E-BANKING PRACTICES AND BANKS PERFORMANCE (A Case Study of Zenith Bank Plc)

ABSTRACT
E-banking system has become an important practice among commercial banks in Nigeria. The introduction of this electronic banking has improve banking efficiency in rendering services to customer, This Study aim at the  impact of electronic banking on performance in banking sector. Through the cluster sampling technique, data was collected by means of questionnaires from 80 Zenith Bank officers and the result shows that Zenith Bank electronic banking guidelines are in line with the CBN electronic banking guideline. The bank has an effective electronic banking system which has improve its customer’s relationship and satisfaction. To this end, It is recommended that the bank information technology training programme should be encourage among the staff of Zenith Bank, necessary legal codes banking should be established in order to enhanced growth of the industry.

TABLE OF CONTENT
PAGE
Title Page                                                                                                                    i
Certificate                                                                                                                   ii
Dedication                                                                                                                   iii
Acknowledgement                                                                                                      iv
Abstract                                                                                                                       v
Table of content                                                                                                          vi-vii
CHAPTER ONE: INTRODUCTION
1.1       Background of the study                                                                                 1
1.2       Statement of Research Problem                                                                      3
1.3       Research Objectives                                                                                        4
1.4       Research Questions                                                                                        6
1.5       Research Hypotheses                                                                                      6
1.6       Significance of the Study                                                                               7
1.7       Scope of the Study                                                                                          8
1.8       Limitation of the Study                                                                                   8
1.9       Historical Background of the Case Study                                                       9
1.10     Definition of Related Terms                                                                           12
CHAPTER TWO: LITERATURE REVIEW
2.1.      Introduction                                                                                                    14
2.2.      Conceptual Framework                                                                                  17
2.2.1    Concept of Electronic Banking                                                                       17
2.3.      Delivery Channels of E-banking                                                                      21
2.3.1    Automated Teller Machine (ATM)                                                                 21  
2.3.2   Internet Banking                                                                     22
2.3.3   Mobile Banking                                                                       22
2.3.4   Point of Sale Machine (POS)                                                    23
2.3.5   Electronic Transfer of Funds                                                   23
2.4       The Entry of Nigerian Banks into Electronic Banking                                  23
2.5       Challenges of E-banking in Nigeria                                                                26
2.5.1 Money Laundering                                                                                             26
2.5.2 Fraud                                                                                                                  27
2.5.3 Electronically Generated Evidence                                                                   27
2.5.4 Consumer Protection                                                                                         28
2.5.5 Possibility of Core Business Being Swallowed                                                   28
2.5.6 Systems Operational Risks                                                                                 28
2.5.7 The Regulatory Challenges                                                                                28
2.6       Electronic Banking Profitability and Efficiency                                              29
2.7       Bank Customer Relationship                                                                          30
2.8     Electronic Banking Performance                                                         31
CHAPTER THREE: RESEARCH METHOD
3.1       Introduction                                                                                                    35
3.2        Research Design                                                                      35
3.3        Re-statement of Research Questions                                        36
3.4       Re-statement of Research Hypotheses                                                          36
3.5       Population of Study                                                                                         37
3.6       Sampling Techniques                                                                                      37
3.7       Sample Size                                                                                                     37
3.8       Sources of Data                                                                                               38
3.9       Method of Data Analysis                                                                                38
3.9.1 Test of Hypotheses and Inference                                                                     38
3.9.2 Decision Rule and Justification                                                                          39
CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION OF FINDINGS
4.1.      Introduction                                                                                                    40
4.2.      Presentation and Analysis of Data                                                                  40
4.2.1. Qualification of Respondent                                                                             40
4.2.2    Working Experience                                                                                       41
4.2.3: Cadre of Respondents                                                                                       43
4.2.4    Professional Qualification                                                                              43
4.2.5: Department of Respondents                                                                             45
4.2.6 Threat to Electronic Bank                                                                                  46
4.2.7: Threat Assessment                                                                                            46
4.2.8: Respondent assessment of overall performance in                                         47
Zenith Bank’s E-Banking System
4.3 Test of Hypothesis                                                                                                 61
4.3.1 Hypothesis One                                                                                                  61
4.3.2 Hypothesis two                                                                                                   63
4.3.3 Hypothesis Three                                                                                               64
4.3.4 Hypothesis Four                                                                                                 65
4.4       Discussion of Findings                                                                                     66
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1       Summary                                                                                                         67
5.2       Conclusion                                                                                                       67
5.3       Recommendations                                                                                          69
References                                                                                                      71
Questionnaire                                                                                                 73

