Earnest n. Joseph Project

8/10/2019 Earnest n. Joseph Project

1/53

1

THE IMPACT OF ELECTRONIC BANKING IN NIGERIANBANKING SYSTEM

(A CASE STUDY OF ZENITH BANK JALINGO PLC)

BY

EARNEST N. JOSEPH

TSU/FAS/EC/10/1024

BEING A PROPPOSAL SUBMITTED TO THE

DEPARTMENT OF ECONOMICS,

FACULTY OF ARTS AND SOCIAL SCIENCES, TARABA STATEUNIVERSITY, JALINGO, TARABA STATE

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THEAWARD OF B.Sc. DEGREEE IN ECONOMICS.

PROJECT SURPERVISOR: MRS SHEMA'U SABO-ADAMU

JULY 2014


2/53

2

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

1.2 Statement of the research problem

1.3 Objective of the study

1.4 Research Questions

1.5 Research Hypothesis

1.6 Significance of the study

1.7 Scope of the study

1.8 Limitation of the study

1.9 Structure of the study

1.10 Definition of terms

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction

2.2 Theoretical framework

2.2.1 Theory of Diffusion of Innovation (DOI)

2.2.2 Unified Theory of Acceptance and Use of Technology (UTAUT)

2.2.3 Technology Acceptance Model (TAM)

2.2.4 Trust, Perceived and Electronic banking

2.2.5 Organisation Reputation

2.3 Central bank of Nigeria guideline on electronic banking in Nigeria


3/53

3

2.4 Electronic banking and organisation performance

2.5 Conceptual framework

2.5.1 Electronic banking and the common banking products

2.6 An overview of electronic banking in Nigeria

2.6.1 Threats of cyber crimes on the Nigerian premises

2.7 Electronic banking profitability and efficiency

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction

3.1 Research Design

3.2 Area of the study

3.3 Population of the study

3.4 sampling techniques

3.5 Sample size

3.6 Sources of Data

3.7 Method of Data collection

3.7.1 Validation of the instrument (Questionnaire)

3.7.2 Reliability of the instrument

3.8 Administration and retrieval of questionnaire

3.9 Method of Data analysis

3.9.1 The qualitative method



4/53

4

3.9.3 Decision rule

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction

4.2 Presentation and Analysis of Data

4.3 Hypothesis testing and interpretation

4.4 Major findings


5/53

5

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Before the advent of modern banking system, banking operation was

manually done which leads to slowdown in settlement of transactions from one

ledger to another which human handles. Counting of money which should have

been done through computers or electronic machine were computed and

counted manually which were not 100% accurate thereby resulting to human

errors. Most banks then, use only one computer in carrying out transactions,

which reduces the nature of banking transactions (Steven, 2002).

Nigeria does not embrace electronic banking early compared to

developed countries of the world. Nigeria adopted electronic banking system in

the early 2000 (Steven, 2002).

The advent of this new 21 st century makes available the link to

information access gradually, introducing new challenges in protecting sensitive

information from one person and making it available to others.

Today's economic activities and businesses in an environment, involves

changes so rapidly because of technological improvement, increased in the

demand for banks to serve their customers electronically. Banks have been in a

leading position to prove technologies in their day-to-day dealings or

transactions to improve their products efficiency and services.

The banking industries today operate in a highly competitive and

challenging globe characterised by these changing conditions and highly

unpredictable economic climate. Information and communication technology

(ICT) is at the centre of this global change curve of electronic banking system in

Nigeria.


6/53


7/53

7

a web presence; this form of banking is referred to as internet banking which is

generally part of electronic banking. The delivery of products by banks on

public domain is an indication of advertisement, which is known as electronic

commerce (e-commerce).

E-commerce is a general term for any type of business or commercial

transactions; it involves the transfer of information across the internet. E-

commerce involves individuals and business organisation exchanging business

ideas and information over electronic media using computers, telephones and

other communication equipments.

E-banking depends on providing customers, partners, and employees with

access to information, in a way that is controlled and secure. Virtually, all

software and hardware developers claim to build secure products, but what

assurance does an e-banking have of a products security? E-banking want a

clear answers to the conflicting security claims they hear from developers or

vendors. How can you be confident about the security built into a product?

Independent security evaluation against internationally established securitycriteria provide assurance of vendors security claims, the growth in the

application and acceptance of internet-driven technologies means that delivering

an enhanced service is more complex and problematic with potential costs and

risks.

1.2 Statement of the Research Problem

There is abundant evidence that most businessmen and customers are

complaining for inefficient services by their branch banks.

The banking sector has depend mainly on manual operations of banking

services not fully electronical such as ATMs, cash transfer and balance enquiry

which are not satisfying the customers fully. All banks need to improve in

electronic banking system in order to curtail the issues of queue outside and


8/53


9/53

9

iii. How has e-banking help in improving the fortune of Zenith bank plc?

iv. Does Zenith bank e-banking guideline complies with the CBN e-banking

guideline policy?

1.5 Research Hypotheses

The hypothesis used on this research is in a null form.

i. HO: E-banking does not have any significant impact in Zenith bank plc

ii. HO: E-banking does not have any prospect on Zenith bank plc

iii. HO: E-banking does not enhance the fortune of Zenith bank plc

iv. HO: Zenith bank e-banking guideline does not comply with the CBN e-

banking guideline.

1.6 Significance of the Study

E-banking provides many advantages for banks and customer's. This

system has made life much easier and banking activities much faster for bothcustomers' and the bankers. The following are the importance of e-banking; It

saves time, provides ways for international banking, provides banking

throughout the year 24/7 days from any place have internet access, provides

well-organized cash management for internet optimization, provides

convenience in terms of capital, labour, time and all the resources needed to

make a transaction. It take advantage of integrated banking services, banks thatmay compete in new markets can get new customers and grow their market

share and ultimately, it provides some security and privacy to customers, by

using state-of-the-art encryption and security technologies.

With the above stated advantages, this study would enable the banks

executives and indeed the policy makers of the banks and other financial


10/53

10

institutions to be aware of e-banking as a product of e-commerce with a view of

making strategic decisions.

It would also provide a way forward to the factors that are hindering the

implementation or execution of e-banking in Zenith bank; prove the success andgrowth associated with implementation of e-banking, highlight the areas of

banking operations that can be enhanced through e-banking and also be an

invaluable tools for students, academics, institutions, corporate managers and

individuals that want to know more about e-banking issues or trends especially

in Nigeria.

1.7 Scope of the Study

In the process of reaching the objective of the study, attention will be

focus on e-banking among other e-commerce implementation. In order to

conduct an empirical investigation into the adoption of e-banking in Nigeria, the

research examined the nature of e-banking operations in Zenith bank plc from

the year 2000 to 2014.

1.8 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 this study.

Information gathering was limited due to parochial self-interest of the

respondent. In addition, the time allocated for this research is limited and some

school activities were in progress while carrying out the research and couplewith the financial constraints, these are the entire barriers to this research.

1.9 Structure of the Study

The researcher has planned the research in such a way that the first

chapter introduces how it was carried out, the background to the topic of the

study and the problems that propels the researcher to carry out the research.

Also, objectives of the study are being stated, the research questions, hypotheses


11/53

11

and significance of the study are being stated. Inclusively, the scope/limitation

and structure of the study and finally, definition of terms

Chapter two basically deals with the literature review of e-banking

services, functions and identifies the benefits of e-banking among other things.

