EXAMINATION OF E-BANKING AND CUSTOMER SATISFACTION IN NIGERIA BANKS

CHAPTER ONE

1.0     INTRODUCTION        

1.1     BACKGROUND OF THE STUDY 

1.2     STATEMENT OF THE PROBLEM

1.3     OBJECTIVES OF THE STUDY     

1.4     RESEARCH QUESTIONS

1.5     RESEARCH HYPOTHESIS

1.6     SIGNIFICANCE OF THE STUDY

1.7     SCOPE OF THE STUDY

1.8     DELIMITATION OF THE STUDY

1.9     DEFINITION OF TERMS     

CHAPTER TWO

2.0     LITERATURE REVIEW

CHAPTER THREE

3.0     RESEARCH METHODOLOGY

3.1     RESEARCH DESIGN

3.2     AREA OF STUDY

3.3     POPULATION OF THE STUDY

3.4     RESEARCH SAMPLE AND SAMPLING TECHNIQUE

3.5     INSTRUMENT FOR DATA COLLECTION

3.6     VALIDITY OF THE INSTRUMENT

3.7     METHOD OF DATA COLLECTION

3.8     METHOD OF DATA ANALYSIS

CHAPTER FOUR

4.0     DATA ANALYSIS AND PRESENTATION

CHAPTER FIVE

5.0     SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION5.1     SUMMARY

5.2     CONCLUSION

5.3     RECOMMENDATIONS

REFRENCE

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

Banking in Nigeria from the beginning has always been a simple business; consumers saved their money with banks and received their financial services from banks. When customers open savings account, they received passbook from the bank with which the account would be operated; and when it is a current accounts, they received cheque books for the same purpose. Today, the banking industry has moved into an era of menu-driven ultra-robust specialized software programs called banking applications. These applications can carry out virtually all banking functions relying heavily on information collection, storage, transfer and processing The application of electronic banking products/services to banking operations has become a subject of fundamental importance and concerns to all banks operating within Nigeria and indeed a condition for local and global competiveness (Ezeoha, 2006; Ikechukwu, 2000). The recent consolidation exercise in Nigerian banking sector has drawn the attention of many banks to application of various technological devices in promoting/achieving better customer service delivery that guaranteed customer satisfaction that translates into increase profitability and higher return on investment.

The success of electronic banking, as agued by many researchers, depends probably on bank service quality, customer preferences and satisfaction. Recent studies found that consumer behavior is changing partly because of more spare time. The way of use of financial services is characterized by individuality, mobility, independence of place and time, and flexibility (Seitz and Stickel, 2004). Historically, banks have taken the attitude that they will provide customers with the services and products that they, the banks, wish to provide. Buyer power, as evidenced by the increase in wealth and sophistication of the most profitable customers, now dictates that such customers will determine with whom they will bank, which products they will use, what pricing they will accept and which delivery channels they choose to use. Banks not recognizing these requirements could rapidly lose between 30-50% of their customers, especially the most profitable customers including the 'magic' top10%. It has been proven that the least profitable clients will be the least likely to move. Banks are therefore being forced to adopt a strategy towards their customers that is focused on buyer driven desires. In order to survive both from domestic and the increasing level of global cross-border competition, banks need to change their process of servicing their customers. Firstly, to capture and retain the most profitable customers and secondly to redirect unprofitable customers into service channels which can limit the costs and maximize potential revenues (Mols, 1998).

E-Banking gives customers the opportunity to access banking services from the comfort of their homes and offices and also be able to do most of the transactions which would have been done in the banking halls. With the use of personal computer (PC) or even mobile phone with an internet connection, customers are able to carry out transactions such as cash withdrawals, payments of utility bills, transfers from one account to the other, viewing and printing of statements as well as request for cheque books on their traditional accounts 

