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.
TITLE PAGE I
TABLE OF CONTENT VI-VII
CHAPTER ONE: INTRODUCTION
OF THE STUDY 1
OF THE PROBLEM 3
OF THE STUDY 4
OF THE STUDY 7
OF THE STUDY 8
OF THE STUDY 8
1.9 CHAPTER OUTLINE
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 PRODUCTS 20
2.4 THE ENTRY
OF NIGERIAN BANKS INTO ELECTRONIC BANKING 24
OPERATION OF FINANCIAL INSTITUTION 36
2.7 ELECTRONIC BANKING PERFORMANCE 36
CHAPTER THREE: RESEARCH
3.1 INTRODUCTION 40
RE-STATEMENT OF RESEARCH QUESTIONS 40
3.3 RESEARCH DESIGN 41
OF RESEARCH HYPOTHESES 41
OF STUDY 42
OF DATE 43
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
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
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.
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.
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
Specifically the study objectives are;
evaluate the prospects of electronic banking to enhance customers satisfaction
evaluate the nature of electronic Banking on performance of the banking sector
examine whether electronic banking has improve the fortune of the Bank.
examine the effect of electronic banking has it improve the fortune of the
examine whether the Bank electronic Banking guideline comply with customer
satisfaction electronic Banking guideline policy.
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
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;
The following hypotheses are formulated in null
form to guild the study.
H0: Electronic banking does not have effect on customer
H1: Electronic banking has effect on customer
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
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.
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.
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.
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.
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
The means of literature review will be majorly through textbooks and journals
to get a grasp of what the topic is all about.
research methodology is the term on how research will be carried out the
primary and secondary data, research design will be adopted
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.
Summary and conclusion of main findings and recommendations will take place after
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
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.