study reviewed the concept of electronic banking (e banking), Examined its
problem and prospects for Nigeria banks and discussed associated risks. It
discoursed that the increased application of e banking worldwide is a function
of improvement in information and communications technology (ICT) E banking, it
also observed, holds enormous potentials for the banking industry in Nigeria.
To achieve these potentials, the project advocated engendering confidence in
the e banking mechanism by addressing security concerti power supply.
CHAPTER ONE INTRODUCTION 1
STATEMENT OF THE STUDY 2
STATE OF THE PROBLEM 2
SIGNIFICANT OF THE STUDY 3
OBJECTIVE OF THE STUDY 3
STATEMENT OF RESEARCH QUESTION 3
RESEARCH HYPOTHESIS 4
SCOPE OF THE STUDY 4
LIMITATION OF THE STUDY 5
DEFINITION OF RELATED TERMS 5
CHAPTER TWO (BACKGROUND OF THE
THE CONCEPTS OF ELECTRONIC BANKING 9
POPULATION OF THE STUDY 18
SAMPLING TECHNIQUES 18
SAMPLING SIZE 18
SOURCES OF DATA 19
METHOD OF DATA ANALYSIS 19
STANDARD PERFORMANCE 36-38
PRESENTATION OF ANALYSIS OF DATA 21
TEST OF HYPOTHESIS 29
CHAPTER FIVE: SUMMARY CONCLUSION
SUMMARY OF FINDINGS 34
PROFIT AND LOSS ACCOUNT & BALANCE SHEET
2; NOTE TO ANNUAL REPORT AND ACCOUNT
The business environment is always changing
and therefore requires a dynamic strategized adaptation to these changes by
businesses that wish to survive. These changes could be social, economic, legal,
technological, etc (Acha, 2006: 109; Akpan, 2005: 23). In recent time, quantum
improvements and innovations have been recorded in information and communications
technology which has had tremendous impact on the way businesses are conducted.
information and communication technology has, among other things, changed the
nature of businesses, reshaped their competitive environment, reframed market
structures, enlarged the size of markets and opened new vistas of risks
hitherto unknown to these businesses.
As usual, the banking system has been in
the forefront in adopting and incorporating these advances in information and
communication technology into its operations. This could be attributed to some
perceived advantages which information and communication technology offers
users such as increased transaction efficiency, convenience and cost reduction
(Ayandele and Adeoye, 2006: 2). Banks in Nigeria had recognised the potentials
of information and communication technology since early 1980s when some of them
began adopting electronic banking. Since these early days, electronic banking
products have, though slowly but steadily, been on the increase in the system.
Banks in Nigeria now offer automated teller machine (ATM) services, internet
banking services, telephone banking services, on-line banking services,
intranet banking services, credit card services, etc.
The obvious tendency of the Nigerian
banking is to become more and more electronically driven, making the
understanding of this concept and its practice imperative. In the light of the
above, the objective of this study is to, among other things, examine the
concept of electronic banking with a view to helping both professionals and
non-professionals understand them. This project will also discover the
challenges of electronic banking in Nigeria in order to help practitioners and
regulators navigate our banks away from them. Finally, this study assesses the
future problems and prospects of electronic banking in Nigeria.
To do this, the project is divided into
five sections starting with this introductory note. The second section
addresses the concept of electronic banking and reviews global experience in
its practice. In the third section, the hiccups in the use of electronic
devices in financial transactions are examined. This examination will consider
the implications of electronic banking for the banks and the regulatory/supervisory
authorities. The fourth section problems and prospects into the future to
discover the way forward for electronic banking in Nigeria. Finally,
recommendations are made and conclusion drawn in the fifth section.
