Abstract
The advent of the internet has revolutionized the way businesses operate across various sectors, including the banking industry. This study examines the impact of internet banking systems on the banking environment in Nigeria, with a specific focus on Union Bank. The objective is to assess how the implementation of internet banking has influenced the overall banking experience, customer behavior, operational efficiency, and the competitive landscape within the Nigerian banking sector.
The study employs a mixed-methods approach, combining quantitative analysis of relevant financial data and qualitative insights from interviews with bank executives, employees, and customers. Key performance indicators such as customer acquisition, transaction volumes, and revenue growth are analyzed to measure the tangible impact of internet banking on Union Bank's operations.
The findings reveal that the implementation of internet banking systems has significantly transformed the banking environment in Nigeria. Firstly, it has enhanced customer convenience and accessibility by providing round-the-clock banking services, enabling customers to conduct transactions and access account information at their convenience. This has led to increased customer satisfaction, loyalty, and retention.
Secondly, internet banking has streamlined internal banking processes, leading to improved operational efficiency. The automation of routine transactions, such as fund transfers and bill payments, has reduced manual errors, minimized processing time, and lowered transaction costs. These efficiency gains have positively impacted Union Bank's profitability and competitiveness in the Nigerian banking industry.
Furthermore, the study examines the challenges associated with internet banking adoption, such as concerns regarding security, digital literacy, and infrastructure limitations in some regions. The research identifies strategies implemented by Union Bank to address these challenges, including robust security measures, customer education programs, and infrastructure investments.
In conclusion, the study demonstrates that internet banking has had a transformative impact on the banking environment in Nigeria, specifically for Union Bank. It has enhanced customer experience, operational efficiency, and overall competitiveness. The findings provide valuable insights for Union Bank and other financial institutions seeking to leverage internet banking systems to drive growth and remain relevant in an increasingly digitalized banking landscape in Nigeria and beyond.
Table of Contents
CHAPTER ONE
1.1 BACKGROUND TO THE STUDY
1.2 STATEMENT OF PROBLEMS 2
1.3 AIMS AND OBJECTIVES 3
1.4 SCOPE OF THE STUDY 3
1.5 RESEARCH HYPOTHESES 3
1.6 RESEARCH QUESTIONS 3
1.7 SIGNIFICANCE OF THE STUDY 4
1.8 DEFINITION OF TERMS: 4
CHAPTER TWO
2.2 MEANING OF INNTERNET BANKING SYSTEM: 6
2.3 ORIGIN OF THE INTERNET BANK 6
2.4MEANING OF INTERNET BANKING 6
2.5 MEANING OF COMPUTER 6
2.6 BANKING RELEVANCE OF COMPUTER TO INTERNET 6
2.7 INTRENET BANKING PRODUCTS 6
2.7.1 UNION BANK VALUECARD 6
2.8 BENEFITS OF INTERNET BANKING 6
2.9 PROBLEM ASSOCIATED WITH INTERNET BANKING 6
2.10 SOLUTION TO PROBLEMS ASSOCIATED WITH INTERNET BANKING 6
2.11 INFERENCE FROM LITERATURE 6
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
3.1 RESEARCH DESIGN:
3.2 TYPES AND SOURCES OF DATA
3.3 POPULATION
3.4. SAMPLEAND SAMPLING TECHNIQUE
3.5 RESEARCH INSTRUMENT
3.6 RELIABILITY AND VALIDITY OF INSTRUMENT:
on the Internet.
3.7 METHOD OF DATA COLLECTION
3.7 METHOD OF DATA ANALYSIS
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION
4.2 BIO DATA OF RESPONDENTS
4.3 RESEARCH HYPOTHESIS
CHAPTER FIVE
FINDINGS, SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 FINDINGS
5.2 RECOMMENDATIONS
5.3 CONCLUSIONS
5.4 LIMITATION OF THE STUDY
REFERENCES
QUESTIONNAIRE ADMINISTRATION
CHAPTER ONE
1.1 BACKGROUND OF STUDY
In Nigeria, the banking industry witnessed lots of challenges due to increase in the awareness and utilization of banking services. The demand for bank services equally increased the staff strength and branches of most Nigerian banks. In spite of this these adjustments the banks cannot satisfy the demands of some of their transactions were based on manual and physical present of their customers. Modern Internet banking brought to relief to the increased volume and complexity of banking operations and services delivery. Experimentation with Internet banking and electronic fund transfer gradually become part of daily transaction as arrangement were made with banks using microcomputer to pay some bill owed big department stores and companies, by this practices the internet becomes a service delivery mechanism of their customer has equally embraced it Meanwhile information technology through Internet banking is radically changing how banking is done all over the world and Nigeria is not an exception. The volume and speed of banking transactions has improved tremendously as a result of the growth of internet banking which has created a lot of changes and business opportunities for banks, operate bodies and industries. Infact Nigeria is believed to be the largest Internet user in the West African with about 100,000 Internet users as at year 2000. It was estimated to have risen to 350,000 in 2001 and projected to hit has a million by the end of 2002
However, the population size of Nigeria calls for accelerated sensitization on the need to embrace information technology as the provision of an enabling environment for its operation. Internet is inevitable for the success of any modern banking institution since it is a competitive tool as it creates room for customized services and reduces the cost of operation, promotes profitability growth and efficient portfolio management. The emergence of a crop of new generation banks coupled with computerization of the Nigerian financial sector motivated the introduction of high technology in the Nigerian banking system. Remarkably, information technology is dynamic continuously coming up in new challenges for human capital development virtually every Nigerian banks claims to be having internet banking and on-line union bank of Nigeria plc harbors large amount of information on-line and of course lowers the marketing distribution costs. Indeed internet banking has brought a greater advantages for one bank over another depending on its application, operation and service delivery.
