1.0 Introduction
1.1 Background of the Study
Although the business of bank is basically about service delivery. Consequently , the introduction of facilities such as electronic fund transfer (EFT) and cash management in the banking industry to enhance the delivery of banking services in a cost of effective manner is always or welcome development.
This is what information technology offers with increasing competition in the market place and service models of delivery for banking product issue; on not only in retaining customers loyalty but maintaining and growing our all profitability.
Electronic fund transfer provide, the platform to achieve both anywhere in the world. Though the introduction of electronic fund transfer is barely a decade old, the fragility of our present legal framework to accommodate the myriad of complex situation and problem arising from the integration of electronic fund transfer and cash management into delivery of banking service is fast becoming apparent.
In this paper, we will focus on the particular issue that arise from the adoption of electronic fund transfer and cash management business primarily through a legal perspective.
Cells cash management refers to the planning, organizing controlling of corporate fund with the view of achieving organizational goals and objectives. It involves the ability of the company or an individual to arrange holding of cash balances in a way that excess holding and storage of cash are minimized. Cash management also entails controlling investment in fixed assets including interest income in any idle fund. There motives behind cash management have remained the reason for the introduction and innovation in electronic fund transfer (EFT).
1.2 Statement of Problems
Nigerian deposit money banks in recent years have designed series of products towards effective mobilization of fund need for industrial growth and development of the country. The fund need to be effectively manged to meet borrowed demand for short term loans and overdraft. It must be noted that factors outside the organics actions control (exogenous) like recession and political environment and variables have posed greater problems to the banks in their question to effectively manage their cash via the electronic fund transfer. Among the ideal problems in the research work include unreliable and inadequate communication facilities in the country, fund in banks,inadequate rural banking facilities and non linking of the online time services in all banks,high capital requirements of the project.
1.3 Objectives of the Study
This project work on electronic fund transfer and cash management in banks is aided at identifying and revealing the usefulness of electronic fund transfer and cash management in deposit money banks.
It will also highlight the benefits , risks and problems inherent in the use of electronic fund transfer in cash management. This study will also x-ray the roles.
Functions and products / services rendered by deposit money banks to their esteemed customers. Recommendation will be made to the deposit money banks to effectively enhance cash mangement via the EFT.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- How do bank access fund transfer?
- What are the effects or impact of electronic fund transfer?
- What kind of relationship exist between electronic fund transfer and cash management in banks?
- How does electronic fund transfer contribute to the overall cash management?
- How do expenses as it relates to cash management affects the profitability of deposit money banks?
1.5 Significance of the Study
The role of deposit money banks in the economic development of a nation can not be over emphasized as they play a major role in the economic life of a country by providing individuals, corporate bodies and government with opportunities for saving and procuring funds needed to set in, attain and accomplish their goals and objectives using the electronic fund transfer in the management of cash.
In view of the position sated above, this will be of great benefit to individuals wishing to do business with bank customer, corporate bodies , and the government.
The study is also expected to provide the banks with an assessment of the journey so far in the use of EFT and cash management . it is equally hoped that this work will aid the management of banks in decision making as it affects electronic based products and services. To the student, this product will serve as a reference guide upon which further research be based on.
1.6 Scope of the Study
Deposit money banks were established at different times in Nigeria and indifferent parts of the country principally to accept deposits and advance credit to its customers. All their aim is at enhancing and promoting economic development in the country.
The research work is conducted on selected branches of two deposit money banks in Owerri, Imo state; fidelity bank and acess bank . an issue on transfer and cash management in particular on electronic banking in general is our target.
1.7 Limitations of the Study
A research work of this nature can not be successfully carried out without encountering obvious constrain and difficulties which if not handled very well can unpair the quality and dept of the work. Among constraining factors is the branch banking system in Nigeria whereby useful information can mainly be obtained from head offices of the banks.
Unfortunately, most head offices are outside the state, including fidelity and Access Banks.
The bankers responsibility to mention anything to an outsider concerning customers accounts and others affairs reduces the volume, scope and quality of this work considerably . due to this fact, lower level management found it extremely difficult to give information to the researcher even when such information is readily available at their disposal.
There are also financial time and human constraint due to the fact that th researcher had to finace this project on her own purse and the much needed travels and movement to collect data were restricted due to high cost of transportation , mores, time frame was not in favour of the researcher as she had to share time between her normal class lectures and her research work.
1.8 Definition of Terms
Below are some of the definition of terms concepts used in this project work;
Automated Teller Machine (ATM):
This is an electronic device used in banks to provide cash and perform other banking service, on the insertion of a special individual and by the account holder.
Automated Clearing House (ACH):
This is an efficient electronic payment system designed to collect and disperse payments in a predictable convenient manner. It can be used for credit transaction such as collection of invoice payment or recurring donations.
Truncation:
This is the process of capturing data contained on a paper cheque electronically . The information is then sent through the chequing system.
Transfer Agent:
This is an agent usually a hank that is appointed by a corporation to keep records of the stock and bond owners and to resolve problems about certificates.
Transmit:
This is the channel through which an information or data is sent from one person or place to another.
Western Union Money Transfer:
This is the money transfer operated by Fidelity bank as one of the agents that allows their scheme in their system.
Profitability:
This is the ability of the bank to make a maximum returns to satisfy the interst of the customers.
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