THE ROLE OF ELECTRONIC
BANKING IN DEVELOPMENT OF BANKING INDUSTRIES IN NIGERIA.
(A CASE STUDY OF GUARANTY TRUST BANK PLC OGUI ROAD, ENUGU)
ABSTRACT
The primary aim of this project tilted role of electronic banking in the development of banking industries in Nigeria  which is being taking with all seriousness as it presents a mechanism of extending banking services of wilder segment of the people at a lower cost. More importantly, it encourages innovations and competition by making available different types of sophisticated products and equipment that are geared towards providing maximum satisfaction for the bank that cannot meet up with the innovation environment will leave their customer to more innovation and customer oriented banks. Furthermore, E-banking articulated transaction by allowing customers to execute financial transaction on the bank website by using “transaction website” and it also enable organization to reach consumer outside their immediate area at minimum pretreated into foreign market.   
TABLE Of CONTENTS
CHAPTER ONE
INTRODUCTION
1.1    Background of the study                                                                                     
1.2    Statement of the Problem                                                                                    
1.3    Objectives of the study                                                                            
1.4    Research Questions                                                                                              
1.5    Hypothesis                                                                                                           
1.6    Delimitation / Scope of the study                                                                        
1.7    Significant of the study                                                                           
1.8    Definitions of the Term                                                                                       
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Definition of Electronic Banking                                                                         
2.2 Functions of Electronic Banking                                                              
2.3 The facts of E-Banking in Nigeria the Automated Teller Machine and
   Cards system                                                                                                            
2.4 History of Electronic Banking in Nigeria                                                 
2.5 Act of Electronic Banking in Nigeria                                                       
2.6 An empirical Framework with respect to the role of Electronic Banki8ng in the Development                                                                                      
2.7 Policy and Issues Raised by the development of electronic Banking
2.8 History of Guaranty Trust Bank Plc                                                         
2.9 Summary                                                                                                               
References
CHAPTER THREE
RESEARCH DESIGN AND METHODS
3.1 Research Design                                                                                       
3.2 Area of study                                                                                                        
3.3 Population of study                                                                                              
3.4 Sampling Method                                                                                     
3.5 Research Instrumentation                                                                                     
3.6 Validity and reliability of research instrumentation                                 
3.7 Sources of Data                                                                                        
3.8 Method of Investigation                                                                           
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Data presentation and Analysis of Results                                   
4.2 Test of Hypothesis                                                                                    
4.3 Interpretation of Results                                                               
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings                                                                   
5.2 Conclusion                                                                                                
5.3 Recommendations                                                                                    
5.4       Implications of the Findings                                                   
5.5       Suggestion for Further Studies                                                           
5.6       Limitation of the Study                                                                      
Bibliography
Appendix 1
Appendix 11 (Questionnaire)            
 CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
            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 etc.
            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 study.
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.
a.       There was no adequate public education on how to use E-banking product in Nigeria before the banks stated rolling them out.
b.      Poor service from the providers.
c.       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.
d.       Many of the banks can’t do what they are claiming to offer it terms of E-  banking.
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.
1.      To determine how inadequate information and communication technology   (ICT) awareness distorts the development of electronic banking in Nigeria.
2.      To appraise how inactive regulatory bodies prevent the development of needed logistics technical supports.
3.      To ascertain the extent to which lack of sufficient skilled manpower distorts the development of electronic banking in Nigeria.
4.      To find out how inadequate funding by government and its agencies affects the development of electronic banking in Nigeria.
1.4      RESEARCH QUESTIONS
            The following research questions have been formulated in the course of this study.
1.      To what extent does inadequate information and communication technology awareness distort the development of electronic banking in Nigeria?
2.      How do inactive regulatory bodies prevent the provision of needed logistics and technical support?
3.      To what extent does lack of sufficient skilled manpower distorts the development of electronic banking in Nigeria?
4.   How does inadequate funding by government and agencies affect the development of electronic banking in Nigeria?
1.5    HYPOTHESIS
            In order to carryout this study properly and successfully, the following hypothesis would be empirically tested:
Ho:      Inadequate information and communication technology distort the development of electronic banking in Nigeria.
Hi:       Inadequate information and communication technology does not distort the development of electronic banking in Nigeria
Ho:      Inactive 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.    
1.7       SIGNIFICANCE OF THE STUDY
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.
1.8    DEFINITION OF TERMS
1.      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.
2.      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.
3.      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 any default.
4.      Electronic banking:
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.
5.      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 industry.