This chapter also analyzes the problems of e-banking and recommendations of

the possible e-banking system solutions.

Chapter three is concerned with the Introduction, Research Design, Area

of the study, Population of the study, sampling techniques, Sample size, Sources

of Data, Method of Data collection, Validation of the instrument

(Questionnaire), Reliability of the instrument, Administration and retrieval of

questionnaire, Method of Data analysis, the qualitative method, the qualitative

method and finally Decision rule. The various methods use in this research to

collect data is stated in the chapter.

Chapter four is more of data presentation, analysis, interpretations and

discussions of findings.

Finally, chapter five contains the summary, conclusion and suggested

recommendations and references.

1.10 Definition of Terms

E-banking: this is the automated delivery of new and traditional banking

products and services directly to customers through personal computer.

Internet banking: This is a product that enables the leverage on the internet

banking system module in-built on the new banking application implemented by

the bank to serve the internet banking needs of the bank's customer's.

Mobile banking: This product offers customers of a bank to access services as

they walk or anywhere they go via their mobile phones. Customers can make

their transactions anywhere such as account balance, transaction enquiries, stop

checks, and other customers' service instructions, balance inquiry, account


12/53

12

verification, bill payment, electronic fund transfer, updates and history,

customer service via mobile, transfer between account etc.

Electronic web collection: This enables the bank partner with universities and

higher institutions of learning to handle admission, registration, examinationmanagements and fess collections, electronic school fees payment, automated

registration, examination and results publication/management.

ATM card: This is an electronic terminal, which give consumers the

opportunity to bank service at any time. To withdraw cash, make deposits or

transfer funds between accounts, a consumer needs an ATM card and a personal

identification number (PIN).

POS: This is a device that allow consumer to pay for retail purchase and

wholesale purchase with a cheque card, a new name for debit card. This card

looks like a credit card but with a significant difference. The money for the

purchase is transferred immediately from your account to the seller or store's

account using POS card.

Check card: This is a new name for debits cards; it can be use instead of cash,

personal checks or credit cards.

Smart card: This is a card embedded with a computer chip, on which financial

health, educational, and security information can be stored and processed.

Payment system: This is a financial system that establishes the means of

transferring cash between suppliers of funds, usually by exchanging debits or

credits between financial institutions.

Western union money transfer (WUMT): This product allowed people with

relatives in Diaspora who may be remitting money home for family up-keep,

project financing, school fees etc.


13/53

13

Transaction alert: This is a process when customers carry out debit or credit

transactions on their accounts and the need to keep track of these transactions

prompted the creation of the alert system by the Zenith bank to notify

customers' of these transactions. The alert system also serves as notification

system to reach out to customers' when necessary information need to be

communicated to them.

Electronic recruitment: This is an online recruitment services 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 or PINs for a prospective

applicants. Simply buy the scratch cards, visit portal and fill the relevant

information.

Electronic money: Monetary value measured in units stored 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 Data Interchange (EDI): This is the transfer of information

between organisations in machine-readable form.


14/53

14

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Introduction

Electronic banking system is a conventional banking system which

started in Nigeria in 1952; (Benjamin 2001). Since then, the industry has

witnessed many regulatory and institutional changes. The industry was being

controlled by at most five out of the 89 banks in existence before the

commencement of the merger and acquisition policy by the central bank of Nigeria (CBN) in the Nigerian economy.

The industry was faced with heavy challenges including the over bearing

impact of fraud and corruption. Part of the moves to resolve these lingering

problems include the banking reforms initiated by the central bank of Nigeria in

2004, which was largely targeted at reducing the number of banks in the

economy and making the emerging banks much stronger and reliable. So far,

the banking consolidation has been a success story with 25 mega banks

emerging after the recapitalization exercise, which ended on 31 st December

2005 in the bid to catch up with the global development and improve the quality

of their service delivery.

Nigerian banks' have no doubt invested much on technology; and have

widely adopted electronic and telecommunication networks for delivering a

wide range of value added products and services. They have in the last few

years transformed from manual to automated systems. Unlike before when they

were using information technology networks, thereby increasing the practice of

inter-banking and inter-branch banking transactions or operations.


15/53

15

2.2 THEORETICAL FRAMEWORK

There are so many theories on e-banking services and their practices but

little has been done about it consistent application and how to keep customers

familiar to electronic financial transactions. This section provides an overviewof information system adoptions, factors determining customers' acceptance of

electronic banking and introduces the concept of customer loyalty. A

framework relating to essential antecedent and a number of moderating

variables are introduced. Literatures on adoption and acceptance of electronic

banking, diffusion of innovation and technology acceptance model are proven

evidences.

2.2.1 Theory of Diffusion of Innovation (DOI)

The theory of diffusion of innovation is a model developed to predict

factors influencing the adoption of information system (Roger, 1995). Literature

in information technology diffusion emphasises the importance of perceived

relative advantage and improved organisational performers as enablers of

adoption of innovation. The greater the perceived relative advantage, the faster

the adoption. The DOI theory posits that potential adopters evaluate an

innovation based on attributes such as relative advantage, compatibility,

complexity, trial ability and observability. All these attributes were found to be

positively related to its rate of adoption.

Relative advantage (RA): refers to an individuals belief that IB is better

than traditional ways of banking and can be related to diverse economical,

social, convenience and satisfaction dimensions of IB (e.g. convenience in the

form of freedom from time and place constraints, efficient management of

finance, a better overview of banking matters, and the speed of conducting

banking activities). Research has identified RA as a major determinant of a

customers int ention to use IB (Tan and Teo, 2000).


16/53

16

Compatibility (CO): is an individuals perception that IB is consistent

and congruent with his or her existing understanding, values, needs and past

experiences. It can also be defined as the fit between IB and the social and

technological infrastructure of an individual. IB adoption involves acquiring a

set of complementary technologies: familiarity with computers, Internet

proficiency, and engagement with computer-mediated communications and

transactions. The influence of one technology on the next generation of that

innovation is expected to be positive especially when the relationship between

the two technologies is compatible (Lee, E., Kwon, K., & Schumann, D. 2005).

In other words, willingness to adopt a new technology is affected by a prior

adoption pattern of related technologies and a greater level of compatibility.

This will allow the new technology to be interpreted in a more familiar context.

Customers perception of compatibility with other electronic banking services

(e.g., home banking, ATMs e-payment, and phone banking) and with the IB

service medium (Internet) has been found to be positively related to their

attitude towards IB and its usage (Puschel, J., Mazzon, J., & Hernandez, J.

2010).

Complexity (CP): refers to the degree to which IB is perceived to be

relatively difficult to comprehend and use. Although CP and CO are closely

related, the distinction can be made that CP has more to do with the actual

competence and skill involved in using IB, whereas CO manifests general

perceptions towards IB use. Previous research suggests CP has a negative effect

on the use of IB (Black, N., Lockett, A., Winklhofer, H. &Ennew, C, 2001).However, in contrast with these findings, Tan and Teo (2000) did not find any

support for the negative influence of CP on intention to adopt IB. Furthermore,

some studies using IDT framework, have replaced CP with the PEOU construct

from the technology acceptance model (Koenig-Lewis et al ., 2010; Puschel et

al ., 2010).


