Automated Teller Machine Transactions and Performance of Deposit Money Banks in Nigeria: A Multivariate Approach

Abstract

This study examined Automated Teller Machine transactions and performance of deposit money banks in Nigeria. To achieve this objective, the estimated model was to examine the impact of volume, value and number of ATMs on performance of deposit money banks in Nigeria. Adopting the OLS multiple regression technique, secondary data was obtained from Central Bank of Nigeria (CBN) statistical database on CBN website. The OLS regression results indicated that volume of ATM transactions has no significant influence on bank performance. While value of ATMs transaction and numbers of ATMs positively and significantly impacts on the performance of DMBs in Nigeria. The study concludes that ATM transactions are on the increase since its inception in Nigeria. To some extent, the outcomes of our study have justified the implementation of this initiative and ATMs has sufficiently impacted banking performance. It is recommended among other things that monetary authorities and managers of deposits money banks should increase the spread of ATMs terminals across the country since the efficient utilization of ATMs ultimately enhance bank performance in Nigeria.