ABSTRACT
Electronic banking system has become an important practice
among commercial banks in Nigeria. The introduction of this electronic banking
has improve banking efficiency in rendering services to customer, It was in
line with this that the study aimed examining the impact of electronic banking
system in Nigeria. the population of the study used for this research work was
50 Through the random sampling technique, data were was collected by means of
questionnaires from 40 Unity Bank officers selected as sample size, the data
collected was analyzed using simple percentage, frequency table and Chi- square.
The result shows that Unity Bank electronic banking guidelines are in line with
the CBN electronic banking guideline. The bank has an effective electronic
banking system which has Improve its customer's relationship and satisfaction.
To this end, It is recommended that the bank information technology training
programme should be encourage among the staff of Unity Bank, necessary legal
codes banking should be established in order to enhanced growth of the
industry.
TABLE OF CONTENTS
Page
Title Page
Certification
Dedication
Acknowledgement
Abstract
Table of Contents
CHAPTER
ONE: INTRODUCTION
1.1 Background to
the Study
1.2 Statement of
the Problems
1 .3 Research Questions
1.4 Objectives of
the Study
1.5 Research
Hypotheses
1.6 Significance
of the Study
1.7 Research
methodology
1.8 Area of the
Study
1.9 Scope of the
study
1.10 Analysis of
Data
1.11 Limitation of
the Study
1.12 Outline of
chapters
CHAPTER
TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Views on
Electronic Banking
2.3 Electronic
Banking and the common Banking Products
2.3.1 Telephone and
pc banking products
2.3.2 The card
system
2.3.3 The automated
teller machine (ATM)
2.4. The entry of
Nigerian banks into electronic Banking
2.5.1 Threats of
cyber-crimes on the Nigerian Banking premises
2.5.2 The regulatory challenges
2.5.3 Electronic banking profitability and efficiency
2.5.4 Bank Customer Relationship
2.6 Operation of
Financial Institution
2.7 Theoretical framework
CHAPTER
THREE : RESEARCH METHODOLOGY
3.1 Introduction
3.2 Population of
Study
3.3 Sampling Techniques
3.4 Sample Size
3.5 Sources of
Data
3.6 Method of Data Analysis
3.6.1 Test of Hypotheses and Interpretation
3.6.2 Decision rule and
Justification
CHAPTER
FOUR: DATA PRESENTATION AND ANALYSIS
4.1. Introduction
4.2. Presentation
and Analysis of Data
4.3
Test
of Hypothesis
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendix: Questionnaire
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
The new millennium brought with it new possibilities in
terms of information access and availability simultaneously, introducing new
challenges in protecting sensitive information from some eyes while making it
available to others. Today's business environment is extremely dynamic and
experience rapid changes as a result of technological improvement, increased
awareness and demands Banks to serve their customers electronically. Banks have
traditionally been in the forefront of harnessing technology to improve their
products and services.
The Banking industry of the 21st century operates in a
complex and competitive environment characterized by these changing conditions
and highly unpredictable economic climate. Information and Communication Technology (ICT) is
at the centre of this global change curve of Electronic Banking System in
Nigeria today. (Stevens 2002).
Assert that they have over the time, been using electronic
and telecommunication networks for delivering a wide range of value added
products and services, managers in Banking industry in Nigeria cannot ignore
Information Systems because they play a critical impact in current Banking
system, they point out that the entire cash flow of most fortune Banks are
linked to Information System. The application of information
and communication technology concepts, techniques,
policies and implementation strategies to banking services has become a subject
of fundamental importance and concerns to all Banks and indeed a prerequisite
for local and global competitiveness Banking.
The advancement in Technology has played an important role
in improving service delivery standards in the Banking industry. In its
simplest form, Automated Teller Machines (ATMs) and deposit machines now allow
consumers carry out banking transactions beyond banking hours. With online
banking, individuals can check their account balances and make payments without
having to go to the bank hall. This is gradually creating a cashless society
where consumers no longer have to pay for all their purchases with hard cash.