17/53

17

Trial ability (TR): refers to the degree to which an individual perceives

the bank to offer chances for him/her to try e-Banking prior to any decision to

adopt. A limited number of studies have shown that TR is an important factor

for e-Banking adoption as individuals will feel more comfortable with the

technology and are more likely to adopt it if they are offered experimental low-

cost or low-risk trial of e-Banking (Black et al. , 2001). On the other hand,

Puschel et al ., (2010) did not find a relationship between TR and IB adoption.

Observability (OB): is defined as the degree to which an individual can see

the availability of IB to others and can observe others using the service. Rogers

(1995) suggests that the more visible and innovation and its benefits are, the

greater the likelihood of adoption, simply because the gains from adoption will

be more easily recognized. However, most of the studies using IDT framework

have either found OB to be of marginal importance in predicting IB behavior

(Lee et al ., 2004) or they have excluded OB noting that IB is mostly used in

private settings and thus observing individuals performing IB is not only

difficult, but also unacceptable (Keonig-Lewis, N., Palmer, A., & Moll, A,

2010; Tan and Teo, 2000).

IDT has been applied to study IB behaviour either explicitly or implicitly,

through its influence and integration into other theories.

However, very few studies on IB diffusion explicitly measures the five

characteristics as defined by Rogers and most suggest that only RA, CO, and

CP are consistently related to IB adoption (Black et al ., 2001; Koenig-Lewis et

al ., 2010). Black et al ., (2001) pointed out that although IDT is a useful starting point to study IB diffusion, social issues and individual differences need to be

incorporated into this framework to gain a better understanding of the

phenomenon. Furthermore, Rogers did not identify the perceived risk of an

innovation, but subsequently it has been found to be an important factor in

explaining IB diffusion within IDT framework (Black et al ., 2001), while the


18/53

18

perceived complexity of innovations negatively related to its rate of adoption

(Rogers, 1995).

2.2.2 Unified Theory of Acceptance and Use of Technology (UTAUT)

Venkatesh,V., Morris, M., Davis, G., & Davis, F. (2003) developed the

unified model through reviewing eight models which explain ICT usage,

namely TRA, TAM, the motivational model, TPB, a model combining TAM

and TPB, the model of PC utilization, DOI, and the social cognitive theory. The

purpose of UTAUT is to explain a users intentions to use ICT and the

subsequent user behaviour. The model considers four constructs as direct

determinants of user acceptance and usage behaviour, namely performance

expectancy, effort expectancy, social influence, and facilitating conditions.

There are four key moderating variables: gender, age, experience, and

voluntariness of use. The authors stated that UTAUT provides a tool for

managers to assess the likelihood of success of technology introductions and to

understand the drivers of acceptance in order to design interventions, which

include, e.g., training or marketing. UTAUT focuses on users who may be less

willing to adopt and use new systems.

2.2.3 Technological Acceptance Model (TAM)

User's behaviour or attitudes towards an acceptance of a new information

system are important on successful adoption of the information (Davis, 1989).

The quality and effectiveness of a system can only be validated with its level of

user's needs boost satisfaction with the system and is an indicator of the systems

success (Pikkaranen, T., kari, Pikkarainen., Heikki, K., & Seppo, P. 2004).

To improve the delivery of efficient and effective system by designers

and developers, it is important to study the reasons why people decide to use or

not to use an information system. The theory TAM is an information system

theory that models how users come to accept and use a technology. The TAM,

which was proposed by Davis, F.D., Bagozzi, R.P., and Warshaw P., (1989), is

an extension of TRA and TPB. TAM explained the relationship between beliefs


19/53

19

(perceived usefulness and ease of an information system) and user's attitude,

intension and actual usage of the system. The TAM posits that, these two

theoretical constructs; Perceived usefulness (PU) and perceived ease of use

(PEOU) as a fundamental determinants of user's acceptance of an information

system. It also indicated that perceived security and privacy are the main

concerns while using internet banking. Reid and Levy, (2008), Pikkarainen et

al; (2004) and Karjualoto, Heikki; Mattila, Minna; Pento Tapio., (2002) found

that PU and PEOU are the main factors that influence customers' acceptance of

e-banking.

Ayo, C.K., Ekong, O.U., Fatudimu, I.T. and Adebuyi, A.A. (2007)

conducted a survey of e-banking products and services in Nigeria and found

that, all the banks have at least one particular form of electronic service

including e-banking services, internet-banking service and mobile banking.

However, various e-banking systems have been implemented and accepted by

customers', e-payment remains the most widely used to the e-banking solutions

(Adesina & Ayo, 2010).

To improve the investigative power of TAM, several other constructs

have been added to extend it because TAM alone may not sufficiently predict

user's acceptance in a dynamic environment as e-banking. Examples of such

constructs include; perceived risk, perceived security and privacy, perceived

enjoyment, internet connectivity and trust (Adesina & Ayo, 2010; Reid & Levy,

2008; Klopping, 2004). Building on these empirically validated views, the TAMis suitable for determining e-commerce but may not fully determine the users'

intension to adopt a technology. This study will further propose to examine the

customers perception on electronic banking system in Nigeria based on

perceived trust and organisational reputation.


20/53

20

2.2.4 Trust, Perceived and E-banking

Trust is an individual reliance on another party under conditions of

dependence and risk (Curall & Judge, 1995). Risk on the other hand, is a

function of the probability that a hazard will arise and the consequences of thehazard. Individual trust behaviour depends on the nature of the consequences

(Schneider, 1998). In a high consequence environment such as e-banking, risk

avoidance behaviour may arise since reducing risk takes precedence over cost

savings.

The relationship between trust and risk is made clear according to the

works of Mayer, R., Davis, J., and Shoerman, F. (1995); trust is the worthiness

assume risk, while trust behaviour is assumption of risk. Trust in both the bank

merchants and electronic channels are important given that there are some risks

involve in using electronic channels for financial transactions.

Studies have identified lack of trust as one of the main impediments to

customers' usage of online financial applications (Nong, et al, 2009; Flavian, C.,

Guinaliu, M., & Torres, E. 2006; Lecam &Lin, 2005) also found that risk

toward using the internet as one of the factors influencing intensions to adopt

internet banking and e-banking services. The research findings of

Vatanasombut, B., Igbaria, M., Stylianona, A.C and Rodgers, W. (2008) and

Kassin, K.T., Salehi, Mahdi and Zhila, (2006) shows that trust does not only

affect the intent to use e-banking. Trust serves as an antecedent to commitment

of customers to e-banking. (Vatanasombut et al, 2008; Casalo, L.V., Flavian, C.

& Ininahu, M. 2007; Lichtenstein et al, 2006; Rexha, N. Kingshett, R.P.J &

Aro, A.S.S. 2003), found out that trust played a key role in continued use of e-

banking. Furthermore, trust is also noted, as one of the useful tools in reducing

the perceived risk that consumers feel is present in an online environment

(Pavlou, 2003).


