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Greener Journal of Business and Management Studies

 

ISSN: 2276-7827        ICV: 6.02

Submitted: 31/08/2017

Accepted: 10/09/2017

Published: 30/09/2017

 

Research Article (DOI: http://doi.org/10.15580/GJBMS.2017.3.083117117)

 

Analysis of the Impact of Electronic Banking on Customers’ Satisfaction in Nigeria

 

Babatunde, M.O.1 & Salawudeen, M.O.2

 

1Department of Management & Accounting, Faculty of Management Sciences, Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria.

2Department of Business Administration, Fountain University Osogbo, Nigeria.

 

*Corresponding Author’s E-mail: mailoyewale@ gmail. com; Tel: +234160419880; +2348075635394

                       

ABSTRACT 

 

The paper sought to examine the impact of electronic banking in Nigerian banking industry and financial institutions. The paper uses both the primary and secondary data to elicit information from the forty (40) respondents. The primary data were collected through the use of questionnaire, while the secondary data were obtained from the publications of the Central Bank of Nigeria Electronic Banking Guideline, Annual Reports of the CBN and Access Bank Plc. The population selected was designed to obtain adequate and diverse views pertaining to the level and impact of electronic banking in Access Bank. The paper employs both descriptive and inferential statistics to analyse the data. In addition, simple frequency counts, percentages  and the Chi-square were used in the data analysis. Findings show that 22 credit officers or 62.9% of respondents agree with the opinion that electronic banking system has made banking transactions easier, 11 credit officers representing 31.45% strongly agree, while 2 of them representing 5.7% were undecided and none of the respondents is either disagree or strongly disagree. The paper concludes that the adoption of electronic banking has enhanced the bank’s efficiency, making it more productive and effective. The paper therefore recommends that the Nigerian banking sector must be focused  in terms of their needs and using the right technology to achieve goals, rather, than acquiring technology of internet banking because other banks have it.

 

Keywords: e-commerce, internet banking, Nigerian banking industry, bank cheque, withdrawal slip, withdrawal charges.

                                                                                                                                      

 

INTRODUCTION

 

A lot of research works have been done on the prospects and challenges of Information Technology in the banking industry, these research works are broad-based and only few are actually carried on electronic banking (e-banking). Modern banks now realised that only those that overhaul their payment service delivery and operations are likely to survive and prosper in the 21st century (Opara, et al, 2010). This is due to the pressure of globalization, consolidation in the banking sector, privatisation, deregulation and rapidly changing technology, among others (Connel and Saleh 2004). In order to properly place themselves in favourable positions for competitions and be one of those corporations to be reckoned with in the new century, banks are making use of Internet to execute mobile banking, this developed from bringing PCs together to form local and Wide Area Networks through client/server technology. Many banks have installed modern computer inter-connectivity backbone that would enable them achieve communications of data and multimedia over Internets, Intranets and Extranets. They also realise that they have to achieve not only management/staff wide computer literacy but what could be called information literacy i.e. knowing how to locate, analyse, store and use information.

All staff and managers in a modern bank need to be able to search and gather data from several types of sources, analyse them, select relevant ones and organise them in such a manner to allow them make decisions based on the organised data. Banks of the future have realised that the banking of tomorrow requires more of electronic manipulations and shuffling of bits-based money and other banking transactions, instead of paper. In other words, paper based transactions are now being replaced by electronic-based transactions e.g. the internet services. Whether a bank would be successful or not depends on the extent to which it is investing in IT and using it in an innovative manner. This area has been tipped to be a major competitive ground for banks that are operating in the post-consolidation era.

 

STATEMENT OF THE PROBLEM

 

Electronic banking is a driving force that is changing the landscape of the banking industry fundamentally, in particular, towards a more competitive industry. Electronic banking has blurred the boundaries between different financial institutions, enabled new financial products and services, and made existing financial services available in different packages (Agbada, 2008). But the influences of electronic banking go far beyond this. The developments in electronic banking, together with other financial innovations, are constantly bringing new challenges to finance theory and changing people’s understanding of the financial system. It is not surprising that in the application of electronic banking in Nigeria, the financial institutions have to face its problems. Communications over the Internet are insecure and often congested. The financial institutions would also have to contend with other Internet challenges including security, quality of service and some aberrations in electronic finance (Guardian Newspaper, 2001). Besides, the existing business environment also poses some challenges to the smooth operations of electronic banking in Nigeria. Some of these operational challenges include epileptic power supply, dominance of cash transaction in the economy, low level of awareness among Nigerians, etc. (Agbada, 2008). The thrust of this research work was to examine the trend of electronic banking in Nigeria and a critically examination of the challenges noted above.

