TABLE OF CONTENTS
Title page – – – – – – – – – – i
Declaration – – – – – – – – – – ii
Certification – – – – – – – – – – iii
Dedication – – – – – – – – – – iv
Acknowledgements – – – – – — – – v
Table of Contents – – – – – – – – – vi
Abstract – – – – – – – – – – ix
CHAPTER ONE: INTRODUCTION
- Background of the Study – – – – – – – 1
- Statement of the Problem – – – – – – – 3
- Objectives of the Study – – – – – – – 4
- Research Questions – – – – – – – – 5
- Research Hypotheses – – – – – – – – 5
- Significance of the Study – – – – – – – 5
- Scope of the Study – – – – – – – – 6
- Limitations of the Study – – – – – – – 6
- Profile of Zenith BankPlc – – – – – – – 7
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1. Concept of Electronic Banking(E-Banking) – – – – – 9
2.1.2 E-Banking vis-a-vis Traditional banking in Nigeria – – – – 10
2.1.3 Electronic banking services – – – – – – – 10
2.14 Important of ICT in E-banking Operations – – – – – 11
2.2 Theoretical Review – – – – – – – – 15
2.3 Empirical Review – – – – – – – – 16
2.4 Summary of Empirical Review – – – – – – 18
CHAPTER THREE: RESEARCH METHODOLOGY
- Research Design – – – – – – – – 19
- Sources of Data – – – – – – – – 19
- Primary Data – – – – – – – – – 19
- Secondary Sources of Data – – – – – – – 19
- Population of the Study – – – – – – – – 20
- Determination of Sample Size – – – – – – – 20
- Sample Techniques – – – – – – – – 22
- Instrument for Data Collection – – – – – – 22
- Questionnaire Allocation and Administration – – – – – 28
- Testing the Reliability and Validity of Data Collection Instrument – – 23
- Method of Data Treatment and Analysis – – – – – 23
CHAPTER FOUR; PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation – – – – – – – – – 25
4.2: Test of Hypotheses – – – – – – – – 31
CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings – – – – – – – – 34
5.2 Conclusion – – – – – – – – – 34
5.3 Recommendations – – – – – – – – 34
References – – – – – – – – – – 36
ABSTRACT
The study assessed the level of adoption of electronic banking in Zenith Bank. The main objective of the study was to evaluate whether electronic banking has improved service delivery by the bank. Four objectives and four-hypotheses were formulated and tested in the study. The researcher adopted the survey design and structured questionnaire was administered to selectedrespondents in the bank. The respondents were divided into two strata: staff and customers. Out of 135 staff, 103 were selected as sample using Taro Yamani approach. Because the population of customers is large, the Topsman sampling technique was adopted and 138 customers were selected. The questionnaire was administered to the staff by the researcher while few assistants were used to administer the questionnaire to the customers. Table and frequency distribution were used to present the data while theChi- Square (X2) technique was used to test the research hypotheses. Findings from the study showed that there are sufficient technological capabilities in Zenith bank such as computer, tele-transfer, electronic purse, e-transacts, Automated Teller Machine, Smart Cards, Telephone Banking, Electronic Funds Transfer, Electronic Data Interchange, Electronic Home and Office Banking, etc. to enable the bank exploit the benefits of adopting electronic banking in their banking operations. The adoption of electronic banking by Zenith bank had led to improved customer services in terms of quick turn-around times, low down-times,24/7servicetimes,etc.Basedonthese findings, the researcher recommended, amongst other things, that management of Zenith bank should continue to adopt cutting-edge technology in her services delivery. Evidently, electronic banking is at the core of customers’satisfaction in the industry.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Since the history of human development, information has played a prominent role in our lives. The robust development in science &technology has immeasurably increased the role ofinformation in every facet of human endeavor. The rapid expansion of a mass of diversified information hasgiven birth to the term “information explosion” and a rise to the scientific approach in information management and in the interpretation of the concept of information.
The concept has been broadened to include information exchanges not only among men but also among machines as well as theexchange of signals in the animal and plant worlds. The pace of change brought by new technologies has had significant effect on the way people live, work, and play globally.
Today’s business environment is very dynamic and rapid changes as a result of creativity,innovation, technological changes, increased awareness and demands from customers. Business organizations,especially the banking industry of the 21st century operates in a complex and competitive environmentcharacterized by these changing conditions and highly unpredictable economic climate with Information andCommunication Technology (ICT) at the centre of this global change curve.
