Abstract
Automation through computer network has become a necessity in the world of banking today thus this research work sets out to investigate the effect of electronic banking in the Nigerian economic growth. Electronic banking has become a very important and indispensable too1 for the present survival and growth of financial institutions considering the dramatic increase in the number of banks in Nigeria in recent years. The methodology of the study as discussed in Chapter three it comprises of the research design, data collection and data analysis techniques. The Main research question, Research questions and Questions were used in the course of this research work. After a thorough investigation, it was discovered that electronic banking has both negative and positive impact in the Nigerian economic growth. 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.
CHAPTER ONE
INTRODUCTION
- Background of the study
The computer age brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some eyes while making it available to others. Today’s business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and demands Banks to serve their customers electronically. Banks have traditionally been in the forefront of harnessing technology to improve their products and services. The Banking industry of the 21st century operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and Communication Technology (ICT) is at the centre of this global change curve of E-banking System in Nigeria today. Assert that they have over the time, been using electronic and telecommunication networks for delivering a wide range of value added products and services, managers in Banking industry in Nigeria cannot ignore Information Systems because they play a critical impact in current Banking system, they point out that the entire cash flow of most fortune Banks are linked to Information System. Electronic banking which is mainly known as electronic funds transfer (EFT) is the use of the automated method to remit funds directly from one account to another, rather than by the physical cheque or cash. E-banking has become broadly known because of its flexibility, speed, convenience, and accessibility. It also provides users with a benefit such as easy transfer of funds, online purchase, speed transaction with less cost and it is time-saving. Over the time, the introduction and adoption of e-banking began to occur quite extensively as a means of distribution for financial services because of the continuous growth in IT and intensive competitive banking markets (Ajayi, and Ojo 2012). E-banking is a strong tool that pushes development and supports growth in the Nigeria economy through the nature of goods and services and the way these are packaged, delivered and consumed. Banks and every other business are turning to electronic commerce (e-commerce) as a result of the introduced ebanking in other to increase business efficiency and attract new clients (Kirui, 2014). With electronic banking, banks can improve their customer relations as well as expanding their day to day activities. Electronic Banking was introduced by the Central Bank of Nigeria to reduce the volume of cash in circulation and reduce the cost of cash production and transportation by encouraging the use of electronic payment systems. The governor of CBN introduced this policy. Alhaji, Sanusi Lamido Sanusi in the year 2009. The procedure was designed within 2010 and 2011 for the whole states in the country by Central Bank of Nigeria. The implementation stage started with the pilot phase in Lagos on January 1, 2012. First Bank of Nigeria Plc was used in Lagos to test- run the workability of the policy from 2012 till the middle of 2013, before the project kicked off in other states in the country namely Abia, Anambra, Kano, Lagos, and Abuja the (FCT). In the year 2014, the policy was launched in all the states in the country.
- STATEMENT OF THE PROBLEM
E-banking, also known as internet banking, is an electronic payment system that enables people and institutions to conduct a range of financial transactions among themselves and with banks through the financial institution’s online website. The only requirements are the development and use of e-transaction software, and customers’ registration and use of the software. Customers’ access is usually through a secure web site using a username and password, but security is a key consideration in e-banking (Abdou, English, and Adewunmi, 2014; Bojan, Mutu and Paun, 2014). The services rendered by the system include viewing account balances, obtaining statements, checking recent transaction and making payments (Dennis and Frances, 2010). Therefore, e-banking is a product designed for the purposes of online banking that enables you to have easy and safe access to one’s bank account 24 hours a day, and 7 days a week (Tan and Teo, 2000). In the process, one call customer care or send email to the bank directly, if any problem arises (Shashank, 2018). Notwithstanding the possibilities and opportunities provided by the internet and electronic banking, it has been observed that some factors are still limiting Nigeria and some other developing economies from making effective use of it. Some of these factors as identified by researchers include: fear and distrust; security, website content and privacy issues; lack of adequate infrastructure and government policies. Seeing many research findings pointing at security challenges as one of the limiting factors to the full utilization of electronic banking in the developing economy, it becomes very important to take a closer look at security challenges as it has to do with electronic banking in Nigeria.
- OBJECTIVE OF THE STUDY
The study has one main objective which is sub-divided into general and specific objectives, the general objective is to examine the effect of electronic banking in the Nigerian economic growth; the specific objectives are:
- To examine the effect of electronic banking in the Nigeria economic growth
- To ascertain if there is any significant relationship between electronic banking and Nigeria economic growth
- To examine the role of CBN in curbing banking fraud in the Nigeria banking sector
- To examine the effect of electronic banking on banks profitability in Nigeria
- RESEARCH QUESTION
The following research questions were formulated by the researcher to aid the completion of the study;
- Is there any effect of electronic banking in the Nigeria economic growth?
- Is there any significant relationship between electronic banking and Nigeria economic growth?
- Does CBN play any role in curbing banking fraud in the Nigeria banking sector?
- Is there any effect of electronic banking on banks profitability in Nigeria?
- RESEARCH HYPOTHESES
The following research hypotheses were formulated by the researcher to aid the completion of the study
H0: There is no significant relationship between electronic banking and Nigeria economic growth
H1: There is a significant relationship between electronic banking and Nigeria economic growth
H0: CBN does not play any role in curbing banking fraud in the Nigeria banking sector
H2: CBN does play a role in curbing banking fraud in the Nigeria banking sector
- SIGNIFICANCE OF THE STUDY
It is believed that at the completion of the study, the findings will be useful to management of deposit money banks in ensuring that the banks take advantage of the numerous benefit that e-banking offers to the banking industry as this will simplify transactions for the bank customers. The study will also be of great benefit to the customers of deposit money banks as the study will educate the customers of the benefit of e-banking in service at their disposal. The study will also be useful to researchers, academia’s, and the general public as the study seek to explore the benefit of e-banking and how it enhanced customer’s loyalty. Finally, the study will be of importance to researchers who intend to embark on a study in a similar topic as the study will serve as a reference point to further study
- SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers effect of electronic-banking in the Nigerian economic growth. But in the cause of the study, there are some factors that limited the scope of the study;
Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
Inadequate Materials: Scarcity of material is also another hindrance. The researcher finds it difficult to long hands in several required material which could contribute immensely to the success of this research work.
Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.8 OPERATIONAL DEFINITION OF TERMS
E-banking
Online banking, also known as internet banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website
Customers
a customer is the recipient of a good, service, product or an idea – obtained from a seller, vendor, or supplier via a financial transaction or exchange for money or some other valuable consideration
Service Delivery framework
A service delivery framework (SDF) is a set of principles, standards, policies and constraints to be used to guide the designs, development, deployment, operation and retirement of services delivered by a service provider with a view to offering a consistent service experience to a specific user community in a specific
Economic growth
Economic growth can be defined as the increase in the inflation-adjusted market value of the goods and services produced by an economy over time
1.9 ORGANIZATION OF THE STUDY
This research work is presented in five (5) chapters in accordance with the standard presentation of research work.
Chapter one contains the introduction which include; background of the study, statement of the problem, aim and objectives of study, research questions, significance of study, scope of study and overview of the study. Chapter two deals with review of related literature. Chapter three dwelt on research methodology which include; brief description of the study area, research design, sources of data, population of the study, sample size and sampling technique, instrument of data collection, validity of instrument, reliability of instrument and method of data presentation and analysis. Chapter four consists of data presentation and analysis while chapter five is the summary of findings, recommendations and conclusion.
This material content is developed to serve as a GUIDE for students to conduct academic research
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