 

LITERATURE REVIEW

 

Electronic banking system is a conventional banking system which started in Nigeria in 1952; (Benjamin 2001). Since then, the industry has witnessed a lot of regulatory and institutional advances. The industry was being controlled by at most five out the 89 banks that were in existence before the commencement of the merger and acquisition of banks in Nigeria economy. Multiple  branch systems is also one of the notable features  of Nigerian Banks, with a total of 89 banks accounting for about 3017 bank branches nationwide as at 2004. Also, the industry was faced with heavy challenges including the overbearing impact of fraud and corruption, erosion in public confidence, a poor capital base, persistent cases of distress and failure, poor asset quality and so on. Part of the moves to resolve these lingering problems include the banking reform initiated by the Central Bank of Nigeria in June 2004, which is largely targeted at reducing the number of banks in the economy and making the emerging banks much stronger and reliable. So far, the banking reform has been a success story with 25 mega banks emerging after the recapitalization exercise which ended on 31st December, 2005 in the bid to catch up with global development and improve the quality of their service delivery.

Nigerian banks have no doubt invested much on technology; and have widely adopted electronic and telecommunication networks for delivering a wide range of value added products and services. They have in the last few years transformed from manual to automated systems. Unlike before when ledge-cards were used, today banking has been connected to information technology networks, thereby facilitating the practice of inter-banking and inter-branch banking transactions. Development domestically has the introduction of mobile telephone in 2001 and improved access to personal computers and internet service facilities have also added to the growth of electronic banking in the Nigeria banking sector. However, whereas local banks commonly practice real time online internet banking, the integration of customers into the process is far from been realized. Many of the reasons are attributed to the high prevalence of internet fraud and lack of an adequate regulatory framework to protect the banks from the volatility of risks associated with internet banking, especially at the levels of communication and transaction. In the main, Nigeria is globally regarded as the headquarters of Advance Fee Fraud which is perpetrate mostly via the internet.

 

The view on electronic banking

 

The vast majority of the recent literature on electronic money and banking suffers from a narrow focus. It generally ignores electronic banking entirely and equates electronic money with the substitution of currency through electronic gadget such as smart cards and virtual currency. For example, Freedman, (2000) proposes that electronic banking and electronic money consist of three devices; access devices, stored value cards, and network money. Electronic banking is simply the use of new access devices and is therefore ignored. Electronic money then is the sum of stored value (smart) cards and network money (value stored on computer hard drives). What is most fascinating and revealing about this apparently popular view is that electronic banking and electronic money are no longer functions or processes, but devices. Within this rather narrow scope for electronic banking and electronic money, there are nonetheless many research that address one or more of the challenges facing it. Santomero and Seater (1996), Prinz (1999), and Shy and Tarkka (2002), and many others present models that identify conditions under which alternative electronic payments substitute for currency.

Most of these models indicate that there is at least the possibility for electronic substitutes for currency to emerge and flourish on a large scale, depending on the characteristic of the various technologies as well as the characteristics of the potential users. The impact that the substitution of smart cards for currency will have on monetary policy, arguing that although electronic substitutes for currency will become widespread, monetary policy will continue to work as before because this currency substitution will leave the demand for central Bank reserves largely intact (Berentse, 1998). The monetary control works in an economy where the Central Bank currency has been partially or completely replaced by electronic substitutes (Goodhart, 2000).

