CHAPTER ONE

1.0     INTRODUCTION

1.1     BBACKGROUND OF THE STUY

The advent of financial innovation such as credit cards, smart  cards,  Electronic transfers in the payment system and more recently, the lunching of INTERNET BANKING have transformed the world into a Global Village Linked with Electronic  impulses.

The concept of Electronic money was introduced in 1996 when the central  Bank of Nigeria gave approved to ALLSTATES TRUST   BANK LIMITED to offer a financial  product Known as the ESCA, smart card, an Electronic purse.

Subsequently, DIAMOND BANK LIMITED Introduced a parallel product known  as Diamond pay card. However, the  smart card  scheme received a boost in February 1998 when a consortium of 19 licensed banks Floated  a smart  card company, Smart card Nigeria PLC with a mandate  to produce a manage cards issued by the member banks of the consortium. Another consortium of more than 20 banks under the in spices of  Gem  card scheme in year 2000.

These innovations, which  are still at a relatively early stage of development have the potential to challenge the predominant  role of cash for making  small value payments and makes retied transactions easier and cheaper for consumer and merchants who are current account holders. However, they also raise a number of policy issues because of the possible implication for central Bank monetary policy, consumer system etc. 

In response to information technology developments in the domestic financial  section the central bank of Nigeria commissioned an information  technology  strategy study in 1991 with the objective of promoting the efficient performance of its statutory duties.

The project is being implemented in phases and both the licensed banks and the  Relatory   Authorities have demonstrated  their appreciation of benefits derived from the use  of information technology.

In view of for foregoing, the central Bank Governors of  the group of Ten(a-10) countries Commissioned a series of studies on specific issues   related to electronic  money in November 1995.

1.2     STATEMENT OF PROBLEM

          This research work is to address itself on the task to determine the impact of Electronic banking in Nigerian

a.     In this era of expanded  information  Technology activities around Nigeria Electronic  banking is more than ever needed

b.     Inadequate information Technology awareness.

c.      Slow- paced information and communication Technology growth in Nigeria  due to inadequate funding by government and its agencies.

d.     Inactive regulatory bodies to  provide needed logistics and technical support.

e.      Lack of sufficient skilled manpower.

f.       The confidentiality of sensitive information transmitted on public digital networks-raises a lot of fees on security 

g.     Low income level

h.     Inadequate Government  support.

It  is the light of these problems that this study is under-taken   to provide some solution  to the numerous problem associated  with the role of Electronic Banking.

1.3     BJECTIVE OF THE STUDY

 The study has the following as it’s objectives

1.       To discuss how Electronic  Banking works in Nigerian banking system.

2.       To discuss the problems of Electronic Banking in the financial  institutions in Nigeria.

3.       To highlight the effects of  Electronic  banking in Nigeria Economy.

4.       To discuss the different component of Electronic banking 

5.       To ascertain  the role of electronic banking in the  development of financial industries in Nigeria.

6.       To identify   ways  of ensuring prompt Electronic Banking that  will be approved by the government.

7.   Finally, to suggest or make  recommendation on what should be done in order to have efficient Electronic banking.

1.4     SINGIFICACE OF THE SUDY

This study will be of immense to the students and lecturers who will want to do research in the same topic.

          This  study  will serve as a guide to the students who are in this field of education   

It will be useful to the Nigerian Banking system more especially to the commercial bank as it will be an aid to them on how to date electronic payment.

It  will serve as a reference material to those who will want to write on this same topic.

Electronic Banking will be useful to overcome  the set back that Nigeria has before as a developing country on financial matters.

It will also  serve- as a tool for managerial  decision and policy making

 And finally,  this research  work is a useful information to the existing literature in area of electronic Banking.

1.5     LIMITATIONS OF THE STUDY

The study role of electronic   banking  in  Nigeria is an  inexhaustible  one and  the research  tends  to  limit it.

The research could not be to achieve  as much  as   she could because  of the following limitations: