Electronic banking in nigeria problems and prospects abstract this research work is an attempt to analyse and find out the problem and prospects of eletronic banking in nigeria. Today is banking environment is very dynamic and undergoes rapid changes as a result of innovations in. Understanding, retail electronic banking is still in its infancy in nigeria and a great deal of investment will be required to develop it further. The central bank of nigeria cbn recognizes that electronic banking and payments services are still at the cradle stages of development in nigeria. Problem and prospects includes abstract and chapter one, complete project material available electronic banking in nigeria. In the field of technology based banking, information technology and electronic funds transfer system have emerged as the twin pillars of modern banking development. Electronic fund transfer etf, internet banking, automated teller machine atm, telephone banking and personal computer banking are the major products of electronic banking in nigeria. Impact of ebanking on the development of banking sector in nigeria. The adoption of information and communication technology in banking sector is generally referred to as electronic banking ebanking and application of its concepts, techniques, policies, and implementation strategies to banking services has become. Problems and prospects abstract this research work is an attempt to analyse and find out the problem and prospects of eletronic banking in nigeria. Challenges of the regulatory authorities and the aw y forardw adewuyi, i. We may vary the types of electronic alerts available without notice to you.
Electronic banking has become a very important and indispensable too1 for the present. History of ebanking in nigeria information in nigeria. The population of the study is all the twentyone deposit money banks. The definition of ebanking varies amongst researches partially because electronic banking refers to several types of services through which a banks customers can request information and carry out most retail banking services via computer, television or mobile. The cbn recognizes that electronic banking and payments services are still at the early stages of development in nigeria. Though, various e banking systems have been implemented and accepted by customer, epayment remains the most. How frequently do you use the following banking services per month. The research also explained the services and the features of electronic banking in nigeria. This research promises to appraise the implication of electronic banking in nigerian banks since it has been seen as being a major player in the economy. Overview of electronic banking in nigeria international journal of. Trust, and legal support are key factors influencing ebanking adoption by customers. Ovia, 2001 argue that electronic banking is a product of. The information technology examination handbook infobase concept was developed by the task force on examiner education to provide field examiners in financial institution regulatory agencies with a quick source of introductory training and basic information.
Have your paycheck deposited directly into your bank or. Awe 2006 of the opinion that ebanking is also about using infrastructure of the digital age. Though, various ebanking systems have been implemented and accepted by. Electronic banking in nigeria saves the time of both the customer and the time of the banking officials.
Apr 27, 2018 in the past few years, banking activities in nigeria have increasingly depended on the development of information and communication technology ict. Electronic banking is the use of electronic and telecommunication networks to deliver a wide range of value added products and services to bank customers steven, 2002. The impact of electronic banking on human resources. Arising from the three major roles of the cbn in the areas. User acceptability and payment problems in nigeria 1. The impact of electronic banking services on the customers. Empirical determinants of consumers uptake of electronic banking. Examining online banking initiatives in nigeria wiley online library. This manual system involves posting transactions from one ledger. A corporate profile guarantee trust bank plc at a glance. Lagos state government electronic banking system of.
Nil 1to3 3to 8 8to 12 over 12 times times times times a. E banking, atm, networking, debit card, credit card introduction although a lot of research works has been done on the prospects and challenges of information technology in the banking industry, research works are broad based and only few are actually carried on electronic banking e banking. Nsouli and andrea schaechter electronic banking is the wave of the future. Pdf this study investigates the effect of electronic banking on customer satisfaction in nigeria. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Electronic banking, performance, nigerian commercial banks, cointegration, pointofsale. The role of ebanking on operational efficiency of banks in. It accounts for the drastic reduction in operating costs, both on the part of the bank and. The impact of information technology in nigerias banking.
A bank is a financial institution that accepts deposits and recurring accounts from the people and creates demand deposit. This reformation in the financial sector mostly in the form of mergers reduced the. Electronic banking services are fully automated such that all transactions are concluded in a jiffy. Ebanking and commercial bank performance in nigeria.
