This research project
examined the impact of Electronic banking on the performance of banking in Nigeria
with special reference to Eco Bank Plc. The research discussed existing
literatures on electronic banking and the history of electronic banking in Nigeria.
It also identified the various electronic banking systems and further evaluate
the threats associated with electronic banking in Nigeria
Three hypotheses were
formulated and tested for the purpose of this research. A well structured
questionnaire was designed and administered to staff of Eco bank Plc as a means
of gathering data. A sample of forty (40) was drawn from the population. Simple
random sampling technique was adoptedfor selection of the respondents.
The data gathered was
presented on table using percentage. The formulated hypotheses were analysed
with the use of Chi-Square. The analyses of the research resulted into
rejecting the three null hypotheses and accepting all alternate hypotheses.
Decision drawn by the analyses were that; Electronic banking has significant impact on the performance
of Eco bank Plc. Also the adoption of Electronic banking enhance the fortune of
Eco Bank Plc, and finally, that there is significant relationship between
operational efficiency of bank and electronic banking.
TABLE OF CONTENT
of the Study
of the Study
of the Study
of Research Questions
and Limitations of the Study
of the Study
View on Electronic Banking
Banking and the Common Banking Product
and PC Banking Products
Automated Teller Machine (ATM)
Entry of Nigerian Banks into Electronic Banking
of Cyber-Creams on the Nigerian Banking Premises
Banking Profitability and Efficiency
of Data Collection
of Data Analysis
DATA PRESENTATION AND ANALYSIS
and Analysis of Data
to Electronic Bank
Assessment of Eco Bank’s Electronic
Technology Training Program
4.2.10 Level of Electronic Banking
4.2.11 Improvement of Customer
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
1.1 BACKGROUND OF THE STUDY
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.
industry of the 21st century operates in a complex and competitive environment
characterized by these changing conditions and highly unpredictableeconomic
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
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 paymentswithout having to go to the bank hall. This is gradually creating
a cashless society whereconsumers no longer have to pay for all their purchases
with hard cash.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.
channels today in Nigeria
electronic Banking is quite numerous as it ismentioned here Automatic Teller
Machine (ATM), Point of Sales (POS), TelephoneBanking, Smart Cards, Internet
Banking etc. Personal computers in the Banking industrywas first introduced
into Nigeria by Society Generale Bank as the popular PC easyaccess to the
internet and World Wide Web (www) and internet is increasingly used byBank’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 isreferred to as Internet Banking which is generally part of
Electronic Banking.Thedelivery of products by banks on public domain is an
indication of advertisement whichis known as e-Commerce. Electronic commerce on
the other hand is a general termfor any type of business or commercial
transaction which involves the transfer of informationacross the internet.
E-Commerce involves individuals and business organizationsexchanging business
information and instructions over electronic media usingcomputers, telephones
and other communication equipments.
made banking transactions easier around the World and it is fast
acceptance in Nigeria.
1.2 STATEMENT OF THE PROBLEM
customers of banks today are not only concerned about safety of their funds and
increased returns on their investments, but also 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 but not delivered by most banks in Nigeria.
Banks in Nigeria are
faced with problems of managing transactions electronically. The use of ATM has
made some customers withdraw from banking their cash due to deduction of their
money without successful transaction and yet the funds not reversed. Most bank
do not operate on the internet, their ATM cards cannot be used for transaction
on the internet which is the very beauty of Electronic Commerce. Most of them
are scare of internet scam because they don’t have proper internet security in
place and the unreliability of the internet service in the country.
Due to these
problems banks could not provide quality services that satisfies customers.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. 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 STATEMENT OF RESEARCH QUESTIONS
order to achieve the purpose of this research study, the study will attempt to
provide answers to the following research questions.
Does electronic banking has impact on
the performance of Eco bank Plc.
Does the adoption of Electronic banking
enhance the fortune of Eco Bank Plc
Has electronic banking improved Customer relationship in Eco bank
Doesthe Bank electronic banking
guideline comply with the CBN electronic
1.4 OBJECTIVES OF THE STUDY
objective of this research work is to examine impact of electronic Banking on
the performance of banking in Nigeria.
How different 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 this study
To evaluate the prospects of electronic
banking inEco bank Plc.
To evaluate the impact of electronic banking
in Eco bank Plc.
To examine whether electronic banking
has improve the fortune of the Bank.
To examine the level of compliance of the
Bank to CBN electronics Banking guideline policy.
1.5 RESEARCH HYPOTHESES
provide answer to the research questions arising from this study, the following
hypotheses are postulated.
Electronic banking does
not have significant impact on the performance of
Eco bank Plc.
Electronic banking has
significant impact on the performance of Eco bank Plc.
Adoption of Electronic
banking does not enhance the fortune of Eco Bank Plc
Adoption of Electronic
banking enhance the fortune of Eco Bank Plc
There is no significant
relationship between operational efficiency of bank
and electronic banking
H1: There is significant relationship between
operational efficiency of bank and electronic banking
1.6 SIGNIFICANCE OF THE STUDY
The research is
equally significant because it would provide answers to factors militating
against the implementation of electronic banking in Eco 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
1.7 SCOPE AND LIMITATIONS 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 Eco Bank
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 made available by the respondents and also those gathered from
end users. However, the impacts of this limitation will be reduced to the
1.8 DEFINITION OF TERMS
that allow consumers to access traditional paymentinstrument electronically,
generally from remote locations.
ATM 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.
Chip 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.
Interchange (EDI) – The transfer of information between
organizations in machine readable form.
value measured in currency units stored in electronic form on an electronic
device in the consumer’s
Recruitment –This is an online recruitment services
to all kinds andcategories of clients such as (Army, navy, police and the
Paramilitary) throughcustomizable web portals and the use of scratch cards/PINs
for a Prospectiveapplicants.
Collection - This enables the Bank partner with
Universities andhigher institutions of learning to handle Admission,
Registration, ExaminationManagements and Fees Collection needs.
Banking- This is a product that enables the Bank leverage on
the InternetBanking System Module in-built on the new Banking Application
(BANKS) implemented by the Bank to serve the Internet Banking needs of the
Mobile Banking -
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,
BalanceInquiry, Account Verification, Bill Payment, Electronic fund transfer,
Account Balances, updates and history, Customer service via mobile, Transfer
between accounts etc.
Payment System –
financial system that establishes the means for transferringmoney between
suppliers of fund, usually by exchanging debits or Credits between financial
Point 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 etc.
Smart 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 do so. Nigerian Communities known for having their siblings
gainfully employed in other parts of the world are idle markets for Western
Union Money Transfer