Appraisal of the Economic Implication of Electronic Banking in Nigeria Banks (a Case Study of Diamond Bank Plc Nigeria)

The white paper is intended to provide an overview of the teller system used in daily banking operations. It attempts to detail the different

The electronic banking has various advantages than the traditional banking system which is simple and convenient for the users. The advantages are-

I would like to express my special thanks of gratitude to my supervisor, Dr. Domician Mate, as well as the entire school who gave me the golden opportunity to do this wonderful project on the topic (E-banking services) which also helped me in doing Research and I came to know about so many new things. I am really thankful to them.

It is important to realize how the security aspects in a banking system can influence such

Banking-related transactions that typically take long span of processing can now be done in just a few minutes, or even seconds. Aside from this, there are still other brilliant benefits that the IT has contributed to the finance sector, which may bring not only advantages but also possible drawbacks.

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

Some customers still prefer to transact with tellers one-to-one instead of ABMs and it is a challenge for banks to meet this demand. Financial institutions such as banks, credit unions etc rely on their services to maintain customers and operate their business. If a customer were unable to make a deposit or withdrawal from their bank account, they wouldn’t be long taking their business to a new bank. Maintaining and improving quality would e another objective for financial institutions. As the electronic age continues to grow, people want to be able to do more and more transactions on line. As banks are able to offer on-line banking, automatic payments, pay pal related services etc, they will continue to maintain and gain customers.

imperative in the industry. This study evaluates the response of Nigerian banks to this new trend and examines the extent to which they have adopted innovative technologies in their operations and the resultant effects. Information and Communication Technology Information Technology (IT) is the automation of processes, controls, and information production using computers, telecommunications, software and ancillary equipment such as automated teller machine and debit cards. It is a term that generally covers the harnessing of electronic technology for the information needs of a business at all levels. Communication is the conveyance or transmission of information from one point to another through a medium. An example of how ICT has had an impact on the Banking Industry is that its emergence allows banks to apply credit-scoring techniques to consumer credits, mortgages or credit cards. Hence, products that used to be highly dependent on the banks´ evaluation of its customers have now become more standardized. Other examples of ICT impact on the Banking Industry include the increased process efficiency, which can reduce costs in banks, and the branch renewal, where focus is gradually shifting away from traditional brick and mortar banks towards the dual-bank concept

Bank increasingly switch to website system or e-banking side to catch the customers not only to inquire about the account balance, interest and exchange rates but also to made several online transaction activities. This up gradation of every bank systems come up in a race of to be ahead from other bank by which the bank look for new challenges in bank management, rules and supervision authorities to check the e-banking service is working smoothly and properly and customer can’t be affect by this new rules and catch more and more customers to promote the Bank.

five minutes to complete irrespective of the distance between the entities involved. All these can only be made possible through the adoption and inception of electronic banking system in a nation.Customers in developed countries enjoy faster and easier service but this modern banking system has not been fully adopted in developing nations like Nigeria.

Financial System is the most important institutional and functional vehicle for economic transformation of any country. Banking sector is reckoned as a hub and barometer of the financial system. As a pillar of the economy, this sector plays a predominant role in the economic development of the country. The geographical pervasiveness of the bank coupled with the range and depth of their services make the system an indispensable

on banks operation. The study covered 36 out of the 89 banks in the country as at the

            For most customers, it is a convenience that they have grown accustomed to the electronic banking. And for the large commercial customer, processing thousands or even millions of payments and/or sales a day – it would be impossible to live without the attachment on it.3

Electronic banking is an automatic delivery of the new and old banking system of products and services to the customers.They give the service by the electronic and interactive communication channels. Financial institution customers, individuals or businesses are included by the E-Banking system which allows the system to access the account and also transact the business to obtain information about financial products through a network which is public or private by including the internet.[1].

Introduction During the last years, the banking industry has developed noticeably. The financial services industry is altering rapid and visible. Previous ways of doing business are fading fast. Together with this fast transition is also the rising competition among banks. One of the greatest influences behind all of this is the growing development in information technology. Because of this, costumers have been familiar with the ways of electronic banking services and its systems. Electronic banking is sometimes defined as