- EFFECT OF INTERNAL AUDIT ON MANAGERIAL PERFORMANCE IN PUBLIC ENTERPRIS
- EFFECT OF BUSINESS STRESS ON THE PERFORMANCE OF SMALL SCALE ENTERPRENUER
- THE EFFECT OF FORWARD INTEGRATION ON PERFORMANCE OF MANUFACTURING INDUSTRY (A STUDY OF CADBURY NIGERIA PLC)
- EFFECT OF MANAGEMENT BY OBJECTIVES ON ORGANIZATION PERFORMANCE (A CASE STUDY OF VITAMALT PLC)
- THE EFFECT OF PHYSICAL DISTRIBUTION ON ORGANIASATIONAL PERFORMANCE (A STUDY OF AGRO MARKETING FIRMS IN LAGOS STATE)
- EFFECT OF INTERNAL AUDIT ON MANAGERIAL PERFORMANCE IN PUBLIC ENTERPRISE
- IMPACT OF THE BANKING SECTOR ON DISCHARGE OF SOCIAL RESPONSIBILITY BY SMALL SCALE BUSINESS ORGANISATION (A CASE STUDY OF TASHO ENTERPRISE AND LUWOJU HOTEL)
- ROLE OF BANKING SYSTEM IN THE DEVELOPMENT OF NIGERIAN ECONOMY (A Case Study of Nigerian Breweries Plc)
- ECONOMIC EFFECT OF ADVANCED FREE FRAUD IN THE BANKING SYSTEM IN NIGERIA
- THE IMPACT OF BANK FRAUD AND DISTRESS ON BANKING HABIT IN NIGERIA (A CASE STUDY OF FIRST BANK, GTB, UBA, UNION BANK AND ZENITH BANK)
THE EFFECT OF ELECTRONIC BANKING ON PERFORMANCE IN BANKING SECTOR (A Case Study of First Bank Nigeria Plc)
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, This Study aim at the impact of electronic banking on performance in banking sector. Through the cluster sampling technique, data was collected by means of questionnaires from 35 First Bank officers and the result shows that First 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 First Bank, necessary legal codes banking should be established in order to enhanced growth of the industry.
TABLE OF CONTENT
TITLE PAGE I
TABLE OF CONTENT VI-VII
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 3
1.3 OBJECTIVES OF THE STUDY 4
1.4 RESEARCH QUESTIONS 6
1.5 RESEARCH HYPOTHESES 6
1.6 SIGNIFICANCE OF THE STUDY 7
1.7 SCOPE OF THE STUDY 8
1.8 LIMITATION OF THE STUDY 8
1.9 CHAPTER OUTLINE 9
1.10 DEFINITION OF RELATED TERMS 11
CHAPTER TWO: LITERATURE REVIEW
2.1. INTRODUCTION 14
2.2. THE VIEW ON ELECTRONIC BANKING 16
2.3. ELECTRONIC BANKING AND THE COMMON BANKING
2.4 THE ENTRY OF NIGERIAN BANKS INTO ELECTRONIC
2.6 OPERATION OF FINANCIAL INSTITUTION 36
2.7 ELECTRONIC BANKING PERFORMANCE 36
CHAPTER THREE: RESEARCH METHODO
3.1 INTRODUCTION 40
3.2 RE-STATEMENT OF RESEARCH QUESTIONS 40
3.3 RESEARCH DESIGN 41
3.4 RE-STATEMENT OF RESEARCH HYPOTHESES 41
3.5 POPULATION OF STUDY 42
3.6 SAMPLING TECHNIQUES 42
3.7 SAMPLE SIZE 43
3.8 SOURCES OF DATE 43
3.9 METHOD OF DATA ANALYSIS 43
CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION OF FINDINGS
4.1. INTRODUCTION 45
4.2. PRESENTATION AND ANALYSIS OF DATA 45
4.3 TEST OF HYPOTHESIS 56
4.3 DISCUSSION OF FINDINGS 61
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.0 INTRODUCTION 63
5.1 SUMMARY 63
5.2 CONCLUSION 63
5.3 RECOMMENDATIONS 65
1.1 BACKGROUND OF 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 2012).
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.