Cohen, (2001) distinguishes between monetary control and monetary autonomy, where monetary control is the ability of the Central Bank to control monetary aggregates demand and the supply of money, while monetary autonomy is the ability of the Central Bank to influence output and prices. Cohen argues that the introduction of electronic currency substitutes will not reduce monetary control, but may reduce monetary autonomy, on the other hand; Kobrin, (1997) argues that electronic currency substitutes are part of a general process of technological advance and globalization that are rendering national authorities of all kinds impotent and obsolete. Lee and Longe-Akindemowo, (1999) presented the standard justification for regulation of financial markets systemic risk and consumer protection; they argued that both will justify regulation of electronic currency substitutes. They noted that European regulators have already defined stored value cards as the taking of a deposit, so that only banks may issue them. Several other authors, particularly Central Bankers such as Freedman, (2000), have argued that the state can always use its power to regulate electronic money providers if they prove to be detrimental to monetary policy or financial stability. Helleiner, (1998) makes the case that such coercive power will still be effective in a world of electronic banking. Tanaka, (1996) on the other hand, proposes the establishment of a monetary authority in cyberspace that will control electronic currency substitutes. The electronic banking presents the possibility that an entire alternative payment system, not under the control of the Central Bank of Nigeria may arise (Friedman, 1999).

In an extreme variant, Friedman and King (1999) argues that today computers make it at least possible to bypass the payment system altogether, instead of using direct bilateral clearing and settlement; the responses to Friedman and Woodford, (2000) argue that the Central Bank will either continue to provide  the payment system of choice, or will find alternative ways to conduct monetary policy through stabilization of short-term interest rates regardless of what form of money is being used. Although this second set of research introduces some critical issues, it is too vague about what exactly is meant by electronic money and banking. Part of the vagueness stems from the focus of these papers on the payment system rather than on the payment media. Nonetheless, a complete view of electronic money and banking should include both the payment system and the media used in the system. The feasibility of an alternative payment, after all is intimately tied to the feasibility and desirability of the media flowing through that system.

 

Electronic Banking and the Common Banking Products

 

The use of information technology in banking operations is called electronic banking Ovia, (2001) argue that electronic banking is a product of e-commerce in the field of banking and financial services. In what can be describe as Business-to-consumer (B2C) domain for balance enquiry, request for cheque books, recording stop payment instruction, balance transfer instruction, account opening and other forms of traditional banking services. Banks are also offering payment services on behalf of their customer who shop in different e-shops.

 

Telephone and PC Banking Products

 

This is a facility  that enables customers, via telephone calls, to find out about their position with their bankers merely by dialing the telephone numbers given to them by the banks. In addition, the computers on the phone would require special codes given to the customers as a means of identification of authentic users before they can receive any information they requested for. This is a service introduced into the banking balance as a result of computer telephone technology being made available Ovia (2001). The technology banking has a universe of possible application limited only by the imagination. These areas include: Account balance enquiry; Account statement printing; intra-Banks Account to Account Transfer; inter-banks Account to Account Transfer; Download Account Transaction etc. Telephone and PC banking brings the bank to the doorstep of the customer, it does not require the customer to have his premises; interactive Voice Response becomes a regular feature of operations; Text-to-speech capability becomes reality; A uniformed messaging capability become permanent features of the bank.

 

The card system

 

The card system is a unique electronic payment type. The smart cards are plastic devices with embedded integrated circuit being used for settlement of financial obligations. The power of cards lies in their sophistication and acceptability to store and manipulate data, and handles multiple applications on one card securely (Amedu, 2005). Depending on the sophistication, it can be used as a credit card, debit card and ATMs (Automatic Teller Machines). While the electronic card is gaining popularity in USA and Nigeria, the Spanish financial Institution demonstrated the highest implementation and update of smartcards across Europe (Amedu, 2005).

The smart card was introduced  into the Nigerian market to reduce or eliminate problems of carrying cash about (Amedu, 2005). It is electronically loaded with cash value and carried about like credit card and stores information on a microchip. The microchip contains a “purse” in which value is held electronically. In addition, it also contains security programs; these protect transactions between one card user and the other. It can also be transferred directly to a retailer, merchant or other outlet to pay for goods and services, and like cash, transaction between individuals without the needs for banks of the other third parties. Also, the system does not require central clearing. It is valued immediately. Also the system allows transfer of one value to the other hence it operates like cash.                                                       

       

The Automated Teller Machine (ATM)

 

Worldwide, the use of paper cash still remains the most widely used and acceptable means of settling financial transactions and obligations. However, the proportion of cash transactions is increasingly on the decline, especially in advanced economics (Amedu, 2005). In the US, where the use of cash is still prominent, compared with European countries, it represents 50 percent or more of the total transactions. Of course, cash is a non-electronic payment method. However, the physical carriage of cash as well as the visit to the bank branches is being reduced by the introduction of an electronic device ATM. An ATM device allows a bank customer to withdraw cash from his account via a cash dispenser (machine), and the account is debited immediately. A fundamental advantage is that it needs not to be located within the banking premises. It is usually in stores, shopping malls, fuel stations etc.  

