Impact of Automation on the Performance of Deposit Money Banks’ (DMBs) in Nigeria: Evidence from Port Harcourt in Rivers State

Abstract

This study examines the impact of automation on the performance of Deposit Money Banks (DMBs) in Nigeria. Data on automated payment systems, interconnectivity and automated delivery channels were collected from five DMBs (120 and 80 bank customers and staff respectively) selected out of the 25 banks that survived N25b recapitalization deadline of December 31, 2005. Kendall coefficient of concordance at 95 percent confidence level indicating an alpha (á) risk of 0.05 percent was used to determine the degree of agreement. Results indicate that automated payment systems, interconnectivity and automated delivery channels could contribute to banks’ performances. The Paper recommends that banks should improve on their automated delivery systems to catch up with changes in technology, educate and encourage their customers to use these facilities. Again, the government should enforce the BOFIA (1993) to foster legal environment to govern E-commerce in general and electronic banking in particular to address problems of online privacy and security.