For example: bank customers can pay for airline tickets and subscribe 1 to initial
public offerings by transferring the money directly from their accounts, or pay
for various gods and services by electronic transfers of credit to the sellers
account. As most people now own mobile phones, banks have also introduced
mobile banking to cater for customers who are always on the move. Mobile
banking allows individuals to check their account balances and make fund
transfers using their mobile phones. This was popularized by First Atlantic
Bank (now First Inland Bank) through its "Flash me cash" product
Customers can also recharge their mobile phones via SMS. E-Banking has made
banking transactions easier around the World and it is fast gaining acceptance in Nigeria. The delivery channels today
m Nigeria electronic Banking are quite numerous has it 1S mentioned here
Automatic Teller Machine (ATM), Point of Sales (POS), Telephone Banking, Smart
Cards, Internet Banking etc Personal computers in the Banking industry was
first introduced into Nigeria by Society General Bank as the popular PC easy
access to the internet and World Wide Web (www) and internet is increasingly
used by Bank's as a channel of delivering the products and services to the
numerous customers.
Virtually almost all Banks in Nigeria have a web presence;
this form of Banking is referred to as Internet Banking which is generally part
of Electronic Banking. The delivery of products by banks on public domain is an
indication of advertisement which is known has E-Commerce. Electronic commerce
on the other hand is a general term for any type of business or commercial
transaction it involves the transfer of information across the internet.
E-Commerce involves individuals and business organization exchanging business
information and instructions over electronic media using computers, telephones
and other communication equipment. This covers a range of different types of
business from consumers to retails products. However, Electronic banking as it
is; is a product of E-Commerce in the field of banking and financial services.
It's offers different online services like balance enquiry, request for cheque
books, recording stop payment instructions, balance transfer instructions,
account opening and other form of traditional banking services. The Internet
allows businesses to use information more effectively, by allowing customers,
suppliers, employees, and partners to get access to the business information they
need, when they need it. These Internet enabled services all translate to
reduced cost: there are less overhead, greater economies of scale, and
increased efficiency. E-Banking' greatest promise is timelier, more valuable
information accessible to more people, at reduced cost of information access.
With the changes in business operations as a result of the Internet era,
security concerns move from computer labs to the front page of newspapers. The
promise of E-Banking is offset by the security challenges associated with the
disintermediation of data access. One security challenge results from "cutting out the
middleman," that too often cuts out the information security the middleman
provides. Another is the expansion of the user community from a small group of
known, vetted users accessing data from the intranet, to thousands of users
accessing data from the Internet. Application service providers (ASP) and
exchanges offer especially stringent and sometimes contradictory requirements
of per user and per customer security, while allowing secure data sharing among
communities of interest. E-banking depends on providing customers, partners,
'and employees with access to information, in a way that is controlled and secure. Technology must provide
security to meet the challenges encountered by E- Banking. Virtually all
software and hardware vendors claim to build secure products, but what
assurance does an E-Banking have of a product's security? E-Banking want a
clear answer to the conflicting security claims they hear from vendors. How can
you be confident about the security built into a product? Independent security
evaluations against internationally established security criteria provide
assurance of vendors' security claims.
Customer expectation, in terms of service delivery and
other key factors have increased dramatically in recent years, as a result of
the promise and delivery of the internet. Even after the "dot -com
crash" these raised expectations linger. The growth in the application and
acceptance of internet-driven technologies means that delivering an enhanced service is
more achievable than ever before, however it is also more complex and fraught
with potential costs and risk. The internet introduces customers to a new
perception of business time as always "on available 24/7, and demanding an
urgent and rapid response. The challenge for managers is to reconcile their
business and their own personal perceptions of time with the perceived reality
of internet time. The internet has decisively shifted the balance of power to
the customer.
