The role of electronic banking in development of banking industries in nigeria. (a case study of guaranty trust bank plc ogui road, enugu)

Project Abstract

Electronic banking has transformed the banking industry in Nigeria, offering customers convenient and efficient ways to conduct financial transactions. This study examines the role of electronic banking in the development of the banking industry in Nigeria, with a focus on Guaranty Trust Bank Plc on Ogui Road, Enugu. The research employs a case study approach to investigate the specific impact and benefits of electronic banking on the operations and performance of the bank. The study uses both primary and secondary data sources to analyze the adoption and utilization of electronic banking services by customers of Guaranty Trust Bank Plc. Through surveys, interviews, and analysis of financial reports, the research explores the factors influencing the adoption of electronic banking, customer satisfaction levels, and the overall impact on the bank's profitability and market share. Findings indicate that electronic banking has significantly contributed to the growth and development of the banking industry in Nigeria. Guaranty Trust Bank Plc has witnessed increased efficiency in service delivery, reduced operational costs, and improved customer satisfaction as a result of its electronic banking initiatives. Customers appreciate the convenience of accessing banking services through online platforms, ATMs, and mobile banking applications, leading to a shift towards digital banking channels. Furthermore, the study reveals that electronic banking has enabled Guaranty Trust Bank Plc to expand its customer base and reach new market segments. By offering a wide range of electronic banking services and investing in technological infrastructure, the bank has enhanced its competitiveness in the industry and positioned itself as a leader in digital financial services. Overall, the research underscores the importance of electronic banking in driving innovation and growth in the banking sector. Guaranty Trust Bank Plc's experience on Ogui Road, Enugu, serves as a valuable case study demonstrating the transformative impact of electronic banking on traditional banking operations. The findings of this study contribute to the existing body of knowledge on electronic banking in Nigeria and provide insights for policymakers, financial institutions, and researchers seeking to understand the dynamics of digital transformation in the banking industry.

