344 participants were selected randomly for the study. The
data acquired from the sampled 302 respondents indicates that the qualitative
characteristics of E-banking services (innovation, technological competence,
reliability, and tangibility) all influence consumer satisfaction. Furthermore,
consumer satisfaction was positively influenced by innovation, technological
competence, dependability, and tangibility. All four hypotheses were supported.
As a result, we conclude that deposit money institutions must improve their
E-banking service to boost consumer happiness. Investigated customers'
perceptions regarding e-banking in the Maldives. It covers customers’
perceptions of online banking activities, their impact, and promotional
measures used by banks to promote online banking in the study area [41]. The
customers' choice of banks is influenced by the quality of e-banking services.
The questionnaire was used to gather data from 106 respondents. According to
the findings, 87.5% of respondents believe that e-banking saves time. The
investigation found that the perception of e-banking services supplied by banks
is satisfied to some extent regarding different income groups of respondents.
The study discovered that gender, education, and tourism income all play a
significant effect in the use of online banking in the studied area. The study
supported the conceptual framework by indicating that if consumers' abilities
can be improved, they will utilize online banking more frequently. Banks can
provide financial services to customers via the internet at a far cheaper cost
than traditional banking in the Maldives. Studied the effect of internal
control on the performance of commercial banks in Nigeria [42]. The purpose of
the research is to determine the impact of internal control systems on the
performance of Nigerian commercial banks. The survey method was used, and the
study used stratified random sampling, with 382 questionnaires distributed to
workers from the operations, marketing, and security departments of Nigerian
commercial banks. The questionnaire is a 5-point Likert scale while the data
collected was analysed using Statistical Package for the Social Sciences (SPSS)
version 23 (v23) and Smart PLS 3. The findings of the study revealed that there
is a positive and significant relationship between the four components of
internal control (control environment, control activities, monitoring, and risk
assessment) and bank performance. While
it was discovered that knowledge and communication had a negligible beneficial association
with bank performance. The study suggested that future research should include
other characteristics such as risk culture and corporate governance. Future
researchers can also investigate control variables such as bank size, bank age,
and so on assessed the issues and challenges of e-banking in Nigeria [43]. The
objective was to explore the impact of e-banking on workers and job security in
the Nigerian banking industry, to investigate the relationship between
e-banking and the quality-of-service delivery of commercial banks in Nigeria,
to assess the relationship between e-banking and financial transaction
security, and to determine whether e-banking influences customer satisfaction
in the Nigerian banking industry. Using convenience random sampling techniques,
a sample of 300 respondents was chosen from three selected bank branches in
Benin, Nigeria. The study collects primary data through the use of
questionnaires as the research tool. The study findings show that employees'
job security has a positive relationship with E-banking and has a significant
influence on E-banking in Nigeria; customer satisfaction has a positive
relationship with E-banking and also influences E-banking penetration in
Nigeria; security of financial transactions has a positive relationship with
E-banking but has an inverse significant impact on E-banking, and services
delivery has a positive relationship with E-banking but has an inverse
significant impact on E-banking. The study recommends that for effective
e-banking penetration, investors' education and marketing of e-banking products
be the key strategies banks should use to attract more customers to embrace
e-banking and increase security for e-banking products, reduction of charges on
e-banking products, and increase the number of ATM outlets in Nigeria as part
of measures to improve quality service delivery and promotion of e-banking as
this would exacerbate the recent demand for financial inclusion as part of the
Central Bank of Nigeria's monetary policy. Assessed electronic banking services
are provided by virtually all the deposit money banks within Yenagoa metropolis
in Nigeria, to decongest the banking hall and provide convenient and
satisfactory services to customers [44]. The study examined the effect of
e-banking service quality on customer satisfaction in Yenagoa. Survey data was
collected from 186 DMB customers (respondents) in the research area. The data
were analysed using both correlation and regression methods. Customers were
reasonably satisfied with the quality of e-banking services (accessibility,
convenience, speed, and security), but dissatisfied with the fees/charges in
comparison to the level of services given by banks. According to the findings,
accessibility, convenience, quickness, and security all have a considerable
beneficial impact on customer satisfaction. Fees/charges, on the other hand,
have a large inverse association with customer satisfaction. It is consequently
proposed, among other things, that DMBs cut their fees/charges on e-banking
services, as this will increase patronage of the e-banking services. This, in
turn, will result in less congestion in banking halls and higher customer
satisfaction [45].
The study ?d?pted survey research design as it studied a subset of a population at a point in time and determine the effect of e-banking service quality and internal control system on the organizational performance of DMBs in Nigeria. The universal population for this study comprises 111.54m bank customers. However, the target population of bank customers in Lagos State is unknown. Given the target population is unknown (infinite), this study adopts the Cronchan formula determining sample size from
an infinite population and it is stated
Where,
n0 - Sample
size, which was estimated
Z2 - The
selected critical value of the desired level of confidence or risk
p - The
estimated proportion of an attribute that is present in the population or
maximum variability of the population
e - Desired
level of precision or margin of error
The
following values can be used for estimating the sample size-
n0 - ?
Z2 - 95%
confidence level (The value of (1-?) in the Standard Normal Distribution
z-table, which is 1.96 for 95%)
p - 50%
variability of the population (which is maximum)
e - 5%
margin of error
Put the value in the given formula-
Hence, the sample size for bank
customers is 384. To enhance the response rate due to anticipated non-response,
20% of the sample size amounting to 76 will be added to the calculated sample.
Scholars have employed this procedure to aid their response rate2. Therefore,
the accessible DMB customers in Lagos State sampled was 460. Hence, 460 copies
of the questionnaire were administered to them accordingly. Purposive sampling
was employed to select the bank’s customers in Lagos State. The primary data
was collected using a structured questionnaire for the study. A pilot study was
conducted using bank customers in Ibadan because they share similar attributes
with bank customers in Lagos State. A sample of 46 representing 10% of the
sample size was used for the study. Data were analysed using descriptive
statistics and inferential statistics. Multiple regression analysis will be
used to test the hypotheses formulated.
Model:
Y = f (XW)
Y = Dependent variable:
Organisational performance (OP)
Y = Independent variables: X=
E-banking service quality (EBSQ)
W= Internal Control System (ICS)
The first
independent variable- E-banking service quality (EBSQ) is measured as:
X1 =
E-banking service effectiveness (EBSE),
X2 =
E-banking service Safety (EBSS),
X3 =
E-banking service Support (EBST)
The second
independent variable- The internal control system (ICS) is measured as:
w1 = control
activities (CA),
w2 = Risk
Assessment (RA),
w3 = Control
Environment (CE)
The
dependent variable- Organisational performance (OP) Y is measured as:
y1= Customer
Satisfaction (CS),
y2=
Operational Efficiency (OE)
The
following acronyms are compiled to represent the dependent, and independent
variables under investigation in the present study. They are as follows;
OP= (CS, OE)
EBSQ = (EBSE, EBSS, EBST)
ICS = (CA, MT, EN)
Descriptive Analysis Results
Profile of gender indicated that 196 respondents representing 49.7% were male while 197 respondents representing 50.0% were female, indicating that most of the respondents were female. Demographic and personal profiles of respondents as shown in table 1 by age revealed that 176 respondents representing 44.7% were between the ages of 20-25 years, 144 respondents representing 36.5% were between 26-40 years, and 73 respondents representing 18.5% were 40 years and above, indicating that most of the respondents were between 20-25 years (Table 1). Meanwhile, 195 respondents representing 49.5% had HND/BSc, 114 respondents representing 28.9% had MSc, and 84 respondents representing 21.3% had Ph.D. According to results in (Table 2). 44.4% of respondents rated very high that their experience with the E-banking service is good, 40.1% high, 14.1% low, and 1.0% very low. On average, the respondents indicated that their experience with the E-banking service is good and has a mean of 3.28. Results also indicated that 37.1% of respondents rated very high that they encourage friends, 42.1% high, 16.5% low, and 4.1% very low. On average, the respondents indicated that they encourage friends has a mean of 3.12. Results also indicated that 37.6% of the respondents rated very high that they have been loyal customers when it comes to E-banking service, 43.3% high, 14.7% low, and 4.1% very low. On average, the respondents indicated that they have been loyal customers when it comes to E-banking service has a mean of 3.15. Results also indicated that 31.0% of the respondents rated very high and that the overall service quality of E-banking is excellent, 46.7% high, 18.0% low, and 4.1% very low. On average, the respondents indicated that the overall service quality of E-banking is excellent and has a mean of 3.05. Results also indicated that 38.1% of respondents rated very high that they are happy when it comes to E-banking service, 36.5% high, 20.6% low, and 4.6% very low. On average, the respondents indicated that they are happy when it comes to E-banking service has a mean of 3.08. The weighted mean for customer satisfaction is 3.14 which indicates that on average, respondents agreed with most of the statements on the high scale as it relates to how customer satisfaction is an appropriate measure of DMBs performance. Moreover, the mean score of 3.14 suggests that customer satisfaction for DMBs is moderately high. In Table 3, operational efficiency was presented as one of the measures of organizational performance for the DMBs in Nigeria using descriptive statistics and computed for each statement to reveal the frequencies, percentages, and mean on a four-point Likert-type scale (4 for very high extent (VHE), 3 for high extent (HE), 2 for low extent (LE), and 1 for very low extent (VLE) (Table 3). According to results in Table 3, 36.5% of respondents rated very high that there is operational creativity on display in their bank, 41.1% high, 17.8% low, and 4.3% very low. On average, respondents indicated that there is operational creativity on display in their bank has a mean of 3.10. Results also indicated that 33.8% of respondents rated very high that they are responsive to customer complaints, 46.2% high, 14.7% low, and 5.1% very low. On average, the respondents indicated that they are responsive to customer complaints has a mean of 3.09. Results also indicated that 43.1% of the respondents rated very high that services delivered through E-banking are quick, 35.5% high, 17.0% low, and 4.1% very low. On average, the respondents indicated that services delivered through E-banking are quick has a mean of 3.18. Results also indicated that 36.0% of the respondents rated very high that information on the banking website is clear and easy to understand, 39.6% high, 20.1% low, and 4.1% very low. On average, the respondents indicated that information on the banking website is clear and easy to understand and has a mean of 3.08. Results also indicated that 37.8% of the respondents rated very high that they are confident their funds are safe with their bank, 41.4% high, 16.5% low, and 4.1% very low. On average, the respondents indicated that they are confident their funds are safe with their bank has a mean of 3.13. Results also indicated that 28.7% of the respondents rated very high that they are confident that the information they share is secured, 48.0% high, 16.8% low, and 6.3% very low.
Table 1: Demographic characteristics of respondents.
