ONLINE INTERACTIVE BANKING

42 PAGES (6252 WORDS) Banking and Finance Project
INTRODUCTION
The greatest innovation that has taken place in the twentieth century is in the realm of information Technology.  This is currently made possible by the introduction of the digital computers.  Which has been observed in the field of communication to be increasingly inseparable from communications.  This linkages often referred to as convergence is driven by Technology and amplified by business trends the technology and business.  Faster growth in network systems that use communication links to connect subsidiary system (nodes) which may send, receives, direct and redirect information to , fro, send and receiver.
Taking of the internet a couple of years ago would have sound like a fairytale but today the internet is pervasive in almost every field of human endeavour changing the fundamentals of how we conduct national as well as international businesses.  Few years of its existence, the internet has shown that it can deliver the long sought after goal of electronic commerce.
It is worth that companies in the developed countries world-wide have recognized the business potential of the internet and are getting connected to the network of networks in their millions.
The financial institution (Bank) is one of such organizations. Banking constitutes one of the most prominent life wire for Socio-Economic grow and development in any given nation, it support and assists in the supply of long and short term loan, accepts both current sowings and fixed deposits, both foreign transactions, advice and facilitates transactions between client, workers, agents, firm, buyers and seller by providing payment services, not excluding the issue of undertaking risk on behalf of their clients, only to mention but a few.
The internet having found its application and acceptance in the banking procession has particularly put the banking industry on an accelerating pace of development.  The technological highway (the internet) has become an enabler for Banks in achieving high level productivity and in handing volumes of transaction which would have been impossible without the use of on-line banking (E-commerce).
The technology facilitate linkages with clients both through the provision of information and quality service delivery, as well as in reducing barriers to entry into payment systems retail banking.  Internet banking allows clients to engage in informal transaction relationship which would have taken long distance travels or movement of documents with the attendant risk of loss.  With the online banking (internet) you can at your convenience, at home and at any time review account balances and transactions, transfer funds, receive and pay bills, down-load transaction services and contact customer services just to mention but a few.
An over view of the benefits and prospects of the on-line banking suggest that for banks to be relevant to their customers in term of the services they provide in the twenty-five century and in the future, must append this services provided by E-commerce in the banking system in order to stay in competition.  Now the on-line banking is the one thing bank should get up and invest in internet technology to reap bounteously the benefit accruing from internet banking.

LITERATURE REVIEW
The internet is a global network of computers. It links independent micro computers, top-end computer, Local Area Networks, Wide Area Networks and Wide World Net world together in such a way that they share information, hard and software resources.  It is in effect a global network of computers.  Millions of computers scattered all over the world are presently linked to the Internet.  These computer network communication with each other in accordance with some internationally accepted and standardized rules over protocols.  It is in effect the numerous advantages accruing from the use of this great tool that the internet has found its way into the Banks hence internet banking.  Internet banking system has been of great concern to many individuals and corporate organizations and this has dominated most captions in journals, magazines, quarter news-letters published by the mass media or contributions made by individual in the form of article and seminar and presentations.
Luke man Adams (1991) in his article stated that as the stethoscope is to the doctor, so is the computer to the banker and that the latest buy in the industry is the installation of the on-line real system which through the cashier, the customer can have on the spot balance of account without being told to come for the second or third day confirmation of the balance.  He emphasis that the use of network system are relevant to banks with wide branch network and those with large customer base.
In line with the above, the Union Bank of Nigeria Plc. Monthly business / economic report (1991) comments that most Bank face a lot of problems when dealing with their customers because they cannot cope with the ever increasing demand imposed on them by customers.  Most of those banks lose their clientele because of lack of structures and the use of absolete banking techniques in their operations for such banks to compete favourably with other new banks, the report stated that there is the need for them to update on their existing structures to keep afloat in the competitive banking sector.  It is at this point that much emphasis is made in the introduction of a computer based information system and subsequent internet based banking system to improve on the services they render, though the project requires a colossal financial outlay to implement.
Furthermore, talking about the internet in banking operation brown (1991) said that the internet in its evolving state is becoming a serious method of business communication and data transfer.  As such, banks and other financial institution are beginning to use the internet as a new vihicle for doing business.  The internet allows banks to offer both new services with the convenience of interacting from any computer capable of making the appropriate connection.  Again white paper on the internet (1999) said that the general acceptance of the internet makes it the ideal way for banks to reach a wide retail markets without the expense of opening and resource additional branches.
In support of the internet banking, find article. Com in one of their brief article, on-line resources and 724 solution seam to deliver wireless banking and