Project Overview

<p> </p><p><b>INTRODUCTION</b></p><p><b>1.1 BACKGROUND OF THE STUDY</b></p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The advent of financial innovation<br>such as smart card, credit card, electronic transfers in the payment system and<br>recently the lunching of internet banking have transformed the world into a<br>global village linked with electronic impulses. The concept of electronic money<br>in Nigeria was introduced in 1990 when the Central Bank of Nigeria (CBN) gave<br>approval to them. All state Trust Bank limited to offer a financial product<br>known as smart card. Subsequently, Diamond Bank play card. However, the smart<br>card scheme received uplift in February, 1998 when a consortium of a licensed<br>bank surfaces a smart card company in Nigeria which is known as Smart card<br>Nigeria plc with a mandate to producers and manages cards issued by the member<br>bank of the consortium. Another consortium of more than 20 bank under the<br>patronage of Gen card became operational in year 2000. </p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>These innovations, which are still at a relatively early state of<br>development have postnatal to challenge the predominate role of cash for making<br>small value payments and make retail transactions easier and cheaper for<br>consumers and merchants who are account holders.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; However, they also raised a number of<br>policy issues because of the possible implication for Central Bank monetary<br>policy consumer system etc.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; In responses to implication technology<br>development in the domestic financial sector, the Central Bank of Nigeria<br>commissioned and information technology strategy study in 1991 with the<br>objective of promoting efficient performance of its statutory duties. The<br>product is being implemented in phase and both the licensed banks and the<br>regulatory authority here demonstrated their appreciation of benefit derivable form<br>the application and use of the information technology.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; In view of foregoing, the Central Bank<br>Governors of the group of ten (G-10) country commission a series of studies on<br>specific issues related to electronic banking in Nigeria. Therefore, the objectives<br>of the research are to ascertain the role of electronic banking in Nigeria by<br>using Guaranty Trust Bank (GTB) Plc, Ogui Road, Enugu as the case study.</p><p><b>1.2 &nbsp; &nbsp; STATEMENT OF PROBLEM</b></p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The problems facing electronic banking<br>in Nigeria are lack of adequate information and communication technological<br>awareness campaign about electronic banking. In Nigeria, communication over the<br>internet are insecure and often congested, the financial institution would also<br>have to contend with other internet challenges including security, quality of<br>service and some abbreviations in electronic <br>fiancé (Guardian newspaper 2001). Besides the existing business environment<br>also poses some challenges to the smooth operations of electronic banking in<br>Nigeria, some of these operational challenges include epileptic power supply,<br>dominance to cash transaction in the economy, low level of awareness among<br>Nigeria etc (Agbada, 2008). The thrust of this research work shall be to<br>examine the trend of electronic banking in Nigeria and critically examination<br>of the challenge.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Conclusively, on my own opinion, below<br>are the problems which electronic banking in Nigeria is facing.</p><p>a. &nbsp; &nbsp; There<br>was no adequate public education on how to use E-banking product in Nigeria<br>before the banks stated rolling them out.</p><p>b. &nbsp; &nbsp; Poor<br>service from the providers.</p><p>c. &nbsp; &nbsp; A<br>lot of people are averse to using E- products, they prefer cash transaction and<br>your cant blame them because of No. 2 above. If your money gets stocked on the<br>ATM you are on your own.</p><p>d. &nbsp; &nbsp; &nbsp;Many of the banks can’t do what they are<br>claiming to offer it terms of E- &nbsp; &nbsp; &nbsp; &nbsp; banking.</p><p><b>1.3 OBJECTIVE OF THE STUDY</b></p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The major objective of study is to<br>appraise the role of electronic banking (E-banking) in Nigeria, the development<br>of banking industries in Nigeria. The following are the specific objectives of<br>the study.</p><p>1. &nbsp; &nbsp; To<br>determine how inadequate information and communication technology &nbsp; (ICT) awareness distorts the development of<br>electronic banking in Nigeria.</p><p>2. &nbsp; &nbsp; To<br>appraise how inactive regulatory bodies prevent the development of needed logistics<br>technical supports.</p><p>3. &nbsp; &nbsp; To<br>ascertain the extent to which lack of sufficient skilled manpower distorts the<br>development of electronic banking in Nigeria.</p><p>4. &nbsp; &nbsp; To<br>find out how inadequate funding by government and its agencies affects the<br>development of electronic banking in Nigeria.</p><p><b>1.4 &nbsp; &nbsp; &nbsp;RESEARCH QUESTIONS</b></p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The following research questions have<br>been formulated in the course of this study.</p><p>1. &nbsp; &nbsp; To<br>what extent does inadequate information and communication technology awareness<br>distort the development of electronic banking in Nigeria?</p><p>2. &nbsp; &nbsp; How<br>do inactive regulatory bodies prevent the provision of needed logistics and<br>technical support?</p><p>3. &nbsp; &nbsp; To<br>what extent does lack of sufficient skilled manpower distorts the development<br>of electronic banking in Nigeria?</p><p>4. How does inadequate<br>funding by government and agencies affect the development of electronic banking<br>in Nigeria?</p><p><b>1.5 &nbsp; &nbsp;HYPOTHESIS</b></p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; In order to carryout this study<br>properly and successfully, the following hypothesis would be empirically<br>tested:</p><p>Ho<b>:</b>&nbsp; &nbsp; Inadequate information and communication<br>technology distort the development of electronic banking in Nigeria.</p><p>Hi<b>:</b>&nbsp; &nbsp; Inadequate information and communication<br>technology does not distort the development of electronic banking in Nigeria</p><p>Ho: &nbsp; Inactive<br>regulatory bodies prevent the provision of needed logistics.</p><p>Hi: &nbsp; &nbsp; Inactive<br>regulatory bodies do not prevent the provision of needed logistics.</p><p>Ho: &nbsp; Lack of<br>sufficient skilled manpower distort electronic banking development in<br>Nigeria. &nbsp; </p><p>Hi: &nbsp; &nbsp; Lack of<br>sufficient skilled manpower does not <br>distort electronic banking development in Nigeria. &nbsp; </p><p><b>1.6 &nbsp; &nbsp; DELIMITATIONS/ SCOPE OF<br>THE STUDY</b></p><p>In pursuance of<br>the objective of the study, attention shall be focused on electronic banking<br>among other electronic commerce implementation. In order to conduct an<br>empirical investigation into the adoption of electronic banking in Nigeria.<br>This study shall examine the nature of electronic banking operation in guaranty<br>trust bank plc.</p><p><b>1.7 &nbsp; &nbsp; SIGNIFICANCE<br>OF THE STUDY</b></p><p>This study is<br>significant because it would help to enlighten operators in the banking sector<br>and other concerned individuals and organization on the adoption of electronic<br>banking. The research shall basically identify the challenge facing electronic<br>banking in Nigeria business environment and suggest ways by which they could be<br>tackled<b>.</b></p><p><b>1.8</b><b>&nbsp;DEFINITION OF TERMS</b></p><p>1. &nbsp; &nbsp; <b>Teller</b>: This is sheet but an important<br>sheet of paper being used in banking environment to paying money and withdraws<br>in case of a bank that uses it for withdrawals too.</p><p>2. &nbsp; &nbsp; <b>Loan:</b>&nbsp;Loan is a form of money borrowed<br>from the banks to aid capital and cash level in an organization or firm. They<br>can be long term or short term to aid capital expenditures respect.</p><p>3. &nbsp; &nbsp; <b>Guarantors:</b>&nbsp;This is a person that<br>stands in for one in case of opening an accounts opting for loads and many<br>other services rendered by banks. Guarantor tends to carry the risk of paying<br>back defaultment incase of any default.</p><p><b>4. &nbsp; &nbsp;<br></b><b>Electronic<br>banking:</b></p><p>This is the main study of the<br>project, Banking services tends to be getting more interesting and electronic<br>Banking is a step taking to render services electronically to aid faster<br>services to customers.</p><p>5. &nbsp; &nbsp; <b>Automated Teller Machines (ATM):</b>&nbsp;This<br>is a physical assets being used by banks, built and erected concretely to give<br>out cash, aid recharges (Phones), aid transfers, e.t.c. and it is utmost trend<br>in the banking industry.</p> <br><p></p>