ELECTRONIC BANKING PRACTICES AND BANK PERFORMANCE

ABSTRACT

E-banking system has become an important practice among commercial banks in Nigeria. The introduction of this electronic banking has improve banking efficiency in rendering services to customer, This Study aim at the  impact of electronic banking on performance in banking sector. Through the cluster sampling technique, data was collected by means of questionnaires from 80 Zenith Bank officers and the result shows that Zenith Bank electronic banking guidelines are in line with the CBN electronic banking guideline. The bank has an effective electronic banking system which has improve its customer’s relationship and satisfaction. To this end, It is recommended that the bank information technology training programme should be encourage among the staff of Zenith Bank, necessary legal codes banking should be established in order to enhanced growth of the industry.

CHAPTER ONE

INTRODUCTION

1.1   Background of the study

The new millennium brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some individuals while making it available to others. Today’s business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and these demand Banks to serve their customers electronically. Banks have always been in the forefront of harnessing technology to improve their products and services.

The Banking industry of the 21st century operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and Communication Technology (ICT) is at the centre of this global change curve of Electronic Banking System in Nigeria today. (Stevens 2012).

The Banking industry has over the time, been using electronic and telecommunication networks for delivering a wide range of value added products and services, managers in Banking industry in Nigeria cannot ignore Information Systems because they play a critical impact in current Banking system, they point out that the entire cash flow of most fortune Banks are linked to Information System.

The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services have become a subject of fundamental importance and concerns to all Banks and indeed a prerequisite for local and global competitiveness in the Banking sector.

The advancement in technology has played an important role in improving service delivery standards in the Banking industry. In its simplest form, Automated Teller Machines (ATMs) and deposit machines now allow consumers carry out banking transactions beyond banking hours.

The internet is revolutionizing sales techniques and perceptions of leading brands, and the internet is intensifying competition in all its forms.

Banking sector continues to use the internet to add value to their customers’ satisfaction; but in order for this to work effectively – maximizing opportunities, reducing risks and overcoming problems – an E-Banking strategy is required.

The growth of the Web and Internet as new channels, the growth in their use by customers and the floor of companies entering the market, presents a series of key challenges to companies. It is easy and cheap to put up a website.

But to create an environment delivering effective service on the Web to a significant proportion of your customer base requires an E-Banking strategy.

Electronic Banking offers different online services like balance enquiry, request for cheque books, stop payment instructions, transfer instructions, account opening, payment of bills, E-statement and other form of transitional Banking services.

1.2   Statement of Research Problem

In Nigeria, customers of banks today are no longer about safety of their funds and increase returns on their investments only; Customers demand efficient, fast and convenient services.

Customers want a Bank that will offer them services that will meet their particular needs (personalized Banking) and support their Business goals for instance; businessmen want to travel without carryout cash for security reasons. They want to be able to check their balance online, find out if a cheque is cleared, transfer funds among accounts and even want to download transaction records into their own computer at work or home. Customers want a preferential treatment and full attention by their choice Bank. All these are only achievable through electronic Banking.