Laudon and Laudon (2014) contended that managers cannot ignore information systems because they play acritical role in any contemporary organization. They point out that the entire cash flow of most Fortune 500companies is linked to information system. The application of information and communication technologyconcept, techniques, policies and implementation strategies to banking services has become a subject offundamental importance and concerns to all banks and a prerequisite for local and global competitiveness. ICTdirectly affects the various management functions of planning, organizing and the nature of services offered inthe banking industry. It has continuously changed the way banks organized their corporate relation worldwidewith the variety of innovative devices available to enhance the speed and quality of services delivery.
Harold and Jeff (2015) contended that financial service providers should modify their traditional operating practiceto remain viable in the 21st century and the decade beyond. Thus, ICT has emerged as a catalyst in the variousindustries of the world to aid the process and procedure required to ensure the realization of variousorganizational goals.
Indeed, the explosive growth in Information and CommunicationTechnology (ICT) have narrowed digital divideand turned business sphere to electronic world (e-World).Specifically, technological innovations have led credence toglobal transformation of operational dimension of traditionalbanks over a decade ago. Internet technology has broughtabout a paradigm shift in banking operations to the extentthat banks embrace internet technology to enhance effectiveand extensive delivery of wide range of value addedproducts and services.
The adoption of ICT by banks has led to what is now generally known as electronic banking or e-banking. The role of electronic banking in service delivery became of interest to this study due to the significant role it plays in theeconomy by stimulating economic growth through the intermediation of funds to economic agents that needthem for productive activities. This function is very vital for any economy that intends to experience meaningfulgrowth because it provides arrangements that bring borrowers and lenders of financial resource together and moreefficiently too than if they had to relate directly with one another (Ojo, 2007).
Consequently, Nigerian banks,especially the deposit money bank (DMBs), recognized electronicbanking to be the most effective means of distinguishingthemselves from other competitors by investing insophisticated technology (Auta, 2010).
In the last few years, Nigerian banks have been witnessingtremendous success in the delivery of a wide range of valueadded products and services through e-banking and therehave been evidences of increasingly acceptance of e-bankingin Nigeria (Ayo, 2010). It has been observed that Nigerian banks haverealized that the way in which they can gain competitiveadvantage over their competitors is through the use oftechnology (e-banking). Thus, there is growing rate oftechnology adoption in the Nigerian banking operations(Salawu and Salawu, 2014).
However, the fact that e-bankingis fast gaining acceptance in Nigerian banking operationdoes not assuredly signifies improved performance norwould conspicuous use of internet as a delivery channelsmake it economically viable, productive or profitable.Whether progress is made in the use of internettechnology (e-banking) or not, there should be a parameter toadequately measure performances of these banks overspecific period of adoption.
No doubt, empirical studies exist on e-banking andits impact bank performance. However, there is a relative dearth of empirical studies that provideevidence on the impact of electronic banking on service delivery in Nigeria, despite its increasing rate ofadoption by Nigerian banks.
1.2 Statement of the Problem
Electronic banking has become a very important aspect of today’s banking and financial services delivery in Nigeria in particular and the world at large. The competitive nature of banking business has necessitated the emphasis now placed on electronic banking. In the developed societies, ICT is generally believed to have dramatic influence and is seen as continually determining the competitive nature of virtually all business. Conversely, in the developing countries, ICT has brought a technological revolution whose use and production have been somewhat limited but holds a great promise in accelerating socio-economic development in these countries. In Nigeria, the application of electronic banking to banking operations has become a subject of concern to all banks operating in the country and indeed, a prerequisite for global competition and satisfaction.
As a basic prerequisite in the development of banking business, customer satisfaction holds the potential for increasing an organization’s customer base, increase in the use of more volatile customer mix and increase in firm’s reputation. The consolidation exercise in Nigerian banking sector has left customers with a wide range of choice for products and services.
Studies haveshown significant and positive correlation between electronic banking and customer satisfaction and profitability. Although, the Nigerian banking industry is relatively slow in the adoption and utilization of electronic banking. In this wise, Nigerian banking industry is lagging behind its counterparts in Europe, Asia, and America in the adoption and application of electronic banking to its operations. But it should be noted that electronic banking has become the major tool that enables banksto present a more professional product offer and keep pace with innovative market place. It is also reasoned that, if Nigerian banks move towards a high-level of adopting electronic banking in their entire operations, it will impact positively on customers’ satisfaction that translate to high retention rate and higher profitability.
It is in view of the aforementioned fact that, this study seeks among other things to examine whether or not the application of electronic banking has improved the service delivery of Nigeria banks using Zenith Bank as case study.
