The Impact Of Electronic Banking On Commercial Banks Operations

The Impact Of Electronic Banking On Commercial Banks Operations

Abstract

This study was on electronic banking and the purpose of carrying out this exploration was to assess the impact of electronic banking on marketable banks operations.

In the review of affiliated literature. I covered similar areas as the meaning of electronic banking, origin of electronic banking the meaning of computers, the applicability banking products and its applicability to electronic banking.

Eventually, I talked on problem and results associated with electronic banking.

My exploration design was on secondary data approach grounded on the findings of this study conclusions and recommendation were drawn.

Eventually, it’s the intention of the experimenter to give a document which will piecemeal from satisfying the academic demand of the institute of operation and technology( IMT) Enugu for the award of the ordinary public Parchment( OND) in banking and finance will also serves as a companion to prospective investors and fiscal institutions that may wish to invest in electronic banking.

Chapter One

Preface

Background Of Study

The Nigeria banking assiduity has witnessed a lot of changes since the medial 1980’s and this is reflected in the increased volume and complexity of bank operations, increased inventions and kinds in product and service delivery. These development haven’t only been technology driven but have told move technological advances.

Information technology which is the foundation of ultramodern electronic banking through desktop computers and outstations give the tools for delivery of new products and inventions characterized by ATM’s cash dispensers, credit and cash card, information technology through electronic banking is radically changing how banking is done each over the would. The volume and speed of banking deals has bettered extensively as a reject of the growth of electronic banking which has created a lot of changes and business openings for banks. What habituated to be nominated electronic data processing has been converted into electronic banking through information technology. The change in language reflects on original metamorphosis of the use of the computer from robotization of paper inflow to reduction in unit bring the relief of homemade with computer processing to moment’s focus on electronic product and service delivery which has come the underpinning morality in moment’s banking with a shift in espousing to a consumers request. Electronic banking through IT has created and unequaled wired frugality. The transfer of plutocrat from point “ A ” to point “ B ” has redounded in turning the factual plutocrat into bits and bytes through satellite, fibre optic, string or regular telephone lines. Aladesulu( 1998).

Banks waste millions of naira on information technology investment and so as a result, electronic banking is precious but is well suited in Nigeria where transport, telecommunications and energy is still hamstrung and ineffective, hampering the movement of goods and services. Yet the amenability of banks to take up effectiveness seeking technologies depends just as important on internal factors like costs of relinquishment and power as on external bones like the vacuity of structure similar as telecommunication.

Despite this poor service is still the bane in the banking assiduity characterized by centralization of decision making red tape recording bureaucracy etc. electronic banking and IT is supposed to replace the client’s train marvels but the train still provides the base of moment’s banking. The train still travels the length and breath of the bank before opinions are made similar poor delivery service has contributed to a lot of profitable exertion outside the bank. Aragba- Akpore( 1999).

utmost of “ IT ” systems and trainings are imported from overseas without consideration for the tricks of the original terrain.

Hence, according to Njokanma( 1999) at an transnational information technology factory on how to survive banking operations of fiscal institutions in the 21st century, he said that the substance of the factory is to make their own donation to IT development hence the need to add value to the nation by discouraging Nigerians from going abroad for similar trainings which the series of factory will offer.

‘ IT ’ isn’t considered as core business while IT directors are treated as supplementary staff rather than originators.

So, eventually, the defense of huge investments in “ IT ” by the banking sector is yet to establish the important demanded impact.

STATEMENT OF PROBLEM

Banks since the commencement of the use of electronic banking products in the late 1980’s haven’t made their presence felt important. These are as a result of problems associated with the use of electronic banking which includes.

2. COST OF OWNSERHIP AND ADOPTION.

Electronic banking is veritably precious because it entails the accession of computers, telecommunication widgets. Banks spend a lot on these products because of the exchange rate between the naira and the bone .

2. POOR EXPOSURE

So numerous people are still ignorant of the services and benefits available to them through the use of electronic banking products. The benefits includes that it’s presto, safe and dependable.

3. LACK OF ARCHITECTURES.

Irregular source of power force and attainability of telecommunication systems are hindrances to the sources of electronic banking.

4. ANXIETY AND FEAR.

This has to do with some people’s belief that anything that has to do with computers is evil and associated with what the Bible called the end time moves of Satan. Also then’s this general fear that the preface of computers would displace them of their jobs.