                                                       

Cheque

 

A cheque is a paper based payment instrument whose usages are still gaining ascendancy. The Automation focus on this instrument is to reduce the number of clearing days and improve on security arrangement in the course of settlement and collection. For example, in Nigeria the Central Bank of Nigeria CBN has just embarked upon online clearing and Nigeria has signified interest and signed path to this project (Johnson, 2005).

 

The Entry of Nigerian Banks into electronic banking

 

Electronic banking both as a medium of delivery of banking services and as a strategic tool for business development, has gained wide acceptance internationally and is catching up fast in Nigeria with more and more banks entering the fray. Nigeria can be said to be the threshold of a major banking revolution with net banking having already been unveiled (Ovia, 2001). Of all the sectors in the Nigeria economy, banking stands out despite “a not too good” economy. Electronic banking provides the facility of accessing customer accounts from anywhere in the world by using a home computer with Internet connection,  is particularly fascinating to non-resident Nigerians and high net worth Individuals having multiple bank accounts. The growth potential is therefore, immense. Further incentives provided by banks would dissuade customers from visiting physical branches, and thus get ‘hooked’ to the convenience of armchair banking. At present, the situation does not seem to have shown any significant improvement. Whereas about 90 percent of the banks in the country offer other forms of electronic banking services like telephone banking. The ATM and electronic fund transfer, internet banking is yet to take centre stage. This aspect of banking  is still at the basic informative stage (Ovia, 2001), this is so  despite the widely acclaimed benefits of Internet banking against the traditional branch banking practice.

Part of the reasons identified for the inability of banks in Nigeria to take full advantage of this mode of banking includes lack of adequate operational infrastructure like telecommunication and power, upon which electronic banking generally relies. Due to the inability of the banks to integrate their operations into the Internet development process, Internet banking  can  be  said  to  have  less  portion  in  the  existing  banking structure in the country. Earlier articulated  reasons why internet banking was having a moderate economic impact in the country include that Nigerian bank customers are on the average not trained for teller jobs and the working of internet banking, a situation which makes transaction processing via internet banking prone to error; the absence of a clearly defined legal frame-work for internet banking, leaving banks with inadequate legal cover to provide the services; and poor telecommunication infrastructure all over the country. In addition, the fact that internet assuage in the country has been abused by cyber- criminals makes its window unattractive for domestic banking operations and legitimate international operations. The inherent fear associated with patronizing internet banking services in Nigeria is again re-enforced by the growing evidences in the world over, that dubious Nigerians use fake websites to scoop funds from unsuspecting victims. In some cases, these crimes are committed using existing bank sites. 

                                                                 

Threats of cyber-crimes on the Nigerian banking premises

 

The Advances fee fraud or 419, which is one of the most popular of all internet frauds, Has its origin from Nigeria in the 1980s. Its development and spread follows the path of the developments in information technology at inception, postal letters were used as key media for committing 419 frauds. Later in the early 1990s, it became integrated into telecommunication facilities such as the telephone and fax from the late 1990s following the introduction of computers and internet, 419 crimes became prevalently perpetrated through the use of e-mail and other internet means (Amedu,  2005). The latest dimension taken by the perpetrators of this crime is the use of fake internet bank site, and using that to encourage victims to open accounts with them.

The country is the third highest ranked in internet ‘money offer’ frauds. As it was reported in one of the national newspapers, frauds and forgeries in Nigerian bank as at June 2005 stood at 329 or N1.15 billion monetary equivalent, against 222 cases or N1.47 billion monetary equivalent in April same year. There is even global suspicion that a Nigerian crime syndicate that coordinates global crimes such as money laundering, bank fraud and 419 seams exists today. These issues basically defeat the key ingredients of electronic banking, which includes confidentiality, integrity and availability. Several factors are responsible for the above situation. They include inordinate tolerance for corruption among Nigerian public and government agencies; weakness of the existing legislative/judicial institutions to make and enforce relevant laws on cyber- crimes; the quality of graduates in terms of professional values and ethics; chronic unemployment among graduates, and the widening gap between the few rich and the many poor caused mainly by bad governance.