This is speedily becoming a reality in the industrially and economically advanced parts of the world, with people who are far away being able to engage in formal and informal relationship, which would have. Pdf electronic banking and cashless policy in nigeria. The electronic delivery channels are collectively referred to as electronic banking. So many jordanian banks shift toward electronic banking services and employ all their energy and investments for the development of electronic banking service to meet the challenges, seize opportunities. Electronic bill payment service allows a depositor to transfer money from his or her online account to a creditor or merchant, for example to a public utility or a outlet. The role of ebanking on operational efficiency of banks in nigeria. Problem and prospectsabstract this research work is an attempt to analyse and find out the problems and prospects of electronic banking in nigeria. The relationship between electronic banking and financial. Computerization of the nigerian banking industry is a kind of electronic banking, which involves an electronic form of money transmission. Background of the studyalthough a lot of research works has been done on the prospects and challenges of information technology in the banking industry, theses research works are broad based and only few are actually carried on electronic banking e banking. The effects of electronic banking on growth of deposit money banks in nigeria article pdf available january 2014 with 10,299 reads how we measure reads. The research also explained the services and the featu. Abor, 2004 before the introduction of electronic payment into the nigerian banking system, all customers had to walk into. Most nations have institutionalized a system known as fractional reserve.
Similarly, that electronic banking was convenient and saves customers time was the major benefit for which reason most customers used the banks electronic products and currently persist. Plc took that giant stride and more than five years after they merged with other. Pdf overview of electronic banking in nigeria chris onodugo. No card or payment scheme shall compel any issuer or acquirer to send any transaction outside nigeria for the purpose of processing, authorization or switching, if the transaction is at an atm or at any acceptance device in nigeria and the issuer is. The availability and proper functioning of electronic banking services depends on many variable circumstances, including location, mobile network and internet availability and signal strength, and proper functioning of hardware, software, your mobile. This is a card issued to a customer a person who has a current account with the bank by a member bank of smart card nigeria limited to aid them. The data used for this research work was collected from the central bank of nigeria cbn annual report and the nigerian interbank settlement. The longterm goal of the infobase is to provide justintime training for new regulations and for other topics of specific concern to. When you give your check to a cashier in a store, the check is run through an electronic system that captures your banking information and the amount of the check.
Ebanking definition of ebanking electronic banking, also known as electronic funds transfer eft, is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. Electronic banking can be defined as the use of electronic delivery channels for banking products and services, and is a subset of electronic finance 1. Banking news, banks, online banking services, electronic banking, loans, and overall banking industry coverage. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Ebanking, atm, networking, debit card, credit card introduction although a lot of research works has been done on the prospects and challenges of information technology in the banking industry, research works are broad based and only few are actually carried on electronic banking ebanking. It involves the use of computer network in dispensing cash and transfer of funds. The use of electronic banking in nigeria has now become a timesaving factor enabling multiple tasks to be done within a short period of time. Pdf impact of ebanking on the development of banking sector in. The researcher general towards explaining what electronic banking is all about. Electronic banking can also be defined as a variety of following platforms. Arising from the three major roles of the cbn in the areas of monetary policy, financial system stability and payments system oversight, the cbn technical committee on e banking has produced a report, which anticipates the. E banking, it also observed, holds enormous potentials for the banking industry in nigeria.
The most important electronic delivery channels are the internet, wireless communication networks, automatic teller machines atms, and telephone banking. Electronic banking have long been recognized to play an important role in economic development on the basis of their. Problems and prospects of electronic banking in nigeria. The lagos state government electronic banking system of revenue cycle management lasg ebsrcm is aimed to goonline with the direct bank lodgment system dbls of the revenue collection process and provide information for tax administration and planning while monitoring and coordinating all revenue generating activities of the state. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.
Jul 20, 2016 for example, fcmbs electronic banking has been recorded increased efficiency in its banking services. Acharacteristic feature of these services is the clientsuninterrupted roundtheclock account access, i. Arising from the three major roles of the cbn in the areas of monetary policy, financial system stability and payments system oversight, the cbn. The role of ebanking on operational efficiency of banks. Electronic banking has been playing a major role in the economy of nigeria.