1.3 Objectives of the Study
The broad objective of the study is to assess whetherelectronic bankinghas improved service delivery of Nigerian banks with focus on Zenith Bank Plc. Specific objectives include:
- To assess the extent Zenith Bank has adopted electronic banking in their operations
- To determine whether the adoption of electronic banking in Zenith Bank has led to improved customer services
1.4 Research Questions
The following research questions have been designed to elicit the desired response to achieve the objectives of the study:
- To what extent has Zenith Bank adopted electronic banking in her operations?
- Has the adoption of electronic banking in Zenith Bank improved customer services?
1.5 Research Hypotheses
The following hypotheses are formulated and tested in the study:
Ho: Zenith Bank has not significantly adopted electronic banking in her operations
H1A: Zenith Bank has significantly adopted electronic banking in her operations
Ho: The adoption of electronic banking has not significantly improved service delivery in Zenith Bank
H2A: The adoption of electronic banking has significantly improved service delivery in Zenith Bank
1.6 Significance of the Study
The study will be of immense benefit to several groups of people both in the Nigerian banking sector and the academics. First, the study will be of relevance to board members, bank management and staff in the banking sector in Nigeria espacially, for Zenith Bank. The aim of every bank is to achieve maximum level of returns on investment at the lowest possible cost and to secure a larger market share. The adoption of electronic bankingis vital to the attainment of such goal.
Moreover, the product of this research will add to the knowledge base on electronic banking platforms and deployment to which managers in the banking sector can tap into to achieve their organization’s objectives.
Again, customers, shareholders, employees and other stakeholders in the banking sector will benefit from the result of the study, in the sense that if the banks deploy electronic banking in their operations, it will impact positively on the quality of services rendered by the banks and the rate of returns on investment.
Furthermore, the outcome of this research is also expected to be of significance to industry watchers and analyst. This group of people will utilize the platform of this study in their analysis on electronic bankingin the Nigerian banking sector. Similarly, the general public, through the findings of this research, will be better informed onelectronic bankingin the Nigerian banking sector.
1.7 Scope of the Study
The study is limited toelectronic banking and services delivery in the Nigerian banking sector. The study is also limited in geographic scope to Zenith Bank branches in Enugu metropolis.Zenith Bank has 5 branches in Enugu metropolis with a large customer base. The researcher focused on the staff and selected customers of the bank in Enugu metropolis.
1.8 Limitation of the Study
The researcher encountered some problems in the course of carrying out the research work. The first of these problems is lack of funds. This constraint limited the scope of the work. The researcher would have loved to involve more banks in the study but the funds to embark on such extensive work was lacking. Time too was a constraint as the researcher was combining the research with academic work both of which required a great of deal of time.
1.9 Profile of Zenith Bank Plc
Zenith Bank Plc as one of the foremost new generation’s banks in Nigeria has operated for over two decade. In other words, the bank has grown older and with maturity comes wisdom from which the bank makes decisions now largely influenced by customers’ best interest.Zenith Bank is reputed for its turnaround time in service delivery which the bank pursues with great passion, energy and enthusiasm. Zenith Bank has a pool of professionals that are constantly encouraged to display their creativity, which would translate into greater wealth creation for customers.
As Nigeria improves its Information Technology (IT) infrastructure (telecom modernization) and celebrates GSM roll-out, Zenith Bank leading edge in IT makes the bank one of the few that are well positioned to join the international bank community in the next generation of E-banking services. This is further enhanced by the bank’s sophisticated credit risk modeling and operational risk management system that seek to create a blend that not only grows customers’ business but strengthens it. The bank’s credit management system stresses rational procedures and transparency.Zenith Bank is one bank that sees technology as an enabler and as a generator of new opportunities while at the same time mindful of the disruptive power of digital revolution by its forward thinking and bench-marking of trends in technology with practical delivery on a highly automated platform that makes the bank unique.
In essence, Zenith Bank’s strength lies on its professional and highly dedicated workforce, its cutting IT infrastructure and quality of its management team. The bank’s leadership assets are manifested in the ability of its managers to combine strands of knowledge to create fast action value for the customers. The bank’s leadership combines vision with precision; using creativity, skills and ideas to expand their business reach into the lives of the customers by helping them fulfill their needs with speed and dedication.
The bank’s weakness lies in the external environment which is marked by unstable macro- economic environments, dearth of skilled manpower; uncertainty in political circles and insecurity of lives and properties. Threats to the bank comes from stifling competition from first generation and other emerging banks; the global financial crisis, the capital market crash which saw banks including Zenith lose some substantial sums in margin facilities and recently, the crisis in the Nigerian banking system which is assuming alarming and contagion effect even for healthy banks like Zenith.
However, Zenith Bank is leveraging on opportunities offered by expanded CBN corridor, the proposed deregulation of the downstream sector of the oil & gas which will see Zenith playing significant roles in downstream facilities and other consortia arrangements.
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