In the main, erosion of good value principles and corruption constitute the greatest cause of rising cyber-crimes among Nigerian banks (domestic electronic payment in Nigeria) (Amedu, 2005). This, according to Transparency International, is worsened by the fact that several generations of Nigerians have been raised in this norm. Hence, what is seen as a dangerous global crime is socially acclaimed and glamorized in Nigeria. The above situation constitutes the environment upon which Electronic banking has emerged in Nigeria. Although the level of the adoption and practice  of electronic banking (especially Internet banking) has remained quite insignificant, global projections still remains that Information Technology would continue to play a revolutionary role in the development and delivery of banking products and services all over the world. In effect, it is this projection that has raised pertinent regulatory questions concerning Electronic banking, especially in Internet fraud-infested countries like Nigeria. One key issue here borders on how to handle the rising level of frauds and forgery prevalent in the entire banking system; and how to make Internet banking fit well in the banking structure of a country so notoriously identifiable with criminals that use Internet access.                                                                                                                     

 

The regulatory challenges

 

At the national level, the Nigerian government and the relevant regulatory agencies have strived to match the rapidly changing electronic banking environment with necessary regulations and frameworks (Soludo, 2005). Earlier efforts made to this effect included the enactment of the Failed Banks (Recovery of Debts) and Malpractices in Bank Decree No. 18 of 1994, and the Money Laundering of 1995. However, as noted above, poor enforcement procedure rendered these instruments very inactive in checking the menace of financial crimes. By the late 1990s, following recorded growth in internet and computer usage in the country, almost all the regulations guiding the banking industry, including the Banks and Other Institution Act of 1991, were lacking adequate provisions to accommodate the emerging trend.  Not even a mention of electronic banking or any manner of its application was mentioned in any of those prevailing regulatory documents. The situation created a lot of gaps between the levels of the Central Bank of Nigeria regulatory tools and the advances in information technology. This at the same time made the banks vulnerable to all kinds of risks, including transaction, strategic, reputation and foreign exchange risks (Soludo, 2005).

With this deficiency notwithstanding, it was until 2003 that the maiden guidelines emerged from the findings of a Technical Committee on Electronic Banking set up by the Central Bank of Nigeria in 2003 to find appropriate modalities for the operation of electronic banking in the country. It was indeed the findings and recommendations of the committee that led to the adoption of a set of guidelines on electronic banking in August 2003. Of the key provisions of the guidelines, only a section deals with issues relating to Internet Banking. Section 1.3 paragraph 4 of the guidelines, exceptionally stresses that banks should put in place procedures for maintaining the bank’s web site, including the various security features needed for Internet banking services (CBN, 2003).

Despite its numerous technical specifications, the guidelines have been widely criticized as not being enough to check the growing popularity of electronic banking against the backdrop of growing sophistication in technology related crimes and frauds. Closer examination of the contents of the guidelines equally shows that the document fails to meet up with the four key areas where electronic banking may have regulatory impact: changing the traditional lines upon which existing regulatory structures are laid; handling concerns about existing public policy issues; changing the nature and scope of existing risks; and rebalancing regulatory rules and industry discretion. Again, some important recommendation of the Technical Committee that gave rise to the adoption of the guidelines was completely omitted. This is especially so with paragraph 6.1 of the Committee’s report, which among others recommended that all banks, intending to offer transactional services on the Internet /other e-banking products, should obtain an approval-in-principle from CBN prior to commencing these services.

Part of the criticisms is that the recent guidelines are capable of constraining the practice and development of electronic banking in Nigeria. One of such areas, for instance, is the requirement on electronic banking product development. While acknowledgement  that the existing regulations would apply wholly on electronic banking, section 4.2 of the Guidelines emphasizes that only banks, which are licensed, supervised and with physical presence in Nigeria, are permitted to offer electronic banking services in Nigeria, and that virtual banks are not to be allowed. The Guidelines also gives indications that the products/services can only be offered to residents of Nigeria with a verifiable address with the geographic boundary of Nigeria; any person residing physically in Nigeria as a citizen, under a resident permit or other legal residency designation under the Nigerian Immigration Act; any person known herein as a “classified person” who is neither temporarily in Nigeria. The Guidelines go further to indicate that the e-banking service should be offered in Naira only; and that where such a service is to be provided in foreign currency, it should be to only the holders of ordinary domiciliary accounts, and conform with all foreign exchange regulations. On some other aspects, the Guidelines have been criticized by Access Bank executives and customers for not adequately addressing the critical issues concerning Internet security.

