The primary aim of this project tilted role of electronic banking
in the development of banking industries in Nigeria which is being taking
with all seriousness as it presents a mechanism of extending banking services
of wilder segment of the people at a lower cost. More importantly, it
encourages innovations and competition by making available different types of
sophisticated products and equipment that are geared towards providing maximum
satisfaction for the bank that cannot meet up with the innovation environment
will leave their customer to more innovation and customer oriented banks.
Furthermore, E-banking articulated transaction by allowing customers to execute
financial transaction on the bank website by using “transaction website” and it
also enable organization to reach consumer outside their immediate area at
minimum pretreated into foreign market.
of the study
of the Problem
of the study
/ Scope of the
of the study
REVIEW OF RELATED LITERATURE
2.1 Definition of Electronic Banking
2.2 Functions of Electronic Banking
2.3 The facts of E-Banking in Nigeria the Automated Teller Machine
2.4 History of Electronic Banking in
2.5 Act of Electronic Banking in
2.6 An empirical Framework with respect to the role of Electronic
Banki8ng in the Development
2.7 Policy and Issues Raised by the development of electronic
2.8 History of Guaranty Trust Bank
RESEARCH DESIGN AND METHODS
3.1 Research Design
3.2 Area of study
3.3 Population of study
3.5 Research Instrumentation
3.6 Validity and reliability of research instrumentation
3.7 Sources of
3.8 Method of
PRESENTATION AND ANALYSIS OF DATA
4.1 Data presentation and Analysis of Results
4.2 Test of Hypothesis
4.3 Interpretation of Results
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings
5.4 Implications of the
5.5 Suggestion for Further
5.6 Limitation of the
1.1 BACKGROUND OF THE STUDY
The advent of financial innovation such as smart card, credit card, electronic
transfers in the payment system and recently the lunching of internet banking
have transformed the world into a global village linked with electronic
impulses. The concept of electronic money in Nigeria was introduced in 1990
when the Central Bank of Nigeria (CBN) gave approval to them. All state Trust
Bank limited to offer a financial product known as smart card. Subsequently,
Diamond Bank play card. However, the smart card scheme received uplift in
February, 1998 when a consortium of a licensed bank surfaces a smart card
company in Nigeria which is known as Smart card Nigeria plc with a mandate to
producers and manages cards issued by the member bank of the consortium.
Another consortium of more than 20 bank under the patronage of Gen card became
operational in year 2000.
These innovations, which are still at a relatively early state of
development have postnatal to challenge the predominate role of cash for making
small value payments and make retail transactions easier and cheaper for
consumers and merchants who are account holders.
However, they also raised a number of policy issues because of the possible
implication for Central Bank monetary policy consumer system etc.
In responses to implication technology development in the domestic financial
sector, the Central Bank of Nigeria commissioned and information technology
strategy study in 1991 with the objective of promoting efficient performance of
its statutory duties. The product is being implemented in phase and both the
licensed banks and the regulatory authority here demonstrated their
appreciation of benefit derivable form the application and use of the
In view of foregoing, the Central Bank Governors of the group of ten (G-10)
country commission a series of studies on specific issues related to electronic
banking in Nigeria. Therefore, the objectives of the research are to ascertain
the role of electronic banking in Nigeria by using Guaranty Trust Bank (GTB)
Plc, Ogui Road, Enugu as the case study.
STATEMENT OF PROBLEM
The problems facing electronic banking in Nigeria are lack of adequate
information and communication technological awareness campaign about electronic
banking. In Nigeria, communication over the internet are insecure and often
congested, the financial institution would also have to contend with other
internet challenges including security, quality of service and some
abbreviations in electronic fiancé (Guardian newspaper 2001). Besides the
existing business environment also poses some challenges to the smooth
operations of electronic banking in Nigeria, some of these operational
challenges include epileptic power supply, dominance to cash transaction in the
economy, low level of awareness among Nigeria etc (Agbada, 2008). The thrust of
this research work shall be to examine the trend of electronic banking in
Nigeria and critically examination of the challenge.
Conclusively, on my own opinion, below are the problems which electronic
banking in Nigeria is facing.
a. There was no adequate public education on how to
use E-banking product in Nigeria before the banks stated rolling them out.
b. Poor service from the providers.
c. A lot of people are averse to using E- products,
they prefer cash transaction and your cant blame them because of No. 2 above.
If your money gets stocked on the ATM you are on your own.
d. Many of the banks can’t do what they are
claiming to offer it terms of E- banking.
1.3 OBJECTIVE OF THE STUDY
The major objective of study is to appraise the role of electronic banking
(E-banking) in Nigeria, the development of banking industries in Nigeria. The
following are the specific objectives of the study.
1. To determine how inadequate information and
communication technology (ICT) awareness distorts the development
of electronic banking in Nigeria.
2. To appraise how inactive regulatory bodies
prevent the development of needed logistics technical supports.
3. To ascertain the extent to which lack of
sufficient skilled manpower distorts the development of electronic banking in
4. To find out how inadequate funding by government
and its agencies affects the development of electronic banking in Nigeria.
The following research questions have been formulated in the course of this
1. To what extent does inadequate information and
communication technology awareness distort the development of electronic
banking in Nigeria?
2. How do inactive regulatory bodies prevent the
provision of needed logistics and technical support?
3. To what extent does lack of sufficient skilled
manpower distorts the development of electronic banking in Nigeria?
4. How does inadequate funding by government and agencies
affect the development of electronic banking in Nigeria?
In order to carryout this study properly and successfully, the following
hypothesis would be empirically tested:
Inadequate information and communication technology distort the development of
electronic banking in Nigeria.
Inadequate information and communication technology does not distort the
development of electronic banking in Nigeria
Ho: Inactive regulatory bodies
prevent the provision of needed logistics.
Hi: Inactive regulatory bodies do
not prevent the provision of needed logistics.
Ho: Lack of sufficient skilled manpower
distort electronic banking development in Nigeria.
Hi: Lack of sufficient skilled
manpower does not distort electronic banking development in
SIGNIFICANCE OF THE STUDY
This study is significant because it would help to enlighten
operators in the banking sector and other concerned individuals and
organization on the adoption of electronic banking. The research shall
basically identify the challenge facing electronic banking in Nigeria business
environment and suggest ways by which they could be tackled.
1.8 DEFINITION OF TERMS
1. Teller: This is sheet but an important sheet of paper
being used in banking environment to paying money and withdraws in case of a
bank that uses it for withdrawals too.
2. Loan: Loan is a form of money borrowed from the
banks to aid capital and cash level in an organization or firm. They can be
long term or short term to aid capital expenditures respect.
3. Guarantors: This is a person that stands in for one in
case of opening an accounts opting for loads and many other services rendered
by banks. Guarantor tends to carry the risk of paying back defaultment incase
of any default.
4. Electronic banking:
This is the main study of the project, Banking services tends to
be getting more interesting and electronic Banking is a step taking to render
services electronically to aid faster services to customers.
Teller Machines (ATM): This
is a physical assets being used by banks, built and erected concretely to give
out cash, aid recharges (Phones), aid transfers, e.t.c. and it is utmost trend
in the banking industry.
TERMS AND CONDITIONS APPLY
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