1.0 Introduction
1.1 Background of the Study
The research topic “Effect of E-banking in Nigeria “ has been chosen by the researcher to show the contributory role of electronic banking in the Nigeria economy. The research also found out that the dependency on the technology of computer as it is the case with electronic found transfer poses a problem because the failure of the computer could constitute a disaster.
However all banks although as a very necessary tool to improve banking facility have not actually adopted electronic banking. So many banks on the other hand have seen it as a means of improving in their checking transactions and keeping necessary data on customers for loan advances and other services.
Electronic banking is an aspect of electronic commerce and is derived from the success recorded in it. Electronic commerce is simply the utilization of internet or communication and electronic mail to conduct business transactions.
The fusion of computers , the internet and other technology has remove the distance between entities. Currently , in a world becoming increasingly open as a result of the internet and the world wide web (www) interact banking aspect of electronic banking) has been gaining ground internet banking and other type of online banking, offers financial institutions a new frontier of opportunities as well as challenges, the Nigeria financial institutions especially banking sector has in recent times becomes highly competitive and the competition is expected to intensify as new players of local and global scope enters the market. In attempt to maintain their competitions edge as the terrine becomes more challenging to navigate some banks have introduced electronic banking in one form or the other (through still on a limited scale). From all indications , the nations banking and non banking financial environment can reasonably be said to changing gradually from manual to an automated system with the keenness and determination already being displayed by many banks towards information technology.
The attainment of the internet / other types of online means architecture is no doubt around the corner of the country. Apart from making business processes easier and more accessible, the introduction of electronic banking has brought with it , series of innovation . The innovations have been manifested in many areas such as the introduction of the automated teller machine (ATM) smart cards, telephone banking, pass card banking and internet banking, Electronic banking offers customers advantages such as speed and convenience. For instance, electronic banking using internet provides an opportunities for extending banking serves without bank branches to a wide segment of the people even at lower cost , in spite of its benefits , a a result of the advancement in information technology will pose a lot of challenges to regulatory supervisor in the system.
Some the challenges will include the introduction of monetary policy, consumer protection, system failure, loss of audit trail and cross boarder legal issues including money laundering or cyber crime.
Finally, the work is therefore going to show the actual contributions of electronic banking in the Nigeria banking institutions and also state categorically some of the problems banks will face if they dd not introduce electronic banking in their operations.
1.2 Statement of Problem
There are a lot of problem that are associated with electronic banking in Nigeria when it comes to regulations and supervision of the workers and both the work that is being carried out in different branches of the banking sector, it is said to be poor in the area and because of supervision workers becomes lazy with their work. There is also the problem of system failure, which makes transaction of the day very slow, thereby keeping customers waiting in thbanking hall, at time customers cannot withdraw. Consumer protection problem is there too, for the fact that automated teller machine (ATM) is being introduced customers do not enjoy consumer protection from the bankers. Because most a times they are left along to withdraw money from the ATM which pose problem to them when the machine a times ceases the ATM card.
The loose of audit trial, a cross borders legal issues, which include money laundering or cyber crime and fraud , all these problem are associated with electronic banking.
1.3 Objective of the Study
The objective of this study is to enable the researcher identify various problems associated with electronic banking and find a better means of solving them. Also the prospect of electronic banking and its products.
1.4 Research Question
The researcher advances or puts forward some researching questions that will lead to the solution of the problem. Such question include:
- Does reduction in time waiting result from electronic banking?
- Has there been an increase in your banks deposits since it was eletronized?
- Has electronizations reduced the daily work load in the bank?
- Does electronization reduce the cost of bank services?
- Has customers increased since the introduction of electronic banking?
1.5 Statement of Hypothesis
For the purpose of this research work , the following hypothesis have been formulated with a view to determine the effect of E-banking in Nigeria.
Ha - Electornization has reduced the daily work load in the bank.
Ha - the financial strength of a bank has increase since reintroduction of electronic banking.
1.6 Significance of the Study
Electronic banking, though a very necessary tool to improve banking facilities have not adopted by all banks. As a result , the researcher has chosen this study to enable banks which have not actually adopted electronic banking know that their positive effect surpassed its negative effect. It will also go a long way to induce banks to devote more time to planning , thus increasing the efficiency of the average bank workers. This research work is also beneficial to Nigeria as a whole because of the increasing competition from non bank financial institution.
Example insurance industries and demand for more efficient and convenient capacities.
To the researcher , this work is essential or beneficial hence it is a learning process and also an insight of the need to proper and general adoption to the use of electronic banking in her society. To my successor, the researcher topic is adequate for the education on the necessities for a need of electronic banking in this field as well as practitioners in this discipline and students in universities, polytechnics and chartered institutions of banking.
The study will be a good guild to many future researchers who would wish to improve on what the present researcher has written.
1.7 Scope of the Study
This study is concerned with the use of electronic form of money transmission, its actual contributions to the banking industry and problems faced by bank that do not electronilize their banking system. A case study of united bank of Africa and first bank of Nigeria Plc are within these scope, various aspects of electronic banking is reviewed.
1.8 Limitations of the Study
In the course of writing this research there were a lot of limitation s , problems that tends to put an end towards the success of this research work . The following are the problems encountered on the course of carrying these research work.
1. Time Constraints:
The time for this work to be complete and submitted was limited
2. OTHER ASSIGNMENT:
Other Academic work such as writing some term papers attending lectures and preparing for my on coming examination.
3 Financial Constraints
This is another factor that hinders the success of the research work. Inadequate finance made me not to get information from various places like internet browsing as well as going to different banks in search of information.