It failed to explicitly recommend a standard that allows banks to examine potential threats that may already be in existence in each individual financial institution’s current network. In addition to this array of criticisms, the workability of proper Internet framework is also queried amidst the poor state of basic information technological infrastructure in the country. This is essentially necessary since electronic banking generally relies on the existence of adequate operational infrastructure like telecommunications and power to function effectively. Though little success has been recorded, the supply of these requisite facilities is very erratic in the Nigerian case. Where they exist, high cost of acquisition and maintenance tend to deny a greater percentage of the population access to them. The case of internet access is a glaring one where majority of the citizens rely solely on the services of commercial cyber cafes to meet their internet needs. It is expected of the e-banking guidelines to provide procedures not only for banks investment in Internet facilities, but also in promoting customers’ access to such. Unfortunately, none of such is contained in the document. Prior to the merger, each of the four banks maintained a unique brand, discernable areas of coverage, an easily identified degree of strength and competencies in various areas of banking services and a fair share of the market. Technology is undoubtedly a very important tool of every bank’s competitive strategy. It had drawn the line between success and failure. The deployment of Banks, a web enabled new generation enterprise banking solution has enabled Access Bank to offer its customers banking services at their door step. The bank runs on a completely centralized system with Banks (version 6.2) as the main banking application. The bank’s innovation technology driven products are centric and they have pioneers in the area of e-banking in Nigeria.

 

Bank Customer Relationship

 

Bank customer relationship, is just a special contract where a person entrusts valuable items with another person with an intention that such items shall be  retrieved on demand from the  keeper  by  the  person

 

who so entrust. Thus the banker is the one who is entrusted with the above mentioned valuable items, while the person who entrust the items with a view to retrieving it on demand is called the customer. The relationship is based on contract. It is based on certain terms and conditions. For instance, the customer has the right to collect his deposit on demand personally or by proxy. The banker too is under obligation to pay, so long the proxy is duly authorized by the customer. The relationship is also fiducially. The terms and conditions governing the relationship should not be leaked to a third party, particularly by the banker. Also items kept should not be released to a third party without due authorization by the customer.                                     

 

 

METHODOLOGY

 

Population of Study

 

The paper uses both the primary and secondary data for the study. The primary data were collected by the researcher through the use of questionnaire, while the secondary data are data collected from the Central Bank of Nigeria Electronic Banking Guideline, Annual report of Access Bank Plc and CBN Annual report etc. The population used in this study covers all the 40 credit officers of Access Bank Plc. The method of data analysis included both descriptive and inferential statistics in analyzing the data. Also, simple frequency counts, percentages  and the Chi-square were used in the data analysis.         

 

Data Presentation and Analysis

 

A total of 40 questionnaires were distributed to the various credit officers of Access Bank Plc in Osun State. After the questionnaires were filled by the respondents and collected back, they were screened and sorted out by the researcher. The detail of the returned questionnaires showed that out of 40 sent out, only 35 were completed and returned, while 3 were not returned and 2 were rejected because they were not properly completed. Hence 87.5% of the respondents returned their questionnaires.

 

Qualification of Respondents

 

The researcher was able to meet with the respondents to know their level of qualification. The table below shows their different qualifications and their response.

 

Table 1: Qualification of Respondents

ALTERNATE

RESPONDENTS

PERCENTAGE

OND

5

14.3

HND

9

25.7

  BSC

14

40

MSC/MBA

7

20

Ph.D

0

0

TOTAL

35

100

Source: Field Survey, (2017)

 

The table above shows the number of respondents by their qualifications. The data collected indicates that 14 or 40% of respondents are B.Sc holders degree, and 9 or 25.7% are HND holders, while 7 or 20% are masters holders and non among have Ph.D degree. Therefore, it could be inferred from the analysis that majority of the credit officers are B.Sc. degree holders.

      

Working Experience

 

The researcher was able to meet with different respondent to know their years of experience with Access Bank Plc.