Variables |
Category |
Frequency |
Percentage |
Gender |
Male |
196 |
49.7% |
|
Female |
197 |
50.0% |
Age |
20-25 years |
176 |
44.7% |
|
26-40 years |
144 |
36.5% |
|
40 years and above |
73 |
18.5% |
Qualification |
HND/BSc |
195 |
49.5% |
MSc |
114 |
28.9% |
|
|
Ph.D. |
84 |
21.3% |
Source:
Field Survey Results (2022) |
Customer Satisfaction |
VH |
H |
L |
VL |
Mean |
My experience with the E-banking service is good |
175 (44.4%) |
158 (40.1%) |
56 (14.2%) |
4 (1.0%) |
3.28 |
I encourage friend |
146 (37.1%) |
166 (42.1%) |
65 (16.5%) |
16 (4.1%) |
3.12 |
Being a loyal customer when it comes to E-banking service |
148 (37.6%) |
171 (43.3%) |
58 (14.7%) |
16 (4.1%) |
3.15 |
Overall service quality of E-banking is excellent |
122 (31.0%) |
184 (46.7%) |
71 (18.0%) |
16 (4.1%) |
3.05 |
Being happy when it comes to E-banking service |
150 (38.1%) |
144 (36.5%) |
81 (20.6%) |
18 (4.6%) |
3.08 |
Weighted Mean |
|
|
|
|
3.14 |
Source: Field Survey
Results (2022) |
Table 3: Descriptive Analysis of the response to Operational Efficiency
Operational Efficiency |
VH |
H |
L |
VL |
MEAN |
There is operational creativity on display in my bank |
144 (36.5%) |
162 (41.1%) |
70 (17.8%) |
17 (4.3%) |
3.10 |
Responsive to customer complaints |
133 (33.8%) |
182 (46.2%) |
58 (14.7%) |
20 (5.1%) |
3.09 |
Services delivered through E-banking are quick |
170 (43.1%) |
140 (35.5%) |
67 (17.0%) |
16 (4.1%) |
3.18 |
Information on the banking website is clear and easy to understand |
142 (36.0%) |
156 (39.6%) |
79 (20.1%) |
16 (4.1%) |
3.08 |
I am confident my funds are safe with my bank |
149 (37.8%) |
163 (41.4%) |
65 (16.5%) |
16 (4.1%) |
3.13 |
I am confident that the information I share is secured |
113 (28.7%) |
189 (48.0%) |
66 (16.8%) |
25 (6.3%) |
2.99 |
I am confident that the information I share is received by the right
person |
130 (33.0%) |
174 (44.2%) |
60 (15.2%) |
29 (7.4%) |
3.03 |
The communication I receive from my bank tells me what I need to know
to avoid falling for cyber-fraudsters |
113 (28.7%) |
170 (43.1%) |
85 (21.6%) |
25 (6.3%) |
2.94 |
Service disruptions leading to cashback errors are treated timely |
184 (46.7%) |
141 (35.8%) |
44 (11.2%) |
24 (6.1%) |
3.23 |
Weighted Mean |
3.09 |
||||
Source:
Field Survey Results (2022) |
Table
4:
Descriptive Analysis of the response to E-Banking Effectiveness
E-Banking
Effectiveness |
SA |
A |
D |
SD |
Mean |
Information on the banking website is clear and easy
to understand |
192 (48.7%) |
129 (32.7%) |
60 (15.2%) |
12 (3.0%) |
3.27 |
I can easily find what I am looking for on the bank
portal |
165 (41.9%) |
155 (39.3%) |
61 (15.5%) |
12 (3.0%) |
3.20 |
My banking portal has all information I need to
manage my account |
92 (23.4%) |
191 (48.5%) |
90 (22.8%) |
20 (5.1%) |
2.90 |
My banking portal works well technically, loads
quickly, and displays appropriately |
149 (37.8%) |
141 (35.8%) |
62 (15.7%) |
41 (10.4%) |
3.01 |
My banking portal meets my needs |
125 (31.7%) |
166 (42.1%) |
78 (19.8%) |
24 (6.1%) |
3.00 |
I found that the E-banking service is easy to use |
169 (42.9%) |
117 (29.7%) |
71 (18.0%) |
36 (9.1%) |
3.07 |
Services delivered through E-banking are quick |
128 (32.9%) |
163 (41.4%) |
58 (14.7%) |
44 (11.2%) |
2.95 |
Weighted Mean |
|
|
|
|
3.06 |
Source:
Field Survey Results (2022) |
Table 5: Descriptive Analysis of the response to E-Banking Safety
E-Banking Safety |
SA |
A |
D |
SD |
Mean |
I have high confidence in the E-banking service in the bank |
141 (35.8%) |
165 (41.9%) |
71 (18.0%) |
16 (4.1%) |
3.10 |
E-banking is dependable |
101 (25.6%) |
222 (56.3%) |
58 (14.7%) |
12 (3.0%) |
3.05 |
E-banking service provides high protection for my banking transaction |
133 (33.8%) |
158 (40.1%) |
77 (19.5%) |
25 (6.3%) |
3.02 |
I feel secure while making transactions through the internet |
153 (38.8%) |
146 (37.1%) |
73 (18.5%) |
21 (5.3%) |
3.10 |
E-banking services offer secure personal privacy |
126 (32.0%) |
168 (42.6%) |
70 (17.8%) |
29 (7.4%) |
2.99 |
Weighted Mean |
3.05 |
||||
Source: Field Survey
Results (2022) |
E-Banking
Transaction Support |
SA |
A |
D |
SD |
Mean |
I can conveniently process multiple transactions
without issues |
204 (51.8%) |
113 (28.7%) |
71 (18.0%) |
5 (1.3%) |
3.31 |
My banks’ e-banking platforms are very interactive |
132 (33.5%) |
171 (43.4%) |
81 (20.6%) |
9 (2.3%) |
3.08 |
My bank provides adequate information that aids
service delivery |
157 (39.8%) |
137 (34.8%) |
99 (25.1%) |
- |
3.15 |
My bank provides adequate support to address a
customer complaint |
137 (34.8%) |
166 (42.1%) |
82 (20.8%) |
8 (2.0%) |
3.10 |
My bank’s customer care unit is very responsive to
customer need |
146 (37.1%) |
152 (38.6%) |
91 (23.1%) |
4 (1.0%) |
3.12 |
Weighted Mean |
|
|
|
|
3.15 |
Source:
Field Survey Results (2022) |
Table 7: Descriptive Analysis of the response to Control Activities
Control
Activities |
VH |
H |
L |
VL |
Mean |
My bank upheld ethical values in all dealings with
customers |
134 (34.0%) |
166 (42.1%) |
49 (12.4%) |
44 (11.2%) |
2.99 |
My bank has a structure that spells out the
responsibilities of each unit so customers know where to go in times of need |
90 (22.8%) |
205 (52.0%) |
74 (18.8%) |
24 (6.1%) |
2.92 |
My bank conducts a periodic survey to ascertain
customer experience with e-banking safety |
101 (25.6%) |
209 (53.0%) |
63 (16.0%) |
20 (5.1%) |
2.99 |
My bank has integrity and has a core value in all
dealings with customers |
110 (27.9%) |
198 (50.3% |
65 (16.5%) |
20 (5.1%) |
3.01 |
My bank has measures to ensure risk to client data
is minimal to zero |
150 (38.1%) |
125 (31.7%) |
98 (24.9%) |
20 (5.1%) |
3.03 |
Weighted Mean |
|
|
|
|
3.00 |
Source:
Field Survey Results (2022) |
Table 8: Descriptive Analysis of the response to Control Environment
Control
Environment |
VH |
H |
L |
VL |
Mean |
Proper background checks are performed during
customer registration |
101 (25.6%) |
202 (51.3%) |
78 (19.8%) |
12 (3.0%) |
3.00 |
Ethical behavior is seen in how staff address
