CRITICAL EXAMINATION OF ELECTRONIC BANKING SYSTEM IN NIGERIA

CHAPTER ONE
1.1. BACKGROUND OF THESTUDY
Banking in Nigeria has come a long way from the time of ledger card, and manual filling system, most banks today have electronic system to hand their daily voluminous tasks of information retrieval, storage and processing. Irrespective of whether they are automatic or not, banks in Nigeria by their nature are continually involved in all forms of information, on management in a continuous basis. Electronic banking (E - banking) is an umbrella term for the process by which a customer may Perform banking transactions electronically without visiting brick and moral institution. That is, automated delivery of new and traditional banking products and services directly to customers through electronic, interactive, Communication channels.
Thus, the following terms are form of banking system such as electronic banking outline banking. Personal computer (PC) banking and internal or online banking these are the most frequently used designations. It should be noted, however that the terms used to describe the various types of electronic banking are after used interchangeably (coin, 2004).
Recently banks have finally come to realize that the use of electronic in banking system is a means of satisfaction and patronage, cutting cost and improving services. The improvements of these services are done through the issue of effect of technology. For instance, some banks have make arrangement to look into internet satellite network such that could link their major branches all over the country there by enabling their customer to cross check balances from any of the branches right across the country. (Example of such is first bank of Nigeria Plc).
Electronics banking is “defined as the use of the technology to communicate instruction and retrieve information from a financial institution where an account is held. This service includes the systems that enable financial institution customer, individual or business to obtain information on financial product and services through public or private network", (Prakash and malik, 2008). However, electronic banking has experienced tremendous growth in many countries especially Africa and today it has transformed the traditional banking practice in Nigeria. Currently, electronic banking in Nigeria has changed the way services are delivered by the banking Sectors to their customers. Electronic banking services have lowered operating, retain customers, reduced branch traffics, and downsized the number of branch Staff, Parise, (2006). Essentially, through the use of Information Communication Technology banks now employ different channels such as online banking, mobile banking and automated teller machine (A. T. M.) to deliver their services. Report on electronic banking system in Nigeria reveals that e - payment machinery especially the card technology, is presently enjoying the highest popular rate in Nigeria banking market. According to Inter Switch's Statistics, Nigeria has over 30 million ATM cardholder who involve in over 30 billion worth of transaction on the machine every month Nigerian banks operate over 900 ATM machines across the country, [36 state and federal capital territory]. Also, to enhance effective security measures, Nigeria banks have up graded the ATM Cards from the magnetic stripe to the euro visa-master card standard, popularly known as Verve Card. This letter technological device s more fraud resistant because all the data of the customer are recorded on the chip. Hence, electronic banking system has become the main technology driven revolution in conducting financial transaction in Nigeria. Meanwhile, Nigeria banks have made huge investments in telecommunication and electronic system as useful and easy to use. Adesina and Ayo, (2010)., there are many advantages of electronic banking. It is convenient, it is not operational tinning. There are no geographical barriers and services that can be offered. Electronic banking has experienced explosive growth in the transformed traditional practice in banking. Gonzalez, (2005).

1.2 STATEMENT OF THE PROBLEMS
Investing in electronic banking system in Nigeria, the country will need a large amount of financial resources in Computer technology, the resources in short supply in Nigeria couple with high level of poverty. Jean Adam (2006) Suggest, that use of ICT require complementary investment in skill, organization and innovation investment and change entails risks and cost which might reduce bank profit. Hence there is need to use some of relative measure such as return on assets to uncover the impact of ICT investment on banking of electronic payment system, there must be availability of infrastructure facilities such as electricity and telecommunication network, however, power supply fluctuates and there is still constant failure links in network. Adoption of electronic banking which is supposed to ease banking transaction rather resulted to woe the customer. Most people complain of time wasted in banking halls. This occurs when there is power failure in Banks resulting to slow down in operation. Another problem that emerged was that banks do not have information backup to feed back when there is any computer breaks down. While the rapid development of information technology has made some banking task more efficient and cheaper. Technology Investment is taking a large share of bank resources.
Another problem associated with his financial innovation is plastic card fraud, particularly on lost and stole cards and counterfeit card fraud. Banks need to manage costs and risks associated with electronic banking. It is therefore important that e - banking innovation is made by sound analysis of risks and cost associate so as to avoid harms on the bank performance. On the other hand the banks performance is directly related to efficiency and effectiveness of electronic banking. But on the other way controls and standards are needed to prevent losses associated with electronic banking.
More so, government is of great help in supporting e uses of computer in the banking industries, to make the activities of the bank faster and easier so as to bridge the gap that exist between the bank and their customer.
1.3 OBJECTIVE OF THE STUDY
The major objective of the study is to investigate the positive and negative effect of E-banking in Nigeria using a survey of bank customers in First bank of Nigeria Plc Gombe Branch as a case study-other specific objective of this study include the following;
i. To identity the problems, issues and challenge encounter in electronic banking
ii. To examine the kind of problem that customers are facing with this new development.
iii. To identity what substantial development electronic banking has brought to customers.
iv. To examine the level of customers satisfaction with the use of electronic banking.
v. To find out whether or not infrastructural facilities such as electricity and telecommunication is a barrier effective banking in Nigeria.
1.4 RESEARCH QUESTIONS
For better understanding of these research projects, the study will attempt to answer the following research questions.
i. Do bank in Gombe really encounter challenges and problems operating E-banking system?
ii. What Kind of development did banks and its customers experienced with the advent of E-banking? Does E- banking ensures customer satisfaction?
iii. Are there available and stable infrastructures to accommodate the operative of E-banking in Gombe?
iv. Does the advert of E-banking in Gombe leads to better services delivery to customers and increase banks profitability?

