- No of Chapters: 83
- No of Pages: 5
This study examines the impact of E-Banking on financial sector in Nigeria from 2001 to 2016. Time series data were obtained from Central Bank of Nigeria statistical bulletin, and analyzed with Ordinary Least Squares (OLS) regression technique. The results obtained indicated that the Return on Asset (ROA) has a direct relationship with Credit Risk (CRR), Expense Management (EXPM), Liquidity (LIQ), and Size (SZE) while there is an inverse relationship between Return on Asset (ROA) and Bank Capitalization (CAP) and Inflation (INF).
After a thorough investigation, it was discovered that electronic banking has both negative and positive impact in the Nigerian financial system. While it has greatly improved service delivery on the positive angle but on the negative side, it is prone to electronic fraud and unauthorized access to information.
Table of Content:
TABLE OF CONTENTS
Cover page - - - - - - - - - i
Title page - - - - - - - - - ii
Certification - - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Table of contents - - - - - - - - vi
Abstract - - - - - - - - - ix
Background of the Study - - - - - - 1
Statement of the Problems - - - - - - 5
Objectives of the Study - - - - - - 10
Method of Analysis - - - - - - 10
Statement of Hypothesis - - - - - - 11
1.6 Scope of Study - - - - - - 11
1.7 Organization of the Study - - - - - - 12
2.1 Literature Review - - - - - - - 13
2.2 Development of electronic banking - - - - 18
2.3 The Development of Electronic Banking in Nigeria- - - 23
2.4 Organizational Performance - - - - - 26
2.5 Advantages of Electronic Banking - - - - - 27
2.6 Disadvantages of Electronic Banking - - - - 29
2.7 The view on electronic banking - - - - - - 30
2.8 The Card System - - - - - - 36
2.9 The Entry of Nigerian Banks into electronic banking - - 39
2.10 Threats of cyber-crimes on the Nigerian banking premises - 42
2.11 The regulatory challenges - - - - - 45 CHAPTER THREE
Research methodology - - - - - - - 46
3.1 Theoretical framework - - - - - - 45
3.2 Sources of Data - - - - - - - 48
3.3 Method of data analysis - - - - - - 49
3.4 Model Specification - - - - - - 49
Data Representation and Analysis - - - - - 52
4.1 Data presentation - - - - - - - 52
4.2 Data Analysis - - - - - - - 54
4.3 Interpretation of Results - - - - - - 55
Summary, Conclusion and Recommendations - - - 65
5.1 Summary - - - - - - - - 65
5.2 Conclusion - - - - - - - - 66
5.3 Recommendations - - - - - - - 66
References - - - - - - - - - 68
Appendix - - - - - - - - 76
1.1 Background of the study
With the proliferation of the internet, coupled with the world increasingly addicting to e-business, the trend of cash transactions is now giving way to electronic payment system. This growing acceptance of the digital lifestyle, as stated in Salehi and Alipour (2010), has brought a significant transformation in customers’ expectations from their financial service providers. According to Offei and Nuamah-Gyambrah (2016), customers are now seeking for a faster and convenient technology with more rewarding banking experience.
Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) are two factors mentioned in Davis’s Technology Acceptance Model (TAM) that influences users’ decision to use a particular technology system (Surendran, 2012), users will eventually lose interest in e-banking if they feel that it is no longer useful even if the system is somewhat easy to handle (Obiri-Yeboah et al., 2013). Therefore banks that fail to respond to the emergence of e-banking in the market are likely to lose their customers (Salehi and Alipour, 2010); Lee (2009) stressed that its adoption seem not to be yielding the anticipated results, thereby creating a gap between the actual returns and its proposed objectives.
Besides the high cost of transactions and epileptic network connections associated with e-banking system in Nigeria, the introduction of e-banking into banking operations brought an increase both in the volume of deposits, as well as fraudulent practices (Agwu and Carter, 2014). Even with the aim of using it to decongest banking halls, these halls are most of the time still full with customers. If these situations are not dealt with accordingly, it could result into some negative consequences since the more active customers are with their electronic transactions the more profitable it is for the banks and a dis-satisfied customer leaves an organization with negative word of mouth publicities about the organization (Hoseiniand& Dangoliani, 2015).
In this light, this paper investigated the role which e-banking has played in the operational efficiency of banks in Nigeria. Specifically, can we say the traditional banking has been more profitable than E-Banking? A lot of research works have been done on the prospects and challenges of Information Technology in the banking industry, these research works are broad-based and only few are actually carried on electronic banking (e-banking).
Modern banks now realised that only those that overhaul their payment service delivery and operations are likely to survive and prosper in the 21st century (Opara, et al, 2010). This is due to the pressure of globalization, consolidation in the banking sector, privatisation, deregulation and rapidly changing technology, among others (Connel and Saleh 2004). In order to properly place themselves in favourable positions for competitions and be one of those corporations to be reckoned with in the new century, banks are making use of Internet to execute mobile banking, this developed from bringing PCs together to form local and Wide Area Networks through client/server technology.
Many banks have installed modern computer inter-connectivity backbone that would enable them achieve communications of data and multimedia over Internets, Intranets and Extranets. They also realise that they have to achieve not only management/staff wide computer literacy but what could be called information literacy i.e. knowing how to locate, analyse, store and use information. All staff and managers in a modern bank need to be able to search and gather data from several types of sources, analyse them, select relevant ones and organise them in such a manner to allow them make decisions base on the organised data.
Banks of the future have realised that the banking of tomorrow requires more of electronic manipulations and shuffling of bits-based money and other banking transactions, instead of paper. In other words, paper based transactions are now being replaced by electronic-based transactions e.g. the internet services. Whether a bank would be successful or not depends on the extent to which it is investing in IT and using it in an innovative manner. This area has been tipped to be a major competitive ground for banks that are operating in the post-consolidation era.