IMPACT OF INTERNET BANKING SYSTEM ON NIGERIA BANKING ENVIRONMENT
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF INTERNET BANKING SYSTEM ON NIGERIA BANKING ENVIRONMENT
CHAPTER ONE: THE IMPACT OF INTERNET BANKING SYSTEMS ON THE BANKING ENVIRONMENT IN NIGERIA 1.1 BACKGROUND OF THE STUDY
The banking industry in Nigeria has faced numerous issues as public awareness and utilisation of banking services has grown. The demand for bank services boosted the number of employees and branches in most Nigerian banks.
Despite these changes, banks are unable to meet the expectations of some of their transactions, which are depending on manual and physical presence of their customers.
The increased volume and complexity of banking operations and service delivery was alleviated by modern Internet banking. Playing around with
As arrangements were made with banks using microcomputer to pay some bill owed big department stores and companies, the internet gradually became a service delivery mechanism of their customers, who have equally embraced it.
Meanwhile, information technology, particularly Internet banking, is radically altering the way people bank all over the world, including Nigeria.
The volume and speed of banking transactions have greatly improved as a result of the growth of internet banking, which has resulted in numerous changes and business opportunities for banks, operating bodies, and industries.
In fact, Nigeria is thought to be the largest Internet user in West Africa, with approximately 100,000 Internet users as of the year 2000. It was estimated to have risen to 350,000 in 2001, with a million expected by the end of 2002.
However, Nigeria’s population size necessitates accelerated sensitization to the need to embrace information technology as a means of providing an enabling environment for its operation.
The Internet is unavoidable for the success of any modern banking institution since it is a competitive instrument that allows for customised services while also lowering operating costs, promoting profitability growth, and efficient portfolio management.
The emergence of a new generation of banks, combined with the computerization of the Nigerian financial sector, prompted the introduction of cutting-edge technology into the Nigerian banking system.
Surprisingly, information technology is dynamic, constantly presenting new challenges for human capital development. Almost every Nigerian bank claims to have internet banking and on-line union bank of Nigeria plc harbours a large amount of information on-line and, of course, lowers marketing distribution costs.
Indeed, internet banking has given one bank an advantage over another depending on its application, operation, and service delivery.
1.2 STATEMENT OF THE PROBLEM
Since the introduction of Internet banking products in the late 1980s, banks have not made much of an impact. These are as a result of issues with Internet banking, and they include the following:
1. Nigerian’s inadequate Infrastructures:
The first key obstacle for the future of Internet banking is Nigerian’s inadequate infrastructure. Word Bank research suggests that in Nigeria there are only 6 computers and 4 mainline telephone connections per thousand inhabitants. Electricity delivery is erratic and inefficient.
Most notably, Nigeria has relatively low Internet penetration, with less than one Internet services given per thousand people and only an estimated 30,000 Internet users out of over 100 million.
In addition, Internet bandwidth is negligible when compared with other developed nation since they has been insufficient liberalisation of the telecoms industry to allow for investor to supply bandwidth and sell commercially.
Finally, many of the area vital to the financial sector such as the cleaning and trade processes are not automated which will hinder the effectiveness of internet banking in this country.
2. Lack of security:
The second obstacle for the future of Internet banking in Nigeria is the issue of security. Resent research conducted out in Africa demonstrates that organisations consider the largest impediment to being used the Internet for financial transaction to the lack security.
Many companies are concerned about the integrity of financial information that travels over the internet and would rather accept the inefficiencies and incontinences of a manual system that subject themselves to the uncertainty of the internet, in addition Nigeria is a cash economy and the issue of trust in such that even cheques are not generally accepted as payment for goods and services rendered.
Recently, the Nigerian market has seen the emergence of electronic purse items such as the value card and the smart pay card, which are intended to move the economy while eventually helping to reduce the importance of currency in our culture.
As a result, most consumers will be sceptical that a click on a computer screen will result in a completed financial transaction in such an environment.
