1.1. BACKGROUND OF THE STUDY
The rapid changes in business operations in contemporary times in the
form of technological improvement require banks in Nigeria to serve
their customers electronically. Traditionally, banks have been in the
forefront of harnessing technology to improve their products and
services. The banking industry and its environment in the 21st century
is highly complex and competitive and therefore the need for information
and communication technology to take centre stage in the operations of
banks (Stevens, 2002).
Electronic banking is critical in the transformation drive of banks
in areas such as products and services and how they are delivered to
customers. Thus, it is seen as a valuable and powerful tool in the
development, growth, promotion of innovation and enhancing
competitiveness of banks (Gupta, 2008; Kamel, 2005). Given the
significant role of electronic banking in the developmental drive of
banks, information technology has been found to lead to improvement in
business efficiency and service quality and hence attract customers as
well as retain them (Kannabiran & Narayan, 2005).
According to Chang, (2003), Electronic banking contributes
significantly to the distribution channels of banks such as automated
teller machine (ATM), Phone –banking, Tele-banking, PC-banking and now
internet banking (Chang, 2003). In addition, transfer of funds, viewing
and checking savings account balances, paying mortgages, paying bills
and purchasing financial instruments and certificates of deposits
processes have improved significantly as a result of internet banking
(Mohammed et al., 2009). This implies that, Electronic banking has
resulted in efficiency in service delivery in the banking sector because
customers can transact business from one side of the country to another
and from both long and short distance.
Other scholars argued that, electronic banking has transformed
traditional banking practices to the extent that it has been found to
create a paradigm shift in marketing practices resulting in positive
performance in the banking sector (Gonzalez, 2008; Maholtra & Singh,
2007). This shows that the delivery of efficient and quality service is
facilitated by information technology. Similarly, Christopher et al.
(2006) indicated that electronic banking provides an important channel
to sell products and services of banks and is perceived to be a
necessity for banks to be successful. Therefore, service quality and
efficiency in the banking industry has increased tremendously worldwide
in the world due to the integration of information technology into
banking operation. The present study seeks to investigate the extent to
which the electronic banking concept has impacted on customer
satisfaction in Commercial Banks.
1.2. STATEMENT OF PROBLEM
All banks compete with each other to attract their customers in
different ways through providing convenient, accessible and acceptable
services or/and products to their customers. One of the most important
of these services is the electronic services that have contributed
significantly to increase the distance between costumers and the bank
(Almazari and Siam, 2008).
E-banking was adopted by banks so as to improve their service
delivery, decongest queues in the banking hall, enable customers
withdraw cash 24/7, aid international payment and remittance, track
personal banking transaction, request for online statement, or even
transfer deposit to a third party account. Despite the effort of banks
to ensure that customers reap the benefits of e-banking, the bank is met
with complaints from customers as regards, malfunctioning Automated
Teller Machines (ATMs), network downtime, online theft and fraud, non
availability of financial service, payment of hidden cost of electronic
banking like Short Message Services (SMS), for sending alert, mandatory
acquisition of ATM cards, non acceptability of Nigerian cards for
international transaction amongst others.
This study is aimed at finding out the reason why these problems
occur and in most cases persist, and then to make recommendations based
on the outcome of the study.
1.3. OBJECTIVES OF THE STUDY
The general purpose of the study is to investigate the impact of
electronic banking on customer satisfaction in Guarantee Trust bank plc.
However, the study specifically seeks to:
- Identify the Electronic banking services offered by GTB and its usage by customers
- To determine the impact of electronic- banking services on Customer Value.
- Examine the impact of electronic banking on service delivery;
- Identify customers? level of satisfaction with service delivery given the introduction of electronic banking services.
- Identify the benefits to customers for using e- banking services.
- Identify the challenges facing effective implementation of electronic banking system in Nigeria
1.4. RESEARCH QUESTIONS/HYPOTHESIS
Based on the research objectives, the study will test the following questions:
1. What are the electronic banking products of Guaranty Trust Bank Nig Plc?
2. Has the introduction of e-banking significantly affected service delivery of Guaranty Trust Bank Nig Plc?
3. Has e-banking positively affected service delivery in Guaranty Trust Bank Nig Plc?
4. What are the possible solutions to e-banking challenges in Nigeria?
5. Given the usage of Electronic banking services, how satisfied are customers of the bank?
1.5. HYPOTHESIS TO BE TESTED
Based on the study problem, this study aims to test the following hypotheses:
H0: Electronic banking products and services have not significantly improved customers satisfaction
HA: Electronic banking products and services have significantly improved customers satisfaction
1.6. RELEVANCE/SIGNIFICANCE OF THE STUDY
The introduction of electronic into the banking industry has affected
service delivery in the service industry. Many banks are shifting
gradually from the traditional way of banking and are gradually
introducing electronic technologies into their service delivery.
The outcome of this study will be of immense benefit to the
management of GTB Bank Nigeria Plc, since it will help identify most of
the challenges faced by the banks as well as the complains table by the
customers. Solutions will then be proffered on theses identified
challenges. This will go a long way to help the bank achieve its stated
objectives, and in the long run increase shareholder’s wealth.
Furthermore, the study would enable banks executives and indeed the
policy makers of the banks and financial institutions to be aware of
electronic banking system as a product of electronic commerce with a
view to making strategic decisions.
1.7. LIMITATIONS OF THE STUDY
There were some limitations during the study
- Respondents were too busy to read the questions properly and
tick the answer just for the sake of completing the survey quickly so
there is no guarantee that the data collected is 100% correct and hence
while analyzing the researcher has considered level of significance.
- At most cases I had to ask respondents questions in local dialect
1.7 Organizational preview : A corporate profile Guarantee Trust Bank Plc at a glance
1.8 DEFINITION OF TERMS
Electronic banking:The definition of
e-banking varies amongst researches partially because electronic banking
refers to several types of services through which a bank’s customers
can request information and carry out most retail banking services via
computer, television or mobile phone (Lustsik, 2004).
Electronic banking can be defined as the provision of information or
services by a bank to its customers, describes it as an electronic
connection between bank and customer in order to prepare, manage and
control financial transactions (Karjaluoto, 2002).