Impacts of Digital Banking on Bank Performance and Its Determinants: Empirical Evidence from Nekemte District Banks
DOI:
https://doi.org/10.20372/star.v13i1.03Keywords:
Digital banking adoption, Logistic regression, ICT literacy, Nekemte DistrictsAbstract
Using data collected from banks in the Nekemte district, this study aims to determine how digital banking has affected bank performance and what factors have contributed to this effect. In addition to conducting focus groups with prospective experts and key informant interviews with district bank managers, we surveyed 346 sample consumers of the area's banks to compile the data used in this study. The logistic regression method was used to estimate the outcomes, taking into consideration the characteristics of the data. According to the results, the research area's digital banking adoption is heavily impacted by factors such as consumer education, availability of energy, customer awareness, internet connectivity, ICT literacy, and the quality of digital banking services. The study also shows that banks perform better when they use digital banking. Some of the most common forms of electronic banking in this area are ATMs, mobile banking, online banking, and POS systems. These findings have important policy implications, suggesting that financial institutions should make raising public knowledge of digital banking a top priority. Digital banking can be improved, its impact on bank performance can be amplified, and its adoption in the district can be accelerated through investments in basic infrastructure and human capital.
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Copyright (c) 2024 Journal of Science, Technology and Arts Research
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
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Accepted 2024-03-12
Published 2024-03-30