1.2 STATEMENT OF PROBLEMS

There is delay in payment of cheques which lead to the adoption of electronic banking system. Adoption of electronic banking which suppose to ease banking transactions rather resulted to woes to customer. Most people complain of time wasted in banks. This occurs when there is power failure in banks resulting to slow down in operation.

Investing in electronic banking, the country will need a large amount of financial resources in computer technology, obviously, the resource is in short supply in Nigeria, coupled with high level of poverty. For an efficient functioning of electronic payment system, there must be availability of infrastructural facilities such as electricity and telecommunication network, however, power supply fluctuates and there is still constant failure links in networks. Since early 2000s banks have been developing and introducing payment cards for their customers as well as deploy ATM’s cards. Usage was however low due to lack of interconnectivity i.e. switching platform to interconnect the ATM’s for card holders.

1.3  OBJECTIVES OF THE STUDY 

This research work intends to assess the extent of electronic payment in banking activities as well as identify the various types of electronic banking.

The researcher will also evaluate the major problems associated with the development of electronic banking system in Nigeria as well as evaluate possible solutions to these problems.

The effect of electronic banking on profitability of banks will also be assessed. There are different types of electronic banking used in Nigeria banks; the researcher will like to evaluate the impact of these e-payment systems on banking industry and also assess the impact of electronic banking in Nigeria economy.

1.4  RESEARCH QUESTION

In order to get information from respondents the following questions were formulated:

1. What is the role of e-banking on the growth of Nigerian economy?
2. What are the various types of electronic payment and the extent of electronic payment in banking activities?
3. To what extent can e-banking improve or enhance banking services?
4. What are the major problems associated with the development of electronic banking system in Nigerian?
5. What are the solutions to the problems associated with the development of e-banking?
6. To what extent has e-payment affected banking activities?
7. What are the benefits of Bank Verification Number (BVN)?

1.5  SIGNIFICANCE OF THE STUDY

Electronic banking in our economy today is a welcome development and also its impacts in the society are over-whelming, so this research is significant in so many ways.

It will expose the strength and weakness of electronic banking.

It will motivate banks and other economic agents to computerize their services.

Knowledge in the area of electronic banking will be advanced.

Apart from contributing to the knowledge of electronic banking, it forms a reference for future research in this area.

1.6  SCOPE AND LIMITATIONS OF THE STUDY

This research is on the role of electronic banking on the growth of Nigerian Economy using UBA Ikot Ekpene as a case study and also it covers the various forms of payment and electronic systems used by banks.

In the course of carrying out the study, some challenges were encountered by the researcher that stood as limitation to the study and they include:

Financial Factor: Inadequate funds affected researcher had to travel long distances for the distribution of the research questionnaire forms.

Time Factor: This affected the reduction in the size of the sample used for the study because the researcher had only less than two months to complete the study.

Material Factor: Shortage of relevant material for literature review posed.

1.7 ORGANIZATION OF THE STUDY

This research work is organized into five chapters. Chapter one is concerned with the introduction of the research study and it presents the preliminaries, theoretical background, statement of the problem, aim and objectives of the study, significance of the study, scope of the study, organization of the research and definition of terms.

Chapter two focuses on the literature review, the contributions of other scholars on the subject matter is discussed.

Chapter three is concerned with the system analysis and design. It presents the research methodology used in the development of the system, it analyzes the present system to identify the problems and provides information on the advantages and disadvantages of the proposed system. The system design is also presented in this chapter.

Chapter four presents the system implementation and documentation, the choice of programming language, analysis of modules, choice of programming language and system requirements for implementation.

Chapter five focuses on the summary, constraints of the study, conclusion and recommendations are provided in this chapter based on the study carried out.

1.8 DEFINITION OF TERMS

Bank: Business that keeps money for individual people or companies, exchanges currencies, makes loans, and offers other financial services

Cashless: Using an electronic means of exchanging money instead of dealing in cash

Cashless Society: Society that does not use cash: a theoretical society in which consumers purchase all goods and services by credit card or electronic funds transfer, without the use of cash.

Electronic Banking:  The use of computers and related networks/devices to carry out transfers of money and other banking transactions.

Government: A group of people who have the power to make and enforce laws for a country or area