STATEMENT OF THE PROBLEM
Nigeria, customers of banks today are no longer enjoying safety of their funds
and increase returns on their investments. Customers demand efficient, fast and
convenient services. Customers want a Bank that will offer them services that
will meet their particular needs (personalized Banking) and support their
Business goals for instance; businessmen want to travel without carrying cash
for security reasons. They want to be able to check their balance online, find
out if a cheque is cleared, transfer funds among accounts and even want to
download transaction records into their own computer at work or home. Customers
want a preferential treatment and full attention by their choice Bank. All
these are only achievable through electronic Banking. In line with rendering
qualities and acceptable services that most Banks in Nigeria are gearing toward
and investing large sum of money in information and communication Technology,
expectedly such Banks services have been improved. United Bank for Africa (First
bank of Nigeria Plc), Zenith Bank, GT Bank (to mention few) are in the
forefront in the use of IT in rendering services to their Customers (The
Guardian Newspaper April 18, 2008p 21). It also seeks the challenges involved
in Electronic Banking and Best industrial practice and the approach of
implementing them in Nigeria Banking system.
STATE OF THE PROBLEM
The problem that leads to the study of this research work
arises from issues relating to the effective use of internet among Nigerian
Banks with specific focus on First Bank of Nigeria Plc.
Despite the rapid adoption of the use of internet by many
business organization and government parastatals, the banking sector still need
a critical examination of how the use of internet and information technology
can by employed to boost their operations.
This study will look into the operation of Nigeria Banks in
this era of internet technology, it will determine problems encountered and
suggest possible solutions.
SIGNIFICANCE OF THE STUDY
There are many people that will benefit from research work. Both
the investor and the stakeholders, However, the level of education will not
only improve the use of internet among Nigerian Banks but also suggest
solutions to the problem encountered by the banks in the computer age.
This research work will be of advantage to anybody that which to
know more about the problems encountered by banks in the use of Internet
OBJECTIVES OF THE STUDY
main objective of this research work is to examine the impact of electronic Banking
in Nigeria banking system. Specifically the study objectives are;
To evaluate the problems and prospects
of electronic Banking in First bank of Nigeria Plc
To evaluate the impact of electronic
Banking in First bank of Nigeria Plc
To examine whether electronic banking has
improve the fortune of the Bank.
To examine the effect of electronic
banking has it improve the fortune of the bank.
To examine whether the Bank electronic Banking
guideline comply with the CBN electronic Banking guideline policy.
STATEMENT OF RESEARCH QUESTIONS
project aims to provide answers to the following research questions;
What is the impact of electronic on the
traditional system in Nigeria
What additional value(s) will electronic
banking bring to the banking system in Nigeria?
How will the electronic banking enhance
confidence and reliability of customers on the banking system?
To what extent doe internet have effect
on the performance of Nigeria Banks?
What are the efforts of Bank regulatory
bodies on the use of internet among Nigeria banks?
following hypotheses are formulated in null form to guild the study.
Ho: Adoption of Electronic banking does not
enhance the fortune of First bank of Nigeria Plc
Hμ: Adoption of Electronic banking enhances the
fortune of First bank of Nigeria Plc
SIGNIFICANCE OF THE STUDY
study would enable the banks executives and indeed the policy makers of the
banks and financial institutions to be aware of electronic banking as a product
of electronic commerce with a view to making strategic decisions. The research
is equally significant because it would provide answers to factors militating
against the implementation of electronic banking in First bank of Nigeria Plc;
prove the success and growth associated with implementation of electronic
banking highlight the areas of banking operations that can be enhanced via
electronic banking and also be an invaluable tool for Staff, Academician, institutions,
Corporate managers and individuals that want to know more about electronic banking
trends especially in Nigeria.
SCOPE OF THE STUDY
pursuance of the objective of the study; attention shall be focused on
electronic banking among other electronic commerce implementation. In order to
conduct an empirical investigation into the adoption of Electronic banking in
Nigeria and will also examine the nature of electronic banking operations in First
bank of Nigeria Plc from 2007 to 2009.
LIMITATION OF THE STUDY
view of the technicalities involved, it would be unrealistic to assume that all
necessary facts have been gathered in the process of the study. Information
gathered is limited to those accesses and made available by the respondents and
also those gathered from end users. However, the impacts of this limitation
will be reduced to the barest minimum.
DEFINITION OF RELATED TERMS
Products – Products that allow consumers to access traditional payment instrument
electronically, generally from remote locations.
