ELECTRONIC BANKING IN NIGERIA: PROBLEMS AND PROSPECTS

ABSTRACT

            This research work is an attempt to analyse and find out the “PROBLEM AND PROSPECTS OF ELETRONIC BANKING IN NIGERIA”.

            The research geared toward explaining what Electronic Banking is all about and when it was introduce into Nigeria.  The research also explained the services and the features of electronic Banking in Nigeria.  Though some of the information is between the bankers and their customers, the researcher was able to b ing some of them out finally, the information contained in this project writing will educate some ignorant people, concerning how they can transact business with their bankers or their customers through electronic device.

TABLE OF CONTENT

CHAPTER ONE

1.0       INTRODUCTION

1.1              Back ground of the study

1.2              Statement of the problem

1.3              The objective of the study

1.4              Scope of study

1.5              Limitation of the study

1.6              Definition of terms

CHAPTER TWO

2.0              Literature review

2.1       review of related studies

2.2              Meaning of electronic banking

2.3              Features and services of electronic banking

2.4              Electronic payment system

2.5              Problems of electronic banking

2.6              Research design

A         Source of data

B         Method location of data

C         Method of data collection

D         Tools of analysis

CHAPTER THREE

3.1              Summary of findings

A         Monetary banking

B         Cross – border issues

C         Security of an electronic money scheme

D         Frauds

E          The payment system

3.2              Conclusion and recommendation

3.3              Bibliography

CHAPTER ONE

1.0              INTRODUCTION

1.1       BACKGROUND OF THE STUDY

            Financial institutions have been early adopters of smart card and credit cards technology, in the system and more recently, the launching of internet banking have transformed with world into a global village linked with electronic impulses.  The idea or when the Apex Bank of Nigeria (Central Bank of Nigeria) gave the approval to Allstates.  Trust Bank Limited to issue a financial product known as the ESCA an electronic purse to the public.

            Later on, Diamond Bank Limited, introduced a parallel product know as Diamond pay card.  In February 998 the smart card received a boost, when 19 licensed banks floated a smart card company.

1.2              STATEMETN OF THE PROBLEM

These introduction of electronic money which are still at a relatively early stage of development have the potential of challenge the predominant role of cash for making small value payments and makes retail transaction easier and cheaper for consumers and merchants (Hotels: Airlines, supermarkets, etc, who are current account holders).  In the view of these, the Central Bank Governors of the group of ten (G-10) countries commissioned a series of studies on specific issue related to electronic money.  To

(i)                 Highlight the main design features and functional aspects of electronic money products.

(ii)               Analyses the technical risks specific to these products and

(iii)             Examine possible security measures that can be relied upon to prevent, detect and contain fraud.

1.3              THE OBJECTIVE OF THE STUDY

In respond to information technology developments in domestic financial sector, the Central Bank of Nigeria commissioned an information technology strategy study with the objective of promoting the efficient performance of its statutory duties.  The project is being implemented in phases and both the licensed banks and the regulatory authorities have demonstrated their appreciation of the benefits derivable from use of information technology.

The main focus of this project will be on the fundamental policy issues, which the introduction of electronic money scheme throws up, adequate attention will also be devoted to prospects or control mechanism that has put in place to ensure effective management of electronic product vis-à-vis likely impact on the economy as a whole.

1.4              SCOPE OF STUDY

The scope of this project work is restricted to only the banks and their customer in Nigeria and between a company or fir operating on electronic banking and their customers.

1.5              LIMITATION OF THE STUDY

Despite the research is carried out there are some limitation the researcher encounter such as:

(i)         INADEQUATE TIME:

There is a limited for the researcher to work his project considering the short semester of the school.

(ii)        INADEQUATE RESPOND

Some bank does not disclose how they operate on electronic banking because it is a secret between them and their customer.

(iii)       FINANCE

The researcher has limited money to carry out the research more effectively.

(iv)       INADEQUATE MATERIAL

Because the project is a new development the material for the project is limited.

1.6              DEFINITION OF TERMS

(i)                 What is pin?  Personal identification number it is a device used to gain access to ones personal account.

(ii)               What are features of electronic banking?  These are what differentiate electronic banking and the former banking transaction.

(iii)             What is prospect of electronic banking?  This is the feature success or out come or the position of electronic banking.