21/53

21

2.2.5 Organisation Reputation

All the adoption model like TAM, TPB and TRA were developed for

studying technology adoption in developed countries might be different from

those of developing countries as the challenges are different in various contexts(Molla & Licker, 2005). Considering Technology-Organisation-Environment

(TOE) framework by Tornatzky, (1990); three factors are important for any

technology or innovation adoption diffusion process; technology context,

organisational context and environmental context.

i. Technology context includes both internal and external technologies

applicable for the firm.

ii. Organisational context includes resources (capital and human), organisational

scope and size.

iii. Environmental context includes both the direct and indirect roles of

competitors, industry associations, and the governments. Following this, Tam

and Teo, (2000) adopted organisation reputation as one of the factors fordetermining adoption of internet banking. Their investigation found that

organisation reputation of the bank is most important in choosing an internet

banking. The variety of service offered and familiarity with the bank are also

important criteria. The size of the bank is another consideration.

2.3 Central Bank of Nigeria guideline on E-banking in Nigeria

The central bank of Nigeria (CBN) recognises that electronic banking and

electronics payments services are still at the early stages of development in

Nigeria. Arising from the three major roles of the CBN in the areas of monetary,

financial system stability and payments system oversight, the CBN technical

committee on e-banking has produced a report, which anticipate the likely

impact of the movement towards e-banking and e-payments on the

achievements of CBN's core objectives. Following from the findings and


22/53

22

recommendations of the committee, four categories of guidelines have been

developed as follows:

i. Information and Communication Technology (ICT) standard: this is to

address issues relating to technology solutions deployed, and ensure that theymeet the needs of consumers, the economy and international best practice in the

areas of communication, hardware, software and security. These will include

guideline on Technology and security standards, standards for computer

networks and internet, standards on protocols, standards on application and

system software's, standard on delivery channels (like mobile telephone, ATMs,

internet banking, POS device, international card schemes, switches, internet

service providers, electronic transfer funds, standards on security and privacy,

vendors and outsourcing.

ii. Monetary policy, to address issues relating to how increased usage of internet

banking and e-payments delivery channels would affect the achievements of

CBN's monetary policy objectives.

iii. Legal guideline: this is to address issues on banking regulations and

consumers' right protections.

iv. Regulation and supervisory: this is to address issues that, though peculiar to

payments system in general, may be amplified by the use of electronic media.

The guidelines are expected to inform the future conduct of financial

institutions in electronic and e-payments delivery.

2.4 E-banking and organisation performance

Obviously, there is no doubt about the fact that e-banking contributes

significantly to the success, growth and performance of banks in the Nigerian

banking sector. There have been several literatures developed to buttress and

support the role of e-banking and how it affects banking performance in Nigeria. Some of these literatures will be reviewed in this section.


23/53

23

Financial service industries over time has opened to historic

transformation that can be termed as e-development which is advancing rapidly

in all areas of financial intermediation and financial markets such as e-finance,

e-money, e-banking, e-brokering, e-insurance, e-exchange, and even e-

supervision. The new information technology (IT) is turning into the most

important factor in the future development of banking, influencing banks'

marketing and business strategies. In recent years, the adoption of e-banking

began to occur quite extensively as a channel of distribution for financial

services due to rapid advances in IT and intensive competitive banking markets

(Mahdi & Mehrdad, 2010; Dube, T., Chitura, T., & Langton, R. 2009). The

driving forces behind the rapid transformation of banks are influential changes

in the economic environment include among others innovations in information

technology, innovations in financial products, liberalization and consolidation

of financial markets, deregulation of financial inter-mediation. These factors

make it complicated to design a bank's strategy, which process is threatened by

unforeseen development and changes in the economic environment and

therefore, strategies must be flexible to adjust to these changes. E-banking is

transforming the banking and financial industry in terms of the nature of core

products/services and the way these are packaged, proposed, delivered and

consumed. It is an invaluable and powerful tool driving development,

supporting growth, promoting innovation and enhancing competitiveness

(Gupta, 2008; Kamel, 2005).

According to Christopher, G.C., Mike, L. and Amy, W. (2006), e-banking

has become an important channel to sell the products and services and is

perceived to be necessity in order to stay profitably and successfully. As was

rightly said by Christopher, e-banking has create so many profits to the Nigeria

banking sector even to the economy development of Nigeria. It has increases

our National Income (NI) in terms of gross domestic product (GDP)

considerably.


24/53

24

Mensah, (2010) argued that, the banking industry play a significant and

pivotal role in supporting economic development through efficient financial

services delivery. Nigerian banks have embraced innovation banking

technologies and e-banking services in recent years. If not all, almost have half

of banks have invested remarkably in expanding and improving the information

technology systems and a number of new e-banking services have been

developed. Almost all the strong commercial banks that are operating in Nigeria

have declared e-business as one of the central strategies for the future

development. To certain extend, e-banking acceptance depends heavily on bank

service quality, customer preferences and satisfaction. These banks understand

that the world is fast becoming a global village and customers want to flow with

the trend because the use of e-banking services saves them a lot of time and

strength from visiting brick and mortar bank branches. It makes information and

banking services readily available at their fingertip at any time they require it.

Nothing satisfies them better, and if customers are satisfied and impressed with

services rendered to them ultimately, the performance of the banks in terms of

growth and profitability will most definitely increase.

2.5 CONCEPTUAL FRAMEWORK

The meaning of e-banking varies among researchers partially because e-

banking refers to several types of services via which a bank customer can

request information and carry out most retail banking services via computer,

television, internet or mobile phones.

Burr, (1996) describe e-banking as an electronic connection between the

bank and the customer in order to prepare, manage and control financial

transactions. What Burr is saying here in essence is that, e-banking makes every

work or banking services well organise, manageable and controllable for the

easy access of it various customers when carrying out their day-to-day business

transactions while Leow, Hock Bee, (1999) states that, the term personal


25/53

25

computer banking, online banking, internet banking, telephone banking or

mobile banking refers to a number of ways in which customers can access their

banks without having to be physically present at the banking hall. Therefore, e-

banking covers all these ways of banking business electronically (Mohammed,

2009). Electronic banking is the provision of banking services to the customers

via internet technology (Daniel, 1999).

The advent of internet and what we called e-commerce has created

various avenues for online trading in the whole world today. This has leads

market near to people's residence at a relatively low cost. Obviously, buying of

goods and services has reduces cost, lost of strength in terms of conveying huge

among of money, compared to people visiting the shops themselves to buy

goods and services which would have create room criminal acts.

Adesina and Ayo, (2010) argued that the advent of internet, e-commerce,

communication technology has opened opportunities for many businesses

including the financial institutions. As they right say (Adesina and Ayo), many

people in the society are now employed in the field of information andcommunication technology, viz, software developers, hardware, phone repairs',

web designers, internet service providers etc.

Pikkarainen et al, (2004) mentioned two fundamental reasons underlying

online banking development and penetration.

i. First, the bank gets significant cost savings in their operations through e-

banking services. It has been proven that online banking channel is the cheapest

delivery channel for banking products once established.

ii. Secondly, that bank have reduced their branch networks and downsized the

number of service staff, which has paved the way to self-service channels. This

has been widely appreciated by various customers who felt that branch banking

took much of their time and efforts.


