Online Evolution System for Monetary Transaction
CHAPTER ONE
Aims and Objectives of the Study
This study to a large extent will influence the existing system of operation. A critical analysis of the present method will be made and factors affecting it will also be determined.
The aims of this study cannot be overemphasized as its usefulness will cut across Uyo. All activities carried out by the entire department are tailored towards the proper functioning of the monetary transaction system.
In other words, the proposed system to be a arrived at as the output of the study will among others aid in the followings:
- To examine the relationship between mobile banking service expenditure and the profitability of Diamond bank PLC.
- To examine the relationship between Automated Teller Machine service expenditure installed and the profitability of Diamond Bank PLC.
- To examine the relationship between credit or debit card issued to customers service expenditure and the profitability of Diamond Bank PLC.
CHAPTER TWO
REVIEW OF THE RELATED LITERATURE
Introduction
This chapter helps in providing the background of the context of the research problems. It reviews the existing literature on the effect of internet banking on profitability of commercial banks. We are going to review the following on this chapter: the conceptual framework, theoretical framework, empirical review and the summary of literature review.
Conceptual framework.
Internet banking is the use of internet in order to provide services like on line transfer, payment of bills and any other on line banking activity. Internet banking can be grouped into four major classes;
a)Telephone banking: this is a form of internet banking which is used by customers in order to perform or carry out retail transactions by calling phone communication units which are linked to an automated system of bank. Some activities that can be carried out are change of pin and transfer of funds.
b)Internet banking: this is also another form of banking which allows customers to make use of the bank’s website in order to make transfers, pay bills, view their bank statement without having to visit the banking hall.
c)Mobile banking: this is a form of internet banking which involves the use of cell or mobile phones in order to settle some transactions. Some of the examples of this transactions includes; change of pin, transfer of little amount of funds, phones recharge.
- d) Electronic card: this is a form of internet banking is a physical plastic card that identifies the holder of the card. It is used for financial transactions on line which includes point-of-sale (POS)and Automated Teller Machine (ATM)which are used to authorize payments to the sellers. The various types of this cards include; credit and debit cards which have to be replenished.
Cyber-Crimes Threats on the Nigerian Banking Premises:
One of the most popular internet frauds is the 419 act. This had its origin from Nigeria in the 1980s. 419 crimes became consistent through the use of e-mail and other internet means (Amedu, 2005). In the year 2015, Nigeria ranked the third in global internet crimes behind the United Kingdom and United States of America with about 127 billion naira as the estimated loss.
CHAPTER THREE
METHODOLOGY
Introduction
Methodology is simply the use of activities that are involved in collecting the information required for a research work. This chapter describes how the study was carried out by showing the procedures and methods for the research and collection of data for the study. It includes the research design, nature and sources of data, model specifications .
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF RESULT
The results of the ordinary least squares regression (OLS) are presented as follows:-
Table 4.0.1 Regression Result: The Impact of Internet Banking on the Profitability of Commercial Banks.:
CHAPTER FIVE
SUMMARY, POLICY RECOMMENDATIONS AND CONCLUSION
Summary
In this study, we set out to empirically evaluate the impact of internet banking on the profitability of Commercial Bank of Diamond Bank Plc. In Nigeria. The study was conducted to ascertain how internet banking affects Diamond Bank Plc in Nigeria.
Secondary data were used; the source of data included Diamond Bank Plc. annual financial statement (2017). In order to achieve the objectives of the study, three econometric models were formulated using the Ordinary Least Square (OLS). In the first model, return on assets was regressed on internet banking service expenses. In the second model, return on equity was regressed on internet banking service expenses and in the third model, net income margin was regressed on internet banking service expenses.
The major findings of the study are summarized below:
- The result has established a positive and significant relationship between the log of internet banking services expenses (IBSE) and return on asset (ROA). This has been found to be consistent with the theory.
- The result also revealed a positive and significant relationship between log of internet banking services expenses (IBSE) and return on equity (ROE). This has been found to be consistent with the theory.
- Lastly, the result also revealed a positive and significant relationship between log of internet banking services expenses (IBSE) and net income margin (NMG). This has been found to be consistent with the theory.
Policy Recommendations
Based on the following findings of this study, the following policy recommendations are suggested:
- The empirical results of the study have revealed significant relationship between the log of internet banking services expenses (IBSE) and return on asset (ROA).We therefore, advocate for more ATM facilities which should be placed at strategic location for easy access.
- Marketing and education of internet banking service and products should be intensified to attract more customers which enhances profitability.
- The bank should conduct more research to find new internet banking product to attract and to retain her potential customers.
- Diamond bank should improve and modernize its policies by ensuring that communication equipment , computer and other infrastructure to a large extent are managed by qualified staff to ensure that customer enjoy better internet experience.
- The government should through the monetary authority provide policies that would enable commercial bank thrive in order to boost the financial sector of the economy.
Conclusion
In this study, we evaluated the impact of internet banking on the profitability of Commercial Bank of Diamond Bank Plc. in Nigeria. From our findings, a positive and significant relationship was established between return on asset (ROA), return on equity (ROE), net income margin (NMG) and internet banking service expenses (IBSE).
The general conclusion is that internet banking service expenses (IBSE) have impact on return on asset (ROA), return on equity (ROE) and net income margin (NMG).
REFERENCES
- Abaenewe, Z.C, Ndugbu, M.O & Ogbulu, O. M (2013).Electronic banking and bank performance in Nigeria. West Africa journal of industrial and academic research 1, 171-186.
- Abreu ,M.,& Mendes, V. (2002). Commercial bank interest margins and profitability:Evidence from E.U countries.Porto Working paper series
- Aderonke & Charles, A (2010). An empirical investigation of the level of users acceptance of e-banking in Nigeria. Journal of internet banking and commerce, 15(1)1-12
- Agboola, A. (2001). Impact of electronics banking on customer services in Lagos Nigeria.Ife journal of economics and finance. Department of economics, O. A. U,Ile-Ife, Nigeria, 5(1&2)
- Ajzen, I. (1991). The theory of planned behaviour. Organizational behaviour and human decision process, 50(2), 179-211.
- Amedu. U. M. (2005). Domestic electronic payment in Nigeria. The Challenges. Central Bank of Nigeria bullion. Vol 29, no 1,January march.
