Impact of Electronic Banking on the Development of Nigeria’s Banking Industry
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are;
- Examine the prospect of information technology in modern banking operations in Nigeria.
- Evaluate the impact of electronic banking on the operations of the financial industry in the country.
- Examine the effect of electronic – banking on the bank – customer – relationships.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
In recent times, electronic banking has spread rapidly all over the globe. According to Onay e-t al, the increased adoption and penetration of internet has recently redefined the play ground for retail banks. In Nigeria, all banks are making greater use of ebanking facilities to provide better services in order to excel in the competitive Nigerian banking industry. The spread of e-banking has also greatly benefited the ordinary customer in general and corporate world in particular. Consequently, electronic banking (e-banking) has been the greatest challenge to the banking industry going by the sophistication and volume of fraudulent practices associated with this form of banking. In the past few years, banking activities in Nigeria have increasingly depended on the deployment of information and communications technology. Customers’ insatiable appetite for efficient services has compelled financial institutions to fast track to a more radical transformation of their business systems and models for embracing e-banking. E-banking appeal as well its product development is rapidly growing, and the global acceptance has strongly encouraged its penetration. The success of e-banking is contingent upon reliable and adequate data communication infrastructure. Therefore, it is efficient for banks to invest in online transactions through the creation of networks. However, there has been a mix up between electronic banking and internet banking. The fact is that internet banking is subsumed in electronic banking. Banking has come a long way from the time of ledger cards and other manual filing systems. Most banks today have electronic systems to handle their daily voluminous tasks of information retrieval, storage and processing. Irrespective of whether they are automated or not, banks by their nature are continually involved in all forms of information management on a continuous basis. The computer is of course an established tool for achieving a competitive edge and optimal resource allocation. The most obvious application of computers in the banking industry is in the area of customer services, information management and control. Computerized banks respond immediately to requests from customers for statement of accounts, balance and account activity enquiries. With signature and image verification systems, the time taken to offer typical cashier services like receiving and paying out of cash is minimized. Also with the advent of automated Teller machines (ATM), banks are able to serve customers outside the banking hall all round the clock
Types and Delivery Channels of e-banking
E-banking can be classified into three basic types. These include Internet banking, Smart card banking and Mobile/telephone banking.
Internet banking: This is a type of ebanking service where customers’ instructions are taken and attended to through the internet. Internet banking offers customers the possibility of enjoying banking services from the comfort of their homes and offices. What this means is that customers can buy goods by placing orders from the net, instruct their banks to pay the vendor the invoice amount involved, and the products are delivered to the destination where the buyer wants.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to impact of electronic banking on the development of Nigeria industry
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information impact of electronic banking on the development of Nigeria industry. 200 staff of GTB, Edo state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain impact of electronic banking on the development of Nigeria banking industry. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of electronic banking on the development of Nigeria banking industry
Summary
This study was on impact of electronic banking on the development of Nigeria banking industry. Three objectives were raised which included: Examine the prospect of information technology in modern banking operations in Nigeria, evaluate the impact of electronic banking on the operations of financial industry in the country, examine the effect of electronic – banking on bank – customer – relationship. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of the GTB Edo state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made are human resource managers, accountants, customer care managers and marketers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
It is evident that electronic banking plays a significant role in banks operational efficiency in Nigeria and it is obvious that it is one of the major sources of increase in banks’ general performance. Though it is still to be secured enough to ensure adequate patronage, it is possible that with the introduction of new channels, alongside technology advancement, performances of banks in Nigeria can be drastically increased. Most especially if efforts are put in place for an efficient implementation.
Recommendation
Result of the study discloses that most of the banks’ customers have no understanding of e-banking channels despite that most of these banks e-banking channels are effective and efficient. It is therefore advised that measures should not just be put in place to encourage customers to use these channels but should be inclusive of how to educate them on how they are operated. Some banks have lost customers due to poor implementation of e-banking (Lee, (2010); John and Rotimi, 2014). Banks should not just invest in more e-channels but rather also see to it that these channels are efficient and effective in relation to services each of them performs. To increase the smooth functioning of the payment system, the government also has a major role to play in the aspect of financing and training so as to come up with improved forms of e-channels.
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