IMPACT OF INTERNET BANKING SYSTEM IN NIGERIA BANKING ENVIRONMENT

(A CASE STUDY OF UNION BANK OF NIGERIA 2008-2014)

By

MMUONEKE MARYANN CHIGOZIE

Presented To

Department of Banking and Finance

Abstract

This project work entitled "Impact of internet banking system in Nigeria banking environment" with particular reference to Union Bank of Nigeria. The project is divided into five chapters. The chapter one of the work covers areas such as the introduction, the back ground of the study, statement of the problem, significance of the study, purpose of the study, research questions and definition of terms. Chapter two contains or discusses the literature review and other functions of the topic under study. The chapter three contains. The research design and methodology sources of data collection, population and sample size, methods of investigation, scope and limitation of the study. The chapter four contains the presentation and analysis of data, analysis of the data, and interpretation of result. The chapter five which is the last chapter of the work contains the summary of findings conclusion and recommendation.

TABLE OF CONTENTS

Title page

Approval page i

Dedication ii

Acknowledgement iii

Table of content iv

Abstract v

CHAPTER ONE

10 Introduction 1

11 Background of the study 1

12 Statement of problems 5

13 Objective of the study 6

14 Significant of the study 7

15 Research questions 8

16 Limitation of the study 8

17 Scope of the Study 9

18 Definition of Terms 9

CHAPTER TWO

LITERATURE REVIEW 11

21 Literature Review 11

22 Trends in Newspaper Coverage of Sports in Nigeria 14

23 An overview of Nigeria Sports 22

24 Problems of Nigerian Sports 24

25 Roles of the Press in Tacking the Problem 27

26 Theoretical Framework 29

27 Summary of literature review 32

CHAPTER THREE

RESEARCH METHODOOGY 33

Introduction

31 Research design and Method of study 33

32 Population of the study 33

33 Design of the study 23

34 Sampling techniques 36

35 Instrument for Data collection 36

36 Validation and reliability of Data Source 36

37 Method of Data analysis 37

CHAPTER FOUR

Data Presentation, Analysis and discussion 38

41 Data presentation and analysis 38

42 Discussion of findings 

CHAPTER FIVE

50 SUMMARY, RECOMMENDATION AND CONCLUSION 

51 INTRODUCTION 

52 SUMMARY OF FINDINGS

53 CONCLUSION 

54 RECOMMENDATIONS

REFERENCES 

APPENDIX 

APPENDIX B - QUESTIONNAIRE 

CHAPTER ONE

10 INTRODUCTION

This is the methodology chapter of the chapters, it briefly explains the background of the study statement of the problem, objective of the study, research questions, statement of hypothesis, significance of the study, scope of the study, limitation of the study and definition of terms

11 BACKGROUND OF THE STUDY

In Nigeria, the banking industry witnessed lots of challenges due to increase in the awareness and utilization of banking service The staff strength and branches of most Nigeria banks inspite of this adjustment the banks cannot satisfy the demands Some transactions were based on manual and physical present of their customers

Modern banking system brought relief to the increased volume and complexity of banking operations and services delivery Experimentation with banking system and electronic fund transfer gradually become part of daily transaction as arrangement were made with banks using micro computer to pay some bill owned big department stores and companies by this practices the internet becomes a services delivery mechanism of their customer has equally embraced it

Meanwhile information technology through banking system is radically changing how banking is done all over the world and Nigeria is not an exception The volume and speed of banking system which has created a lot of changes and business opportunities for banks, corporate bnks nad industries Infact Nigeria is believed to be the largest intenet user in West African with about 100,000 internet user as at year 2000

It was estimated to have risen to 350,000 However, the population size in Nigeria calls for accelerated sensitization on the need to embrace information technology as the prove of an enabling environment for it's operation internet is inevitable fo the need to embrace information technology as the prove of an enabling environment for it's operation internet is inevitable for the success of any modern banking institution since it is a competitive tool as at creates room for customer service and reduce the cost of operations, promotes profitability growth and efficient portfolio management

The emergence of a crop to new generation banks coupled with computerization of the Nigeria banking system Remarkably information technology is dynamic continuously coming up in new challenges for human capital development virtually every Nigeria banks claims to be having banking system and on line union bank of Nigeria Plc harbours large amount of information online and of course the marketing distribution costs Indeed banking system has brought a greater advantage for one bank over another depending on it's application, operation and service delivery

