Topic: ELECTRONIC BANKING AND THE IMPLICATION ON THE ECONOMIC OF NIGERIAN BANKS (A CASE STUDY OF DIAMOND BANK)

Chapter One

INTRODUCTION

1.1 Background of the Study

1.2 Statement of Problem

As earlier pointed out, there is delay in payment of cheques which lead to the adoption of electronic banking system. 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 Aim and 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 electronic banking system in Nigeria as well as evaluate possible solutions to these problems. The effect of electronic banking on profitability of banks will also be assessed. There are different types of electronic banking used in Nigeria banks; the researcher will like to evaluate the impact of these e-payment systems on banking industry and also assess the impact of electronic banking in Nigeria economy.

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