CHAPTER ONE
INTRODUCTION
1.1   Background of the study
The new millennium brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some individuals 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 these demand Banks to serve their customers electronically. Banks have always 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 Electronic Banking System in Nigeria today. (Stevens 2012).
The Banking industry has 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.
The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services have become a subject of fundamental importance and concerns to all Banks and indeed a prerequisite for local and global competitiveness in the Banking sector.
The advancement in technology has played an important role in improving service delivery standards in the Banking industry. In its simplest form, Automated Teller Machines (ATMs) and deposit machines now allow consumers carry out banking transactions beyond banking hours.
The internet is revolutionizing sales techniques and perceptions of leading brands, and the internet is intensifying competition in all its forms.
Banking sector continues to use the internet to add value to their customers’ satisfaction; but in order for this to work effectively - maximizing opportunities, reducing risks and overcoming problems – an E-Banking strategy is required.
The growth of the Web and Internet as new channels, the growth in their use by customers and the floor of companies entering the market, presents a series of key challenges to companies. It is easy and cheap to put up a website.
But to create an environment delivering effective service on the Web to a significant proportion of your customer base requires an E-Banking strategy.
Electronic Banking offers different online services like balance enquiry, request for cheque books, stop payment instructions, transfer instructions, account opening, payment of bills, E-statement and other form of transitional Banking services.

1.2   Statement of Research Problem
In Nigeria, customers of banks today are no longerabout safety of their funds and increase returns on their investments only; Customers demand efficient, fast and convenient services.
Customers want a Bank that will offer them services that will meet their particular needs (personalized Banking) and support their Business goals for instance; businessmen want to travel without carryout cash for security reasons. They want to be able to check their balance online, find out if a cheque is cleared, transfer funds among accounts and even want to download transaction records into their own computer at work or home. Customers want a preferential treatment and full attention by their choice Bank. All these are only achievable through electronic Banking.
In line with rendering qualities and acceptable services that most Banks in Nigeria are gearing toward and investing large sum of money in information and communication Technology, expectedly such Banks services have been improved. United Bank for Africa
(UBA), Zenith Bank, GT Bank (to mention few) are in the forefront in the use of IT in rendering services to their Customers (The Guardian Newspaper April 18, 2008p 21). It also seeks the challenges involved in Electronic Banking and Best industrial practice and the approach of implementing them in Nigeria Banking system.

1.3   Research Objectives
The main objective of this research work is to examine impact of electronic Banking in Banking Performance on how difference channels could enhance the delivery of consumers and retail products, and also how Banks choose to support their Electronic
Banking component/services internally, such as internet services provider, Internet banking software, Core banking vendor, Managed security service provider, Bill payment provider, Credit Business and Credit scoring company, E-Banking systems rely on a number of common components or process
Specifically the study objectives are to;
I. Evaluate the prospects of electronic banking to enhance customer’s satisfaction
II. Evaluate the impact of electronic banking on performance in banking sector
I11. Examine the effects of electronic banking on Bank customer satisfaction.
1V.  To what extent do banks E-banking platform comply with the CBN policy frame work.
V.     what are the challenges to effective E-banking operations.

1.4   Research Questions
One of the questions currently being addressed is the impact of electronic Banking on traditional banking practices; there are two views that are prevalent in the Market. The controversies that the internet is a revolution that will sweep away the old practice, argument in are as follow;
1.  Does Electronic Banking give consumers much more choices and will consumers be less inclined to remain loyal.
2.  Deposits will go elsewhere because these banks will have to fight to regain their customer base. There would be increase in their cost of funds, making their businesses less viable.
3.   Can the portal provide momentous share of banking profits.

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Item Type: Project Material  |  Attribute: 80 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 2hrs
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