1.2 STATEMENT OF PROBLEMS
Banks since the inception of the use of Internet banking products in the late 1980's have not made their presence felt much. These are as a result of problems associated with the use of Internet banking this issue is lack of security.
The lack of security is the major challenge for the future of Internet banking in Nigeria. Resent research carried out in Africa shows that companies consider the biggest obstacle to being used the Internet for financial transaction to the lack security. Many companies are concerned about the integrity of financial information that travels over the internet and would rather accept the inefficiencies and incontinences of a manual system that subject themselves to the uncertainty of the internet, in addition Nigeria is a cash economy and the issue of trust in such that even cheques are not generally accepted as payment for goods and services rendered. Recently, the Nigerian market has witnessed the development of electronic purse products such as value card and the smart pay card, designed to move the economy although it is hoped that they will eventually help lessen the importance of cash in our society. It is therefore clear that in such an environment, most consumers will be skeptical that a click on a computer screen will result in a completed financial transaction.
1.3 AIMS AND OBJECTIVES
1. To determine the financial product or services that are computerized
2 To investigate the use of Internet banking and helped to improve bank operation and its security.
3. To determine if banks are fully or partially computerized and enough security
4. To determine the performance of the banks being since introduction of Internet banking
5. To determine the financial services or product exists in the financial market
6. To determine financial services or product exist in the financial market
1.4 SCOPE OF THE STUDY
The scope of this research work will be limited to the Nigerian commercial banks, using Union Bank plc as a case study.
1.5 RESEARCH HYPOTHESES
H0: bank performances have not increased since the advent of internet banking H1: bank performances have increased since the advent of internet banking
1.6 RESEARCH QUESTIONS
This study will try to answer the following research questions drawn from the study the research questions are as follows:
1. How many financial product or services are computerized?
2 Has the use of Internet banking helped to improve bank operation?
3 Are banks fully or partially computerized?
4 Has the performance of the bank being since introduction of Internet banking and security issue?
5 What financial services or product exists in the financial market?
6 What financial services or product exist in the financial market?
1.7 SIGNIFICANCE OF THE STUDY
It is helped that the findings are recommendations of the study will include:
i IMPROVED CUSTOMERS SERVICES: internet banking will enable banks provide new faster and better products and services to its customers thereby bringing the banking to international level enhancing competition amongst the banks. This can take the form of the funds transfer signature verification in ministers
i.i RELIABILITY OF TRANSACTION
Internet banking will help to ensure accurate and timely transaction unlike when done manually which is prove to human errors, which are embracing and costly at times.
iii SAFETY:
Internet banking technology ensures safety of banks dealing with its customers. Under these circumstances, banks must developed security features for their Internet sites, which adequately address tier customers concerns and must educate their customers on the protection that the Internet sites provides. Under safe banking practices can cause huge losses to the banks especially in the case of misrepresentation of account owners. The banking technology prevents this signature verification, voice mail and prints verification and unauthorized access into computer system
iv REDUNDANCY OF STORAGE
Internet Banking helps to reduce the use of files, which are archaic thereby reducing storage space, using of files could lead to loss of vital information about bank customers through mutilations, easy and unauthorized access to files and misplacement of important
documents. This can be presented through storage of information in diskettes, hard disk and back- ups of important information.
1.8 DEFINITION OF TERMS
1 INTERNET BANKING: A quick and easy way to access your account through the Internet.
2. I.T: The study and the use of electronic processes and equipment to store information of all kinds, including words, numbers, pictures and abbreviation for information technology
3 WAN: Wide areas network a system in which computers in different places are connected, usually over a large area.
4. LAN: Local area network for communication by computer within a large building
5. ON-LINE: Controlled by or connected to a computer or to the Internet.
6. HYPER LINK: A place in electronic documents on a computer that link to another electronic document.
7. GLOBALIZATION :Is a world trade.
8 WEBSITE: Where accompany has information about itself on the web.
9. ACCESS: To open a computer file in order to get or add information.
10. SEARCH ENGINE: An act of looking for information in a computer database or network.
11. NETWORK: Computing a number of computers and other devices that are connected together so hat equipment and information can be shared, the office network allows users to share files and software and to use a central printer LAN, WAN.
12 DISK: A device for storing information on a computer with a magnetic surface that records information received in electronic form.
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