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

8703 Words Jul 13th, 2012 35 Pages
APPRAISAL OF THE ECONOMIC IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF DIAMOND BANK PLC NIGERIA)

CHAPTER ONE
1.1 BACKGROUND OF THE STUDY Before the emergence of modern banking system, banking operation was manually done which lead to a slow down in settlement of transactions. This manual system involves posting transactions from one ledger to another which human handles. Figures or counting of money which should be done through computers or electronic machine were computed and counted manually which were not 100% accurate thereby resulting to human errors. Most bank then use only one computer in carrying out transactions which ameliorate the sluggish nature of banking
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Adoption of electronic banking which suppose to ease banking transactions rather resulted to woes to customer. Most people complain of time wasted in banks. This occurs when there is power failure in banks resulting to slow down in operation. Another problem that emerged was that banks do not have information backup to fall back on should there be any computer break down. In investing in electronic banking, the country will need a large amount of financial resources in computer technology, obviously, the resource is in short supply in Nigeria, couple with high level of poverty. For an efficient functioning of electronic payment system, there must be availability of infrastructural facilities such as electricity and telecommunication network, however, power supply fluctuates and there is still constant failure links in networks. Since early 2000s banks have been developing and introducing payment cards for their customers as well as deploy ATM’s cards. Usage was however low due to lack of interconnectivity i.e. switching platform to interconnect the ATM’s for card holders.
1.3 OBJECTIVES OF THE STUDY This research work intends to assess the extent of electronic payment in banking activities as well as identify the various types of electronic banking. The researcher will also evaluate the major problems associated with the development of