Project Abstract

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>