Electronic banking started in the1980s, the revolution took place throughout the 20th century and flourished even more in the 21stcentury with the advancements in the internet, the trend shifting towards use of internet as a medium, to electronically perform the transactions for both customers and banks. Electronic payment system and customers retention in. Ovia 2001 however argues that electronic banking is a product of ecommerce in the field of banking and financial services. Electronic banking and the challenges of the ghanaian. Electronic banking is not one technology, but an attempt to merge. This study investigated the influence of electronic banking products on performance of nigerian dmbs. Based on above the general objective of this work is to ascertain the impact of electronic banking instruments on the intermediation efficiency in nigeria, while its specific. Lagos state government electronic banking system of revenue.
It discovered that the increased application of e banking worldwide is a function of improvement in information and communications technology ict. The basel committee on banking supervision expects such risks to be recognised, addressed and managed by banking institutions in a prudent manner according to the fundamental characteristics and challenges of ebanking services. Pdf the effects of electronic banking on growth of deposit. Products offered by banks have moved way beyond conventional banking and access to these services have become round the clock. The nigerian banking system and in deed, the entire nation. Lending activities can be performed either directly or indirectly through capital markets. Development of electronic banking electronic banking is not one technology, but an attempt to merge several different technologies but each evolving in different ways onodugo, 2015. But it also poses new challenges for country authorities in regulating and supervising the financial system and in designing and implementing macroeconomic policy. Electronic banking is really not a technology, but an attempt to merge several different technologies. The history of banking operation and supervision in nigeria could be traced to the period between 1892 and 1894 when african banking corporation and first bank of nigeria which was formerly known as the bank of british west africa bbwa was established5. The use of information technology in banking operations is called electronic banking.
Hours spent engaging in rigorous and stressful transaction processes at the bank can be saved and used for something meaningful and beneficial. Pdf overview of electronic banking in nigeria chris. Obviously, the banking industries in nigeria have more responsibilities on their shoulders as far as information technology security and ebanking are concerned in the sector. Electronic banking terms and conditions standard chartered. The study became necessary as a result of increased penetration of electronic banking which has redefined the banking operations in nigeria and world over. No card or payment scheme shall compel any issuer or acquirer to send any transaction outside nigeria for the purpose of processing, authorization or switching, if the transaction is at an atm or at any acceptance device in nigeria and the issuer is a nigerian bank or any other.
Modeling external events for insurance and finance, new york. Electronic banking and profitability of commercial banks in. Banking sector forms of electronic banking clients use modern communication media for remote communication with the bank. Online banking allows us to do various services with the click of a mouse. The money you spend in transporting yourself to the bank to perform a transaction can be saved and used for other purposes. Thus, online banking has the tendency to encourage multitasking which is a positive working variable. This, indeed, is a revolution in indian banking industry. The money you spend in transporting yourself to the bank to perform a transaction can be. Although there are still challenges facing ebanking operation in nigeria such as. Electronic payment system and customers retention in banks. Nigeria do not embrace electronic banking early compared to developed countries. The research geared toward explaining what electronic banking is all about and when it was introduce into nigeria.
Central bank of nigeria guidelines on electronic banking in nigeria preamble the cbn recognizes that electronic banking and payments services are still at the early stages of development in nigeria. The research geared toward explaining what electronic. Background of the studyalthough a lot of research works has been done on the prospects and challenges of information technology in the banking industry, theses research works are broad based and only few are actually carried on electronic banking e. Though some of the information is between the bankers and their customers, the researcher was able to b ing some of them out finally, the information contained in this project writing will educate some ignorant people, concerning how they can transact.
Get free research paper on impact of electronic banking on customer satisfaction project topics and materials in nigeria. Pdf the effects of electronic banking on growth of. Acharacteristic feature of these services is the clientsuninterrupted roundthe. Electronic banking and the common banking products. Electronic check conversion converts a paper check into an electronic payment in a store or when a company gets your check in the mail. It provides enormous benefits to consumers in terms of the ease and cost of transactions.
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