customers |
116 (29.4%) |
185 (47.0%) |
84 (21.3%) |
8 (2.0%) |
3.04 |
There is a specific staff assigned to a specific
responsibility |
117 (29.7%) |
194 (49.2%) |
74 (18.8%) |
8 (2.0%) |
3.07 |
Emphasis is on automated processes |
141 (35.8%) |
181 (45.9%) |
54 (13.7%) |
17 (4.3%) |
3.13 |
There is evidence of a clear chain of command in my
bank |
125 (31.7%) |
168 (42.6%) |
74 (18.8%) |
26 (6.6%) |
3.00 |
Weighted Mean |
3.05 |
||||
Source: Field Survey Results (2022) |
Risk
Assessment |
VH |
H |
VL |
L |
Mean |
My bank warns against sharing sensitive account
details with strangers |
149 (37.8%) |
125 (31.7%) |
93 (23.6%) |
26 (6.6%) |
3.01 |
There is a unit in my bank dedicated to dealing with
fraud on customer account |
110 (27.9%) |
176 (44.7%) |
87 (22.1%) |
20 (5.1%) |
2.96 |
There are mechanisms in place to mitigate customer
risks |
101 (25.6%) |
161 (40.9%) |
99 (25.1%) |
32 (8.1%) |
2.84 |
Staff attending to customer bear names in the event
of referral |
102 (25.9%) |
173 (43.9%) |
81 (20.6%) |
37 (9.4%) |
2.87 |
My bank has in place mechanisms for mitigating
critical risks that may result in customers being defrauded |
77 (19.5%) |
197 (50.0%) |
86 (21.8%) |
33 (8.4%) |
2.81 |
My bank ensures proper accountability regarding
fraud-related customer complaints about its employee |
106 (26.9%) |
169 (42.9%) |
78 (19.8%) |
40 (10.2%) |
2.87 |
Weighted Mean |
|
|
|
|
2.89 |
Source: Field
Survey Results (2022) |
Table 10: Summary of multiple regression analysis for the influence of E-banking service quality on Customer satisfaction of DMBs in Nigeria
Model Summary |
||||||||||||||||||
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
||||||||||||||
1 |
.429a |
.184 |
.178 |
.56721 |
||||||||||||||
a. Predictors:
(Constant), EBankingTransactionsupport, EBankingEfficiency, EBankingSafety |
||||||||||||||||||
ANOVAa |
|
|||||||||||||||||
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
||||||||||||
1 |
Regression |
28.228 |
3 |
9.409 |
29.246 |
.000b |
|
|||||||||||
Residual |
125.152 |
389 |
.322 |
|
|
|
||||||||||||
Total |
153.380 |
392 |
|
|
|
|
||||||||||||
a. Dependent
Variable: customer satisfaction |
|
|||||||||||||||||
b. Predictors:
(Constant), E-Banking Transaction support, E-Banking Efficiency, E-Banking
Safety |
|
|||||||||||||||||
Coefficientsa |
|
|||||||||||||||||
Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
|
|||||||||||||
B |
Std. Error |
Beta |
|
|||||||||||||||
1 |
(Constant) |
1.654 |
.187 |
|
8.831 |
.000 |
|
|||||||||||
E-Banking
Efficiency |
.352 |
.053 |
.384 |
6.707 |
.000 |
|
||||||||||||
E-Banking Safety |
.003 |
.061 |
.003 |
.053 |
.958 |
|
||||||||||||
E-Banking
Transaction support |
.125 |
.048 |
.126 |
2.629 |
.009 |
|
||||||||||||
a. Dependent
Variable: customer satisfaction |
|
|||||||||||||||||
Source: Field
Survey Results (2022) |
|
Table 11: Summary of multiple regression analysis for the effect of internal control system on the operational efficiency of DMBs in Nigeria
Model Summary |
|
|||||||||||||||||
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
|
|||||||||||||
1 |
.433a |
.188 |
.182 |
.56416 |
|
|||||||||||||
a. Predictors:
(Constant), Risk Assessment, Control activities, Control environment |
|
|||||||||||||||||
ANOVAa |
||||||||||||||||||
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|||||||||||||
1 |
Regression |
28.641 |
3 |
9.547 |
29.996 |
.000b |
||||||||||||
Residual |
123.811 |
389 |
.318 |
|
|
|||||||||||||
Total |
152.452 |
392 |
|
|
|
|||||||||||||
a. Dependent
Variable: Operational efficiency |
||||||||||||||||||
b. Predictors:
(Constant), Risk Assessment, Control activities, Control environment |
||||||||||||||||||
Coefficientsa |
|
|||||||||||||||||
Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
|
|||||||||||||
B |
Std. Error |
Beta |
|
|||||||||||||||
1 |
(Constant) |
1.863 |
.160 |
|
11.669 |
.000 |
|
|||||||||||
Control
activities |
.318 |
.056 |
.341 |
5.704 |
.000 |
|
||||||||||||
Control
environment |
-.028 |
.062 |
-.028 |
-.448 |
.654 |
|
||||||||||||
Risk Assessment |
.124 |
.062 |
.145 |
2.005 |
.046 |
|
||||||||||||
a. Dependent
Variable: Operational efficiency |
|
|||||||||||||||||
Source: Field
Survey Results (2022) |
|
Model Summary |
||||||||||||||||||
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
||||||||||||||
1 |
.501a |
.251 |
.247 |
.47747 |
||||||||||||||
a. Predictors:
(Constant), Internal Control system, E-Banking service Q |
||||||||||||||||||
ANOVAa |
|
|||||||||||||||||
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
||||||||||||
1 |
Regression |
29.773 |
2 |
14.886 |
65.297 |
.000b |
|
|||||||||||
Residual |
88.912 |
390 |
.228 |
|
|
|
||||||||||||
Total |
118.685 |
392 |
|
|
|
|
||||||||||||
a. Dependent
Variable: Performance |
|
|||||||||||||||||
b. Predictors:
(Constant), Internal Control system, E-Banking service Q |
|
|||||||||||||||||
Coefficientsa |
|
|||||||||||||||||
Model |
Unstandardized Coefficients |
Standardized Coefficients |
T |
Sig. |
|
|||||||||||||
B |
Std. Error |
Beta |
|
|||||||||||||||
1 |
(Constant) |
1.346 |
.160 |
|
8.400 |
.000 |
|
|||||||||||
E-Banking
Service Quality |
.545 |
.073 |
.481 |
7.427 |
.000 |
|
||||||||||||
Internal Control
system |
.028 |
.069 |
.026 |
.399 |
.690 |
|
||||||||||||
a. Dependent
Variable: Performance |
|
|||||||||||||||||
Source: Field Survey Results (2022) |
|
On average,
the respondents indicated that they are confident that the information they
share is secured has a mean of 2.99. Results also indicated that 33.0% of the
respondents rated very high that they are confident that the information they
share is received by the right person, 44.2% high, 15.2% low, and 7.4% very
low. On average, the respondents indicated that they are confident that the
information they share is received by the right person and has a mean of 3.03.
Results also indicated that 28.7% of the respondents rated very high that the
communication they receive from their bank tells them what they need to know to
