THE ROLE OF THE E-BANKING IN THE BANKING INDUSTRY
ABSTRACT
    The profix “e” – (electronic) is quite ubiquitous in today’s global world, such as e-business, e-mail, e-learning, e-commerce are the buzz words, but E-banking is still in its infancy stage in the financial sector specially in Banks in developing countries like Nigeria. Although e-banking in the world at large is not a recent development, its adoption and operation in Nigeria commercial banking environment is developing, with reasons not far fetched, the strive to gain market leadership, increase profitability, effective and efficient service delivery to customers has prompted the more. This study aim at examining the role of e-banking services in the banking industry in Nigeria. How banking sector find itself before a new challenge by technology revolution. It also investigates the major aspect of e-banking, its revolutions, the various facets of e-banking, e-payment system and its various components, the nature of risk  associated with e-banking and so on.
    TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1    Background of the study                    
1.2    Statement of Research Problem                 
1.3    Objectives of the Study                        
1.4    Hypotheses of the Study                    
1.5    Scope of the Study                        
1.6    Significance of the Study                    
1.7    Research Questions                        
1.8    Limitations of the Study                    
1.9    Definition of Terms                         
CHAPTER TWO: LITERATURE REVIEW
2.1    Introductions                             
2.2    Review of E-Banking Services in Nigeria         
2.3    Manual Banking Operations in the previous years     
2.4    Evolution of E-Banking in Nigeria                 
2.5    The Concept of E-Banking                     
2.6    E-Payment Player: Interswitch Ltd.             
2.7    The Facet of E-Banking                        
2.8    The Role of E-Banking                        
2.9    Electronic Payment System                     
2.10    Development of Electronic System in Nigeria         
2.11    Features of Electronic Payment System             
2.12    Electronic Payment Cards in Commercial
Banks in Nigeria                             
2.13    Automated Teller Machine: Catalyst for E-Payment Growth.                         
2.14    Nature of Types of Risks Associated with E-Banking                                
CHAPTER THREE: RESEARCH METHODOLOGY
3.1    Introduction                             
3.2    Research Design                             
3.3    Sampling Techniques                         
3.4    Sources of Data                             
3.5    Validity Test                             
3.6    Reliability Test                             
3.7    Method of Data Analysis                     
3.8    Decision Rule                            
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1    Introduction                             
4.2    Presentation of Data                         
4.3    Analysis of Questions in the Questionnaire        
4.4    Statistical Testing of Hypothesis                 
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2    Conclusion                                
5.3    Recommendations                          
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND TO THE STUDY
    In the bid to catch up with global developments and improve the quality of service delivery, the world has witnessed an information and technology revolution. This reduction has changed or touched every aspect of people lives including banking. Such changes and developments have impacted quality services and picture of banking activities. As a result of the increased demand for customers patronage, Nigerian banks especially new generation banks, have realized the imperative of good and prompt services. Also, due to the fact that some customers lost their deposits in distressed banks, sophisticated with regards to choosing where it is safe to put their money, and where they would be served promptly. Thus, they have started looking at the level of service and professionalism of the banks before depositing their funds.
    Proximity to the bank is no longer the issue, safety and the level of service, with regards to quality, speed and efficiency have become the major issues. On the part of the banks, they have realized that the one way they can provide quality service is through the use of technology. Hence, Nigerian banks have no doubt invested much on technology, and have widely adopted electronic and telecommunication networks for delivering a wide range of value added products and services, they have in the last few years transformed from manual to automated systems.
    Eheduru (1978) expressed that as new generation banks started to use technology to provide efficient, online and real time services. This means that their customers can for the first time in the history of banking in the country, go to any part of the country where there is a branch of their bank and make withdrawalor conduct and increasing range of other banking business before the new era of banking in Nigeria, the industry was characterized by inefficiency, bureaucracy and a truly frustrating amount of time taken to service their customers. As a result of anchoring their operation on computer-based delivery systems, the new era generation banks have become very profitable. Electronic banking refers to the use of internet as a remote delivery channel for providing services, such as opening deposit account, transferring funds among different accounts and payment of service bills via electronic means. This can be offered in two main ways:
First, an existing bank with physical offices can establish a website and offer these services to its customers in addition to its traditional delivery channel. Second, is to establish a virtual bank where the computers server is housed in an office that serves as the legal address of such a bank. Electronic banking encompasses different forms of modern information technology and activities in bank, such as internet banking, smart cards, electronic funds transfer (EFT), Automated Teller Machines (ATM), Electronic Commerce, Electronic Data Interchange (EDI), Automated Cheque Clearance, Electronic Facilities (ACCF) and many others. All these are banking system services to attain a greater height of excellence. Whether a bank would be successful or not depend on the extent of which it is investing in information technology and using information technology in an innovative manner. This study seeks to examine the role of e-banking in the banking system in Nigeria.
1.2    STATEMENT OF RESEARCH PROBLEM
    Basically, this research work is designed to provide answers to the following fundamental questions as regard the problems that are facing the banking systems. The following are the statement of research problems
1.    What are the current state of diffusions and problems of the bank in adopting electronic banking system?
2.    What are customers’ reactions towards electronic banking as regards services delivery?
3.    What are the issues and technical domains needed to be mastered by Nigerian banks in order to complete with the rest of the world?
