E-Banking in Developing Economy: Empirical Evidence from Nigeria

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Applications of Quantitative Methods to e-Commerce E-BANKING IN DEVELOPING ECONOMY: EMPIRICAL EVIDENCE FROM NIGERIA Elisha Menson AUTA PhD Candidate, Centre for Policy and Economic Research, University of Abuja, Abuja, Nigeria E-mail: donelly2007@yahoo.com Abstract: This paper empirically examines the impact of e-banking in Nigeria’s economy using Kaiser-Meyar-Olkin (KMO) approach and Barlett’s Test of Sphericity which support the use of factor analysis in order to extract independent variables associated with e-banking. The paper explores the major factors responsible for internet banking based on respondents’ perception on various e-banking applications. It also provides a framework of the factors which are taken to assess the…show more content…
E-banking is the term used for new age banking system. E-banking is also called online banking and it is an outgrowth of PC banking. E-banking uses the internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages and purchasing financial instruments and certificates of deposits (Mohammed, et. a.l, 2009). It is difficult to infer whether the internet tool has been applied for convenience of bankers or for the customers’ convenience. But ultimately it contributes in increasing the efficiency of the banking operation as well providing more convenience to customers. Without even interacting with the bankers, customers transact from one corner of the country to another corner. Electronic banking has experienced explosive growth and has transformed traditional practices in banking (Gonzalez, 2008). As per prediction of Maholtra and Singh, (2007) the e- banking is leading to a paradigm shift in marketing practices resulting in high performance in the banking industry. Delivery of service in banking can be provided efficiently only when the background operations are efficient. An efficient background operation can be conducted only when it is integrated by an electronic system. The components like
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