Project Materials




Need help with a related project topic or New topic? Send Us Your Topic 



Using the first bank as a case study, this paper critically analyses Electronic Banking as an Aid to Commercial Bank Operations in Nigeria. Electronic banking (e-banking) has revolutionised bank operations by providing significant benefits to both institutions and their consumers.

As a result, banks must move to electronic banking in order to remain viable. Despite its benefits, underdeveloped countries are still slow to adopt electronic banking.

Because of the emergence of the global economy, e-business has become an increasingly important component of corporate strategy and a powerful catalyst for economic progress.

E-banking has grown in popularity because to its ease and flexibility, as well as transactional benefits such as speed, efficiency, and accessibility. Customers (respondents) believe that e-banking offers convenience and flexibility. It also provides transactional benefits such as easy transfer, quick transaction, lower cost, and time savings.

To collect the necessary data, the researcher used both primary and secondary data gathering approaches. The questionnaire data was presented in tables and analysed using a basic percentage.

The studies also revealed that obstacles that impede the successful effectiveness of electronic banking on bank growth and development include:

fluctuating power supply, delayed operation, and a bad network. According to the survey, banks should better package and sell E-banking products and services to customers in order to narrow the apparent knowledge gap that exists among the populace regarding the benefits that may be received from the services.


Advances in information and communication technology, as well as the advent of the internet, have transformed commercial activities, enabling new methods of conducting business known as electronic commerce.

Since the mid-1980s, the Nigerian banking industry has seen significant changes, as evidenced by increased volume and complexity of operations, as well as greater innovations and variety in product and service offering.

These advancements were not just technologically driven, but also impacted further technical advancements. Through desktop computers and terminals, information technology,

the backbone of modern electronic banking, provides means for the delivery of new products and innovations such as Automated Teller Machines (ATM) and Credit Cards.

Through electronic banking, information technology (IT) is rapidly transforming how people bank all around the world. E-service is becoming more significant, not only in determining the success or failure of electronic commerce (Yang, 2001:164), but also in providing superior experience to customers in terms of the interactive flow of information.

However, technology has had a significant impact on the expansion of service delivery choices Bagozzi, M. (2002:27). According to (Dabhollear, 2000:19), there is greater control when the customer is in direct contact with the technology, such as with electronic banking.

In the lack of direct interaction, such as with telephone banking, it is considered that the customer has less perceived control during this transaction. He claims that direct touch with such technologies provides the customer a sense of power.

He goes on to argue that internet banking allows users to complete tasks at times and locations that are convenient for them. According to (Ovia, 1997, p.2), new technology has produced an unprecedented wired economy, transmitting money from point to point using bits and bytes via satellite transponders, fibre optic cables, or traditional telephone lines.

Installing client-friendly technologies, such as automated teller machines and internet banking services, as a means of delivering traditional banking services has become prevalent as a means of sustaining customer loyalty and expanding market share.

Banks employ this technology to tackle the competitive challenges offered by online banks, as well as a technique of lowering the cost of producing services that were previously delivered solely by bank personnel (Joseph, C. 2007:76). Banks spend millions of Naira on information technology, making electronic banking expensive,

but it is still appropriate in Nigeria, where transportation, telecommunications, and electricity are inefficient and ineffective, impeding the transfer of goods and services.

According to Imiefoh (2012:24), electronic banking is an umbrella word for the process by which a consumer can complete financial operations electronically without visiting a physical location.

This refers to the automated distribution of new and traditional banking products and services to customers using electronic, interactive communication channels. Odulaja (2012):

7 defines e banking as a service that allows users to use a computer to obtain account-specific information and maybe execute transactions from a remote location such as their home or workplace.

Banks’ inclination to adopt efficiency-seeking technologies is influenced by internal considerations such as the cost of adoption and ownership of infrastructure such as telecommunications. Tony, S. (2006:82) believes that service equality influences customer satisfaction, which in turn affects bank financial success.

Thus, customers use intelligent electronic devices such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or touch tone telephone to access electronic banking services Auta (2010:17).

Today, based on the significant economic benefits of electronic banking systems in terms of cost reduction and increased bank profitability, increased quality of services to customers, removal of temporal and spatial limitations, and development of bank activities and marketing,

many experienced banks in most advanced countries have extended their operations by electronic methods by establishing independent banks, and they have also continued their operations. Electronic banking is one of the most significant economic outcomes of the IT communication revolution.

Electronic banking revolutionised previous commercial methods and trends, focusing primarily on speed and time savings (Gudarzi2008:140). Prior to the advent of the current banking system, banking operations were performed manually, resulting in a slowness in transaction settlement.

This manual approach entails posting transactions from one lager to another, which are handled by humans. Figures or money counting that should have been done by computer or electronic machine were computed and counted manually, which was not 100% accurate, resulting in human mistake.

Most banks then utilise only one computer to process transactions, which reduces the sluggishness of banking transactions. Electronic banking continues to be a strategic instrument used by banks to acquire a competitive advantage both within and outside of Nigeria. Kamokodi K. (2008:34), e-banking is significant in six areas:

1. Increasing the profit pool.

2. Increasing operational effectiveness.

3. Customer service.

4. Distribution and reach are important considerations.

5. Product development.

6. Payment and settlement are completed quickly.

Scholars disagree on the definition of e-banking. This is because e-banking comprises a wide range of services delivered via electronic devices and the internet. It is the most recent banking service delivery channel, and it is utilised for both business-to-business and business-to-customer transactions.

According to O. Burr. Electronic banking, according to (1996:90), is the electronic connection between the bank and the customer in order to prepare, manage, and control financial transactions.

E-banking also refers to banks’ use of information and communication technology to provide services and manage client relationships more swiftly and efficiently (Charity-Commission, 2003).

According to Salehi and Alipour (2010:145), e-banking refers to systems that allow financial customers, whether people or businesses, to access accounts, transact business, or acquire information on financial products and services via a public or mobile phone.

When compared to traditional banking techniques, transaction costs with e-banking would be cheap. The business environment is not only dynamic and discontinuous, but also tumultuous, raising the bar for service quality. As a result, banks are competing fiercely to acquire new customers and keep old ones.

In response to the demand for quick, efficient, and dependable service, banks are increasingly employing IT as a means of producing insights about client behavioural patterns and preferences.

This is accomplished through ATMs, card processing, bill presentation and payment, software development, call centre operations, and network administration.

Today, we cannot see the banking business succeeding without information and communication technology, which has expanded the banking sector’s position in the economy. Financial transactions and payments are simple and quick to do.

Banks that use cutting-edge technology and processes are more successful in the competitive financial market because they can produce more and more revenue, resulting in more profits.

The ease of transacting economic substances, as well as safer and faster access to funds, among other aspects, have elevated the e-banking system above the cash-based system, Obiano W. (2009:78).


E-banking is a global phenomena that no nation can avoid. The application of technology is the foundation for improved banking performance. However, the issue of system openness and the poor transmission of correct financial information,

as well as consumer protection, remains a concern. clients frequently detect sharp practises, especially when financial information is electronically created by banks, where the accuracy and capacity to verify same by clients may be problematic.

Banks have not made their presence known much since the introduction of electronic banking products in the late 1980s, and this is due to challenges related with the usage of electronic banking, which include:

1. Cost of ownership and adoption:- The cost of ownership or acquiring electronic banking by banks is very expensive, as it entails the acquisition of computers and telecommunication gadgets that are usually brought from overseas,

causing the bank to spend more on the shipment and installation of these gadgets by experts, as a result, most banks could not afford E-banking.

2. Poor Orientation: – personnel’ lack of awareness about computer use can also be stated, as most bank personnel are not computer literate, which is required for e-banking operations.

3. Lack of Infrastructure: – The country’s poor state of electricity supply, as well as the absence of a property-installed telecommunication system, are claimed to be major hindrances to the usage of electronic banking.


The goal of this research is to determine the advancement of electronic banking as an assistance to commercial bank operations in Nigeria, as well as its impact on economic growth, profitability, and customer happiness.

It is hoped that such an endeavour will give a foundation for bank managements to focus greater emphasis on functional aspects of service quality in their e-banking approach.


1. To investigate the impact of electronic banking as a tool for commercial bank operations in the Nigerian banking industry.

2. To identify the major issues with the electronic banking system in the Nigerian banking industry.

3. To investigate the impact of electronic banking on the profitability of Nigerian commercial bank operations.

4. To get insight into the public’s perception of the use of electronic banking in Nigerian commercial bank operations.


1. What are the implications of electronic banking as a tool for commercial bank operations in Nigeria?

2. What are the key issues with the Nigerian banking industry‘s electronic banking system?

3. What are the advantages of electronic banking in terms of commercial bank profitability in Nigeria?

4. What are the general public’s views on the adoption of electronic banking in Nigerian commercial bank operations?


The relevance of this study in this research is to bring together the numerous ways and facts regarding the subject matter; against this backdrop, it is predicted that the study will be of enormous value to banking businesses and customers in understanding the benefits of E-banking.

Electronic banking is a positive development in our economy today, and its impact on society is enormous. It will encourage banks and other economic sectors to digitise their services.

It will provide expertise in the field of electronic banking that will help customers comprehend it better. It can also be used for the following applications.

1. Customers benefit from increased convenience, a reduction in the risk of cash-related crimes, access to credit, and low-cost banking services.

2. For Corporations: – Improved access to capital due to faster payment processing times, greater payment process and accounting efficiency, reduced revenue leakage, and improved treasury management.

3. Increased tax collection and economic growth benefit the government.

4. For banks, this means better efficiency through computerised payment processing, lower operating costs, and more banking penetration.

The study will also be very useful to any student who want to conduct additional research on this topic.


This research study is limited to First Bank Plc, where the researcher seeks to find out empirically how electronic banking might help commercial banks in Nigeria.


A study of this sort is expected to encounter some issues, hence the limits imposed on the research include:

A. time: a study of this sort necessitates a reasonably long period of data collection in order to develop precise or near-exact conclusions. The study period was brief, and time constraints hampered the research.

B. cost: the research would have extended the survey to other areas at the empirical level, but limitations such as transportation to the source of material and the cost of time setting of previously performed work would have been prohibitive.

C. Lack of cooperation: Many respondents are typically confrontational on issues involving border cooperation among respondents.


ATM stands for Automated Teller Machine.

According to Edit O, electronic banking (E-banking) is defined as a system in which transactions are settled electronically through the use of electronic gadgets such as ATMs, POS terminals, GSM phones, and V-cards. (2008).

Computers: A computer is a general-purpose electrical device that may be designed to perform algorithm or logical processes automatically.

Economic growth is the increase in the market value of an economy’s commodities and services over time.

Modern: – Is a broad notion that encompasses a variety of sociological, economic, and ideological characteristics that contrast with pre-modern time or culture.

Information and communication technology (ICT): This is a broad term that encompasses any communication device or application, including radio, television, cellular phones, computer and network hardware and software, satellite systems, and soon, as well as the various services and applications that go with them.

Need help with a related project topic or New topic? Send Us Your Topic 


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.