ELECTRONIC BANKING IN NIGERIA: PROBLEMS AND PROSPECTS
1.1 BACKGROUND OF STUDY
Bank have traditionally been in the forefront of harnessing technology to improve their products and services. They have over the time, been using electronic and telecommunication networks for delivering a wide range of value added products and services. The delivery channel include telephone personal computers including Automated Teller Machine (ATM) first introduced in Nigeria by society General Bank etc with the popularity of personal computers, easy access to the internet and world-wide web (WWW), internet is increasingly used by banks as a channel of delivering the products. And services too the numerous customers. Virtually almost all banks in Nigeria have a web presence. This form of banking is referred to as internet banking which is generally part of electronic banking (e-banking). The main difference being that tin internet banking, the delivery channel is a public demand. It offers different online services like balance inquiry, request for cheque books, recording stop payment instructions, balance transfer instructions, accounts opening and other form of traditional banking services. In the banking and financial services internet banking is a product of electronic commerce/banking.
Electronic Banking on the other hand is any type of business transaction that involves the transfer of information across the Internet it involves individuals and business organizations exchanging business information and instructions over electronic media using computers, telephones and other communication equipment. This covers a range of different types of business from consumers through banking to business exchange of trading goods or services between corporations. The range of services and products offered by different banks vary widely both in their contrast and sophistication
1.2 STATEMENT OF PROBLEM
In Nigeria, for customers, banking today is no longer about safety of their funds and increase returns in their investments only. Customers demand efficient, fast and convenient services customer want a bank that will offer them services that will met their particular needs (personalized banking) and support their business goals. For instance, customer) businessmen want
I. To travel without carrying cash for security reasons
II. They want to be able to check their balances online
III. Find out if a cheque is cleared
IV. Transfer funds among accounts and even want to download transaction records into their own computer at work or home. All these are only achievable trough I-banking. On line with rendering quality and acceptable services, Most banks are investing large sum of money in information and communication technology. First Atlantic Bank, Diamond Bank, All state bank etc are in the forefront in the use of information Technology in rendering services to their customers. The concern of this study therefore is to examine the impact and prospect of Electronic Banking in the financial industry. It also seek the challenges involved in Electronic banking and best of approach to implementing them.
1.3 PURPOSE OF THE STUDY
This project work is concerned about evaluating the prospects of internet banking and electronic Banking in Nigeria banking industry ad Financial institutions. It also seek to examine the challenge facing the implementation and the general international experience on the said study.
1.4 RESEARCH QUESTION
The project work would provide answers to the following questions:
1. Does Electronic Banking contribute to the efficiency and reliability of Banks and banking?
2. Does electronic banking improves bank customer relationship and retains them to their respective banks?
3. Should all banks in Nigeria venture intro net banking services rather continuing with the traditional banking?
4. To what extent would electronic Banking improve the fortune of banks?
5. What is the (greatest) threat of electronic banking in Nigeria?
1.5 RESEARCH HYPOTHESIS
The following hypothesis are formulated from research question above:
1. Electronic Banking entrances banks profitability, efficiency and improves bank customer relationship
2. The sophistication involved in electronic banking has reduced frauds in the banking industry.
3. More banks in Nigeria are eager to join the popular activity of other banks that provides. Internet-banking services because of the merits involved.
1.6 SCOPE OF STUDY
The scope of this project research is limited in Enugu and its environs. This enable the research to have limited place for his research work, And also from internet via computer.
1.7 LIMITATION OF THE STUDY
Despite the research is carried out there are some limitations the researcher encounter, such as
I. Inadequate item: The period of time given by the institution’s authority for the study would not allow for an in-depth coverage of all the variables connected with the topic under study.
II. Finance: finance is another constraint to a indebt research of this topic
III. Inadequate Respond: certain information required in order to highlight and analyze some observation were to accessible e.g. management strategies of some of the banks were regarded as strictly confidential and would not be divulged to the research.
IV. Inadequate material: there were no much collection of variables relating to the topic.
1.8 SIGNIFICANCE OF THE STUDY
This study would enable the bank executives and indeed the policy makers of the banks and financial institutions to be aware of internet banking as a product of electronic banking with a view to making strategic decisions.
1. The research would provide answers to factors militating against the implementation of internet banking in Nigeria.
2. The research would prove beyond reasonable doubt that success and growth associated with implementation of electronic banking and net banking
3. The study will highlight the areas of banking operations that can be enhanced via internet banking and electronic banking
The research work would also be an invaluable tool for students academic, institutions, corporate managers and individuals that want to know more about electronic banking trends and internet banking trends especially in Africa where we have fewer implementations compared with Europe and America.