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Banking has never been more vital to our society than it is now. Bill Gates (2008) stated that “banking is essential, but banks are not.” This remark implies that traditional bank branches will be phased out in favour of internet banking, which continues to draw new consumers.

The banking sector believes that by implementing new technologies, banks will be able to improve customer service and bring clients closer to the bank.

Meanwhile, the banking industry has been seeking for innovative ways to increase its customer base and fight the strong marketing efforts of non-traditional banking companies (Graven, 2000).

Larger banks with expensive branch networks have the most incentive to adopt e-banking services. Smaller banks, on the other hand, have greater start-up expenses and a higher initial technological cost when implementing e-banking services (Treadwell 2001).

Over the years, the banking business in Nigeria has undergone considerable changes as a result of technological advancements. The industry’s struggle for survival, worldwide relevance, maintaining existing market share, and sustainable development has made exploitation of the various benefits of ICT through the use of automated devices a must.

In terms of the nature of key products/services and how they are packaged, proposed, delivered, and consumed, e-banking is revolutionising the banking and financial business. It is a valuable and strong tool for encouraging development, growth, innovation, and competitiveness (Gupta, 2008; Kamel, 2005).

IT is being used by banks and other enterprises to increase corporate efficiency, service quality, and attract new consumers (Kannabiran and Narayan, 2005).

Financial institutions are currently concentrating their efforts on new delivery channels such as virtual public and private networks, dial-up connections, personal computers, and ATMs.

Financial institution websites play an important part in electronic banking and should provide appropriate information to customers. The only way for customers to interact, according to Chaffey et al. (2006), is to provide an interactive website.

The quality of services and customer satisfaction have a significant impact on the services encountered, and there is no single person contact in an isolated service that provides more than one opportunity to the firm.

Technological advances have been noted as contributing to bank distribution channels, and these electronic delivery channels are referred to collectively as electronic banking (Goi, 2005).

Changes in distribution channels have fostered the growth of banking technology, as seen by ATMs, phone banking, telebanking, PC banking, and, most recently, online banking (Chang, 2003; Gallup Consulting, 2008).

The phrase “e-banking” refers to the modern era banking system. E-banking, commonly known as online banking, is a development of PC banking.

E-banking makes use of the internet as a delivery channel for banking activities such as transferring payments, paying bills, accessing checking and savings account balances, paying mortgages, and acquiring financial instruments and certificates of deposit (Mohammed et al. 2009).

It is impossible to determine if the internet tool was used for the convenience of bankers or for the convenience of clients. However, it ultimately adds to boosting the efficiency of banking operations while also giving additional convenience to customers. Customers transact from one end of the country to the other without ever dealing with bankers.

Electronic banking has grown rapidly and has altered traditional banking practises (Gonzalez, 2008). According to Maholtra and Singh (2007), e- banking is causing a paradigm shift in marketing practises, which will result in high performance in the banking business.

Banking services can only be delivered efficiently if the background processes are efficient. Only when an electronic system is integrated into the background operation can it be carried out efficiently. The system’s fundamental components include data, hardware, software, networks, and people.

Banking consumers are satisfied with the system when it offers them with the greatest amount of convenience and comfort while conducting business with the bank. The task to retrieve these results is facilitated by an Internet-enabled electronic system.

Moreover, Christopher et al. According to et al. (2006), e-banking has become a significant channel for selling products and services and is viewed as a must in order to remain lucrative and successful. As e-banking is perceived to be a bigger notion than customer happiness, there is a growing interest in understanding the users’ experience (Pyun, 2002).

From this standpoint, evaluating the user experience is critical for many technological products and services (Salehi et al., 2008). Customers have begun to perceive bank services via the internet as a more appealing feature than any other key product feature of the bank. Customers have begun to evaluate banks based on the ease and conveniences they provide.

The use of e-banking has been shown to be an effective technique for financial organisations to cut operating costs. E-banking services, for example, will help banks to minimise their expenditures on physical structures. E-banking is expected to help banks decrease expenses, raise income, and become more convenient for clients (Halperin 2001).

Another significant advantage of e-banking is more efficient information collecting and administration. The combination of a low percentage of customers consistently using e-banking services and a relatively low start-up cost in developing e-banking services in the banking industry will limit the impact of e-banking (positive or negative) on financial institutions (Marenzi et al., 2001).

Electronic banking would assist financial institutions in lowering costs, which is critical for the banks’ long-term survival (Burnham, 1996). It has been predicted that banks that do not respond to the need for electronic banking will lose consumers (Orr, 1998).

Finally, the growth of e-banking services has prompted the adoption of a decentralised strategy to provide banks with the much-needed flexibility to disseminate Internet access to a far wider number of staff and potential consumers.

Mols (1998) stated that electronic banking saves time when compared to traditional banking, but in order to benefit from these services, consumers must be willing to aim for and accept new technologies, because consumers expect much more from financial institutions.

Worldwide economic sectors are heavily reliant on technologies, government policy, and publicly sanctioned frameworks that conduct company in an effective and transparent manner (Ahmed, 2006).

Financial institutions will suffer unless customers agree to specific services that can only be provided through high-tech agreements.

Today’s business climate is incredibly dynamic, undergoing quick changes as a result of technology innovation, increased customer awareness, and customer demands.

Business companies, particularly the banking industry, operate in a complicated and competitive environment characterised by changing conditions and a highly unpredictable economic climate in the twenty-first century.

This worldwide shift curve is centred on information and communication technology (ICT). According to Laudon and Laudon (1991), managers cannot disregard information systems because they play a key role in modern organisations. They point out that most Fortune 500 firms’ entire cash flow is related to information systems.

The use of information and communication technology concepts, methodologies, policies, and implementation strategies to banking services has become a critical issue for all banks, as well as a requirement for local and global competitiveness.