4.    What are the major developments in information technology that are affecting or bound to affect the growth of the banking industry?
5.    How are the banks ready to carry out the requirement of electronic banking in their banking operations?
6.    How supportive is the available infrastructure to electronic banking?
1.3    OBJECTIVES OF THE STUDY
    Besides, the study would attempt to investigate the roles of e-banking services in the banking system in Nigeria.  Thus, the main objectives of this study are as follow.
1.    To determine the extent of acceptance of e-banking services.
2.    To compare traditional banking services with electronic banking.
3.    To determine the factors that hinders proper functioning of e-banking.
4.    To investigate the degree of e-banking
5.    To investigate the benefit challenges of e-banking systems in Nigeria.
1.4    HYPOTHESES OF THE STUDY
    An hypothesis is a tentative answer to a research question. It is often stated in the form of a relationship between a dependent and an independent variable.
Ho:    The adopted electronic banking by commercial banks will not aid speedy financial transactions.
Hi:    The adopted electronic banking by commercial banks will aid speedy financial transactions.
Ho:    The electronic banking will have negative impacts on the standard of banking activities.
Hi:    The electronic banking will not have negative impacts on the standard of banking activities.
Ho:    The introduction of electronic banking in commercial banks will not facilitate effective and efficient service delivery to their customers.
Hi:    The introduction of electronic banking in commercial banks will facilitate effective and efficient service delivery to their customers.
The above hypothesis of the study will involve path guidance towards acquiring the required issues that are needed in carrying out the research that concerns electronic banking.
1.5    SCOPE OF THE STUDY
    The scope of the study will cover the problems and prospects of the electronic banking as it affects banks in Nigeria. Being aware of the great changes caused by technology, the study will cover will aspects of electronic services in the bank and modern attributes which will include internet banking, Automated Teller Machines Electronic Fund Transfer, cash and Electronic system etc. Other operational systems that electronic banking embodies will also be revealed in the study.
1.6    SIGNIFICANCE OF THE STUDY
    The importance, relevance and considerable values of electronic banking system in Nigeria are too numerous to mention.  Electronic banking as seen to be the modern systems of banking has various anticipated values that it will add to the growth and effectiveness of banking system in Nigeria. By the end of the study, all financial institutions, especially, the banking sector will see the need to get involved in electronic system of banking and those that are involved in electronic banking already will aim at improving the usage of it. Also, the problems and prospects will be explicitly brought out.
    On the other hand, it will bring to the mind of customer a better visualization and impression in regard to the type of banking services they will receive.
1.7    RESEARCH QUESTIONS
    At the end of research, answers would have been provided to the following research questions.
1.    What are the electronic business and internet?
2.    What are the main motives for banks to turn towards providing electronic banking services, and does it face difficulties and barriers for this sake?
3.    Do the current rendered services level sufficient to meet competitive purposes and to achieve the quality of banking services?
4.    To realize the practical fact of providing banking services through bank websites and consequently, is the client educated and the employee trained to electronic dealings?
5.    Is the prevailing framework of electronic transactions sufficient to protect working banks information systems and consequently does banks have the required electronic software and human competence to keep up with digital world and achieve the banking distinction?
1.8    LIMITATIONS OF THE STUDY
    It should be noted and anticipated that during the course of this research work, some limitations and constraints will be faced which are as follows:
1.    The fact that not all workers in the banks have an indepth knowledge of all electronic gadgets used in the banks. This will serve as a limitation in that they were not able to give required information when called upon.
2.    Financial constraint, which has led to the reduction of the population size.
3.    Unwillingness on the part of banks computer analyst to release paramount information that are vital to the research.
1.9    DEFINITION OF TERMS
    This takes a look at the various aspect of e-banking on the banking industry. E-banking encompasses different forms of modern information technology and activities. Below are various aspect of e-banking services.
Internet Banking; It is the online banking service for personal or business banking customers with an account held in a Nigeria branch. The services incorporates features which enable registered uses have access to their account details from anywhere they find themselves. It allows users check their account balances, statements, change or cancel standing orders, print and download their transaction details onto third party software for analysis.
Mobile Banking: It is a form of banking services that allows customers perform some transaction on their account using a GSM phone. It also gives room for users to monitor their accounts anytime, anywhere there solution is a convenient, cost effective, and secure means of gaining success to one’s account via the short message services (SMS) feature of their mobile phone.
Value Card: It is a smart card that stores money electronically saving users the burden and risk involved in carrying large sums of money around.
ONLINE BANKING: Basically, it allows a customer to transact business in any branch, irrespective of the branch his/her account is dominated. In many nations, online banking is gradually beginning to encroach into the banking terrain all over the world.
Automated Teller Machines: This is an automated bank note dispenser that uses electro-mechanical electronics and complex hard ward/software to accomplish it tasks. It is a self service, highly computerized cash dispensing machines that allows customers to conduct certain banking transactions such as cash withdrawals, account balance enquiries mini-statement point outs and account transfer 24hrs a day and 7 days of the week from any part of the country.
Electronic Fund Transfer: generally, the use of computer in effecting payments between individual and/or organizations. In some cases the term electronic fund transfers is used to refer to advanced future system in which debits and credits are mate simultaneously with the transactions that gives rise to them.