EFFECT OF ELECTRONIC PAYMENT SYSTEM ON CUSTOMER SATISFACTION IN NIGERIA BANKING SYSTEM
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EFFECT OF ELECTRONIC PAYMENT SYSTEM ON CUSTOMER SATISFACTION IN NIGERIA BANKING SYSTEM
INTRODUCTION TO CHAPTER ONE OF THE EFFECT OF ELECTRONIC PAYMENT SYSTEM ON CUSTOMER SATISFACTION IN NIGERIA BANKING SYSTEM
1.1. Background Of The Study
The business world of today is tremendously dynamic. It has undergone fast transformations as a result of technical advancements, greater awareness, and demand for banking services.
The banking business of the twenty-first century functions in a complicated and competitive environment defined by shifting conditions and a highly unpredictable economic climate;
hence, information and communication technology (ICT) is at the heart of this global change. According to Amedu (2005), banks have long used electronic and communications networks to supply a wide range of value-added products and services. As a result, information systems could not be neglected because they play a key role in Nigeria’s existing banking system.
Electronic banking, often known as e-banking, virtual banking, or online banking, is a service that allows consumers to access their bank information, conduct financial transactions, make deposits,
withdrawals, and pay bills via the internet without visiting their banks physically. It allows them to access financial services from the comfort of their own home or office. Awamleh and Fernandez (2005).
When the first Automated Teller Machines were installed in the 1970s, the concept of computerised financial systems was born. ATM machines enabled deposits to be made from remote locations, providing a convenience for consumers who would otherwise have had to withdraw cash from their bank in person.
The benefits of ATM machines swiftly spread to other areas of bank services, computerising manual systems for improved efficiency and time savings. ATM machines spawned smart cards, intranets and internet banking
electronic funds transfer EFT, NIBSS (Nigerian interbank settlements system), POS POS Point of Sales Service, Access mobile, and other electronic devices (Ahasanul, 2010).
Because of the increased application and acceptance of internet-driven technologies, providing a better service is more attainable than ever before, but it is also more difficult and loaded with potential costs and danger.
Customers are introduced to a new concept of business time as constantly available and requiring an urgent and speedy reaction. The internet has radically moved the balance of power to the client, posing a problem for managers who must reconcile their corporate and personal notions of time with the perceived reality of online time.
Banks in Nigeria are currently adding value to their services in order to satisfy their customers. Customers now have more options when it comes to selecting a bank because new generation IT (Information Technology) is causing broad changes in the banking industry, requiring them to reengineer many of its basic procedures and systems.
Automated teller machines (ATMs), Electronic Clearing Service (ECS), electronic funds transfer (EFT), tele-banking, online banking, and other technology-driven electronic banking services are available. In Nigeria’s banking sector, new technical capabilities are now being efficiently employed to produce value and better manage customer relationships. (Raji, 2010).
1.2 Statement of the Problem
Customers in Nigeria demand the protection of their assets as well as higher returns on their investments. Customers want services that are efficient, quick, and convenient. Many clients today want banks to provide services that fit their specific needs while also supporting their corporate goals.
A businessman, for example, may choose to travel without carrying cash for security concerns. The Nigerian Central Bank has emphasised the importance of banks providing more efficient services to its existing and prospective customers.
As a result, the implementation of an electronic banking system in the Nigerian financial industry is projected to play a significant role in the delivery of efficient and effective services.
Unfortunately, most Nigerian banks are still lagging behind in adopting and equipping themselves with cutting-edge electronic devices due to a lack of financial, management, and human resources, which would have given them a competitive advantage and attracted more customers.
As a result, one is inclined to ponder what could be causing the non-adoption of current financial devices. Is it true that current bank personnel are unable to operate these cutting-edge devices? Or are the gadgets too expensive for banks to purchase? These are the questions that this research will attempt to answer.
1.3 objectives of The study
The primary goal of this study is to assess the impact of electronic payment systems on customer satisfaction in Nigeria’s banking sector. The study will specifically look into the following goals:
i. To assess the impact of an electronic payment system on bank clients.
ii. To examine the impact of the electronic payment system on the supply of services by the bank.
iii. To investigate the impact of electronic payments on the bank’s competitive advantage.
iii. To determine the impact of electronic payment systems on bank market size growth.
1.4 Research Questions
To guide the investigation, the following research questions were developed:
i. Does the electronic payment method improve banking system service delivery?
ii. Does the electronic payment system expand the banks’ market share?
iii. Does the electronic payment system improve the bank’s competitive advantage?
iii. Does the electronic payment method improve bank customer satisfaction?
1.5 research Hypotheses
The hypotheses listed below were developed.
In the Nigerian banking sector, there is no relationship between electronic payment systems and bank service delivery.
In the Nigerian banking sector, there is no association between electronic payments systems and client satisfaction.
1.6 Significance of the research
This study will be of enormous benefit to both prospective and current bank customers, as it will open their eyes to the numerous benefits of using electronic banking, as well as to the bank, as the introduction and sale of this product will result in an increase in the bank’s customer base, an increase in deposits, and tools for favourable competition in the industry.
The study is also significant because it will provide answers to factors that are working against the implementation of electronic banking in the financial industry as a whole, as well as a valuable tool for students, academics, institutions, and individuals who want to learn more about the electronic banking system.
1.7 Research assumptions
The following assumptions will govern the study’s procedure:
i. It was expected that electronic banking would be an essential means of increasing client satisfaction.
ii. That the components of the case study collaborate with the researcher by filling out and returning the questionnaires that will be distributed.
iii. That the respondents chosen for the study have sufficient expertise and information about the manpower planning process.
iv. That the information provided by respondents will be assumed to be consistent throughout the study’s duration.
1.8 scope and limitations of The study
In terms of scope, this research will look at the impact of an electronic payment system on customer satisfaction at Access Bank Plc. This means that concerns concerning electronic banking will be discussed. Given the intricacies involved, it would be absurd to presume that all relevant facts were acquired during the research phase.
Information is restricted to those accessed and made available by respondents, as well as information obtained from end users. Furthermore, because financial sectors come in numerous forms, the analysis will be limited to access bank plc of Nigeria. Some of the constraints are as follows:
i. Time limitations
Due to time constraints, the researcher finds it difficult to visit all of the bank branches; as a result, data was only obtained from a select banks at random.
ii. Insufficient data
Electronic banking is a newly established method that not all banks have fully adopted; those that have fully embraced it were able to provide accurate data to the researcher, while those that have not fully embraced it were unable to provide accurate data to the researcher.
iii. a scarcity of cash
Due to the nature of this study, researchers find it difficult to get the cash required to do the research properly. As a result, a few bank branches were chosen based on the available funding to allow researchers to obtain the necessary information.
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