1.5 RESEARCHHYPOTHISIS
HYPOTHISIS ONE
Ho. There is no Significant relationship between E-banking and services delivery in banks.
Ho. There is significant relationship between E-banking and service delivery in banks.
HYPOTHISIS TWO
Ho There is no significant relationship between E-banking and profitability of banks
Ho There is significant relationship between E-banking and profitability of banks
1.6 SIGNIFICANT OF THE STUDY
The study would be very significant because it would provide answers to factors militating against the implementation of electronic banking and is a valuable tool for student, academic institution managers and individual that want to know more about electronic banking trend especially in Nigeria.
Electronic banking in our economy today is a well come development and also it impact in the society are over-whelming. So this research is significant in so many ways, it will expose strength and weakness of electronic banking, it will motivate bank and other economic agents to computerize their service, knowledge in the areas of electronic banking will be advanced. Apart from contributing to the knowledge of electronic banking, it forms a reference for future research.
1.7 LIMITATION OF THE STUDY
In pursuance of the objective of the study, attention should be focused on electronic banking among other electronic commerce implementation institutions. In order to conduct an empirical investigation into the adaptation of electronic banking in Nigeria the study will also examine the First Bank Plc. The study will give the attention on electronic banking so that the readers may understand electronic banking.
The research is faced with various limitations, such as inadequacy of information regarding house hold family violence in Nigeria. Gathering of relevant research material was also not easy.


1.8 SCOPE OF THE STUDY
The scope intend to cover the origin development and function of E - banking of First Bank Nigeria, within Gombe Metropolis.
1.9 DEFINITION OF TERMS
The following concepts have been used in the project.
(a). A.T.M: Automated teller machine allows a bank customer to withdraw cash from his accounts which debited immediately.
(b). INTEREST BANKING: These is a products that enable the bank leverage on the internet banking system module in built on the new banking application implemented by the bank to serve the internet banking needs of the customers.
(c) MOBILE BANKING: This product offers customer of a bank access service as they go customer can make their transactions anywhere, such as account balance, update and history, electronic fund transfer etc.
(d) BANK: An establishment which advance money to individuals, and receives deposits entrusted to it.
(e) COMPUTER: A machine which automatically process data in according within it and then provide the result in a useful form.
(f) COMPUTERIZATION: A process whereby some previously manual operation using card system in to a computer system.
(g) CUSTOMERS: Someone who patronıze a particular product or service uses of it either for himself or obtain it for onward transfer to person who requires it for his use.

CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 INTRODCTION
The modern banking system is a highly complex depending on the availability of human talents and sophisticated at maximum satisfaction. There is need for bank to be efficient and rendering their service so as to maintain customer and also customers, and this can only be done if the existing customer's required to clearly be one of the primary objectives of a bank, but at the same time the bank must also strive to provide satisfaction on its employees and to also increase its capital base to keep up with other banks.
These object can only met by careful planning, organizing and controlling of the banks methods of operation, profitability in the face of tough competition will only be maintained by keeping cost low, then other banks and running the bank efficiently.
Since radical changes have occurred m the global economy and business environment within which banking application of information technology must operate and these changes have improve the activities of banks generously. The introduction of electronic devices to have detailed information about the performances of the banks, well we all know that these information about what is going on in the bank can only be getting through computers. This is because the modern digital computers are the most sophisticated tool for information handling
CONCEPTUAL FRAME WORK
The definition of E-banking varies among researchers partially because electronic refers to several types of service through which a bank customer can request information and carry out most retails banking services via computers, television, internet or mobile phone Burr (1996) describe banking as an electronic connection between the bank and the customers can access their banks without having to be physically present at the bank branch. Therefore E -banking covers all these ways of banking business electronically (Mohammed, 2009) electronic banking is the provision of banking services to the customer through technology (Daniel, 1999).

    Date: 2026-08-05 00:00:00.000000