CHAPTER ONE
- INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The new millennium brought with its new possibilities in terms of information access and availability simultaneously introducing new challenges in protection sensitive information from some eyes while extremely dynamic and experience rapid changes as a result of technological improvement increased awareness and demands, banks to serve their customers electronically. Banks have traditionally been in the fore front 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 (2002), asserts that they have over the time been using electronic and telecommunication networks for delivering a wide range of value added products and services, mangers in banking industry in Nigeria cannot ignore information system because they play a critical impact in current banking system they pointout that the entire cash flow of most fortunate banks are linked to information system.
The application of information and communication technology concept, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all banks and indeed a prerequite for local and global competiveness banking. The advancement in technology has played an important role in improving service delivery standard in the bankng industry. In tits simplest form, automated teller machines (ATM) and deposit machines now consumes carry out banking transactions beyond banking hours.
With on line banking, individuals can check their account balances and make payments without having to go bank hall. This has to pay for all their purchases with hard cash. For examples, bank customers by transferring the money directly from their accounts, or pay for various goods and services by electronic transfer of credits to the sellers account.
The delivery of products by banks on public domain is an indication of advertisement which is known as E-commerce. Electronic commerce, on the other hand, is a general term for any type of business or commercial transaction, it involves the individuals, business organization exchanging business information and instruction over electronic media using computers, telephones and other communication equipment. This covers a range of different types of business operations as a result of the internet era, security concerns more from computer labs to the page of newspaper. The promise of e-banking is offset by the security challenges associated with intermediation of data access. One security challenge results from ‘’cutting out the middlemen’’ that do often cut out the information security the middlemen provides. Another is the user accessing data from the internet, to thousands of users accessing data from the internets.
Application service provides (ASP) and exchange offer especially stringent and sometimes contradictory requirements of per user and per customer security while allowing secure data sharing among communities of interest. Banks are continuing to use the internet to add value for their customers, but in order for this work effectively maximizing opportunities, reducing risks and overcoming problems. An E-banking strategy is required as an impact.
Electronic banking offers different on-line services like balance enquiry, request for cheque book, recording stop payment instructions, balance transfer.
1.2 STATEMENT OF THE PROBLEMS
Some of the problems militating against effective electronic banking in the Nigeria banking system are as follows;
The problem of lack of compliance of banks with the CBN electronic guideline.
The adoption of electronic banking in Nigeria banking system will have a negative and positive impacts on the banking system.
The problem of adoption of electronic banking in Nigeria banking system leading to fraudulent accts in the Nigeria banking system.
The problem of banks to potential risks of unauthorised access and theft on the adoption of electronic banking in the Nigeria banking system.
The problem of insecurity and congestion in the system poses some challenges to the smooth operation of electronic banking in Nigeria banking system.
1.3 OBJECTVES OF THE STUDY
The objectives of the study is as follows
- To evaluate the impacts of electronic banking in Nigeria banking system.
- To identify the problems associated with electronic banking system.
- To evaluate the prospects of electronic banking in Nigeria system.
- To offer solutions to the problems identified.
- To examine the effects of electronic banking on the banker and customer relationship.
- RESEARCH QUESTION
- Do banks comply with CBN electronic guidelines?
- Do electronic banking does have prospect in union bank Nigeria plc?
- Does adoption of electronic banking do enhance the fortune of union bank Nigeria plc?
- Electronic bank does impact in union bank Nigeria plc?
- To what extent have these problems and challenges affected the productivity of the union bank Nigeria plc?
1.5 SIGNIFICANCE OF THE STUDY
The study would enable the banks executes and indeed the policy makers of the banks and financial institutions to be aware of electronic banking as a products of electronic commerce with a view of making strategic decisions. The research is equally significant because it would provide answers to factors militating against the implementation of electronic banking of union bank Nigeria plc, prove the success and growth associated with implement of electronic banking and also be an invaluable tool for students, academician, institution, corporate managers and individuals what to move about electronic banking, tends especially in Nigeria.
1.6 SCOPE OF THE STUDY
In pursuance of the objectives of the study, attention shall be focused on electronic banking among other electronic banking in Nigeria. And will also examine the nature of electronic banking operations in union bank Nigeria plc from 2000-2012.
1.7 LIMITATIONS OF THE STUDY
In view of the technicalities, it would be unrealistic to assume that all necessary facts have been gathered in the process of the study.
Information gathered is limited to those access and made available by the respondents and also those gathered from end user.
However, the impacts of this limitation will be reduced to the beret minimum.
1.8 DEFINITIONS OF TERMS
ACCESS PRODUCTS: Products that allows consumers to access traditional payment instrument electronically, generally from remote location
ATM-CARDS: UB-debit card is a chip device consisting of circuit element on single silicon chip. The card is a complex circuit that contains the complete arithematics and logic unit of computers. It provides for union banks customers to perform balance inquiry, mini-statement and cash withdrawals as transfer through the use of automated teller machines. This green card can also be used for internet/ online and POS transactions.
CHIP CARD: also known as integrated circuit (ic) card. A card containing one or more computer chips or integrated circuit for identification numbers, authorized purchase, verify account balance and store people’s records.
RANSACTION ALERT: our carryout debit /credit transactions on their account and the need to keep back of these transactions promoted the creation of the alert system by the banks to notify customers of these transactions. The alert system is also necessary information need to be communicated.
1.9 BRIEF PROFILE OF NION BANKNIGERIA PLC
Union bank Nigeria plc is one of the leading retail Bank in Nigeria which is also Nigeria based bank that offers a range of financial services. The bank is also divided into four business segments; corporate banking, business banking, personal banking and e-banking services. Its products are targeted at corporate banking, capital market operations, fund management, insurance brokerage, trusteeship, registrar ship and pension custodianship. It has over (12,000) people in over more 300 branches in Nigeria with (650) ATMs spread across Nigeria. It also have subsidiaries and representatives officers all over the world to officers all over the world to offer full-suite financial services as well as in involvement in sector varying from investment banking and fund management to insurance brokerage and micro-finance.-
DISCLAIMER: All project works, files and documents posted on this website, eProjectTopics.com are the property/copyright of their respective owners. They are for research reference/guidance purposes only and some of the works may be crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a reference/citation/guidance purpose only and not copy the work word for word (verbatim). The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own study. eProjectTopics.com is a repository of research works where works are uploaded for research guidance. Our aim of providing this work is to help you eradicate the stress of going from one school library to another in search of research materials. This is a legal service because all tertiary institutions permit their students to read previous works, projects, books, articles, journals or papers while developing their own works. This is where the need for literature review comes in. “What a good artist understands is that nothing comes from nowhere. The paid subscription on eProjectTopics.com is a means by which the website is maintained to support Open Education. If you see your work posted here by any means, and you want it to be removed/credited, please contact us with the web address link to the work. We will reply to and honour every request. Please notice it may take up to 24 – 48 hours to process your request.
