Overview

Original Research

IMPACT OF INTERNET BANKING ON BANK PERFORMANCE. A COMPARATIVE ANALYSIS OF NIGERIA AND CAMEROON

NKECHI C. NKWONTA, CHINE SP LOGAN, CHINWE A. OLELEWE, FELICIA C. ABADA, EBELE C. IGWEMEKA, CHARLES O. MANASSEH, KENECHUKWU K. EDE and IFEOMA C. NWAKOBY

Vol 21, No 1 ( 2026 )   |  DOI: 10.5281/zenodo.18426641   |   Author Affiliation: Department of Business Administration, University of Nigeria, Nsukka, Enugu 1, Department of Public Policy, Liberty University, Lynchburg, VA, USA 2, Department of Banking & Finance, University of Nigeria, Enugu, Nsukka 3, School of General Studies, University of Nigeria, Enugu, Nsukka 4, Department of Banking & Finance, University of Nigeria, Enugu, Nsukka 5, Department of Banking & Finance, University of Nigeria, Enugu, Nsukka 6, Department of Economics, Godfrey Okoye University, Enugu 7, Department of Banking & Finance, University of Nigeria, Enugu, Nsukka 8   |   Licensing: CC 4.0   |   Pg no: 295-317   |   Published on: 30-01-2026

Abstract

This study investigates the impact of internet banking on bank performance in Nigeria and Cameroon from 2000 to 2024, employing the Autoregressive Distributed Lag (ARDL) technique. Findings confirm significant long-run relationships between internet banking and bank performance in both countries, though effects vary due to distinct institutional, infrastructural, and technological contexts. In Nigeria, internet banking and exchange rates negatively influenced performance, reflecting challenges such as inadequate digital infrastructure, high broadband costs, and weak transmission systems, whereas point of sale systems, mobile money, mobile payments, financial deepening, and interest rates contributed positively. In Cameroon, mobile banking, point of sale systems, mobile money, financial deepening, and exchange rates enhanced profitability, while ATMs, internet banking, mobile payments, and interest rates exerted negative effects, highlighting structural fragilities and risks of uncoordinated digital adoption. Short-run ARDL dynamics indicate a consistently negative and significant error correction term, demonstrating the stability of long-run relationships and the capacity of banks to self-correct deviations. The study further identifies practical strategies to enhance digital banking outcomes, emphasising investments in modern ATMs, improved POS infrastructure, user-friendly mobile banking platforms, secure internet banking, interoperable mobile money systems, and robust mobile purchase frameworks. Strengthening financial deepening through innovative savings and credit products, stable macroeconomic policies, and regulatory oversight is also critical. Overall, the study underscores that, while internet banking may initially pose challenges in fragile systems, coordinated infrastructural development, regulatory enforcement, digital literacy, and technological integration can transform digital banking into a driver of financial inclusion, profitability, and sustainable growth in the banking sectors of Nigeria and Cameroon.

Keywords

Internet Banking, Bank Performance.