CHAPTER ONE

1.0 INTRODUCTION
The new Macmillan brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some eye while making it available to others. Today's business environment is extremely dynamic and experience rapid change as a result of technological improvement, increase awareness and demand Banks to serve their customers electronically. Banks have their traditionally been in the fore front of harnessing technology to improve their product and services. The banking industry of 21th century operate in a complain and competitive environment characterized by this changing condition and highly unpredictable economic climate. Information and communication technology (ICT) is at the center of this global change curve of electronic banking system in Nigeria today. (Stevens 2002) assert that they have over the time, been using electronic and telecommunicating network for delivering a wide range of value added products and services, managers in banking industry in Nigerian cannot ignore information system because the play the critical impart in current banking system, they point out that the entire cash flow of most fortune banks are linked to information system. The application of information and communication technology, concepts, Techniques, polities and implementation strategies to Banking services becomes a subject of fundamental importance concerns to all banks and indeed competitive banking.

1.1 BACKGROUND OF THE STUDY
The advancement of technology has played important role in improving service delivering stands in the banking industry in its simplest home, automated teller machines (ATMS) and deposit machines now allow customers to carry banking transactions where banking hours.
With online banking individuals can check their account balance and made payment without having to go the bank hall. This is gradually creating cashless society where customers no longer have to pay for all their purchases with hand cash. Example bank customers call pay for airline ticket and subscribe to initial public offerings by transferring the money directly from their account or pay for various goods and services by electric transfers of credit to the sellers account. As most people now own mobile phones, banks have also introduced mobile banking to cater for customers who are always on the move. Mobile banking allows individual to check their account balances and make fund transfer using their mobile phones. this was popularized by first Atlantic Bank now first inland bank through its flash me cash product, customers can also recharge their mobile phone via SMS, E-Banking has made Banking transaction easier around the world and it is fast gaining acceptance in Nigeria, the delivery channel today in Nigeria electronic banking are quite numerous that it is mentioned here. Automatic teller machines (ATM) point of sales (POS), telephone banking smart card, internet banking etc. Personal computer in banking industry was first introduced into Nigeria by society general bank as the popular pc easy access to the internet is increasingly used by banks as a channel of delivering the products and services to the numerous customers.
Virtually almost all banks in Nigeria have a web presences, this form of banking is referred to as internet banking which is generally part of Electronic Banking. The delivery of products by banks no public domain is an indication advertisement which is kwon as E-commerce. Electronic commerce on the other hand is a general term for any type of business or commercial transaction it involves the transfer of information across the internet, e-commerce involves individual and business organization exchanging business information and instruction over electronic media using computers, telephones, and other communication technology. This cover a range of different type of business from consumers to retail product, however, electronic company as it is, is a product of e-commerce in the field of banking and financial service. It offers different online service like balance enquiry, request from check book, recording stop payment instructions, balance transfer instructions, account old column and other form of traditional banking services. the internet allows businesses to used information more effectively by allowing customers suppliers, employees and partners to get across to the business information they need, when they need it, these internet enable service all translate to reduce cost, this are less overhead, grater economic of skill, and increase efficiency. E-banking greatest promise is timely more valuable information accessible to more people, at reduced cost of information access. With the change in business operations as a result of internet era, Security concerns more from computer labs to the point page of newspapers. The promise of e-banking is affect by the security challenges associated with the disintermediation of data access. One security challenges result from cutting out the middlemen, which too often cut out the information security the middlemen provider. Another is the expansion of the user community from a small group of known, vetted users accessing data from the internet, to thousands of users accessing data from the internet.
Application service providers (ASP)and exchange offer especially stringent and sometimes contradictory to requirements of per user and peer customer security, while allowing secure data sharing among communities of interest e-banking depends on  providing customers, partners, and employees with access to information, in a way that is controlled and secure. Technology must provide security to meet the changes encountered by e-banking. Virtually all software and hardware vendors claim to build secure products, but what assurance does an e-banking have for a product security? E-banking want a clear answer to the conflicting security claims they hear from vendors. How can you be confident about the security built into a product? Independent, security evaluation against internationally established security criteria provide assurance of vendors security claims.
Customer’s expectation, in terms of service delivery and other key factors have increased grammatically in recent years, as a result of the promise and delivery of the internet. Even after the dot.com crash these expectations linger. The growth in the application and acceptance of internet driven technologies means that delivering an enhanced services is more achievable than ever before, however, it is also move complex and fraught with potential costs and risk. The internet introduces customers to a new perception of business time as always available and demanding an urgent and rapid response. The challenge for managers is to reconcile their business and their own personal perceptions of time. The internet has decisively shifted the balance of power to the customer.
The internet is revolutionizing sales techniques and perceptions of leading brands and the internet is intensifying competition in all its forms. Banking is continuing to use the internet to add values for their customer’s buts it in order for this to work effectively, maximizing opportunities, reducing, and ricks and overcoming problems an e-banking is required as an impact.
The growth of the web and internet as new channels the growth in their use by customers and the floor of companies entering the market, present a series of key challenging to companies. It is essay and cheep to put up a website.
But to create an environment delivering effective service on the web to a significant proportion of your customer-base requires an e-banking strategy.
Electronic banking offers different online services like balance enquiry, requires for cheque books, recording stop payment instructions, balance transfer instructions, account opening and other forms of transactional banking services.
1.2     STATEMENT OF THE PROBLEM
In Nigeria, customers of banks today are no longer about safety of their funds and increase returns on their investments only. Customers demand efficient past and convenient services. Customers want a bank that will offer them service that will meet their particular needs (Personalized banking) and support their business goals for instance, businessmen want to travel without carrying out cash for security reasons, they want to be able to check their balance online, fund out of a cheque is cleared, transfer funds among accounts and even want to download transaction records into their own computer at work or home. Customers want a preferential treatment and full attention their choice bank. All these are only achievable through electronic banking.
In line with rendering qualities and acceptable services that most banks in Nigeria are gearing toward and investing large sum of money in information and communication technology expectedly such banks services have been improved. United bank for Africa (UBA), Zennith bank, GTB Bank (to mention but a few) are in the forefront in the use of IT in rendering service to their customers (The Guardian newspapers April 118, 2008 pages 21), It also seeks the challenges involved in electronic banking and  best industrial practice and the approach of implementing  them in Nigeria banking system.
1.3     OBJECTIVE OF THE STUDY
The main objectives of this research work is to examine the impact of electronic banking in Nigeria in banking system on how difference channels could enhance the delivery of customers and retail products, and also how banks choose to support their electronic banking component/services internally, such as internet service provider, internet banking software, core banking vendor, managed security service provider, bill payment provider, credit business and credit scoring company. E-banking systems rely on a number of common components or processes specifically, the study objectives are:

