THE ROLE OF ELECTRONIC BANKING (E- BANKING) IN THE DEVELOPMENT OF FINANCIAL INSTITUTIONS IN NIGERIA
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
Background to the study
Statement of Problem
Purpose of the Study
Significance of the study
Delimitation /scope of study
Limitation of Study
Review Of Relation Literature
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
Population of Study
Sample and Sampling Techniques
Validity of Instrument
Administration of the Instrument
Method of Data Analysis
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
Data presentation and Analysis
Discussion of Results
SUMMARY, CONCLUSION AND RECOMMENDATION
This study was embarked upon to ascertain the impact of Accountancy knowledge on the Role
of Electronic Banking in the Development of Financial institutions in Nigeria.
The study has a total of three chapters and first chapter titled the
introduction started with the background of study. Here, an overview of
accountancy knowledge on Electronic Banking
was undertaken. The aims and objectives of the study were duly
highlighted in chapter one. The aims and
the objectives of the study includes;
information and knowledge mad available to bank management, also the extent to which
bank management utilized accounting
information in electronic banking, it is
likely to inform us on the Roles of
banking and the internet with the use of accounting
Knowledge in their development decision
to suggest ways which usage of
accounting knowledge can be made more effective in banking system.
And finally, to make recommendation on ways of strengthening the positive
contributions of banking sector to the national economy. Also the significance
of the study which includes both the theoretical and practical
significance was explained.
Background of the study
Timothy (2012) posits that three or four decades ago,
banking was a simple business; consumers saved their money with and received
their financial services from banks. When customers open savings account, they
received passbook from the bank with which the account would be operated; and
when it is a current accounts, they received cheque books for the same purpose.
Today, the banking industry has moved into an era of menu-driven ultra robust
specialized software programmes called banking applications. These applications
can carry out virtually all banking functions relying heavily on information
collection, storage, transfer and processing The application of electronic
banking products/services to banking operations has become a subject of
fundamental importance and concerns to all banks operating within Nigeria and
indeed a condition for local and global competiveness (Ezeoha, 2006; Ikechukwu,
2000). The recent consolidation exercise in Nigerian banking sector has drawn
the attention of many banks to application of various technological devices in
promoting/achieving better customer service delivery that guaranteed customer
satisfaction that translates into increase profitability and higher return on
investment. Timothy (2012), customer’s satisfaction holds the potential for
increasing an organization’s customer base, increase the use of more volatile
customer mix and increase the firm’s reputation. Consequently, obtaining
competitive advantage is secured through intelligent identification and
satisfaction of customer’s needs better and sooner than competitors and
sustenance of customer’s satisfaction through better products/services.
Technology is then essential in providing faster and more efficient services to
customers. Technology acquisition must be based on actual needs and the proven
ability to deliver customer – friendly solutions. But with globalization,
Nigerian banks have no choice but to adopt electronic banking services to
enhance effective service delivery that transcends to customer satisfaction, if
they really want to stay in the business race, let alone be profitable
(Madueme, 2009). But it should be realized that electronic banking services is
a brain child of Information and Communication Technology (ICT) that made it
possible for service providers and their customers in developing economies to
enjoy a good semblance of the services enjoyed in the developed societies.
Electronic banking services have afforded banks the opportunities to impress
customers which encourage them to keep coming back. The advent of financial
innovation such as smart card, credit card, electronic transfers in the payment
system and recently the lunching of internet banking have transformed the world
into a global village linked with electronic impulses. The concept of
electronic money in Nigeria was introduced in 1990 when the Central Bank of
Nigeria (CBN) gave approval to them. All state Trust Bank limited to offer a
financial product known as smart card. Subsequently, Diamond Bank play card.
However, the smart card scheme received uplift in February, 1998 when a
consortium of a licensed bank surfaces a smart card company in Nigeria which is
known as Smart card Nigeria plc with a mandate to producers and manages cards
issued by the member bank of the consortium. Another consortium of more than 20
bank under the patronage of Gen card became operational in year 2000. These
innovations, which are still at a relatively early state of development have
postnatal to challenge the predominate role of cash for making small value
payments and make retail transactions easier and cheaper for consumers and merchants
who are account holders.