avoid falling for cyber-fraudsters, 43.1% high, 21.6% low, and 6.3% very low.
On average, the respondents indicated that the communication they receive from
their bank tells them what they need to know to avoid falling for
cyber-fraudsters has a mean of 2.94. Results also indicated that 46.7% rated
very high service disruptions leading to cashback errors being treated timely,
35.8% high, 11.2% low, and 6.1% very low. On average, the respondents indicated
that service disruptions leading to cashback errors are treated timely has a
mean of 3.23. The weighted mean for operational efficiency is 3.09 which
indicates that on average, respondents agreed with most of the statements on
the high scale as it relates to how operational efficiency is an appropriate
measure of DMBs performance. Moreover, the mean score of 3.09 suggests that
operational efficiency for DMBs is moderately high. In Table 4, E-Banking
Effectiveness was presented as one of the measures of E-banking service quality
of the DMBs in Nigeria using descriptive statistics and computed for each
statement to reveal the frequencies, percentages, and mean on a four-point
Likert-type scale (4 for very high extent (VHE), 3 for high extent (HE), 2 for
low extent (LE), and 1 for very low extent (VLE). According to the results in
Table 4, 48.7% of respondents strongly agree that information on the banking
website is clear and easy to understand, 32.7% agree, 15.2% disagree, and 3.0%
strongly disagree (Table 4). On average, the respondents indicated that
information on the banking website is clear and easy to understand and has a
mean of 3.27. Results also indicated that 41.9% of respondents strongly agree
that they can easily find what they are looking for on the bank portal, 39.3%
agree, 15.5% disagree, and 3.0% strongly disagree. On average, the respondents
indicated that they can easily find what they are looking for on the bank
portal has a mean of 3.20. Results also indicated that 23.4% of the respondents
strongly agree that their banking portal has all information they need to
manage their account, 48.5% agree, 22.8% disagree, and 5.1% strongly disagree.
On average, the respondents indicated that their banking portal has all
information they need to manage their account has a mean of 2.90. Results also
indicated that 37.8% of the respondents strongly agree that the banking portal
works well technically, loads quickly, and displays appropriately, 35.8% agree,
15.7% disagree, and 10.4% strongly disagree. On average, the respondents
indicated that their banking portal works well technically, loads quickly, and
displays appropriately have a mean of 3.01. Results also indicated that 31.7%
of respondents strongly agree that their banking portal meets my needs, 42.1%
agree, 19.8% disagree, and 6.1% strongly disagree. On average, the respondents
indicated that their banking portal meets my needs and has a mean of 3.00.
Results also indicated that 42.9% of respondents strongly agree that they found
that the E-banking service is easy to use, 29.7% agree, 18.0% disagree, and
9.1% strongly disagree. On average, respondents indicated that they found that
the E-banking service is easy to use and has a mean of 3.07. Results also
indicated that 32.9% of respondents strongly agree that services delivered
through E-banking are quick, 41.4% agree, 14.7% disagree, and 11.2% strongly
disagree. On average, the respondents indicated that services delivered through
E-banking are quick has a mean of 2.95. The weighted mean for E-Banking
Effectiveness is 3.06 which indicates that on average, respondents agreed with
most of the statements on the high scale as it relates to how E-Banking
Effectiveness is an appropriate measure of E-Banking service quality. Moreover,
the mean score of 3.09 suggests that E-Banking Effectiveness for DMBs is
moderately high. In Table 5, E-Banking safety was presented as one of the
measures of E-banking service quality of the DMBs in Nigeria using descriptive
statistics and computed for each statement to reveal the frequencies,
percentages, and mean on a four-point Likert-type scale (4 for very high extent
(VHE), 3 for high extent (HE), 2 for low extent (LE), and 1 for very low extent
(VLE). According to results in Table 5, 35.8% of respondents strongly agree
that they have high confidence in the E-banking service in the bank, 41.9%
agree, 18.0% disagree, and 4.0% strongly disagree (Table 5). On average, the
respondents indicated that they have high confidence in the E-banking service
in the bank has a mean of 3.10. Results also indicated that 25.6% of
respondents strongly agree that E-banking is dependable, 56.3% agree, 14.7%
disagree, and 3.0% strongly disagree. On average, the respondents indicated
that E-banking is dependable and has a mean of 3.05. Results also indicated
that 33.8% of the respondents strongly agree that E-banking service provides
high protection for a banking transaction, 40.1% agree, 19.5% disagree, and 6.3%
strongly disagree. On average, the respondents indicated that the E-banking
service provides high protection for my banking transaction and has a mean of
3.02. Results also indicated that 38.8% of the respondents strongly agree that
they feel secure while making transactions through the internet, 37.1% agree,
18.5% disagree, and 5.3% strongly disagree. On average, the respondents
indicated that they feel secure while making transactions through the internet
has a mean of 3.10. Results also indicated that 32.0% of respondents strongly
agree that E-banking services offer secure personal privacy, 42.6% agree, 17.8%
disagree, and 7.4% strongly disagree. On average, the respondents indicated
that E-banking services offer secure personal privacy has a mean of 2.99. The
weighted mean for E-Banking safety is 3.05 which indicates that on average,
respondents agreed with most of the statements on the high scale as it relates
to how E-Banking safety is an appropriate measure of E-Banking service quality.
