THE IMPACT OF ELECTRONIC BANKING IN NIGERIA BANKING SYSTEM
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
THE IMPACT OF ELECTRONIC BANKING IN NIGERIA BANKING SYSTEM
INTRODUCTION
1.1. Background of The Study
The new millennium brought with it new opportunities for information access and availability at the same time, posing new issues in shielding sensitive material from some eyes while keeping it available to others.
Today’s business climate is incredibly dynamic, with quick changes brought about by technical advancements, increasing knowledge, and customer expectations that banks serve their customers electronically. Historically, banks have been at the forefront of leveraging technology to better their products and services.
The banking industry of the twenty-first century operates in a complicated and competitive environment defined by shifting conditions and a volatile economic climate.
Today, Information and Communication Technology (ICT) is at the heart of the global changing curve of Nigeria’s Electronic Banking System. Stevens, 2002.
Assert that they have been using electronic and telecommunication networks for delivering a wide range of value added products and services over time, managers in the Nigerian banking industry cannot ignore Information Systems because they play a critical role in the current banking system, they point out that the entire cash flow of most fortune Banks is linked to Information System.
The use of information and communication technology concepts, methodologies, policies, and implementation strategies to banking services has become a major concern for all banks, as well as a requirement for local and global competitiveness.
Technology advancement has played a significant influence in enhancing service delivery standards in the banking business. Automated Teller Machines (ATMs) and deposit machines, in their most basic form, now allow users to conduct financial transactions outside of normal banking hours.
Individuals can use online banking to check their account balances and make payments without having to visit the bank. This is gradually transforming society into a cashless society in which consumers no longer have to pay for all of their purchases with physical cash.
Bank users, for example, can pay for plane tickets and subscribe to initial public offerings by moving funds directly from their accounts, or pay for different commodities and services by electronic credit transfers to the seller’s account.
Because more individuals now own mobile phones, banks have created mobile banking to accommodate customers who are constantly on the move.
Individuals can use their mobile phones to check their account balances and make fund transfers. First Atlantic Bank (now First Inland Bank) popularised this with their “Flash me cash” programme.
Customers can also recharge their phones by SMS. E-banking has simplified financial transactions all over the world, and it is quickly gaining traction in Nigeria.
Today’s electronic banking delivery methods in Nigeria are fairly extensive, as described here: automatic teller machines (ATM), point of sales (POS), telephone banking, smart cards, internet banking, and so on.
Personal computers were initially brought into the banking business in Nigeria by Society Generale Bank as the popular PC with simple access to the internet and World Wide Web (www), and the internet is increasingly being used by banks as a channel of delivering products and services to a large number of consumers.
Almost all banks in Nigeria have an online presence; this type of banking is known as Internet Banking, which is a subset of Electronic Banking. The supply of items by banks in the public domain is an example of advertisement, often known as E-Commerce.
Electronic commerce, on the other hand, is a catch-all word for any type of business or commercial transaction including the transmission of data via the internet.
Individuals and businesses exchange business information and instructions via electronic media, such as computers, telephones, and other communication devices, in the process known as e-commerce.
This includes a wide spectrum of businesses, from consumers to retail products. However, as it is, electronic banking is a product of E-Commerce in the sector of banking and financial services. It provides various online services such as balance inquiries and cheque requests.
books, recording stop payment instructions, balance transfer instructions, account establishment, and other standard banking services. The Internet enables businesses to make better use of information by providing consumers, suppliers, employees, and partners with access to the business information they require, when they need it.
All of these Internet-enabled services result in lower costs: less overhead, higher economies of scale, and increased efficiency. The greatest promise of e-banking is that it will make more timely, relevant information available to more individuals at a lower cost.
Security concerns have moved from computer labs to the front pages of newspapers as a result of changes in corporate operations brought about by the Internet era. The security difficulties connected with data disintermediation negate the promise of E-Banking.
One security concern stems from “cutting out the middleman,” which all too frequently eliminates the information security provided by the middleman.
Another change is the growth of the user community, which has grown from a limited number of known, vetted users accessing data from the intranet to thousands of people accessing data via the Internet.
Application service providers (ASP) and exchanges have very strong — and sometimes conflicting — per user and per customer security standards, while also permitting secure data sharing among communities of interest.
E-banking relies on giving controlled and secure access to information to clients, partners, and staff. To solve the problems of E-Banking, technology must guarantee security. Almost every software and hardware provider claims to create secure solutions, yet
Need help with a related project topic or New topic? Send Us Your Topic