1.4            SIGNIFICANCE OF THE STUDY
The study would enable the bank executive and indeed the policy makers of the banks and financial institutions to be aware of electronic banking as a product of electronic commerce with a view to making strategic decisions. The research is equally significant because it would provide answers to factors militating against the implementation of electronic banking in union bank of Nigeria plc, prove the success and growth associated with implementation of electronic banking highlighting the areas of banking operations that can be enhanced via electronic banking and also be an invaluable tools for students, academicians, institutions, corporate managers and individuals that would want to know  about electronic banking trends especially in Nigeria.     
1.5       SCOPE OF THE STUDY
In pursuance of the objectives of the study, attention shall be focused on electronic banking among other electronic commerce implementation. In order to conduct an empirical investigation into the adoption of electronic banking in Nigeria and will also examine the nature of electronic banking operations in union Bank of Nigeria plc from 2010-2011.
1.6               LIMITATION OF THE STUDY
In view of the technicalities involved, it would be unrealistic to assume that all necessary facts have been gathered in the process of the study.
Information gathered is limited to that access and made available by the respondents and also those gathered from end users. However, the impacts of this limitation will be reduced to the barest minimum.
1.7              DEFINITION OF RELATED TERMS
Access product: Products that allow consumers to access traditional payment instrument electronically, generally from remote locations.
ATM card: UB debit card is a chip device consisting of current element on single silicon. The card is a complex circuit that contains the complete arithmetic and logic unit of computers. It provided for union bank of Nigeria plc consumers to perform balance inquiring, mini statement and cash withdrawal as well as transfers through the use of Automated Teller machines. This green card can also be used for internet/online and POS transactions.
Chip Card: Also known as an integrated circuit (IC) card. A card containing one or more computers chips or integrated circuits for identification, data storage of special purpose processing used to validate personal identification numbers authorize purchases, verify account balances and store personal records.
Electronic data interchange (EDI): The transfer of information between organizations in machine readable form.
Electronic money: Monetary value measured in currency units in electronic form on an electronic device in the consumer’s possession. This electronic value can be purchased and held on the device until reduced through purchase or transfer.
Electronic recruitment: This is an online recruitment service to all kinds and categories of clients such as Army, Navy, Police and the paramilitary through  customizable web portals and the use of scratch cards/pins for a prospective application simply buy the scratch cards, visit portal and fill relevant information. Information collected about applicants could then be analyzed appropriately using as what are capabilities and filtered according to several criteria to be set by client. Short listed applicants could then be contacted automatically via email or SMS or both.
Electronic web collection: This enable the bank partner with unworthy or higher institutions of learning to handle, admission, registration, examination and results publications management.
Internet banking: This is a product that enables the bank leverage on the internet. Banking system module in built on the new banking application (Banks) implemented by the bank to serve the internet banking needs of the banks customers.
Mobile banking: This is a product offers customers of a bank to access service as you go.
Customers can make their transactions anywhere such as account balance, transaction enquiry, stop  check and other customers service instructions, balance inquiry, accounts verification, bill payment, electronic fund transfer, account balances, updates and history, customers service via mobile, transfer between accounts etc.
Payment system: A financial system that establishes that means for transferring money between suppliers and of fund, usually by exchanging debits or credits between financial institutions.   
Point of sales (POS): A point of sale machine is the payment device that allows credit/debit cardholders make payments at sales/purchase outlets. It allows customers to perform the following services retail/payments, cashless payment; cash back balance inquiry, airtime vending loyalty redemption, printing mini-statement etc.
Smart card: A card with a computer chip embedded on which financial health, education and security information can be stored and processed.
Transaction alert: Our customers carry out debit/credit transactions on their accounts and the need to keep tract of these transactions prompted the creation of the alert system by the bank to notifying customers of those transactions. The alert system also serves as notification system to reach out to customers when necessary information need to be communicated.

Western union money transfer (WUMT): Western union money transfer is a product that allows people with relatives in Diaspora who may be remitting money home for family keep, project financing school fees, etc. Nigerian communities is known for having their siblings gainfully employed in other parts of the world Are idle markets for western Union money Transfers.  

 

 

 

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