ICT has a direct impact on how managers make decisions, plan, and deliver products and services in the banking industry. It has continued to alter the global organisation of banks and their corporate ties, as well as the diversity of new gadgets accessible to improve the speed and quality of service delivery.

According to Harold and Jeff (1995), financial service providers must adapt their existing operational practises in order to be successful in the 1990s and subsequent decades.

According to them, the most major flaw in the banking industry today is a widespread failure on the part of senior management in banks to recognise the value of technology and incorporate it into their strategic objectives.

According to Woherem (2000), only banks that rebuild their whole payment and delivery systems and apply ICT to their operations would be able to survive and thrive in the new millennium.

He advises banks to rethink their service and delivery methods in order to properly place themselves within the constraints of information and communication technology’s dynamism.

This study assesses Nigerian banks’ reactions to this new trend and investigates the extent to which they have implemented innovative technologies in their operations, as well as the consequences.

IT is the automation of processes, controls, and information generation through the use of computers, telecommunications, software, and ancillary equipment such as automated teller machines and debit cards (Khalifa 2000).

It is a word that generally covers the harnessing of electronic technology for the information demands of a corporation at all levels. According to Irechukwu (2000), some banking services that have been transformed by the usage of ICT include account opening, client account mandate, and transaction processing and recording.

By supplying cards and business services, information and communication technology is assisting businesses in lowering their transaction costs. The banking industry is well-suited to the effective development of electronic commerce (Kardaras and Papathanassiou, 2001).

Self-service facilities (automated customer service devices) have been given by information and communication technology, allowing potential clients to complete their account opening forms directly online. It helps clients authenticate their account numbers and receive instructions on when and how to receive chequebooks, credit and debit cards.

Communication Technology is concerned with the physical devices and software that connect different computer hardware components and convey data from one physical location to another (Laudon and Laudon; 2001).

Automated Teller Machines, Smart Cards, Telephone Banking, MICR, Electronic Funds Transfer, Electronic Data Interchange, and Electronic Home and Office Banking are examples of ICT products used in the banking business.

Several authors have performed research on the impact of ICT on the Nigerian banking sector. Agboola et al. (2002) examined the dimensions of automation in the banking business in Nigeria. They are as follows:

(i) Bankers Automated Clearing Services: This entails the use of a Magnetic Ink Character Reader (MICR) to process cheques. It has the ability to encode, read, and sort cheques.

(ii) Automated Payment Systems: Devices utilised here include ATMs, plastic cards, and electronic funds transfers.

Interactive television and the Internet are examples of automated delivery channels. Agboola (2001) investigated the impact of computer automation on banking services in Lagos and discovered that Electronic Banking has significantly enhanced the services provided by various banks to their Lagos consumers.

The increased use and speed of ICT products, particularly the use of cards, has lessened the effect of cash on financial transactions.

1.1 Statement of the Problem

The following are recognised challenges with the banking sector in achieving its aims, which will be investigated in relation to E-banking in this research.

o Most banks’ inability to control fraudulent conduct.

o Inability to preserve particularly essential and secret information for later use.

o The inability to handle massive calculations without making mistakes (accurately).

o The question of privacy and security.

The majority of people are connected via telephone lines, which is another part of infrastructure because broadband connections are prohibitively expensive for the typical individual.


1. To draw attention to the difficulties associated with electronic banking.

2. To propose policy recommendations to improve the effectiveness of e-banking.

3. To identify some E-banking constants.

4. To emphasise the potential of E-banking in the research area.


The researchers are looking for answers to the following questions:

1. What are the difficulties in implementing E-banking?

2. What are the factors impeding E-banking in Nigeria?

3. In what ways will E-banking improve clients’ lives and prospects?

4. What are the restrictions on E-banking operations on a customer’s account?

5. How does E-banking contribute to the improvement of banking services?


The following people will benefit greatly from the conclusions of this research study:

1. Employees involved in banking operations.

2. Customers.

3. Banking operations management.


The study intends to investigate the use and development of several classes of ICT applications, including automated teller machines (ATM), local area networks (LAN), online banking, electronic fund transfer,

and data processing (DP) applications, among others, and their impact on the performance of a selected bank, Guarantee Trust Bank Kuto. The study spans the years 2012 to 2013. The time was chosen due to the fact that Universal Banking was in its fifth year of operation in Nigeria in 2005.

There are various characteristics of electronic banking that can be examined from various perspectives. For example, the bank’s perspective and the customer’s perspective. The study is only limited to one bank, Guarantee Trust Bank Kuto Branch, to collect empirical data using questionnaires and interviews.

This type of research is typically hampered by a lack of data accessibility because the majority of the data is classified and considered confidential in nature.

This issue was circumvented by depending on bank officials who were capable of providing the necessary information due to their ranks and files.

The gathered data is likely to be useful for the analysis. Second, there is a lack of cooperation between bank management and personnel on ICT investment and other ICT-related concerns.

For competitive considerations, banks are frequently hesitant to reveal data concerning these difficulties. This research will also be based on data acquired from published reports and bank authorities.


The act or process of investigating is referred to as investigation. It is also a probing enquiry for determining facts through extensive or attentive scrutiny.

Prospects: The probability or chance that some future event will occur. It is also defined as the chance that something spectacular will occur in the future.

Problems: An unpleasant or harmful matter or circumstance that must be dealt with and handled.

Computerization is the act of performing or regulating through the use of a computer.

Banking is a business or service provided by a bank.

An operation is a planned action involving a large number of people.

ATM stands for Automated Teller Machine.

LAN stands for Local Area Network.

PDA stands for Personal Digital Assistant.

ICT stands for Information, Communication, and Technology.

PC stands for Personal Computer.

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