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 – an 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 E-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 services.
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 OBJECTIVES OF THE STUDY
The main objective of this research work is to examine impact of electronic Banking in Banking Performance 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 to enhance customers satisfaction
II. To evaluate the nature of electronic Banking on performance of the banking sector
III. To examine whether electronic banking has improve the fortune of the Bank.
IV. To examine the effect of electronic banking has it improve the fortune of the bank.
V. To examine whether the Bank electronic Banking guideline comply with customer satisfaction electronic Banking guideline policy.
1.4 RESEARCH QUESTIONS
One of the question that currently being addressed is the impact of electronic Banking on the traditional banking players; there are two views that are prevalent in the Market. The controversies that the internet is a revolution that will sweep away the old order, argument in are as follow;
1. Does Electronic Banking gives consumers much more choice and consumers will be less inclined to remain loyal.
2. Deposits will go elsewhere because these banks will have to fight to regain their customer base. There would be increase in their cost of funds, making their businesses less viable.
3. Can the portal providers are likely to attract the most significant share of banking profits.
4. Does traditional banks will find it difficult to evolve; they will be unable to obtain additional capital from stock market.
5. E-Banking as an Evolution than a revolution;
1.5 RESEARCH HYPOTHESES
The following hypotheses are formulated in null form to guild the study.
H0: Electronic banking does not have effect on customer satisfaction
H1: Electronic banking has effect on customer satisfaction
H0: Electronic banking does not impact on banking performance
H1: Electronic banking has impact on banking performance
H0: Electronic banking does not improve Bank Customer relationship
H1: Electronic banking improve Bank Customer relationship
H0: The Bank electronic banking guideline does not comply with the customer satisfaction guideline.
H1: The Bank electronic banking guidelines comply with the customer satisfaction guideline.
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 on customer satisfaction 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 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 on customer satisfaction from 2009 to 2011.
1.8 LIMITATIONS 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.
1.9 CHAPTER OUTLINE
The project is organized into the following chapters.
Chapter one: Introduced us to the body of research work, in this chapter various textbooks and journals will be reviews to ascertain various thoughts to the topic in question.
Chapter Two: The means of literature review will be majorly through textbooks and journals to get a grasp of what the topic is all about.
Chapter Three: research methodology is the term on how research will be carried out the primary and secondary data, research design will be adopted
Chapter four: Data Analysis and interpretation is based on presentation of data, analyses and results testing of hypotheses and discussion for results. It explains how facts will be analyzed using statistical framework.
Chapter five: Summary and conclusion of main findings and recommendations will take place after completion
1.10 DEFINITION OF RELATED TERMS
Access Products – Products that allow consumers to access traditional payment instrument electronically, generally from remote locations.
ATM Card - The Card is a complex circuits that process microprocessors with a single chips that contain the complete arithmetic and logic unit of computers.
Chip Card – Is 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.
Electronic Data Interchange (EDI) – The transfer of information between organizations in machine readable form.
Electronic Money – Monetary value measured in currency units stored in electronic form on an electronic device in the consumer’s possession.
Electronic 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.
Electronic Web Collection - This enables the Bank partner with Universities and higher institutions of learning to handle Admission, Registration, Examination Managements and Fees Collection needs.
Internet Banking- This is a product that enables the Bank leverage on the Internet Banking System Module in-built on the new Banking Application
Mobile 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 etc.
Payment System – A financial system that establishes that means for transferring money between suppliers and of fund, usually by exchanging debits or Credits between financial institutions.
Smart Card – A Card with a computer chip embedded, on which financial health, educational, and security information can be stored and processed.
Transaction Alert - The alert system also serves as notification system to reach out to customers when necessary information need to be communicated.
Western 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.