Timothy (2012) is of the opinion that customer’s satisfaction holds the potential for increasing an organization’s customer base, increase the use of more volatile customer mix and increase the firm’s reputation. Consequently, obtaining competitive advantage is secured through intelligent identification and satisfaction of customer’s needs better and sooner than competitors and sustenance of customer’s satisfaction through better products/services. Technology is then essential in providing faster and more efficient services to customers. Technology acquisition must be based on actual needs and the proven ability to deliver customer – friendly solutions. But with globalization, Nigerian banks have no choice but to adopt electronic banking services to enhance effective service delivery that transcends to customer satisfaction, if they really want to stay in the business race, let alone be profitable (Madueme, 2009). But it should be realized that electronic banking services is a brain child of Information and Communication Technology (ICT) that made it possible for service providers and their customers in developing economies to enjoy a good semblance of the services enjoyed in the developed societies. Electronic banking services have afforded banks the opportunities to impress customers which encourage them to keep coming back. Today, it would be difficult to see any bank in the country that does not render one form of electronic banking service or the other, even banks in the most remote parts of the world.

Despite the adaptation to e-banking by many banks in Nigeria and their quest to meet the banking needs of their customers, the issue of service delivery and customer satisfaction with e-banking service has not received much attention in literature (Calisir 2008) Most of the studies conducted on service delivery and customer satisfaction have looked at traditional services even when banking services were concerned. There is therefore the need to assess e-banking and its impact on service delivery and customer satisfaction in the Nigerian banking industry so as to have empirical evidence on it and to also provide feedback to the banking institutions on

1.2     Statement of the Problem

E-banking was adopted by banks so as to improve their service delivery, decongest queues in the banking hall, enable customers withdraw cash 24/7, aid international payment and remittance, track personal banking transaction, request for online statement, or even transfer deposit to a third party account. Despite the effort of banks to ensure that customers reap the benefits of e-banking, the bank is met with complaints from customers as regards, malfunctioning Automated Teller Machines (ATMs), network downtime, online theft and fraud, non-availability of financial service, payment of hidden cost of electronic banking like Short Message Services (SMS), for sending alert, mandatory acquisition of ATM cards, non-acceptability of Nigerian cards for international transaction amongst others. This study therefore is aimed at examining e-banking and customer satisfaction in Nigeria banks.

1.3     Objective of the Study

The main objective of this study is to examine the relationship between e-banking and customer satisfaction in Nigeria banks, specifically the study intends to;

1.     Find out the relationship between e-banking and customer satisfaction in Nigeria

2.     Analyze the impact of e-banking and customer satisfaction in GT bank

3.     Examine the factors that guarantee  customer satisfaction in Nigeria

4.     Find out the challenges of satisfying customers in GT bank.

1.4     Research Question

1.     What is the relationship between e-banking and customer satisfaction in Nigeria?

2.     Is there any significance impact of e-banking and customer satisfaction in GT bank?

3.     What are the factors that guarantee customer satisfaction in Nigeria?

4.     What are the challenges of satisfying customers in GT bank?

1.5     Research Hypothesis

Ho: there is no significance impact of e-banking and customer satisfaction in GT bank

Hi: there is significance impact of e-banking and customer satisfaction in GT bank

1.6     Significance of the Study

The outcome of this study will be of immense benefit to the management of GT Bank Nigeria Plc, since it will help identify most of the challenges faced by the banks as well as the complains table by the customers. Solutions will then be proffered on theses identified challenges. This will go a long way to help the bank achieve its stated objectives, and in the long run increase shareholder’s wealth. Furthermore, the study would enable banks executives and indeed the policy makers of the banks and financial institutions to be aware of electronic banking system as a product of electronic commerce with a view to making strategic decisions.

1.7     Scope of the Study

This research work will be conducted in GT bank, Ado-Odo LGA, in Ogun state, the research work will also examine customer satisfaction and e-banking in Nigeria, the relationship between them and the challenges the Nigeria banks in achieving a good customer satisfaction.

1.8     Delimitation of the Study

Finance for the general research work will be a challenge during the course of study. Correspondents also might not be able to complete or willing to submit the questionnaires given to them.

However, it is believed that these constraints will be worked on by making the best use of the available materials and spending more than the necessary time in the research work. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.