The internet is revolutionizing sales techniques and
perceptions of leading brands, and the internet is intensifying competition in all its forms. Banking are
continuing to use the internet to add value for their customers; but in order
for this to work effectively - maximizing opportunities, reducing risks and
overcoming problems and E-Banking strategy is required as an impact. The growth
of the Web and Internet as new channels, the growth in their use by customers,
the growth in their use by customers, and the floor of companies entering the
market, presents a series of key challenges to companies. It is easy and cheap
to put up a website.
But to create an environment delivering effective service
on the Web to a significant proportion of your customer base requires an
ij-Banking strategy. Electronic Banking offers different online services like
balance enquiry, request for cheque books, recording stop payment instructions,
balance transfer instructions, account opening and other form of transitional
Banking service.
1.2 STATEMENT
OF THE PROBLEM
In Nigeria, customers of banks today are no longer about
safety of their funds and increase returns on their investments only. 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 carryout 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 (UBA), 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.
1.3
RESEARCH QUESTION
i. Does
electronic banking have prospect in banking industry?
ii. To what extent doses electronic banking
enhance efficiency of bank operation?
iii.
Does
electronic banking improve bank customers' relationship?
iv. What are the
challenges of electronic banking in Nigeria?
1.4
OBJECTIVES OF THE STUDY
The main objective of this
research work is to examine impact of electronic
Banking in Nigeria banking system on how difference
channels could enhance the delivery of consumers and retails products, and also
how Banks choose to support their Electronic Banking component/ services
internally, such as internet services provider,
Internet banking software, Core banking vendor, Managed security service
provider, Bill payment provider, Credit Business and Credit scoring company,
E-Banking systems rely on a number of common components or process Specifically
the study objectives are;
i. To evaluate the prospects of electronic
Banking m banking industry
ii. To examine whether electronic banking has
improve the efficiency and effective of the Bank operation.
iii. To examine the effect of electronic banking has it
improve the efficiency and effective of the Bank operation.
1.5 RESEARCH HYPOTHESES
The following hypotheses
are formulated in null form to guild the study.
HYPOTHESIS
1
Ho: Electronic banking
does not have prospect in banking industry
Hi: Electronic banking does have prospect in banking
industry
HYPOTHESIS
2
Ho: Electronic banking
does not enhance the fortune efficiency of Banks Operation.
Hi: Adoption
of Electronic banking does enhance the fortune of Bank operation
HYPOTHESIS
3
Ho: Electronic banking does not Improve Bank Customer
relationship
Hi: Electronic banking does improve Bank Customer relationship
1.6
SIGNIFICANCE OF THE STUDY
The 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 Unity
Bank 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 Students,
Academician, institutions, Corporate managers and individuals that want to know more about
electronic banking trends especially in Nigeria.
1.7 RESEARCH
METHODOLOGY
The researcher used various techniques or methods of data
collection are used here to drive home, out point. The first method employed in
the course of collection of data research work was the use of questionnaire /
research question. Questionnaire to a list of planned written questions
structured with space provided for indicating answers or responses for each
question which is intended for a number of people to rely. It is classified
into open ended questionnaire and closed ended questionnaire
1.8 AREA
OF STUDY
The ire searchers focus
the Ikeja Local government Area to assess the impact of electronic banking in
banking sector using Unity bank Plc in Ikeja as a case study.
1.9
SCOPE OF THE STUDY
In 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 Unity Bank Plc.
1.10 ANALYSIS
OF DATA
The study used both
descriptive and inferential statistics in analyzing
the data. Also, simple frequency counts, percentages and
the chi-square were used in the data analysis.
1.11 LIMITATION
OF THE STUDY
In 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.
1.12
OUTLINE OF CHAPTERS.
This study is divided into five parts. Part one deal with
introduction of the study, research problem, research question, significance of
the study, statement of hypothesis, research methodology , area of study scope
of study source of data, method of data analysis , and outlines of chapters
Part two reviews the relevant literature, part three discusses the methodology
employed In this study, and part four is data presentation and analysis while
part five focus on summary, recommendation and conclusion.
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