12 STATEMENT OF PROBLEMS

Banks since the inception of the use of internet banking system in the rate 1980s have not made their presence felt much

These are as the result of problems associated with the use of banking system includes the following

1 Nigerians poor infrastructures

2 Lack of security

3 Lost of ownership and adoption

4 Poor orientation (Illiteracy)

1 NIGERIANS POOR INFRASTRUCTURES

The first major challenge for the future of banking system is Nigerians poor infrastructure word bank data indicated that there are only 6 computers and 4 mainline telephone line per thousand people Electricity supply is sporadic and inefficient Most importantly, Nigeria has very low internet penetration, with less than one internet services provided for thousand people

2 LACK OF SECURITY

The second challenge is the issue of security: Resent research carried out in Africa shows that companies consider the biggest obstacle of being used the internet for financial transaction to the lack security Many companies are concerned about the integrity of financial information that travels over the internet and would rather accept the ineffiencies and incontinences of a manual system that economy and that issue of trust in such that even cheques are not generally accepted as payment for goods and services rendered Recently, the Nigeria market has witnessed the development of electronic purse products such as value and the smart pay cards designed to move the economy although it is hoped that they will eventually help lessen the importance of cash in our society It is therefore clear that in such an environment, most consumers will be skeptical that a click on computer screen will result in a completed financial transaction

3 COST OF OWNERSHIP AND ADOPTION

Internet banking is very expensive because it entails the acquisition of computers, telecommunication gadgets Banks spirit a lot on these products because of the exchange rate between the Naira and dollar

4 POOR ORIENTATION (ILLITERACY)

So many people are still ignorant of services and benefits available to them that the use of banking system product The benefits include that it is fast, safe and reliable

13 OBJECTIVS OF RESEARCH

These researchers seeks to achieve the following objective

1 To analyze the reasons for opening bank account

2 To find out the reasons for preferring interest banking service

3 To understand the facilities mostly available the respondents and the opinion about this services

4 To measure the satisfaction level of the customer

14 RESEARCH QUESTIONS

This study will try to answer the following research questions drawn from the study the research questions are as follows:

1 How many financial product or services are computerized?

2 Has the use of banking system helped to improve bank operation?

3 Are banks fully or partially computerized?

4 Has the performance of the bank being since introduction of banking system

5 What financial services or product exist in the financial

market?

6 What finance services or product exist in the financial market?

15 STATEMENT OF HYPOTHESIS

HI: Internet Banking increases banks profitability

H0: Internet Banking does not increases banks profitability

16 SIGNIFICANCE OF THE STUDY

It is helped that the finding are recommendation of the study will include:

1 Improved customers services

2 Reliability of transaction

3 Safety

4 Redundancy of storage

1 Improved Customers Services:

Internet banking system will enable banks provide new faster and better products, service or it's customers

2 Reliability of Transactions and safety

Internet banking technology ensures safety of banks dealing with it's customers Under these circumstances, banks must developed security feature for their Internet site, which adequately address their customers concern and must educate their customers

3 REDUNDANCY OF STORAGE

Internet banking system helps to reduce the use of files, which are archive thereby reducing storage space, using of files could lead to loss of vital information about banks customers through mutilation, easy and unauthorized access to files and misplacement of important documents This can be presented through storage of information in diskette, hard disk and bank up of important information

17 SCOPE OF THE STUDY

The scope of this research work will be limited to the Nigeria commercial banks, union bank Plc as a case study

18 LIMITATION OF STUDY

This research will be limited to Nigeria commercial banks Union bank Plc as a case study

19 DEFINITION OF TERMS

1 Internet banking: A quick and easy way to access your account through internet

2 IT: The study and the use of electronic processes and equipment to store information of all kinds, including works, numbers, pictures and abbreviation for information technology

3 WAN: Wide Area Network a system in which computers in different places are connected usually over a large area

4 LAN: Local area network a system in which computer in different places are connected, usually over a large area

5 ON LINE: Controlled by or connected to a computer or to the internet

6 HYPER LINK: A place in electronic documents on computer data base or network

7 GLOBALIZATION: Is a World Trade

8 WEBSITE: Where accompany has information about itself on the web

9 ACCESS: To open a computer file in order to get or add

information

10 SEARCH ENGINE: An act of looking information in a

computer database or network

11 NETWORK: Computing a number of computing and other devices that are connected together so that equipment and information can be shared, the office network allows user to share files and software and to use a central printer LAN

12 DISK: A device for storing information on computer with a magnetic surface that records information received in electronic form