 

Table 2: Years of Experience with Access Bank Plc

ALTERNATE

RESPONDENTS

PERCENTAGE

1-5 years

8

22.9

6-10 years

10

28.6

11-15 years

9

25.7

16-20 years

6

17.1

21 years and above

2

57

TOTAL

35

100

Source: Field Survey, (2017)

 

The analysis on the table 2 shows the periods of engagement of the respondents with the bank. From the data collected, it could be seen that 12 or 40% of respondents have spent between 1-5 years working with the bank, 2 or 25.7% between 11-15 years, 6 or 17.1% between 16-20 years and 2 or 5.7% for more than 21 years. In view of this fact, it could be deduced from the analysed data in table 2 that 77.1% of the respondents have spent appreciable period of 5 years and above working in the bank.

  

Cadre of Respondents

 

Different cadres of the respondents, both the junior officers and the senior credit officers, were ascertained and are shown in table 4.3 below.

 

Table 3: Cadre of Respondents

ALTERNATE

RESPONDENTS

PERCENTAGE

Junior Credit Officer

14

40

Senior Credit Officer

21

60

TOTAL

35

100

Source: Field Survey, (2017)

 

Table 3 shows that 21 or 60% of respondent are senior credit officers with the bank, while 14 or 40% are junior Credit Officers. Therefore, the bank senior credit officers are more than the junior ones.

 

Professional Qualification

 

The respondents were asked about their professional qualifications and their responses were presented below.

 

Table 4: Professional Qualification

ALTERNATE

RESPONDENTS

PERCENTAGE

Associated Chartered Accountant (ACA)

16

45.7

Chartered Institute of Bankers of Nigeria (CIBN)

15

42.9

Certified Auditor

2

5.7

Certified Information System

2

5.7

TOTAL

35

100

Source: Field Survey, (2017)

 

Table 4 shows that 16 or 45.7% respondents are members of the Chartered Accountants on Nigeria, 15 or 42.9% of the respondents are professional bankers and 2 or 5.5.7% are for certified auditor and certified information system. Therefore, most workers in the bank are professionals and as such one would expect quality services and information from them.

 

Department of Respondents

 

The respondents were from different departments and were asked of their department, and their responses were presented below.

 

Table 5: Departments of Respondent

ALTERNATE

RESPONDENTS

PERCENTAGE

Human Resources

3

8.6

Cleaning and cash management

13

37.1

Business development

2

5.7

Information Technology

1

2.9

Credit and marketing

16

45.7

TOTAL

35

100

Source: Field survey, (2017)

 

The above table indicates that 3 or 8.6% of the respondents  are from the human resource department; 13 or 371%, clearing and cash management; 2 or 5.7%, business development;  1 or 2.7% of the respondents are in the information technology department; while 16 or 45.7% are in the credit and marketing departments. Therefore, it could be deduced from the data analysed that the credit and marketing departments have the higher number of staff and as such the bank will always strive to gain the larger share of market.

 

Threat to electronic bank

 

The respondents were asked of the threat involves in electronic banking and their responses were presented below.

 

 

Table 6: Threat to electronic banking

ALTERNATE

RESPONDENTS

PERCENTAGE

Adequate security

0

0

Legal threat

0

0

ATM Found

0

0

Poor communication link

0

0

All of the above

35

0

TOTAL

35

100

Source: Field Survey, (2017)

 

Table 6 reveals that all respondents i.e. 35 or 100% of the respondents were of the agree opinion of the questionnaire, that the bank places more emphasis in all the electronic banking threats to determine its effectiveness.

 

Threat Assessment

 

The respondents were asked about their assessment of the threats involved in electronic banking and their responses were presented below.

 

Table 7: Threat Assessment

ALTERNATE

RESPONDENT

PERCENTAGE

To a high extent

0

0

To a moderate extent

27

77.1

To a lower extent

6

17.1

No respond

2

5.7

TOTAL

35

100

Source: Field Survey, (2010)

 

On the assessment of the Access Bank Plc electronic banking system, 27 or 77.1% of the respondents were on the agree opinion of moderate, while 6 or 17.1% chose the low option, and 2 or 5.7% showed no respond, while no respondent chose the high opinion. Therefore, based on the data collected, it indicates that the bank has a low incidence of threat to electronic banking system.