Objects Of Study

The main or primary ideal of this study is

To identify the impact of electronic banking since its commencement on the provision of better and effective services to banks guests. In order to achieve the primary ideal over, there are other secondary objects whose achievement wine result in the achievement of the overall ideal. These secondary objects are

To identify the impact of electronic banking on the profitability of banks.

To identify the impact of electronic banking on the timely delivery of guests services by banks.

To suggest measures for perfecting electronic banking in Nigeria.

Significance Of The Study

It’s hoped that the findings and recommendations of the study will include

Advanced client service Electronic banking line enable banks give new, briskly and more products and services to its guests thereby bringing up the banks to transnational situations and enhancing competition amongst the banks. This can take the form of finances transfer, hand verification in twinklesetc.

ii. trustability of sale Electronic banking line help to insure accurate and timely deals, unlike when done manually which is prone to mortal crimes which are disturbing and expensive a times.

iii. Safety; Electronic banking technology insure safety of banks dealings with its guests. Unsafe banking practice can beget huge losses to the banks especially in the case of misrepresentation of account possessors. The banking technology prevents this through its hand verification voice correspondence and prints verification and unauthorized access into the computer system.

iv. Redundancy of storehouse spaceElectronic banking technology helps to reduce the use of lines which are archaic thereby reducing storehouse space. Using lines could lead to loss of vital information about bank guests through mutilation easy and unauthorized access of lines and loss of important documents. This can be averted through storehouse of information in diskettes, hard disks and back- ups of important information.

Reduces redundancy of information Duplication of information which could lead to leakage of nonpublic information can be reduced by electronic banking technology through storehouse in computer systems and precluding access to it through rendering and entry word.

Compass And Limitations Of Study

The compass of the exploration work line be limited to the Nigerian marketable banks, using Diamond Bank Enugu as a case study.

A study of this nature can not be carried out without difficulties in the process one major limitation I prevision in this work is the failure of available data and material.

Another limitation I prevision in the problem of finance. A study of this nature would bear a lot of fiscal commitment to enable the experimenter move around especially in the area of questionnaire distribution.

Description Of Terms

In a largely specialized content of this nature it’s necessary to define the major functional terms so as to put the anthology and the experimenter in the same position.

AUTOMATED TELLER MACHINE 9ATM) This is an instrument through which electronic banking is carried out. It’s a technological invention in the banking system to enhance growth of payment system.

UNITERRUPTED POWER SUPPLY( UPS) This is used to give temporary power for about 45 twinkles incontinently power goes off.

INFORMATION TECHNOLOGY( IT) This has to do with the use of computers in furnishing mortal announcement business results.

SIGNATURE AND PRINTS VERIFICATION This is used to identify the authenticity of autographs and thumb prints.

ELECTRONIC CREDIT CARDS

It’s a fiscal instrument which provides an unequaled occasion to automate a large proportion of deals to enhance functional effectiveness and cost effectiveness and eventually seen to be suitable to contend with notes and sludge as medium of exchange.

MICR

MICR which is an acronym for glamorous Essay character recognition is a technology used to read decoded characters on cheques, render sequence documentetc.

VSAT

It’s a type of technology which has enabled banks link up to their remote branches in far locales with their head officers. This is eased through a satellite dispatches network.

SWIFT

This is an acronym for society for word wideinter-bank fiscal telecommunications and it’s a network made up of computer grounded system located around the word and connected through telephone leased lines.

Original Area Networks( Lans)

They’re computers and supplemental bias close together linked by communication channels similar as coextensive, or fibre optic string. LANS may be linked to other or networks by a network gateway.

WIDE AREA NETWORKS( WANS)

They’re country-wide and world-wide networks frequently using microwave oven relays and satellites.

References

AladesuluS.O( 1998) robotization in Banking Industry ” The Punch, Sept,P.19

Aragba- Akpore.S.( 1999) “ IT Paramount to 21st century Banking ” The Guardian Aug.P. 31.

Computer Plus( 1997) IT and Electronic BankingP.10

NjokanmaJ.( 1999) “ Network Security for Banking Inspectors and Adjudicators ” The Guardian Aug.PP. 31- 35.

The Financier( 1998) The Applicability of IT for Effective Ban Management. A publication of NABAFS University of NigerianPP. 16- 17.