APPRAISAL OF THE EFFECT OF ELECTRONIC PAYMENT SYSTEM ON CUSTOMER SATISFACTION IN NIGERIA BANKING SYSTEM. A STUDY OF ACCESS BANK PLC, CALABAR

CHAPTER ONE

INTRODUCTION

Descriptive Background of the Study

Today’s business environment is extremely dynamic in nature. It has experienced rapid changes as a result of technological improvements, increased awareness and demands for banks 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, thus, information and communication technology (ICT) is at the centre of this global change.  Amedu (2005) asserts that banks over the time have been using electronic and telecommunication networks for delivering a wide range of value added products and services. Therefore, information systems could not be ignored because they play a critical role in current Banking system in Nigeria.

Electronic banking is known as e-banking, virtual banking or an online Banking, it is a service that allows customers to access their bank information, conduct financial transactions, make deposits, withdrawals and pay bills through the internet without having physical visit to their banks. It provides the convenience of accessing banking facilities from the comfort of their home/offices. (Awamleh & Fernandez, 2005).

The concept of electronic banking system began when the first Automated Teller Machine were instated in the 1970s. An ATM machines allowed deposits to be made from the remote locations a convenience for customers who otherwise would have had to withdraw cash personally from their bank. The advantages offered by ATM Machines quickly split over to encompass other areas of bank services, computerizing manual system for greater efficiency and time savings. The concept behind ATM machines gave rise to smart cards, intranets and internet banking, electronic funds transfer {EFT}, NIBSS (Nigerian interbank settlements system), POS {Point of Sales Service.}, Access mobile, and other electronic devices (Ahasanul, 2010).

The growth in the application and acceptance of internet-driven technologies means that delivering an enhanced service is more achievable than ever before, however it is also more complex and fraught with potential costs and risk. The internet introduces customers to a new perception of business time as always available and demanding an urgent and rapid response. The serves as a challenge for managers who must to reconcile their business and their own personal perceptions of time with the perceived reality of internet time, as the internet has decisively shifted the balance of power to the customer.

Presently, banks in Nigeria are adding value to their services for customer’s satisfaction. The customers have more choices in choosing their banks because the new age IT (Information Technology) is bringing about sweeping changes in the banking industry, forcing them to reengineer many of their basic processes and systems. Few of the technology-driven electronic banking services being offered are viz. Automated teller machines ATM, Electronic Clearing Service (ECS), electronic funds transfer (EFT), tele-banking, internet banking etc. New technological capabilities are now being effectively used to create value and to better manage customer relationship in Nigeria banking system. (Raji, 2010).

1.2 Objectives of the study

The main objective of this research is to appraise the effect of electronic payment system on customer satisfaction in Nigeria banking system. Specifically, the study will examine the following objectives:-

1. To evaluate the effects of electronic payment system on banks customers.
2. To assess the impact of electronic payment system on the bank’s service delivery.

The following research questions were developed in order to guide the study:

1. Does the electronic payment system enhance service delivery in the banking system?
2. Does the electronic payment system increase the market size of the banks?
3. Does the electronic payment system enhance the competitive advantage of the bank’s?
4. Does the electronic payment system enhance customer satisfaction of the banks?     

1.4  Scope of the study

       In terms of coverage, this study will focus on the effect of electronic payment system on customer satisfaction in Access bank Plc. This means that issues relating to electronic banking will be explained. In view of the technicalities involved, it would be unrealistic to assume that all necessary facts have been gathered in the process of the study.