ABSTRACT
The banking industry in Nigeria is now facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial service over the internet. The purpose of this study was to evaluate the influence of electronic banking on the Nigeria banking system. This study among other reasons would help to enlighten operators in the banking sector and other concerned individuals and organization on the adoption of Electronic Banking. The research basically identified the technical and operational challenges facing E-Banking in First Bank of Nigeria Plc. and such ways by which they could be tackled. It also exposes the strength and weakness of electronic banking.
The study uses both the primary and secondary data. Primary data was collected by the researcher through the use of questionnaire, while the secondary data was collected from CBN electronic banking guidelines, annual report of First Bank of Nigeria Plc.
The sample was drawn from the credit officers of First Bank of Nigeria Plc. A total of sixty (60) officers were randomly selected for the study. The method of data analysis was based on both descriptive and inferential statistics. Also, correlation analysis was done using the SPSS software to examine the association between variables so as to arrive at valid conclusion.
The result of the analysis shows that majority (94%) of the respondent attest to the fact that the transition from traditional to electronic banking has affected the overall banking performance, while (3%) of the respondents disagreed. similarly, majority (90%) of the respondents agreed that electronic banking has helped to ease banking transaction, while (10%) of the respondents were indifferent regarding their views. it was also revealed that majority (84%) of the respondents supported the claim that electronic banking tends to be cheaper in terms of operational cost than the traditional banking, while (16%) disagreed.
In conclusion, the transition from traditional to electronic banking has affected the overall performance of the banks by making banking transaction easier and faster for customers and providing them with better service and also leads to reduction in operational cost of banks. It was further recommended that government should try to provide uninterrupted power supply for the banking system because without power supply, electronic banking cannot function effectively and that the Central Bank of Nigeria who regulates all the activities of the banks have a role to play in enhancing the system through the promotion of effective banking and monetary policies.
TABLE OF CONTENT
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Table of Content v
List of Abbreviation ix
Abstract x
CHAPTER ONE: INTRODUCTION
1.1. Background to the Study 1
1.2. Statement of the Problem 4
1.3. Objectives of the Study 5
1.4. Hypothesis of the Study 5
1.5. Significance of the Study 6
1.6. Scope of the Study 6
1.7. Definition of Terms 7
1.8. Brief Profile of First Bank of Nigeria Plc. 9
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 14
2.2 The concept of electronic banking 14
2.2.1 Origin of E-banking in Nigeria 17
2.3 The view of electronic banking 17
2.3.1 Where should the real e-banking be? 21
2.4 Electronic banking and the common banking product 22
2.4.1 Telephone and PC banking product 22
2.4.2 Automated Teller Machine (ATM) 23
2.4.3 The card system 23
2.5 Advantages and Potential difficulties of electronic banking 24
2.6 Guidelines on electronic banking in Nigeria 25
2.7 Electronic banking and Challenges 27
2.8 Security considerations in e-banking systems 29
2.8.1 Electronic fraud in e-banking systems 30
2.8.2 Electronic banking profitability and efficiency 30
2.8.3 Bank Customer relationship 31
2.9 The belief of consumers about electronic banking 31
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 33
3.2 Area of study 33
3.3 Sources of data 33
3.4 Sample size and sampling technique 34
3.5 Validation of research instrument 34
3.6 Measurements of variables 34
3.7 Data analysis technique 35
CHAPTER FOUR: DATA PRESENTATION, INTERPRETATION, ANALYSIS
4.1 Introduction 36
4.2 Data Presentation 36
4.3 Socio-demographic Characteristics of Respondents 36
4.4 Percentage Distribution of Respondents 39
4.5 E-Banking Introduction and Speed of Banking Transaction 40
4.6 Introduction of E-Banking and Operational Costs of Banks. 41
4.7 Effect of changing from Traditional Banking on Overall performance of the
Banking Industry 42
4.6 Discussion of Findings 43
CHAPTER FIVE: FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 Summary 44
5.2 Conclusion 44
5.3 Recommendations 45
5.4 Limitation of the Study 45
5.5 Suggestion for Further Studies 46
REFERENCES – Bibliography 47
APPENDIX A – Proposed Questionnaire 50
LIST OF ABBREVIATIONS
ASP: Application Service Providers
ATM: Automated Teller Machine
B2C: Business-to-consumer
CBN: Central Bank of Nigeria
E-Banking: Electronic Banking
E-Commerce: Electronic Commerce
E-Shop: Electronic Shop
FBN: First Bank of Nigeria
ICT: Information Communication Technology
KYC: Know Your Customer
NDLEA: National Drug and Law Enforcement Agency
NIBSS: Nigerian Inter Bank Settlement System
PC: Personal Computer