3.Ownership and adoption costs:
Internet banking is quite expensive because it necessitates the purchase of computers and telecommunications equipment. Because of the Naira-dollar exchange rate, banks spend a lot of money on these products.
4. A lack of orientation (illiteracy):
Many people are still unaware of the services and benefits that can be obtained by using an Internet banking product. It has the advantages of being quick, safe, and dependable.
1.3 OBJECTIVES OF THE RESEARCH
The goal of this study is to determine the influence that INTERNET BANKING has had on the banking industry since its start. It would also highlight the numerous applications, as well as new technologies introduced into banks in the late twentieth century. In order to state these new technologies, the study would give specific attention to Union Bank of Nigeria plc.
Local area networks (LAN) and wide area networks (WAN) in particular are crucial to the efficient operation of computer systems. This enables banks to establish global links with their branches, access customers’ accounts, and pay in or withdraw monies from any branch worldwide.
This study would take into account and conduct a general examination of the application of Internet banking products provided by banks and how their use has affected output and efficiency.
1.4 STUDY OBJECTIVES
This research would be limited to Nigerian commercial banks, with Union Bank Plc serving as a case study.
1.5 Research Issues
This study will attempt to address the following research questions based on the findings of the investigation:
1. What percentage of financial products or services are computerised?
2 Has the usage of Internet banking aided in the improvement of bank operations?
3. Are banks fully or partially computerized?
4. Has the performance of the bank being after introduction of Internet banking
5. What financial services or products are available in the market?
6. What financial services or products are available in the market?
1.6 Importance of Research
It is advantageous that the study’s results and recommendations will include:
i BETTER CUSTOMER SERVICES: Internet banking will allow banks to give new, faster, and better goods and services to their consumers, bringing banking to an international level and increasing competition among banks. This can take the form of ministers’ money transfer signature verification.
i.i TRANSACTION RELIABILITY
Internet banking will help to assure correct and timely transactions, as opposed to manual transactions, which are prone to human errors, which can be costly at times.
iii SECURITY:
Internet banking technology maintains the security of banks’ interactions with their consumers. Under these conditions, banks must build security elements for their Internet sites that sufficiently answer tier consumers’ concerns, as well as educate their customers on the protection provided by the Internet sites.
Safe banking practises can result in massive losses for banks, particularly when account owners are misrepresented. This signature verification, voice mail and print verification, and unauthorised access to the computer system are all prevented by banking technology.
iv STORAGE REDUNDANCY
Internet Banking helps to eliminate the usage of obsolete files, hence saving storage space. However, using files may result in the loss of crucial information about bank customers due to mutilations, easy and unauthorised access to files, and misplacement of important papers. This can be demonstrated by storing information on diskettes, hard discs, and making backups of vital data.
1.7 DEFINITION OF TERMS:
1INTERNET BANKING: A fast and simple way to access your account via the Internet.
2. I.T. : Information technology is the study and application of electronic processes and equipment to store information of all types, including words, numbers, pictures, and abbreviations for information technology.
3 WAN: Wide area network, a system that connects computers in multiple locations, typically over a vast region.
4. LAN: Local area network for computer communication within a large building.
5. ON-LINE: Operated by or linked to a computer or the Internet.
6. HYPER LINK: A location in a computer’s electronic documents that links to another electronic document.
7. GLOBALISATION: It is a global trade.
8 WEBSITE: A website where accompany provides information about itself.
9. ACCESS: To open a computer file in order to read or write data.
SEARCH ENGINE: The process of searching for information in a computer database or network.
11. NETWORK: A network is a collection of computers and other devices that are linked together so that equipment and information may be shared. The office network allows users to exchange files and software as well as access a central printer LAN, WAN.
12 DISC: A computer storage device with a magnetic surface that saves information received in electronic form.
Need help with a related project topic or New topic? Send Us Your Topic