However, they also raised a number of policy issues because
of the possible implication for Central Bank monetary policy consumer system
In responses to implication technology development in the
domestic financial sector, the Central Bank of Nigeria commissioned and
information technology strategy study in 1991 with the objective of promoting
efficient performance of its statutory duties. The product is being implemented
in phase and both the licensed banks and the regulatory authority here
demonstrated their appreciation of benefit derivable form the application and
use of the information technology. In view of foregoing, the Central Bank
Governors of the group of ten (G-10) country commission a series of studies on
specific issues related to electronic banking in Nigeria. Therefore, the
objectives of the research are to ascertain the role of electronic banking in
Nigeria by using Guaranty Trust Bank (GTB) Plc, Ogui Road, Enugu as the case
1.2 STATEMENT OF PROBLEM
The problems facing electronic banking in Nigeria are lack
of adequate information and communication technological awareness campaign
about electronic banking. In Nigeria, communication over the internet are
insecure and often congested, the financial institution would also have to
contend with other internet challenges including security, quality of service
and some abbreviations in electronic
fiancé (Guardian newspaper 2001). Besides the existing business
environment also poses some challenges to the smooth operations of electronic
banking in Nigeria, some of these operational challenges include epileptic
power supply, dominance to cash transaction in the economy, low level of
awareness among Nigeria etc (Agbada, 2008). The thrust of this research work
shall be to examine the trend of electronic banking in Nigeria and critically
examination of the challenge.
Conclusively, on my own opinion, below are the problems
which electronic banking in Nigeria is facing.
There was no adequate public education on how to use
E-banking product in Nigeria before the banks stated rolling them out.
Poor service from the providers.
A lot of people are averse to using E- products, they prefer
cash transaction and your cant blame them because of No. 2 above. If your money
gets stocked on the ATM you are on your own.
Many of the banks can’t do what they are claiming to offer
it terms of E-
1.3 OBJECTIVE OF THE STUDY
The major objective of study is to appraise the role of
electronic banking (E-banking) in Nigeria, the development of banking
industries in Nigeria. The following are the specific objectives of the study.
To determine how inadequate information and communication
technology (ICT) awareness distorts the development of electronic banking in
To appraise how inactive regulatory bodies prevent the
development of needed logistics technical supports.
To ascertain the extent to which lack of sufficient skilled
manpower distorts the development of electronic banking in Nigeria.
To find out how inadequate funding by government and its
agencies affects the development of electronic banking in Nigeria.
The following research questions have been formulated in the
course of this study.
To what extent does inadequate information and communication
technology awareness distort the development of electronic banking in Nigeria?
How do inactive regulatory bodies prevent the provision of
needed logistics and technical support?
To what extent does lack of sufficient skilled manpower
distorts the development of electronic banking in Nigeria?
How does inadequate funding by government and agencies
affect the development of electronic banking in Nigeria?
In order to carryout this study properly and successfully,
the following hypothesis would be empirically tested:
information and communication technology distort the development of electronic
banking in Nigeria.
information and communication technology does not distort the development of
electronic banking in Nigeria
regulatory bodies prevent the provision of needed logistics.
Hi: Inactive regulatory
bodies do not prevent the provision of needed logistics.
Ho: Lack of
sufficient skilled manpower distort electronic banking development in Nigeria.
Hi: Lack of
sufficient skilled manpower does not
distort electronic banking development in Nigeria.
SCOPE OF THE STUDY
In pursuance of the objective of the study, attention shall
be focused on electronic banking among other electronic commerce
implementation. In order to conduct an empirical investigation into the
adoption of electronic banking in Nigeria. This study shall examine the nature
of electronic banking operation in guaranty trust bank plc.
1.7 SIGNIFICANCE OF
This study is significant because it would help to enlighten
operators in the banking sector and other concerned individuals and
organization on the adoption of electronic banking. The research shall
basically identify the challenge facing electronic banking in Nigeria business
environment and suggest ways by which they could be tackled.
DEFINITION OF TERMS
Teller: This is sheet but an important sheet of paper being
used in banking environment to paying money and withdraws in case of a bank
that uses it for withdrawals too.
Loan: Loan is a form of money borrowed from the banks to aid
capital and cash level in an organization or firm. They can be long term or
short term to aid capital expenditures respect.
Guarantors: This is a person that stands in for one in case
of opening an accounts opting for loads and many other services rendered by
banks. Guarantor tends to carry the risk of paying back defaultment incase of
This is the main study of the project, Banking services tends
to be getting more interesting and electronic Banking is a step taking to
render services electronically to aid faster services to customers.
Automated Teller Machines (ATM): This is a physical assets
being used by banks, built and erected concretely to give out cash, aid
recharges (Phones), aid transfers, e.t.c. and it is utmost trend in the banking