ELECTRONIC BANKING: CHALLENGES OF NIGERIA’S BUSINESS ENVIRONMENT (A CASE STUDY OF FIRST BANK OF NIGERIA)

• ABSTRACT

  This research work is on electronic banking and the challenges of Nigeria’s business environment using First Bank of Nigeria Plc as a case study. The major objective of the study was to examine the relationship that exist between the adoption of electronic banking services and profitability of First Bank of Nigeria Plc in terms of investment in information and Communication Technology Equipment and Profit After Tax. The study made use of both primary and secondary sources of data collection. Quota sampling technique was used to select data necessary for this research work. Pearson’s Product Moment Correlation Coefficient was employed in testing the hypothesis. The study revealed that electronic banking, despite its challenges, has led to increased efficiency in banking and its services and reduction of waiting time experienced in the banks. The findings also revealed that e-banking are inhibited by some factors which include cost of  purchasing e-banking equipments, poor power supply and inadequacy in the security of transactions conducted through e-banking. The study recommends among others that, government should improve on electric power supply and development of ICT infrastructure to enhance effective e-banking services delivery in Nigeria.

  ABSTRACT

  This research work is on electronic banking and the challenges of Nigeria’s business environment using First Bank of Nigeria Plc as a case study. The major objective of the study was to examine the relationship that exist between the adoption of electronic banking services and profitability of First Bank of Nigeria Plc in terms of investment in information and Communication Technology Equipment and Profit After Tax. The study made use of both primary and secondary sources of data collection. Quota sampling technique was used to select data necessary for this research work. Pearson’s Product Moment Correlation Coefficient was employed in testing the hypothesis. The study revealed that electronic banking, despite its challenges, has led to increased efficiency in banking and its services and reduction of waiting time experienced in the banks. The findings also revealed that e-banking are inhibited by some factors which include cost of  purchasing e-banking equipments, poor power supply and inadequacy in the security of transactions conducted through e-banking. The study recommends among others that, government should improve on electric power supply and development of ICT infrastructure to enhance effective e-banking services delivery in Nigeria.

• BACKGROUND OF THE STUDY

INTRODUCTION

The introduction of universal banking practice in Nigeria and the adoption of electronic banking by deposit money banks have offered increased services to customers with attendant increase in customers risk exposure. This changing environment of bank management in Nigeria has impacted much on the number of services and risk which Nigeria faced. Electronic banking is the conduct of banking business electronically which involve the use of information communication technology to drive banking business for immediate and future goals. Alhajri (2008), describes e-banking as the provision of banking services to customers through internet technology.