1.0 Introduction
1.1 Background of Study
The banking industry globally has undergone significant transformation due to the rapid advancement in information and communication technology, particularly the internet. Internet banking, also referred to as online banking, has emerged as a critical tool for enhancing the delivery of banking services, enabling banks to reach a broader customer base and offer services beyond physical branch limitations (Ojeka & Ikpefan, 2011). The growing importance of the internet in financial services is evident in how it has reshaped the dynamics of customer interaction, transaction processing, and service efficiency. In Nigeria, the integration of internet-based platforms into banking operations began to gain momentum in the early 2000s, following the banking consolidation reforms and the rise of a competitive financial environment. The Central Bank of Nigeria (CBN) has since introduced policies encouraging the adoption of electronic banking and digital transformation to improve financial inclusion and service efficiency (CBN, 2018). Consequently, many Nigerian banks, including Zenith Bank Plc, have adopted various internet-driven innovations such as mobile banking apps, online customer support, e-payment systems, and digital account management platforms.
Zenith Bank Plc, established in 1990, is widely recognized for its strong technological orientation and investment in internet banking infrastructure. The bank has consistently introduced digital solutions aimed at improving customer service, reducing transaction time, and enhancing accessibility to banking services. Its platforms offer services such as internet banking, mobile banking, card services, and ATM banking all of which rely on internet connectivity and robust ICT infrastructure.
The internet according to Laudon et al. (2020), is defined as a global network connecting millions of private, public, academic, business, and government networks, has revolutionized how services are delivered across various sectors (Laudon & Laudon, 2020). In the banking industry, internet technologies have transformed traditional service delivery models into more efficient, customer-centric, and innovative systems. With increasing customer expectations and a highly competitive financial environment, the integration of internet-based platforms has become vital for achieving quality service delivery (Chiemeke, Evwiekpaefe & Chete, 2006).
Quality service delivery refers to an organization's ability to consistently meet or exceed customer expectations in service provision, often measured by factors such as speed, reliability, responsiveness, accessibility, and security (Parasuraman, Zeithaml & Berry, 1988). In the Nigerian banking sector, the internet has facilitated the evolution of e-banking, mobile banking, and online customer support services, significantly altering how banks interact with and serve their customers. Zenith Bank Plc, one of Nigeria's leading financial institutions, has been at the forefront of embracing internet-driven solutions to improve customer satisfaction and operational efficiency. The relevance of internet technology to banking operations lies not only in convenience and accessibility but also in improving internal processes, enhancing communication, reducing operational costs, and providing real-time financial services. However, while the benefits are numerous, challenges such as cybersecurity threats, poor internet infrastructure, and digital literacy gaps persist, affecting the quality of service delivery in some instances (Ayo, Adewoye & Oni, 2010). This study, therefore, seeks to evaluate both the positive contributions and the challenges posed by the internet in meeting customers' expectations.
1.2 Statement of Problems
Investigation revealed that many customers, especially older adults and individuals with limited education, struggle to navigate internet banking platforms, leading to underutilization of services that were developed to improve accessibility and convenience (Chiemeke, Evwiekpaefe & Chete, 2006). Even where customers possess the technical ability to use digital platforms, challenges such as poorly designed user interfaces and unresponsive customer support further reduce service satisfaction.
Furthermore, issues related to server downtime, prolonged maintenance activities, and software glitches disrupt the flow of online transactions. Customers often experience difficulties accessing their accounts or completing simple tasks such as fund transfers, balance checks, and bill payments during peak periods or technical outages. Also, while banks like Zenith Bank are considered leaders in internet banking adoption, the quality of service still varies widely depending on individual experiences, geographical location, and the type of digital service being accessed. It is against the backdrop that this study seeks to address these problems by evaluating both the positive contributions and the challenges posed by the internet in meeting customers' expectations.
1.3 Purpose of the Study
The purpose of this study is to examine how the internet affects the quality of service delivery in the Nigerian banking industry, using Zenith Bank Plc as a case study. It seeks to evaluate the effectiveness, challenges, and impact of internet-based services on customer satisfaction, operational efficiency, and overall service quality in the bank.
