CHAPTER ONE
1.0INTRODUCTION
1.1BACKGROUND OF THE STUDY
Electronic banking uses computer and electronic technology in places of checks and other paper transactions. Electronic banking are initiated through devices like cards or codes that let you or those you authorize have access to your account. Many financial institutions use Automated Teller Machine (ATM) or debit cards and Personal Identification Numbers (PINs) for this purpose. Some uses other types of debit cards that require one’s signature or a scan. For instance, some use Radio Frequency Identification (RFID) or other forms of contactless technology that scan one’s information without direct contact with the person. The federal Electronic Fund Transfer Act (EFTACT) covers some electronic consumer transactions, these include:
Automated Teller Machine (ATM), Direct Deposit, Pay – by – Phone System, Personal Computer Banking, Debit Card Purchase or Payment transaction, Electronic check conversion and some others.
Before the introduction of electronic payment or banking system, all customers had to walk into the actual bank to do transactions of all kinds. Customers had to queue up and spend more hours to talk to a teller to make their transactions. The inconveniences caused by these long queues can discourage someone to make payment. For many years, Banker’s technology specialists, entrepreneurs, and others have advocated for the replacement of physical cash and the introduction of more flexible, efficient and cost – effective retail payment solutions. Countless conferences and seminars have been held to discuss the concepts of cashless and chequeless society. Electronic retail payment has been designed to help individual customers and companies as well as the banks itself in eliminating or reducing some of the problems inherent in the settlement and payment process. Customers can pay their bills without having to actually move to the bank premises. They can also have access to their accounts and even transfer money to other accounts in the comfort of their homes. Nigerian banks are making huge investment in technology to upgrade their infrastructure in order to provide new electronic information – based services. Electronic services such as online retail banking are making it possible for individual and small institutions to take advantage of new technologies at quite reasonable cost.
Banks of the future realises that the banking of tomorrow requires more of electronic manipulation 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. Whether a bank will be successful or not depends on the extent to which it is investing in Information Technology (IT) and using it in an innovative manner. This area has been tip to be a major competitive ground for banks that are operating in the post consolidation era
What are major issues needed to be mastered by Nigerian Banks in order to compete with the rest of the world?
What are the major developments and challenges in the Nigerian operating environment that are affecting the growth of electronic banking in Nigeria? These are some of the questions that would be addressed in the course of this study.
Despite all these things, it is not surprising that in the application of Electronic Banking in Nigeria, the financial institution have to face its problems. Communication over the internet are not secure and often congested. The financial institutions would also have to contend with other internet challenges including security, quality of service and some abbreviations in electronic finance. Besides, the existing business environment also possess some challenges to the smooth operations of Electronic Banking in Nigeria. Some of these operational challenges include epileptic power supply, dominance of cash transaction in the economy, low level of awareness among Nigerians and so on. The thirst of this research work shall also be to examine the trend of electronic banking in Nigeria and a critically examination of challenges noted above.
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
CHAPTER TWO
LITERATURE REVIEW
CHAPTER THREE
RESEARCH METHODOLOGY
CHAPTER FOUR
RESULTS AND DISCUSSION
CHAPTER FIVE
SUMMARY OF FINDINGS AND RECOMMENDATIONS
References