ABSTRACT
The Topic of this study is “Mobile Phones banking transaction an important tool for the promotion of banking efficiency”, Access Bank, First bank, Zenith Bank, Stye Bank and Diamond Bank Plc as a case. Issues like absent of Commercial Bank in rural center, usually crow in banking hall plus lack of infrastructure and sophisticated machine for operation have been source of dispute in banking industry. The objectives is to examine initially the impact of mobile phone banking in promoting banking efficiency. Believing that the outcome of the research shall be of great important to Nigerian commercial bank and student for good reference. The population used for the study was some members of staff of those banks under my case study. Design adopted were primary and secondary source of data. The data from questionnaires were grouped and analyzed by means of sample percentage. Major findings are (a) practices of banking in rural center will expand Nigeria banking habit (b) usual crowd is the major cause of bank distress and (c) poor infrastructure lower productivity. Researcher concluded that customer’s illiteracy toward mobile banking is main causes of usual crowd in the banking hall. Research recommended that banks should go, for best upgraded and sophistic machines; government should gives constant supply of electricity power supply. And this CBN should mandate banks to operate technologically. The research suggested that further research should be on merit and demerit of mobile phone banking using micro-finance bank as a case study. Enugu bank as a case study. Enugu state, Abia and Lagos state should be area of the study.-
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Mobile banking is a system that allows customers of a financial institutions to conducts a number of financial transaction through a mobile device such as a phone or personal digital assistant.
Mobile banking services were over SMS, a service known as SMS banking with the introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the first European Bank started to offer mobile banking on this platform to their customers. Mobile phone banking transaction has entity recently (2010) most often been performed via SMS or the mobile web. Applies initial success with Iphone and the rapid growth of phones based on Google’s Android (operating system) have led to increasing use of special client programs, called apps downloaded to the mobile device.
With about 67% of Nigeria’s adult population being unbaked and a meager 30% of the adult population with bank accounts, the pain still resides in the neck of financial experts to seek ways to foster financial inclusion and aid the unbaked. Mobile banking through cell phones, however has been identified as a feasible tool to provide basic financial services to Nigeria Citizens of the unbaked in urban and rural communities in Africa. Nigerians now on mobile banking platform, more than 5.73 millions Nigerians have now embraced the mobile banking platform which tool off in the country two years ago.
Going cashless; adoption of mobile banking in Nigeria, the CBN recently introduced the cashless policy elicit data on the determine the effect of relative advantage, complexity with the high volume of active mobile phones in Nigeria. Mobile phones banking is a convenient, secure and affordable way to send money to friends, in Nigeria and also pay for goods and services with their mobile phones, saves time to check account balances, schedule and manage payments. Top up your credit card, transfer money between accounts, do your everyday banking, anytime, anywhere; while you shop, waiting for a bus, a holiday and at no extra cost. Tools and calculator optimized for iphone and android phones to support you while you are on the go. It is the safe and easy way to stay in central of your finances.
1.2 STATEMENT OF THE PROBLEMS
Mobile banking is used in many parts of Nigeria with little or no infrastructure especially remote and rural areas. This aspects of mobile commerce is also popular in countries where most of their population is unbanked. In Nigeria particularly, in most of her places, banks can only be found in big cities and customers have to travel hundreds of inches to the nearest bank. Here are specific problems researcher found.
Absent of bank in rural centers due to people in the vat rural areas of Nigeria lack access to financial services, and most commercial banks are not interested into these areas due to their low income levels, lack much economics activities in the rural areas. Usual crowd is banking hall where observed in many bank, was dues to queues of customers waiting to pay in or withdraw cash are still a common sight in banking hall.
Poor or lack if infrastructures and sophisticated machine in carrying banking activities in branch banking due to the inability of the bank to integrate their operations into the internet development process.
Problem of customer illiteracy in using mobile phone banking for their business transaction due to some of the customer have problem of reading, spelling, and also to some customer who may have cut short their school because of family responsibilities. Adult with low literacy skills also develop many ways of hiding the signs of reading, writing or arithmetic problems.
Poor computer training to bank staff and low educational upgrading due to the employee’s without proper training of the necessary “cyba-hygiene” required at work, are a significant week link in banking hall. In most cases a small number of people in the organization are sufficiently expert in cyber security issues.
1.3 OBJECTIVE OF THE STUDY
This work set out to study the management and impact of mobile phone banking transaction in Nigeria banking industry. Its objectives include:
- To find out means that will encourage the establishment of banks (commercial banks) in rural areas.
- To eliminate the usual crowd associated with banking hall in some commercial banks in Nigeria
- To improve possible method of building infrastructure and purchasing of sophisticated machine to bank with affordable price.
- Determining better way or educating customers on the usage of mobile phone banking transaction.
1.4 SIGNIFICANCE OF THE STUDY
This work is confronted with questions like of what value would the outcome of this style be? But differently to when the result of this study be useful it is helped and believed that the result will be of help to banks.
Insurance and Nigeria stock exchange plus manufacturing industries will value the outcome of this project work result, because the above mentioned industries is profit or oriented.
The researcher strongly believe that the result of this research will be great significant to the government of this great nation Nigeria.
Both organization, co-operate bodies and non-profit organization such as churches and ministries. The work will be of great useful to them. It is also necessary to central bank of Nigeria in controlling of economics meltdown and financial cross. On completion it will serve as a point of reference to the students and researchers on the topic.
1.5 RESEARCH QUESTIONS
For the purpose of successfully accomplishing the task in this research work, the following questions should be asked while conducting the research.
- How does your organization practice banking operation in rural centre?
- What extent does the usual crowd associated with banking hall affect your branch banking operation?
- Is it possible to have difference in operational level of banks with qualified infrastructure and sophisticated machine with those without
- To what extent does customer’s illiteracy in using mobile phone banking affect your branch operation?
- How does your bank branch carries out computer training program and educational upgrading?
1.6 SCOPE OF THE STUDY
The study will cover an overview of the management and impact of mobile phone banking transaction in commercial bank in Nigeria, and concentrating more on Awka, Onitsha, Otuocha, |Nnewi and Ekwulobia using Access bank, First bank, Zenith bank, Skye bank and Diamond bank as a case study.
1.7 DEFINITION OF TERMS
- MOBILE PHONE: A telephone that does not have wires and works by radio that you can carry with you and use anywhere for mobile banking.
- BANK: It is financial institution, cooperate or not recognized by a country’s highest monastery authority for purpose of carrying on the banking business determined by the monetary authority.
- SOPHISTICATED MACHINE: These are of a machine system that are clever and complicated in the way that it works or is present.
- EFFICIENCY: This is the measure of management qualification competence and achievement.
- WORKFORCE: This can be defined as the totality of individuals working for particular organizations.
- CBN: Central Bank of Nigeria that is bank established through of parliament to be a banker to government.
- COMMERCIAL BANK: Banking business of receiving deposits on current account, savings account or other similar account, paying or collecting cheques, drawn by or paid in by customer.
- RURAL CENTER: community, not a town or city, place of state undeveloped.
- INFRASTRUCTURE: The basic system and services that are necessary for an organization to aid production and services they render.
- COMPUTER: Electronic machine that can store, organize and find information in the internet.
- COMPUTER ILLITERATE: Unable to use computer well.
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