1.4 Aim and Objectives of Study
This study aims to assess the impact of the internet on the quality of service delivery in Zenith Bank Plc.
The specific objectives of the study are as follows:
- To determine how internet banking has improved the speed and accessibility of services in Zenith Bank Plc.
- To evaluate the extent of internet usage in service delivery at Zenith Bank Plc.
- To assess the impact of internet services on customer satisfaction in Zenith Bank Plc.
- To identify the challenges faced by customers in using internet banking platforms.
- To examine the measures taken by Zenith Bank to enhance internet-based service delivery.
1.5 Research Questions
Based on the stated objectives, the following research questions will guide the study:
- How extensively is the internet used in service delivery at Zenith Bank Plc?
- What is the impact of internet services on customer satisfaction at Zenith Bank Plc?
- What challenges do customers face in using Zenith Bank's internet banking platforms?
- How has internet banking improved service speed and accessibility in Zenith Bank Plc?
- What measures are in place to improve the quality of internet-based services in Zenith Bank Plc?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: There is no significant relationship between internet usage and quality of service delivery in Zenith Bank Plc.
- H1: There is a significant relationship between internet usage and quality of service delivery in Zenith Bank Plc.
1.7 Significance of Study
The outcome of this research will help policymakers and regulatory bodies such as the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to understand the practical challenges banks face with internet-based services. It will also serve as a reference point for bank management in understanding how digital tools and platforms are being perceived and utilized by customers, and how these tools can be improved for better service outcomes.
For banking professionals and IT managers, the findings will offer a clear assessment of existing digital platforms and highlight key areas where improvements are needed to enhance user experience and service reliability. It will also guide strategic investments in digital infrastructure and customer service models.
Additionally, the study will help policymakers and regulatory bodies such as the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to understand the practical challenges banks face with internet-based services.
Lastly, this research will contribute to the growing body of literature on e-banking, digital transformation, and service quality in developing countries. It will serve as a useful resource for students, researchers, and scholars interested in banking innovation, customer satisfaction, and digital service delivery in Nigeria and beyond.
1.8 Scope of Study
This study focuses on Zenith Bank Plc branches located in Lagos State, Nigeria. It covers how the internet is used in delivering banking services, the challenges customers face, and the bank's strategies to improve service quality through internet platforms. Both staff and customers of Zenith Bank will be considered in data collection.
1.9 Limitations of the Study
Several limitations were encountered during the course of this study, which may have influenced the results and conclusions.
- Time Constraints: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.
- Financial Constraints: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.
- Lack of Cooperation: Many of the respondents are usually aggressive on issue that border cooperation among the respondents border.
- Response Bias: The study will involve surveys and interviews with cooperative managers and members. Response bias may occur if respondents provide socially desirable answers or if there is reluctance to disclose negative financial information due to privacy concerns or fear of repercussions.
1.10 Definition of Terms
Internet:
It is a global system of interconnected computer networks that allows for the exchange of information and communication over long distances (Laudon & Traver, 2021). In this study, it refers to the technology enabling Zenith Bank's digital service delivery.
Service Delivery:
This is the process through which banking services are provided to customers, including speed, accessibility, and reliability (Parasuraman, Zeithaml & Berry, 1988). It is the core of this study in assessing internet impact.
Digital Literacy:
It is the ability of customers to effectively use digital tools and platforms, such as internet banking applications, to conduct financial transactions (UNESCO, 2021).
Internet Banking:
The use of internet platforms to perform banking operations such as fund transfers, account management, and bill payments without visiting the bank physically (Chiemeke et al., 2006).
Customer Satisfaction:
It is a measure of how products or services meet or exceed customer expectations. In banking, it relates to how pleased customers are with internet banking services (Kotler & Keller, 2016).
Cybersecurity:
Practices and technologies used to protect digital systems and information from unauthorized access or attacks.
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