ABSTRACT
This study reviewed the concept of electronic banking (e-banking),
examined its prospects for Nigerian banks and discussed associated risks. The
study also went further to state the guidelines for e-banking as provided by
the Central Bank of Nigeria, it made known its legal and regulatory measures
and lastly discussed about electronic payment in Nigeria. It’s discovered that
the increased application of e-banking worldwide is a function of improvement
in information and communication technology (ICT). E-banking, it also observed,
holds enormous potentials for the banking industry in Nigeria. To achieve these
potentials, the paper advocated endangering confidence in the e-banking
mechanism by addressing security concern and providing necessary infrastructure
like steady electric power supply.
Despite the fact that these problem of inadequate security and
inadequate power supply persist, the adoption of e-banking has improved
customer services, facilitated accurate records, provides for home and office
banking services, ensure convenient business hour, prompt and fair attention,
and enhances faster services, From the perspective of banks, ICT improves the
banks image and leads to a wider, faster and more efficient market.
The questionnaire method was used in gathering the primary data,
the respondents here were bank customers while secondary data was sourced from;
the internet, journals and library. The hypotheses were tested using
Chi-square. Based on the study conducted, findings were made of which
recommendations and conclusions were also given.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUUD OF THE STUDY
Nigeria’s first bank, the African banking corporation was
established in 1892. Banking legislation did not exist then, until 1952 when
conventional banking system started with the industry witnessing a lot of
regulatory and institutional advances. The industry was being controlled by at
most five out of the 89 banks in existence. Before the commencement of the
ongoing banking industry reformation in the country multiple branch system was
one of the notable futures of Nigerian banks, with a total of 8% of banks
accounting for about 3017 bank branches nationwide as at 2004
(Ezeoha, 2005). The industry was also faced with heavy
challenges, including the over bearing impact of fraud and
corruption, erosion in public confidence a poor capital bases, persistent cases
of distress and failure, poor asset quality and so on .part of the
moves to resolve these ongoing problem include the banking reform
initiated by the central bank of Nigeria in June, 2006, which is largely
targeted at reducing the number of banks in the country and making the
emerging banks much stronger and reliable (Ezeoha, 2005).
The ability of Nigerian banks to satisfy and retain their
customers in the present post-consolidation era will no doubt depend largely on
the development of their information technology (IT) infrastructure. In the bid
to catch up with global developments and improve the quality of their service
delivery, Nigerian banks have invested much on technology and have widely
adopted electronic and telecommunication networks for delivering a wide
range of value-added products and services.
Revolution started in Nigeria banking system in 2003, with the
introduction of guideline for electronic banking by the central bank of
Nigeria. This was accompanied by bank reformation exercise in June 2004. The
reformation exercise left Nigeria with (25) strong and reliable banks against
89 banks previously in existence. The surviving banks of the recapitalization
exercise have enormously engaged the use of ICT as a platform for effective and
efficient delivery of banking service (AYO et al, 2007). The banks huge
investment in telecommunication network and various e-banking services delivery
could be seen as an effort towards measuring up with global standard. This is
among other reason such as increased customers demand, increased competition
among banks themselves; derive minimized cost, new entrants, and better service
delivery (Munirdden, 2007).
Banking has in the last few years, transformed from manual to
automated systems. The numerous advances in internet technology have made
considerable impact in business environment and have in particular brought
about a shift in banking operations. This has necessitated the adoption of
internet banking by banks with the application of the internet to banking,
banks are able to work effectively and make high profits. The chief driving
forces of internet banking among customers include better access to the services,
better prices and higher privacy. Through internet banking customers can
transact banking operations at the comfort of their homes and office. Ovia
(2003) posited that the type of e-commerce, e-banking and e-every thing is
gradually being embraced by Nigerian financial institutions that are poised to
be in the vanguard of narrowing the digital divide.
In its survey on the extent of e-banking adoption by Nigerian
banks, the Central Bank of Nigeria (CBN), in September 2002, found out that out
of the 89 licensed banks in Nigeria, only 17 were offering, internet banking,
24 were offering basic telephone, 7 had ATM (Automated teller machine) services
while 13 of the banks were offering other forms of e-banking. This implies that
as of then, 19.1percent of the banks were offering internet banking, signifying
that internet banking was yet to takes central stage despite its widely
acclaimed benefits against the traditional branch banking practice (Ezeoha,
2005). Part of the reasons identified by Ezeoha (2005) why internet banking was
having a moderate economic impact in the country includes a lack of adequate
operational infrastructure like proper telecommunications and power. In
addition cyber- criminals have made the window unattractive.
This study examines the concept of e-banking, the current level of
e- banking in Nigeria and how it has developed Nigeria banks. It identifies the
major inhibiting factors to e-banking in Nigeria and makes recommendations on
how Nigeria can narrow the digital divide.
1.2 Statement of the problem
In Nigeria, customers of banks today are no longer interested
about safety of funds and increase returns on their investment only. Customer s
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; business men want to travel without carrying 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. Despite the usefulness of
electronic banking there are inhibiting factors so therefore, how effective and
efficient electronic banking is despite its attendant problem is to be
addressed.
Department | Banking and Finance |
Project ID Code | BFN0009 |
Chapters | 5 Chapters |
No of Pages | 115 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦5000, $15 |
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Contact Us On | +2347043069458 |