Card - UB Debit Card is a Chip device consisting of circuit element on single silicon
chip. The Card a complex circuits that process microprocessors with a single chips
that contain the complete arithmetic and logic unit of computers. It provided
for Unity Bank customers to perform balance inquiry, mini statement and cash
withdrawal as well as transfers through the use of Automated Teller Machines.
This green card can also be used for Internet/Online and POS transactions.
Card – Also known as an integrated circuit (IC) Card. A card containing one or
more computers chips or integrated circuits for identification, data storage or
special purpose processing used to validate personal identification numbers,
authorize purchases, verify account balances and store personal records.
Data Interchange (EDI) – The transfer of information between organizations in machine
Money – Monetary value measured in currency units stored in electronic form on an
electronic device in the consumer’s possession. This electronic value can be purchased
and held on the device until reduced through purchase or transfer.
Recruitment –This is an online recruitment services to all kinds and categories
of clients such as (Army, navy, police and the Paramilitary) through customizable
web portals and the use of scratch cards/PINs for a Prospective applicants
simply buy the scratch cards, visit portal and fill relevant information. Information
collected about applicants could then be analyzed appropriately using ‘what if’
capabilities and filtered according to several criteria to be set by client.
Short listed applicants could then be contacted automatically via email or SMS
Web Collection - This enables the Bank partner with Universities and higher institutions
of learning to handle Admission, Registration, Examination Managements and Fees
Collection needs. Electronic Admission by Prospective Candidates, Electronic
School Fees Payment, Automated Registration, Examination and Results
Banking- This is a product that enables the Bank leverage on the Internet Banking
System Module in-built on the new Banking Application (BANKS) implemented by
the Bank to serve the Internet Banking needs of the Bank’s customers.
Banking - This is a product that offers Customers of a Bank to access services as
you go. Customer can make their transactions anywhere such as account balance, transaction
enquiries, stop checks, and other customer’s service instructions, Balance Inquiry,
Account Verification, Bill Payment, Electronic fund transfer, Account Balances,
updates and history, Customer service via mobile, Transfer between accounts
System – A financial system that establishes that means for transferring money
between suppliers and of fund, usually by exchanging debits or Credits between financial
Of Sale (POS) Machine - A Point-of-Sale machine is the payment device that allows
credit/debit cardholders make payments at sales/purchase outlets. It allowed customers
to perform the following services Retail Payments, Cashless Payments, Cash Back
Balance Inquiry, Airtime Vending, Loyalty Redemption, Printing mini statement
Card – A Card with a computer chip embedded, on which financial health, educational,
and security information can be stored and processed.
Alert - Our customers carry out debit/credit transactions on their accounts and
the need to keep track of these transactions prompted the creation of the alert
system by the Bank to notify customers of those transactions. The alert system
also serves as notification system to reach out to customers when necessary
information need to be communicated.
Union Money Transfer (WUMT) - Western union Money transfer is a product that
allowed people with relatives in Diaspora who may be remitting money home for family
up-keep, Project financing, School fees etc. Nigerian Communities known for having
their siblings gainfully employed in other parts of the world are idle markets
for Western Union Money Transfer.
1.10. Brief Profile of First
bank of Nigeria Plc
bank of Nigeria Plc is one of the leading retail banks in Nigeria which emerged
from the largest merger and consolidation in Nigeria's banking industry.
Following the merger and consolidation of Nine Banks Intercity Bank, First
Interstate, Tropical Commercial, Pacific, Centre Point, NNB, Bank of the North
and New Africa Bank limited and spearheaded by the Central Bank of Nigeria,
(CBN). The financial institutions with competences in investment banking,
corporate and retail banking came together in January 2006 to form First bank
of Nigeria Plc. It has 248 business offices spread across the country and
working to increase this number in the nearest future. Unity Bank is the sixth
largest bank in Nigeria today by business locations. The Head Office is located
at Plot 785, Herbert Macaulay Way, Central Business District, Abuja, while the
Head Office Annex is at No. 290A, Akin Olugbade Street, Victoria Island, Lagos.
Mission of the Bank is to create superior wealth for our stakeholders and The
Vision is to be one of the top five financial services institutions in Nigeria