 

Respondent assessment of Access Banks Electronic Banking System

 

The respondents were asked of the assessment of Access Bank Plc electronic Access bank and their responses were presented below.

 

Table 8: Access bank’s electronic system

ALTERNATE

RESPONDENTS

PERCENTAGE

Excellent

5

14.3

Very Good

27

77.1

Good

3

8.6

Fair

0

0

Poor

0

0

TOTAL

35

100

Source: Field Survey, (2017)

 

 

The table above reveals the assessment of electronic banking system of Access Bank with 27 or 77.15% of the respondents having the opinion that they are very good, while 5 or 14.3% considered it excellent and 3 or 8.6% considered it as good and none of the respondent opined that it is either fair or poor.

 

Information Technology Training Programme

 

The study was able to ascertain the level of information technology training programme in Access Bank Plc, and the responses are shown below:

     

Table 9: Information Technology Training Program

ALTERNATE

RESPONDENTS

PERCENTAGE

Strongly agreed

5

14.3

Agreed

26

74.2

Undecided

3

8.6

Disagree

1

2.9

Strongly disagree

0

0

TOTAL

35

100

Source: Field Survey, (2017)

 

On the assessment of training development programme for Access bank officers, the table 9 shows that 26 or 74.2% of the respondents were of the agree opinion, 5 or 14.3% strongly agree, 3 or 8.6% undecided and 1 or 2.9% disagree and no respondent opined on strongly disagree. Therefore, the bank have information training development programme for its staff because 88.5% of the respondents were of the agree opinion.

 

Level of electronic banking

 

The respondent were asked about the level of electronic banking and their response is shown in table 10.

Table 10: Level of electronic banking

ALTERNATE

RESPONDENTS

PERCENTAGE

Strongly agreed

11

31.4

Agreed

22

62.9

Undecided

2

5.7

Disagree

0

0

Strongly disagree

0

0

TOTAL

35

100

Source: Field Survey, (2017)

 

Table 10 reveals that 22 or 62.9% of respondents were of the agree opinion that electronic banking system has make banking transaction more easier, 11 or 31.45% strongly agree, while 2 or 5.7% were undecided and none of the respondents is either of the disagree or strongly disagree opinion. From the analysis of data, it indicates that the banking transaction has been made easier with the introduction of electronic banking.

 

Improvement in customer’s satisfaction

 

The respondents were asked about the level of satisfaction derived from electronic banking and their response is shown in table 4.11 below:

 

Table 4.11: Customer’s satisfaction improvement

ALTERNATE

RESPONDENTS

PERCENTAGE

Strongly agreed

13

37.1

Agreed

21

60

Undecided

1

2.9

Disagree

0

0

Strongly disagree

0

0

TOTAL

35

100

Source: Field Survey, (2017)

 

From the table above, it shows that 21 or 60% of the respondents were of the agree opinion that electronic banking have improve customers satisfaction, 13 or 37.1% strongly agree, while 1 or 2.9% were undecided and no respondent was of disagree or strongly disagree opinions. Therefore, the agree opinion, having higher percentage, shows that electronic banking has really improved customers’ satisfaction.

 

 

CONCLUSION AND RECOMMENDATIONS

 

The paper concludes that the adoption of electronic banking has enhanced Access Bank’s efficiency, making it more productive and effective. It has also created a strong impact on the overall banking performance by making workers performance more effective and efficient, and that has in turn, enhanced the fortune of the bank with the use of bank cheque, withdrawal slip, withdrawal charges, among others. The paper therefore recommends that banks must be focused in terms of their needs and use the right technology to achieve goals, rather, than acquiring technology of internet banking because other banks have it. Government participation in ensuring focused-telecommunication industry must be visible to reduce or remove avoidable costs of implementing e-commerce and internet banking, while the regulatory authorities like Central Bank of Nigeria must stipulate standards for the banks to follow to avoid making Nigerian Banking Sector a dumping ground for the outdated technological infrastructures. In addition, training and manpower development should be strengthened to remove the major problem militating against the growth of e-commerce in the country.

 

 

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Cite this Article: Babatunde, M.O. and Salawudeen, M.O. (2017). Analysis of the Impact of Electronic Banking on Customers’ Satisfaction in Nigeria. Greener Journal of Business and Management, 7(3):030-042, http://doi.org/10.15580/GJBMS.2017.3.083117117.