THE ROLE OF ELECTRONIC BANKING (E-BANKING) IN THE DEVELOPMENT OF FINANCIAL INSTITUTIONS IN NIGERIA

CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF THE STUDY
The advent of financial innovation such as credit cards, smart  cards,  Electronic transfers in the payment system and more recently, the lunching of INTERNET BANKING have transformed the world into a Global Village Linked with Electronic  impulses. The concept of Electronic money was introduced in 1996 when the central  Bank of Nigeria gave approved to ALL STATES TRUST   BANK LIMITED to offer a financial  product Known as the ESCA, smart card, an Electronic purse. Subsequently, DIAMOND BANK LIMITED Introduced a parallel product known  as Diamond pay card. However, the  smart card  scheme received a boost in February 1998 when a consortium of 19 licensed banks Floated  a smart  card company, Smart card Nigeria PLC with a mandate  to produce a manage cards issued by the member banks of the consortium. Another consortium of more than 20 banks under the in spices of  Gem  card scheme in year 2000. These innovations, which  are still at a relatively early stage of development have the potential to challenge the predominant  role of cash for making  small value payments and makes retied transactions easier and cheaper for consumer and merchants who are current account holders. However, they also raise a number of policy issues because of the possible implication for central Bank monetary policy, consumer system etc.  In response to information technology developments in the domestic financial  section the central bank of Nigeria commissioned an information  technology  strategy study in 1991 with the objective of promoting the efficient performance of its statutory duties. The project is being implemented in phases and both the licensed banks and the  Relatory  Authorities have demonstrated  their appreciation of benefits derived from the use  of information technology. In view of for foregoing, the central Bank Governors of  the group of Ten(a-10) countries Commissioned a series of studies on specific issues   related to electronic  money in November 1995.

1.2     STATEMENT OF PROBLEM 
This research work is to address itself on the task to determine the impact of Electronic banking in Nigerian
a.     In this era of expanded  information  Technology activities around Nigeria Electronic  banking is more than ever needed
b.     Inadequate information Technology awareness.
c.      Slow- paced information and communication Technology growth in Nigeria  due to inadequate funding by government and its agencies.
d.     Inactive regulatory bodies to  provide needed logistics and technical support. e.      Lack of sufficient skilled manpower.
f.       The confidentiality of sensitive information transmitted on public digital networks-raises a lot of fees on security
g.     Low income level
h.     Inadequate Government  support. It  is the light of these problems that this study is under-taken   to provide some solution  to the numerous problem associated  with the role of Electronic Banking.

1.3     OBJECTIVES OF THE STUDY 
The study has the following as it’s objectives
1.       To discuss how Electronic  Banking works in Nigerian banking system.
2.       To discuss the problems of Electronic Banking in the financial  institutions in Nigeria.
3.       To highlight the effects of  Electronic  banking in Nigeria Economy.
4.       To discuss the different component of Electronic banking
5.       To ascertain  the role of electronic banking in the  development of financial industries in Nigeria.
6.       To identify   ways  of ensuring prompt Electronic Banking that  will be approved by the government.
7.   Finally, to suggest or make  recommendation on what should be done in order to have efficient Electronic banking.

1.4     SIGNIFICANCE OF THE STUDY
This study will be of immense to the students and lecturers who will want to do research in the same topic. This  study  will serve as a guide to the students who are in this field of education    It will be useful to the Nigerian Banking system more especially to the commercial bank as it will be an aid to them on how to date electronic payment. It  will serve as a reference material to those who will want to write on this same topic. Electronic Banking will be useful to overcome  the set back that Nigeria has before as a developing country on financial matters. It will also  serve- as a tool for managerial  decision and policy making  And finally,  this research  work is a useful information to the existing literature in area of electronic Banking.

1.5     LIMITATIONS OF THE STUDY
The study role of electronic   banking  in  Nigeria is an  inexhaustible  one and  the research  tends  to  limit it. The research could not be to achieve  as much  as   she could because  of the following limitations:
1.      PRESSURE   FROM  CLASS WORK: The  pressure that is being encounter is  that,  so  many assignments and Quiz are being written  and are submitted within a stipulated  time. It will be  very difficult for  the researcher to   combine  the pressure of class work and the writing of this study.
2.       FINANCIAL CONSTRAINT: The  students financial  constraint is another    fact, as  it is very difficult gathering  materials, for the study, therefore the researcher  faces  the  problems  of finances.
3.       TIME The  time  allocated to the study is short,  there  by making it difficult to gather  the  necessary     materials like the journals, periodicals, text  books, news papers etc.

1.6    DEFINITION OF TERMS
Computer:  These  are  Electronic  machines which  accept  data  as an  input,  process the inputted  data and give  out a comprehensive result called  output.
Internet: This is a Global Network  of computer.
Bank: this is a financial institution where money and other valuable things are been kept   for safety custody. Electronic
Data Processing (EDP): this is a process  in which is done with minimum human effort  in which    the process of data is largely self  regulatory.
Electronic Data  Interchange (EDI): this involves the  exchange of structured  business  documents  between  computer. Program: These are series of instruction which a computer system response to.
On- Line: This means that is in constant contact with the (CPU) central processing  unit  10th out  human intervention.

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