CHAPTER ONE
INTRODUCTION
1.1. BACKGROUND TO
THE STUDY
The upsurge in
Information Communication Technology (ICT) in the present world has affected
the delivery of service in most if not all organizations. The Nigerian Commercial
Bank like other service industries has its own share of ICT influence. This
study examines the impact of Electronic Banking on service delivery in Nigeria banking
industry.
The rapid changes in
business operations in contemporary times in the form of technological
improvement require banks in Nigeria to serve their customers electronically.
Traditionally, banks have been in the forefront of harnessing technology to
improve their products and services. The banking industry and its environment
in the 21st century is highly complex and competitive and therefore
the need for information and communication technology to take centre stage in
the operations of banks (Stevens, 2002).
E-banking is critical
in the transformation drive of banks in areas such as products and services and
how they are delivered to customers. Thus, it is seen as a valuable and
powerful tool in the development, growth, promotion of innovation and enhancing
competitiveness of banks (Gupta, 2008; Kamel, 2005).
Given the significant
role of e-banking in the developmental drive of banks,
information technology has been found to lead to improvement in business
efficiency and service quality and hence attract customers as well as retain
them (Kannabiran & Narayan, 2005).
According to Chang,
(2003), e-banking contributes significantly to the distribution channels of
banks such as automated teller machine (ATM), Mobile –banking, Tele-banking,
PC-banking and now internet banking (Chang, 2003). In addition, transfer of
funds, viewing and checking savings account balances, paying mortgages, paying
bills and purchasing financial instruments and certificates of deposits
processes have improved significantly as a result of internet banking (Mohammed
et al., 2009). This implies that, e-banking has resulted in efficiency in
service delivery in the banking sector because customers can transact business
from one side of the country to another and from both long and short distance.
Other scholars argued
that, e-banking has transformed traditional banking practices to the extent
that it has been found to create a paradigm shift in marketing practices
resulting in positive performance in the banking sector (Gonzalez, 2008;
Maholtra & Singh, 2007). This shows that the delivery of efficient and quality
service is facilitated by information technology.
Similarly, Christopher
et al. (2006) indicated that e-banking provides an important channel to sell
products and services of banks and is perceived to be a necessity for banks to
be successful. Therefore, service quality and efficiency in the banking
industry has increased tremendously worldwide in the world due to the
integration of information technology into banking operation. The present study
seeks to investigate the extent to which the e-banking
concept has influence service quality in the service delivery of Ngierian
Commercial Bank.
1.2. STATEMENT
OF THE PROBLEM
In the past, banking was done traditional with
effective service delivery. However, the present day banking has shifted from
just savings services. The reason is that the present day customer requires
efficient, fast and convenient services.
Commercial banks are one of the biggest institutions
in Nigeria in terms of number of customers, number of branches and even
services.
These numerous branches coupled with its
predisposition and the needs of the poor in particular have increased
exponentially its customer base throughout the country.
It appears operational
challenges in the form of delay in service delivery made the bank unattractive
to the Nigerian public. In response to this concern, the bank began automation
in other to remain competitive.
The financial market
has become so competitive in recent times due to largely the liberalisation of
the banking industry. Also due to information communication technology (ICT)
advancement, the bank has ceased the opportunity to automate its processes and
introduce E-banking products.
Thus the study seeks to
investigate the impact of E-banking on services delivered to customers of Nigeria
Commercial banks. Further the study investigated the relationship or impact on
service delivery and customer satisfaction considering the electronic banking
services available in Nigeria Commercial Banks.
1.3. OBJECTIVES
OF THE STUDY
The general purpose of
the study is to investigate the influence of e-banking on service delivery in Nigeria
commercial banks. However, the study specifically seeks to:
1.
Identify the e-electronic banking
services offered by Nigeria banks and its usage by customers
2.
Examine
the impact of e-banking on service delivery;
3.
Identify
customers’ level of
satisfaction
5.
Identify
the benefits to customers for using e- banking services.
1.4.
RESEARCH
QUESTIONS
Based on the
research objectives, the study will test the following questions:
1.
What
are the electronic banking products of Commercial Banks?
2.
Has the introduction of e-banking
significantly affected service delivery of Commercial Banks?
3.
Is
there a correlation between e-banking and service delivery?
4. Given the usage of Electronic
banking services, how satisfied are customers of the bank?
1.5.
STATEMENT OF
HYPOTHESES
In
other to carry out this research, the following hypotheses have been postulated;
The null hypothesis states a
conjecture in a negative form while the alternate states a conjecture in a
positive form (Izedonmi, 2005).
For
the purpose of this study, the hypothesis testing shall be stated thus:
Hypothesis One:
H0:
E-banking has no significant impact on service delivery.
H1:
E-banking has significant impact on service delivery
Hypothesis Two:
H0:
There is not relationship with e-banking and customer’s satisfaction
H1:
There is relationship with e-banking and customer’s satisfaction
1.6.
SIGNIFICANCE
OF THE STUDY
The introduction of ICT
into the banking industry has affected service delivery. Many banks have shifted
from the traditional way of banking and are introducing ICT into every facet of
their service delivery. This work seeks to examine the impact of E-banking on customer service delivery.
In the first place the
study will help the banks identify the perception the consuming public have
about the electronic banking services they are providing. The satisfaction of
the customer is the prime occupation of the bank, thus this study will provide
evidence for the improvement of these services. Also, the study through the
examination of service quality will enable the bank judge its performance in
the light of how customers judge it.
It is further expected
that the study is also of significance to the customer and the business world
in general. The outcome of the study will provide evidence for banks to improve
their service delivery and the performance of customer care units which are
geared towards the satisfaction and comfort of the customer.
Finally, the study will
add to literature in the area of marketing, customer satisfaction and quality
service delivery in the banking industry.
1.7
SCOPE OF THE STUDY
This study is aimed at
investigating the impact of E-banking on Customers Service delivery in Nigeria banking and Zenith Bank Plc,
Maitama Branch, Abuja was used as a model organization.
Because of resource constraints, Zenith
Bank Plc, Maitama Branch, Abuja, was studied. All the department and cadres of employees
will be covered in the study to examine the impact of impact of E-banking on
Customers Service delivery in Nigeria banking.
1.8
LIMITATIONS OF THE STUDY
LIMITATIONS: A lot of obstacles were encountered by the researcher during the
process of putting the project together.
Among
them are:
a) Time Constraints: A limited time frame was allotted to the research
for gathering of data and sourcing research materials. Also, lectures and
preparation for final year exam is one of the limiting factors.
b) Finance: Money was required at all
stages of this study- money to stay connected online, buy books, moving around
to various libraries etc. was one of the major limitations.
c) Confidentiality: The researcher faced the problems of confidentiality. Zenith
Bank Plc, Maitama Branch employees sometimes were not willing to give out
information. Although this problem was
dealt with by the researcher assuring members of staff that the information
given will be used only for academic purposes and was to be treated as
confidential. But be it as it may, the researcher gave the project its best.
1.9 DEFINITION OF TERMS
Internet: Internet is the
connection or network of millions of computers worldwide for the purpose of
sharing of information.
It is a global computer network
providing a variety of information and communication facilities, consisting of
interconnected networks using standardized communication protocols.
Computer:
is an electronic machine that can store, organize and retrieve/locate information,
perform calculations and control other machines.
Intranet:
Intranets are computer networks that are
privately developed and operated and operated within an organization.
Extranets:
Extranet is a collaborative network that uses internet technology to link with
their suppliers, customers or other business that share common goals. Information Technology: is the study or
the use in electronic processes for gathering and strong information and making
it available using computers.
World
Wide Web: is the system on the internet that allows you to
find and use information that is held on computers all over the world.
Computer
Security: has to do with the protection of information from
theft, competing or preservation from availability.
Electronic
Banking: is the situation whereby transfer of payment are
been done via computers.
Automated Teller Machine:
is a machine that enables banks customers to withdraw money from their checking
or savings account by inserting an Automated Teller Machine.
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