Moreover, the mean score of 3.09 suggests that E-Banking safety for DMBs is
moderately high. In Table 6, E-Banking transaction support was presented as one
of the measures of E-banking service quality of the DMBs in Nigeria using
descriptive statistics and computed for each statement to reveal the
frequencies, percentages, and mean on a four-point Likert-type scale (4 for
very high extent (VHE), 3 for high extent (HE), 2 for low extent (LE), and 1
for very low extent (VLE). According to the results in Table 6, 51.8% of respondents
strongly agree that they can conveniently process multiple transactions without
issues, 28.7% agree, 18.0% disagree, and 1.3% strongly disagree (Table 6). On
average, the respondents indicated that they can conveniently process multiple
transactions without issues has a mean of 3.31. Results also indicated that
33.5% of respondents strongly agree that their bank's e-banking platforms are
very interactive, 43.4% agree, 20.6% disagree, and 2.3% strongly disagree. On
average, the respondents indicated that their bank's e-banking platforms are
very interactive has a mean of 3.08. Results also indicated that 39.8% of the
respondents strongly agree that their bank provides adequate information that
aid service delivery, 34.8% agree, and 25.1% disagree. On average, the
respondents indicated that their bank provides adequate information that aid
service delivery has a mean of 3.15. Results also indicated that 34.8% of the
respondents strongly agree that their bank provides adequate support to address
customer complaints, 42.1% agree, 20.8% disagree, and 2.0% strongly disagree.
On average, the respondents indicated that their bank provides adequate support
to address customer complaints has a mean of 3.10. Results also indicated that
37.1% of respondents strongly agree that their bank’s customer care unit is
very responsive to customer needs, 38.6% agree, 23.1% disagree, and 1.0%
strongly disagree. On average, the respondents indicated that their bank’s
customer care unit is very responsive to customer needs and has a mean of 3.12.
The weighted mean for E-Banking transaction support is 3.15 which indicates
that on average, respondents agreed with most of the statements on the high
scale as it relates to how E-Banking transaction support is an appropriate measure
of E-Banking service quality. Moreover, the mean score of 3.15 suggests that
E-Banking safety for DMBs is moderately high. In Table 7, Control Activities
was presented as one of the measures of the internal control system of the DMBs
in Nigeria using descriptive statistics and computed for each statement to
reveal the frequencies, percentages, and mean on a four-point Likert-type scale
(4 for very high extent (VHE), 3 for high extent (HE), 2 for low extent (LE),
and 1 for very low extent (VLE). According to results in Table 7, 34.0% of
respondents rated very high that their bank upheld ethical values in all
dealings with customers, 42.1% high, 12.4% low, and 11.2% very low (Table 7).
On average, the respondents indicated that their bank upheld ethical values in
all dealings with customers having a mean of 2.99. Results also indicated that
22.8% of respondents rated very high that their bank has a structure that
spells out the responsibilities of each unit so customers know where to go in
times of need, 52.0% high, 18.8% low, and 6.1% very low. On average, the
respondents indicated that their bank has a structure that spells out the
responsibilities of each unit so customers know where to go in times of need
has a mean of 2.92. Results also indicated that 25.6% of the respondents rated
very high that their bank conduct a periodic survey to ascertain customer
experience of e-banking safety, 53.0% high, 16.0% low, and 5.1% very low. On
average, the respondents indicated that their bank conducts periodic surveys to
ascertain customer experience of e-banking safety has a mean of 2.99. Results
also indicated that 27.9% of the respondents rated very high that their bank
has integrity, has a core value in all dealings with customers, 50.3% high,
16.5% low, and 5.1% very low. On average, the respondents indicated that their
bank has integrity, has a core value in all dealings with customers has a mean
of 3.01. Results also indicated that 38.1% of respondents rated very high that
their bank has measures to ensure risk to client data is minimal to zero, 31.7%
high, 24.9% low, and 5.1% very low. On average, the respondents indicated that
their bank has measures to ensure risk to client data is minimal to zero having
a mean of 3.03. The weighted mean for control activities is 3.00 which
indicates that on average, respondents agreed with most of the statements on
the high scale as it relates to how control activities are an appropriate
measure of the internal control system. Moreover, the mean score of 3.00
suggests that the internal control system for DMBs is moderately high. In Table
8, the control environment was presented as one of the measures of the internal
control system of the DMBs in Nigeria using descriptive statistics and computed
for each statement to reveal the frequencies, percentages, and mean on a
four-point Likert-type scale (4 for very high extent (VHE), 3 for high extent
(HE), 2 for low extent (LE), and 1 for very low extent (VLE) (Table 8). checks
are performed during customer registration, 51.3% high, 19.8% low, and 3.0%
very low. On average, respondents indicated that proper background checks
performed during customer registration have a mean of 3.00. Results also
indicated that 29.4% of respondents rated very high that ethical behaviour is
seen in how staff address customers, 47.0% high, 21.3% low, and 2.0% very low.