26/53

26

On the other hand, customers enjoy self-service, freedom from time and

place constraints and reduced stress of queuing in the banking premises. In this

sense, time and cost savings as well as freedom from place have been found to

be the main reasons underlying online banking acceptance. It was deduced that

e-banking service delivery are the cheapest, most profitable and wealthiest

delivery channel for banking products (Pikkarainen et al, 2004). However, not

all customers engage in the use of e-banking services. There are multiple

reasons for this;

i. customers need to have an access to the internet in order to utilize some e-

banking facilities such as internet and mobile banking facilities.

ii. customers are afraid of security issues (Ezeoha, 2005).

iii. Non-users often complain that online banking is incomprehensiveble,

difficult to use and has no social dimension which means the lack face-to-face

situation at a branch (Karjaluoto, 2001; Mattila et al, 2003). What these authors

are saying is that, when prompted with a difficult situation you cannot ask the

computer your worrying issues, because it has already been programmed.

2.5.1 E-banking and the common banking products

The use of IT in banking operations is called e-banking. Ovia, (2001)

argued that e-banking is a product of e-commerce in the field of banking and

financial services. In what can be described as Business-to-Consumer (B2C)

which includes; domain for balance enquiry, request for cheque books, balancetransfer instruction, account opening and other forms of traditional banking

services. Banks are also offering e-payment services on behalf of their

customers who shop in different e-shops.

i. Telephone and personal computer banking products

This is a facility that enables customers, via telephone calls, find outabout their position with their bankers merely by dialling the telephone numbers


27/53

27

given to them by the bank. In addition, the computer on the phone will require

special codes given to the customers as a means of identification of authentic

users before they can receive any information they requested for. This is a

service introduced into the banking balance because of computer telephone

technology being made available (Ovia, 2001). The technology banking has a

universe of possible application limited only by the imagination these areas

include: account balance enquiry, account statement printing, intra banks

account-to-account transfer. Download account transactions etc. Telephone and

personal computer (CP) banking brings the bank to the doorsteps of the

customer, it does not require his customers to come to the bank premises,

interactive voice response because a regular feature of operations, text-to-

speech capacity becomes a reality, a uniformed messaging capacity becomes a

permanent feature of the bank.

ii. The card system

This is a unique e-payment type. The smart cards are plastic devices with

embedded integrated circuit being used for settlement of financial obligations.The power of card lies in their sophistication and acceptability to store and

manipulate data and handle multiple applications on one card securely (Amedu,

2005). Depending on the sophistication, it can be used as a credit card, debit

card and ATM card. While the e-card is gaining popularity in Nigeria. The

smart card was introduced into the Nigerian market to eliminate problems of

carrying huge cash about (Amedu, 2005). It is electronically loaded with cashvalue and carried about like credit card and stores information on microchips.

The chips contain 'purse' in which value is held electronically. In addition, it

also contains security programs; these protect transactions between one card

user and the other. It can also be transferred directly to a retailer, merchant or

other outlet to pay for goods and services like cash transaction between

individuals without the needs for banks of the other third parties. In addition,


28/53

28

the system does not require central clearing. In addition, the system allows

transfer of one value to the other hence it operates like cash.

iii. The Automated Teller Machine (ATM)

World widely, the use of paper cash still remains the most widely used

and acceptable means of settling financial transactions and obligations.

However, the proportion of cash transactions is increasingly on the decline,

especially in advanced economies (Amedu, 2005). With the advent of electronic

device, the number of people visiting the bank with a hand cash or pocket cash

or even going to the counter for payment or being served has reduced drastically

because there are ATMs in almost every where outside the banks, schools,

markets, streets, and places of work where a customer can go and make his

withdrawal. This withdrawal of cash is been done through cash dispenser

(machine) and the account will be debited instantly and in the case of cash

transfer, the person's account will be credited immediately.

iv. Cheque

A cheque is a paper based payment instrument, which is issued by the

bank to the customers whose usage is still gaining recognition in Nigeria today.

The focus or reason of this instrument is to ameliorate the number of clearing

days and improve on security arrangement in the course of settlement and

collection. For example, here in Nigeria, the CBN has embarked upon clearing

and Nigeria has signified interest and signed path to this project (Johnson,

2005).

2.6 An overview of e-banking in Nigeria

Before 1998, there was just a few dial up email providers in Nigeria, a

couple of internet service providers (ISP) that operate on slow links. For years,

Nigerian telecommunication (NITEL), the parastatal monopoly dominated the

whole NITEL market. From the conveniences involves, bank offer internet


29/53

29

services so that customers can embark on banking activities like transactions,

ordering of goods and services, transferring of cash online. Today, most of

Nigerian banks offer online banking services.

E-banking is the area of e-commerce that has developed in Nigeria so far.For instance, few banks start the idea of ATM across the country just of recent

in 2003. In terms of technology, Nigeria is far lag behind compared to other

countries in providing technological services to its citizens in general.

Adesina and Ayo, (2010) also said that, the adoption of e-banking service

delivery is fast gaining ground in Nigeria. There are different electronics

services that are introduced in Nigeria such as e-cards, POS, Mobile-banking,

Internet-banking etc. Internet banking services are crucial for long-term survival

of banks in the world of e-commerce (Burnham, 1996).

The market for internet banking has been forecast to grow extremely sharply in

the next few years, affecting the competitive advantage enjoyed by traditional

branch banks (Duclax, 1996; Liao, Shao & Chan 1996).

According to Margaret and Thompson, (200), internet banking would

help present a potential low cost alternative to brick and mortar branch

banking. Nigeria Direct, (2006); Onwuka (2006); as cited in Francis and

Babatunde, (2009) posited that with a population of over 150 million that is

growing at a 3% rate annually, Nigeria has witnessed an increasing demand for

improved service delivery and convenience by consumers.

According to Francis and Babatunde, (2009) as cited in Shittu (2010),

argued that, some banks in Nigeria amongst other facets of the economy, have

taken advantage of the country's ICT infrastructures to improve service to

customers.

E-banking both as a medium of delivery of banking services and as a

strategic tool for business development, has gained wide acceptance


30/53

30

internationally and is fast catching up in Nigeria with more and more banks

entering the trend. Nigeria can said to be threshold of a major banking

revolution with net banking having already been unveiled (Ovia, 2001). Of all

the sectors in the economy of Nigeria, banking industry stands out despite the

recession that is being experiencing in Nigerian economy.

E-banking gives everybody access to his or her own personal account

everywhere they are in the world by using computer connection with internet,

and is particularly advantageous to non-residents Nigerians and high net worth

individuals having multiple bank accounts. The growth potential is, therefore,

immense. Further incentives provided by banks would dissuade customers from

visiting physical branches, and thus get hooked to the convenience of armchair

banking (e-banking). About 90% of banks in the country offer other forms of e-

banking services like telephone banking, ATM, POS, e-fund transfer etc.

Despite all these, the e-banking is yet to take centre stage in Nigeria. This aspect

of banking is still at the basic information stage (Ovia, 2001). This is so despite

the widely acclaimed benefits of internet banking against the traditional branch

banking practice. Part of the reasons identified for the inability of banks in

Nigeria to take full advantage of this mode of banking includes;

Inadequate operational infrastructure like telecommunication and power,

upon which e-banking generally relied. Due to the inability of the banks to

integrate their operations into the internet development process, internet

banking can be said to have less in the existing banking system in the country.

In addition, the fact that internet usage has been abused by cyber-

criminals, this makes its window unattractive for domestic banking operations

and legitimates international operations. These crimes are committed using the

banking sites.


31/53

31

2.6.1 Threat of cyber crimes on the Nigerian premises

The advance fee fraud, which is popularly known as 419, is one of the

most popularly known cyber crime and yahoo boys' emanated into the Nigeria

online service since in 1980s. This is because of country's increase in the aspectof ICT. In the beginning, postal letters were used as key channel for committing

these frauds. However, later in the 1990s, such as telephone and fax from the

late 1990s following the introduction of computers and the internet's. This fraud

became prevalently perpetrated through the use of emails and other internet

means (Amedu, 2005). This issue of fraud has basically defeat the key

ingredients of e-banking which includes confidentiality, integrity and

availability.

Several factors are responsible for the online fraud in the Nigerian

banking system or e-banking system in Nigeria these are:

i. Inordinate tolerance for corruption among Nigerian public and private

agencies

ii. Weakness of the existing financial institutions or legislature to make and

enforce relevant laws on cyber-crimes

iii. Quality of graduates in terms of professional and ethical values

iv. Chronic unemployment among graduates is one of the main reason this

crime rate in Nigeria banking sector

v. The widening gap between the few rich and the over populated poor in the

country, mainly caused by the bad governance causes this fraud on the e-

banking system in Nigeria. In the main, erosion of good value principles and

corruption constitute the greatest cause of rising cyber-crimes among Nigerian

(Domestic e-payment in Nigeria (Amedu, 2005). This, according to

transparency international is worsening on a daily basis. By facts, severalgenerations of Nigeria have been raised in this situation of cyber crime. Hence


32/53

32

what is seen as a dangerous global crime is socially acclaimed and glamorized

in Nigeria.

The above situation constitutes the environment upon which e-banking

has emerged in Nigeria.

2.7 E-banking profitability and efficiency

Commercial banks assaulted by the pressure of globalisation and

competition from the non-banking sector, use new ways to add value to their

services. The question, what drives performance? Is at the top in understanding

superior performance and hence striving for it. Substantial research efforts have

gone into addressing this question, starting from the strategic level and going

down from the operational details. This is based on the opinion of heads of

retail banks not commercial banks established the linkage between marketing,

operations and organising excellence. This finding led to the formulation of the

science management strategy encapsulated in the trail operation capabilities

service quality-performance (CSQ-P) (Forth & Jackson, 1995). The C-SQ-P

trail is, in turn, a focused view of the science profit chain based on the analysis

of successful service organisation.


33/53

33

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter deals with the methods and procedure in carrying out the

study. It describes the techniques and procedures use in conducting the study

and collection of data for the study. It comprises of 3.1 description of the

Research design, 3.2 Area of the study, 3.3 population of the study, 3.4

sampling techniques, 3.5 sampling size, 3.6 sources of data, 3.7 method of datacollection, 3.7.1 validation of the instrument (questionnaire), 3.7.2 reliability of

the instrument, 3.8 administration and retrieval of questionnaire, 3.9 method of

data analysis, 3.9.1 quantitative method, and finally 3.9.2 qualitative method.

3.1 Research design

This is the blueprint of plan, describing the nature and scope of the study

carried out (Ile, 2010). A survey research design will be use for this study.

Survey research is one in which a group of people or items is studied by

collecting and analysing data from only few people considered to be the

representative of the entire population. Survey studies typically employ

questionnaires and interviews to determine the options, attitudes, preferences

and perceptions of persons of interest to the researcher.

3.2 Area of the study

Zenith bank plc Jalingo that is the case study of this research is situated at

28/29, Hamaruwa way, Jalingo Taraba State. The people of the area are

mostly civil servant and few of them are small-scale business owners, while

some engage in farming activities. Various tribes like Mumuye, Kona, Jukun,


34/53

34

Ichen, Fulani, Kuteb, Hausa, Igbo and Yoruba with some other minority ethnic

group as well dwell in the area.

3.3 Population of the study

The population of the study covers the entire staffs of Zenith bank plc

Jalingo and some selected customers, which consist of 100 respondents as the

total population. The population selected was design to obtain adequate and

diverse views pertaining the level and impact of e-banking in Nigerian banking

system. The above population figure is distributed below.

DEPARTMENT NUMBERS OF RESPONDENT

i. Marketing service 8

ii. Fund Transfer 4

iii. Administrative 2

iv. Cash and Teller 20

v. Transport service 12

vi. Customers service 3

vii. Internal control and Audit 1

vii. Zenith bank Customers 25

Total 75

Source: field survey, 2014

3.4 Sampling Techniques

This refers to the method used in drawing the samples. A purposive

sampling technique was employed in this research and questionnaire was

administered to the respondents. A purposive sampling technique was used

because the entire population is convenient and manageable for the study. This

selection includes both male and female staff of Zenith bank plc Jalingo with

some few customers.


35/53

35

3.5 Sample size

The sample size for this research was randomly selected from the total

population of Zenith bank plc and some few selected customers. The sample

size consists of the entire 50 employees of Zenith bank plc Jalingo and 25customers. For conducting smooth investigation, the sample size consists of 75

respondents.

3.6 Source of data

This research employed both primary and secondary data in the study.

The primary sources of data is through personal interview and the use of

questionnaire, while the secondary data were collected by the researcher from

CBN e-banking guidelines, annual report of Zenith bank plc, CBN annual report

and some text books.

3.7 Method of data collection

The data for this research was collected using questionnaire and personal

interview. In order to get diverse views of the respondents concerning the

impact of e-banking; two sets of questionnaire were issued out.

One was issued to the customers and the other one to the bank's staff.

Both the questionnaires were divided into two sections; section 'A' and 'B' .

Section A elicits responses on personal data of the respondents while section B

provides answers to the research questions. The questionnaire has a 5-points

likert scale and Yes/No questions as follows:

Strongly Agree (SA) =5

Agree (A) =4

Undecided (U) =3

Disagreed (D) =2


36/53

36

Strongly Disagreed (SD) =1

Yes = 1

No = 2

3.7.1 Validation of the instrument (Questionnaire)

The instrument was subjected to face and content validity. The face and

content validity of the instrument was ascertained by the corrections, which

were effected on the instrument by the project supervisor and two experts from

Zenith bank plc Jalingo. After the experts input, the researcher was forwarded to

the project supervisor who perused it and make final corrections.

3.7.2 Reliability of the instrument

This is the stability, dependability and predictability of the measuring

instruments. To establish the reliability of the instruments, the test-re-test

method was adopted to test the relationship between the dependent and the

independent variables. 35 copies of the questionnaire were distributed to the

selected respondents from different department of the bank and their customers.

The result was analysed using Chi-square statistics with SPSS software.

3.8 Administration and retrieval of questionnaire

The questionnaire was design and administered personally by the

researcher to all the staffs of Zenith bank plc Jalingo and few selected

customers. The questionnaire was distributed; and after a week, it was retrieved

by the researcher.

3.9 Method of Data Analysis

This part of the research study is aimed at enlightening the prospective

user of the research on how the data was collected and classified into various

responses, analysed and finally interpreted. For the sake of simplicity and


37/53

37

clarity, the combinations of both quantitative and qualitative methods of data

analysis were employed in this research.

3.9.1 The quantitative method

The quantitative method is express using simple percentages. In this case,

scores under each response mode was counted and converted into figures and

then, the figures were interpreted into percentages under each table.


The analytical tool that was used in this research was Chi-square and with

the use of SPSS for the analysis. The chi-square was chosen to measure thedegree of relationship between the information gather from the respondents and

the banking operation. This method (chi-square) was also employed because of

its ability to measure the strength and the relationship between the two variables

i.e. dependent and the independent variables, and to know whether a positive or

a negative correlation exists between e-banking and the Zenith bank

performances.

3.9.3 Decision rule

The decision rule guiding this research is base on the conventional setting

that, if Chi-square (X 2) calculated is greater than the Chi-square tabulated (X 2tab

> X 2tab ) at 5% level of significance, the null hypothesis may be rejected in

favour of alternative hypothesis, otherwise, it might be accepted.

The decision rule can also be determined using Asymptote significance

(p) value. If the asymptote significance level is greater than the usual threshold

value of 0.05% at certain degree of freedom, there is no any statistical evidence

to reject the null hypothesis. On the other hand, if the asymptote significance

value is less than the usual threshold value of 0.05% at certain degree of

freedom, the null hypothesis might be rejected in favour of the alternativehypothesis.


38/53

38

CHAPTER FOUR

PRESENTATION OF DATA AND ANALYSIS

4.0 Introduction

In this chapter an attempt is made to answer the questions that were

raised in chapter one. It also deals with the presentation of data collected, its

analysis and results derived thereof. The data presentation is centred on 73

respondents.

The questionnaire were categorise into two: one was administered to the

staff of Zenith bank Jalingo plc which consist of 50 questionnaire, after it wasfilled by the respondents and collected back, they were screened and sorted out

by the researcher. Out of the 50 questionnaire issued out to the bank, 2 were not

filled correctly and 48 were returned successively.

The second category of the questionnaire was administered to the

customers of Zenith bank plc Jalingo, which consist of 25 questionnaires, all

were filled and return successively without any missing.

This shows that 75 questionnaire were administered. The detail of the

returned questionnaire shows that, out of 75 that were sent out, 73 were

completed and returned, while 1 was not return and the other 1 was rejected by

the researcher because it was not properly filled. Hence, 97% of the respondents

returned their questionnaire.

4.1 Data presentation and Analysis

4.1.1 CUSTOMERS RESPONSES

4.1.2 Sex of the respondent

The researcher was able to meet the respondent and collect data about their

various genders.


39/53

39

The table below shows the various Sex of the respondent

Table 4.1 Sex of the respondent

Sex of the Respondents

Frequency Percent Valid Percent CumulativePercent

Valid

Male 16 64.0 64.0 64.0

Female 9 36.0 36.0 100.0

Total 25 100.0 100.0

Source: Field survey, 2014

Table 4.1 shows the number of respondents by sex. The data collected indicated

that 64% of the respondents are Male while 36% are Female, it will be conclude

that the majority of those that answer the customer's questionnaire are Male.

4.1.3 Marital Status of the Respondent

What is the marital status of the respondents?

Table 4.2 Marital status of the Respondents


Valid

Married 9 36.0 36.0 36.0

Single 16 64.0 64.0 100.0

Total 25 100.0 100.0


Table 4.2 shows the marital status of the respondents. 64% of the respondents

are single while 36% are married; this shows that, the majority of the

respondents are single.


40/53

40

4.1.4 Qualification of respondents

The researcher was able to meet with the respondents to know of their level of

academic qualification.

The table below shows their academic qualifications.

Table 4.3 Qualification of the Respondents

Academic qualification of the Respondents

Alternatives Frequency Percent Valid Percent CumulativePercent

Valid

NCE 2 8.0 8.0 8.0

ND 4 16.0 16.0 24.0

B.Sc 9 36.0 36.0 60.0

M.Sc 2 8.0 8.0 68.0

Ph.D 2 8.0 8.0 76.0

HND 3 12.0 12.0 88.0

SSCE 3 12.0 12.0 100.0

Total 25 100.0 100.0


The table 4.3 shows the number of respondents by qualification. The data

collected shows that 8% are NCE holders, M.Sc, Ph.D holders, 12% are HND

and SSCE holders, 16% are National Diploma (ND) holders, while 36% are

B.Sc holders. Therefore, it could be inferred that majority of the Customers that

attained to this questionnaire are B.Sc holders.

4.1.5 Customers Satisfaction

The researcher was able to ask the customers about their satisfaction with E

banking activities.


41/53

41

Table 4.4 Customers Satisfactions

The introduction of E-banking has improved customers satisfaction

Frequency Percent ValidPercent

CumulativePercent

Valid

StronglyDisagree 1 4.0 4.0 4.0

Disagree 2 8.0 8.0 12.0

Ambivalent 1 4.0 4.0 16.0

Agree 7 28.0 28.0 44.0

Strongly Agree 14 56.0 56.0 100.0

Total 25 100.0 100.0


On the assessment of customers' satisfaction with the advent of electronic

banking, 14% of the respondents were of the opinion that they strongly agree,

7% agree, 4% were of the ambivalent and strongly disagree opinion, while 8%

were disagree. This shows that majority of the respondents strongly agree that,

the advent of e banking has improved customers satisfactions.

4.1.6 Do you face some problems with E-banking?

Table 4.5 Frequency Distribution


Yes

Valid No

Total

12

13

25

48.0

52.0

100.0

48.0

52.0

100.0

48.0

100.0



42/53


43/53

43

that, majority of the respondents agree that the electronic banking services are

very good compared to that of traditional banking system.

4.2 BANK RESPONSES

4.2.1 Sex of the respondents

The researcher was able to ask the respondents on their differences in sex.

Frequency Percent Valid Percent Cumulative

Percent

Male

Valid Female

Total

39

9

48

81.3

18.8

100.0

81.3

18.8

100.0

81.3

100.0


From the above table, 81.3% of the respondents are male while 18% are female.

This shows that the majority of the respondents are male.

4.2.2 Marital status of the respondent

The respondents were asked of their marital status and are presented below in a

table.

Table 4.8 Marital status of the respondents

Marital status of the Respondents


Percent

Valid

Married 29 60.4 60.4 60.4

Single 19 39.6 39.6 100.0

Total 48 100.0 100.0


44/53

44


The above table shows that 60.4% of the respondents are married while only

39.6% of them are single.

4.2.2 Qualification of the Respondents

The researcher was able to meet the respondents to know their level of

qualification. The table below shows their different qualifications.

Table 4.9 Academic qualification of the Respondents


Percent

Valid

National

Diploma10 20.8 20.8 20.8

B.Sc 22 45.8 45.8 66.7

M.Sc 4 8.3 8.3 75.0

Ph.D 3 6.3 6.3 81.3

HND 4 8.3 8.3 89.6

SSCE 5 10.4 10.4 100.0

Total 48 100.0 100.0


Table 4.9 shows the number of respondents' qualifications. The data collected

indicated that 54.8% of the respondents are B.Sc holders, 20.8% are diploma

holders, 10.4% are SSCE holders, 8.3% are M.Sc and HND holders while 6.3%

are Ph.D holders. This shows the majority of the bank workers are B.Sc holders.


45/53

45

4.2.3 Working Experience

The researcher was able to meet with the different respondents to know their

years of experience in the banking system.

Table 4.10 Years of experience with Zenith bank plc

Respondent years of Experience with Banking system

Frequency Percent Valid

Percent

Cumulative

Percent

Valid

1-5 Years 26 54.2 54.2 54.2

6-10 Years 12 25.0 25.0 79.2

11-15 Years 3 6.3 6.3 85.4

16-20 Years 2 4.2 4.2 89.6

21 Years and

Above 5 10.4 10.4 100.0

Total 48 100.0 100.0


Table 4.10 shows how long the respondents have been working with the bank.

From the data collected, it could be seen that 54.2% have spent between 1-5

years working with the bank, while 25.0% spent between 6-10 years, 6.3%

spent 11-15 years, 4.2% spent 16-20 years and 10.4% spent 21 years and above.

In view of this fact, it could be deduced from the analysed data in table 4.10 that

54.2% of the respondents have spent appreciable period of 5 years and above

working in the bank.


46/53

46

4.2.4 Cadre of Respondents

Different cadre of the respondents both the junior officers and the senior credit

officers were ascertained and are shown in table 4.11 below


Table 4.11 shows that 60.4% of the respondents are senior credit officer with

the bank while 39.6% of are junior credit officers. Therefore, the bank senior

credit officers are more than the junior ones.

Cadre of the Respondents

Frequency Percent Valid

Percent

Cumulative

Percent

Valid

Senior CreditOfficer

29 60.4 60.4 60.4

Junior Credit

Officer19 39.6 39.6 100.0

Total 48 100.0 100.0


47/53

47

4.2.5 Threat to electronic banking

The respondents were asked of the threat involves in e-banking and their

responses were presented below.

Table 4.12 The incidence of threats in Zenith Bank E-banking

system


Percent

Valid

High 3 6.3 6.3 6.3

Low 32 66.7 66.7 72.9

Moderate 13 27.1 27.1 100.0

Total 48 100.0 100.0


Table 4.12 shows that, 66.7% of the respondents are of the opinion that the

threats in Zenith bank are low, 27.1% says the threat is moderate while 6.3%

agree that the threat are high. This shows that, the majority of the respondents

opined that the threat in the banking system is low.


48/53

48

4.2.6 Performance of Zenith bank

Table 4.13 The overall performance of Zenith bank E-banking system


Percent

Valid

Excellent 15 31.3 31.3 31.3

Very Good 21 43.8 43.8 75.0

Fair 11 22.9 22.9 97.9

Poor 1 2.1 2.1 100.0

Total 48 100.0 100.0


Table 4.14 shows that 43.8% are of the view that, the overall performance of

Zenith bank is very good, 31.3% are of the opinion that the performance is

excellent, 22.9% are of the idea that, the performance is fair while 2.1% says

that the performances is poor. Therefore, the very good opinion having the

higher percentage this shows that, zenith bank overall performance is very

good.


49/53

49

4.3 TESTING OF HYPOTHESIS

4.3.1 Hypothesis one

Electronic banking does not have any significant impact in Zenith bank plc.

Table 4.14 Chi-square table on the impact of electronic banking

E-banking has impact on Zenith bank transaction

Observed N Expected N Residual

Strongly Disagree

Disagreed

AmbivalentAgreed

Strongly Agreed

Total

1

1

111

34

48

9.6

9.6

9.69.6

9.6

-8.6

-8.6

-8.61.4

24.4

Chi-square test statistics (SPSS output)

E-banking hasimpact on

Zenith banktransaction

Chi-Square 85.333 a

Df 4

Asymp. Sig. .000

Monte Carlo Sig.

Sig. .000

.05% Confidence IntervalLower Bound .000

Upper Bound .000

Source: Computed from data, 2014

a. 0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 9.6.


50/53

50

b. Based on 48 sampled tables with starting seed 2000000.

From the above table; it can be observed that, the chi-square statistic (X 2)

was calculated to be 85.333 a at 4 degree of freedom. The asymptote significance

value associated with the data is .000%, which is less than the usual threshold

value of 0.05%. Hence, the null hypothesis might be rejected in favour of the

alternative hypothesis which state that "electronic banking has significant

impact in zenith bank plc" is accepted.

4.3.2 Hypothesis two

E-banking does not have any prospect in Zenith bank plc

Table 4.15 Prospect of electronic banking in Zenith bank plc


Agree 20 24.0 -4.0

Strongly Agree 28 24.0 4.0

Total 48

Source: computed from data, 2014

Ch-square test statistics for the prospect of electronic banking

There is the prospects of electronic banking in Zenith bank plc

Chi-square

Df

Asymp. Sig

1.333 a

1

.248

a. 0 cells (0.0%) have expected frequencies less than 5.


From the above table, the chi-square statistics calculated for 1 degree of

freedom is 1.333. Additionally, it indicates that the asymptote significance

value is 0.248% which is greater than usual threshold value of 0.05% at 1


51/53

51

degree of freedom (0.248>0.05) . This suggests that the null hypothesis might be

rejected in the favour of alternatives hypothesis, which state that "there is the

prospect of electronic banking in Zenith bank plc" is accepted.

4.3.3 Hypothesis Three

E-banking does not enhance the fortune of Zenith bank plc

Table 4.16 E-banking does not enhance the fortune of Zenith bank plc

E-banking enhance the fortune of Zenith bank


Ambivalent 2 16.0 -14.0

Agree 18 16.0 2.0


Total 48

Chi-square test Statistics on how e-banking enhance the fortune of Zenithbank plc

E-banking enhance the fortune of Zenith bank

Chi-Square 21.500 a

Df 2

Asymp. Sig. .000

Source: computation from data, 2014

a. 0 cells (0.0%) have expected frequencies less than 5.


From the above table 4.16, the chi-square calculated is 21.500 at 2 degree offreedom. Since the asymptote significance level of 0.000% is less than the usual


52/53

52

threshold of 0.05% significance level, the null hypothesis might be rejected in

the favour of alternatives hypothesis which state that "E-banking enhances the

fortune of zenith bank plc" is accepted.

4.3.4 Hypothesis Four

Zenith bank e-banking guideline does not comply with the CBN e-banking

guideline.

Table 4.17 Frequency

Zenith bank e-banking guidelines comply with CBN e-banking guideline

Observed N Expected N ResidualAmbivalent 1 16.0 -15.0

Agree 16 16.0 .0


Total 48

Chi-square test Statistics

Zenith bank e-banking guidelines complywith CBN e-banking guideline

Chi-Square 28.125 a

Df 2

Asymp. Sig. .000

Source: computation from data, 2014

a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cellfrequency is 16.0.

b. Based on 48 sampled tables with starting seed 299883525.

From table 4.17 above, the chi-square calculated is 28.125 a at 2 degree of

freedom. The asymptote significance value associated with the data above is


53/53

.000, which is less than the usual threshold of 0.05%. Hence, there is no any

statistical evidence to accept the null hypothesis; therefore, alternative

hypothesis is accepted which states the zenith bank electronic banking

guidelines comply with CBN electronic banking guidelines.

4.4 Discussion of Findings

From the above analysis, it can be seen that in hypothesis one, respondent

strongly agree that electronic banking has significant impact on the performance

of zenith bank plc. In hypothesis two, it can also be observed that respondents

strongly agree that base on the current trends; there is the prospect of electronic

banking in zenith bank plc. In addition, in hypothesis three, respondents were

also of the opinion that, the advent of electronic banking has enhanced the

fortune of zenith bank plc. Finally, hypothesis four shows that respondents

strongly agree that zenith bank electronic banking guidelines comply with CBN

electronic banking guidelines.

Documents

Earnest n. Joseph Project