ELECTRONIC BANKING IN NIGERIA CHALLENGES AND PROSPECTS
This study reviewed the concept of electronic banking (e banking), Examined its problem and prospects for Nigeria banks and discussed associated risks. It discoursed that the increased application of e banking worldwide is a function of improvement in information and communications technology (ICT) E banking, it also observed, holds enormous potentials for the banking industry in Nigeria. To achieve these potentials, the project advocated engendering confidence in the e banking mechanism by addressing security concerti power supply.
The business environment is always changing and therefore requires a dynamic strategized adaptation to these changes by businesses that wish to survive. These changes could be social, economic, legal, technological, etc (Acha, 2006: 109; Akpan, 2005: 23). In recent time, quantum improvements and innovations have been recorded in information and communications technology which has had tremendous impact on the way businesses are conducted. information and communication technology has, among other things, changed the nature of businesses, reshaped their competitive environment, reframed market structures, enlarged the size of markets and opened new vistas of risks hitherto unknown to these businesses.
As usual, the banking system has been in the forefront in adopting and incorporating these advances in information and communication technology into its operations. This could be attributed to some perceived advantages which information and communication technology offers users such as increased transaction efficiency, convenience and cost reduction (Ayandele and Adeoye, 2006: 2). Banks in Nigeria had recognised the potentials of information and communication technology since early 1980s when some of them began adopting electronic banking. Since these early days, electronic banking products have, though slowly but steadily, been on the increase in the system. Banks in Nigeria now offer automated teller machine (ATM) services, internet banking services, telephone banking services, on-line banking services, intranet banking services, credit card services, etc.
The obvious tendency of the Nigerian banking is to become more and more electronically driven, making the understanding of this concept and its practice imperative. In the light of the above, the objective of this study is to, among other things, examine the concept of electronic banking with a view to helping both professionals and non-professionals understand them. This project will also discover the challenges of electronic banking in Nigeria in order to help practitioners and regulators navigate our banks away from them. Finally, this study assesses the future problems and prospects of electronic banking in Nigeria.
To do this, the project is divided into five sections starting with this introductory note. The second section addresses the concept of electronic banking and reviews global experience in its practice. In the third section, the hiccups in the use of electronic devices in financial transactions are examined. This examination will consider the implications of electronic banking for the banks and the regulatory/supervisory authorities. The fourth section problems and prospects into the future to discover the way forward for electronic banking in Nigeria. Finally, recommendations are made and conclusion drawn in the fifth section.