On average, the respondents indicated that ethical behaviour is seen in how
staff addresses customers have a mean of 3.04. Results also indicated that
29.7% of the respondents rated very high that there is a specific staff
assigned to a specific responsibility, 49.2% high, 18.8% low, and 2.0% very
low. On average, the respondents indicated that there is a specific staff
assigned to specific responsibility has a mean of 3.07. Results also indicated
that 35.8% of the respondents rated very high that emphasis is on automated
processes, 45.9% high, 13.7% low, and 4.3% very low. On average, the
respondents indicated that emphasis on automated processes has a mean of 3.13.
Results also indicated that 31.7% of the respondents rated very high that there
is evidence of a clear chain of command in my bank, 42.6% high, 18.8% low, and
6.6% very low. On average, the respondents indicated that there is evidence of
a clear chain of command in my bank has a mean of 3.00. The weighted mean for
the control environment is 3.05 which indicates that on average, respondents
agreed with most of the statements on the high scale as it relates to how
control activities are an appropriate measure of the internal control system.
Moreover, the mean score suggests that the internal control system for DMBs is
moderately high. In Table 9, Risk Assessment was presented as one of the
measures of the internal control system of the DMBs in Nigeria using
descriptive statistics and computed for each statement to reveal the
frequencies, percentages, and mean on a four-point Likert-type scale (4 for
very high extent (VHE), 3 for high extent (HE), 2 for low extent (LE), and 1
for very low extent (VLE) (Table 9). According to results in Table 10, 37.8% of
respondents rated very high that their bank warns against sharing sensitive
account details with strangers, 31.7% high, 23.6% low, and 6.6% very low. On
average, respondents indicated that their bank warns against sharing sensitive
account details with strangers has a mean of 3.01. Results also indicated that
27.9% of the respondents rated very high that there is a unit in my bank
dedicated to dealing with fraud on customer accounts, 44.7% high, 22.1% low,
and 5.1% very low. On average, the respondents indicated that there is a unit
in my bank dedicated to dealing with fraud on customer accounts has a mean of
2.96. Results also indicated that 25.6% of respondents rated very high that
there are mechanisms in place to mitigate customer risks, 40.9% high, 25.1%
low, and 8.1% very low. On average, the respondents indicated that there are
mechanisms in place to mitigate customer risks has a mean of 2.84. Results also
indicated that 25.9% of the respondents rated very high that staff attending to
customer bear names in the event of a referral, 43.9% high, 20.6% low, and 9.4%
very low. On average, the respondents indicated that staff attending to
customer bear names in the event of referral has a mean of 2.87. Results also
indicated that 19.5% of the respondents rated very high that their bank has in
place mechanisms for mitigating critical risks that may result in customers
being defrauded, 50.0% high, 21.8% low, and 8.4% very low. On average, the
respondents indicated that their bank has in place mechanisms for mitigating
critical risks that may result in customers being defrauded has a mean of 2.81.
Results also indicated that 29.6% of the respondents rated very high that their
bank ensures proper accountability regarding fraud-related customer complaints
about its employee, 42.9% high, 19.8% low, and 10.2% very low. On average, the
respondents indicated that their bank ensures proper accountability regarding
fraud-related customer complaints about its employee has a mean of 2.87. The
weighted mean for Risk Assessment is 2.89 which indicates that on average,
respondents agreed with most of the statements on the averagely-high scale as
it relates to how Risk Assessment is an appropriate measure of the internal
control system. Moreover, the mean score of 2.89 suggests that the internal
control system for DMBs is moderately high.
The decision
rule here is stated as follows; the pre-set level of significance for this
study was 0.05. If the p-value which indicated the significance or the probability
value exceeded the pre-set level of significance (p > 0.05), the hypothesis
stated in the null form is accepted, however, if the p-value is less than or
equal to 0.05 (p ? 0.05), the hypothesis is rejected.
H01: E-banking service
quality has no significant effect on customer satisfaction of DMBs in Nigeria
The null
hypothesis which states that E-banking service quality has no significant
effect on customer satisfaction of DMBs in Nigeria was tested using multiple
regression analysis. In the analysis, the values of customer satisfaction were
regressed on the values of E-banking service quality sub-measures. The data for
E-banking service quality (independent variable) was generated by summing
responses of all variable items (E-banking efficiency, trust, and transaction
support) respectively while that of customer satisfaction (dependent) was
generated by adding responses of all items used to measure the variable. The
regression test results are presented in (Table 10). Table 10 presents the
results of the multiple regression analysis for the influence of E-banking
service quality on Customer satisfaction of DMBs in Nigeria. From the results
in Table 10, E-banking service quality has a positive and strong relationship
with customer satisfaction of DMBs in Nigeria (R = 0.429). The coefficient of
determination (Adj. R2) of 0.178 shows that E-banking service quality explains
17.8% of the changes in Customer satisfaction of DMBs while the remaining 82.2%
variation in Customer satisfaction of DMBs in Nigeria is explained by other
variables not investigated in this study. Table 10 presents the results of the
ANOVA (overall model significance) regression test which revealed that
E-banking service quality has a significant effect on customer satisfaction of DMBs
in Nigeria. This can be explained by the F-value (29.246) and low p-value
(0.000) which is statistically significant at a 95% confidence interval. Hence,
the result posited that E-banking service quality significantly influenced
customer satisfaction with DMBs in Nigeria. In addition, the results of
regression coefficients in table 6, revealed while ‘E-banking service
efficiency and transaction support had a significant relative effect on
customer satisfaction of DMBs in Nigeria, ‘E-banking service safety’ has
insignificant relative influence. In addition, the results of regression
coefficients in Table 10 revealed that at a 95% confidence level, a unit change
in E-banking service efficiency will lead to a 0.352 increase in the customer
satisfaction of DMBs given that all other factors are held constant. Also, at a
95% confidence level, a unit change in E-banking service transaction support
will lead to a 0.125 increase in the customer satisfaction of DMBs in Nigeria
given that all other factors are held constant. Of the E-banking service
quality indicators examined, E-banking service efficiency (?=0.352) has the
highest relative influence on Customer satisfaction of DMBs in Nigeria followed
by E-banking service transaction support (?=0.125). On the strength of this
result (Adj. R2 = 0.178, F (3, 389) = 29.246, p= 0.000), this study rejects the
null hypothesis one (H01) which states that E-banking service quality has no
significant effect on customer satisfaction of DMBs in Nigeria.
H02: Internal control system
has no significant effect on the operational efficiency of DMBs in Nigeria
The null hypothesis two which states
that the internal control system has no significant effect on the operational
efficiency of DMBs in Nigeria was tested using multiple regression analysis. In
the analysis, the values of operational efficiency were regressed on the values
of internal control system sub-measures. The data for the Internal control
system (independent variable) was generated by summing responses of all
variable items (control activity, control environment, and risk assessment)
respectively while that of operational efficiency (dependent) was generated by
adding responses of all items used to measure the variable. The regression test
results are presented in table 11 presents the results of the multiple
regression analysis for the influence of the internal control system on the
operational efficiency of DMBs in Nigeria (Table 11). From the results in Table
11, the internal control system has a positive and weak relationship with the
operational efficiency of DMBs in Nigeria (R = 0.429). The coefficient of
determination (Adj. R2) of 0.182 shows that the internal control system
explains 18.2% of the variations in the operational efficiency of DMBs while
the remaining 81.8% variation in operational efficiency of DMBs in Nigeria is
explained by other variables not investigated in this study. Table 4.6b
presents the results of ANOVA (overall model significance) of the regression
test which revealed that the internal control system has a significant effect
on the operational efficiency of DMBs in Nigeria. This can be explained by the
F-value (29.996) and low p-value (0.000) which is statistically significant at
a 95% confidence interval. Hence, the result posited that the internal control
system has a significant effect on the operational efficiency of DMBs in
Nigeria. In addition, the results of regression coefficients in Table 10
revealed while ‘control activities and risk assessment had a significant
relative effect on the operational efficiency of DMBs in Nigeria, ‘control
environment’ has insignificant relative influence. In addition, the results of
regression coefficients in table 5, revealed that at a 95% confidence level, a
unit change in control activities will lead to a 0.318 increase in the
operational efficiency of DMBs given that all other factors are held constant.
Also, at a 95% confidence level, a unit change in risk assessment will lead to
a 0.124 increase in the operational efficiency of DMBs in Nigeria given that
all other factors are held constant. Of the Internal control system indicators
examined, Control activities (?=0.318) have the highest relative influence on
the Operational efficiency of DMBs in Nigeria followed by risk assessment
(?=0.125). On the strength of this result (Adj. R2 = 0.182, F (2, 389) =
29.996, p= 0.000), this study rejects null hypothesis two (H02) which states
that the internal control system has no significant effect on the operational
efficiency of DMBs in Nigeria.
H03: E-banking service quality and internal
control system have no significant effect on the performance of DMBs in Nigeria
The null
hypothesis three which states that E-banking service quality and internal
control system has no significant effect on the performance of DMBs in Nigeria
was tested using multiple regression analysis. In the analysis, the values of
performance were regressed on the values of E-banking service quality and
internal control system. The data for E-banking service quality and internal
control system (independent variables) was generated by summing responses of
all variable items respectively while that of performance (dependent) was
generated by adding responses of all items used to measure the variable. The
regression test results are presented in Table 12. Table 12 presents the
results of the multiple regression analysis for the effect of E-banking service
quality and internal control system on the performance of DMBs in Nigeria. From
the results in Table 12, E-banking service quality and internal control system
have a positive and averagely strong relationship with the performance of DMBs
in Nigeria (R = 0.501). The coefficient of determination (Adj. R2) of 0.247
shows that E-banking service quality and internal control system explains 24.7%
of the variations in the performance of DMBs while the remaining 75.3%
variation in performance of DMBs in Nigeria is explained by other variables not
investigated in this study. Table 12 presents the results of ANOVA (overall
model significance) of the regression test which revealed that E-banking
service quality and internal control system has a significant effect on the
performance of DMBs in Nigeria. This can be explained by the F-value (65.297)
and low p-value (0.000) which is statistically significant at a 95% confidence
interval. Hence, the result posited that E-banking service quality and internal
control system has a significant effect on the performance of DMBs in Nigeria.
In addition, the results of regression coefficients in (Table 12), revealed
while E-banking service quality had a significant relative effect on the
performance of DMBs in Nigeria, the ‘internal control system’ has insignificant
relative influence. Furthermore, the results of regression coefficients in
table 6, revealed that at a 95% confidence level, a unit change in E-banking
service quality will lead to a 0. 545 increase in the performance of DMBs given
that all other factors are held constant. As such only, the internal control
system has the highest relative effect (?=0.545). On the strength of this result
(Adj. R2 = 0.247, F (2, 390) = 65.297, p= 0.000), this study rejects the null
hypothesis three (H03) which states that E-banking service quality and internal
control system has no significant effect on the performance of DMBs in Nigeria.
This study
examined the effect of electronic banking service quality and internal control
system on the organisational performance of selected deposit money banks in
Nigeria. Based on the empirical findings, this study concluded that there was a
statistically significant effect of E-banking service quality (E-banking
service efficiency, safety, and transaction support) and internal control
system (control environment, control activities, and risk assessment) on each
of the measures of organizational performance which include customer
satisfaction, operational efficiency. Hence, the study established that
E-banking service quality and internal control system has a significant effect
on the organizational performance of DMBs in Nigeria.
Based on the findings, the following recommendations were made: