Study and Analysis on the Banking Sector Finance Essay

A vibrant and proactive sector on which the economy of any nation depends on is the banking sector. The Banking sector thrives on the provision of an enabling environment for business transactions and further improvement of its services portfolio to its customers. Strategic planning in the banking sector encourages bank growth which affect prosperity; it involves a long term planning taking into attention, The Banking sector represents a trading unit of an economy. It strives on providing an enabling environment for business transaction and continuous improvement of its customer services. Strategic planning in banking enhances the growth of banks, which subsequently effects prosperity. It involves a long term planning with consideration for opportunities and threats posed by the external environment. In order for banks to achieve its objectives effectively and to ensure the satisfaction of its clients, well defined strategies are required during decision making and policy formulation/application. Katuri(2005, p.1) state that advancements in technology however, has brought about a paradigm shift from traditional banking practices by banks to offering Internet based banking services such as Automated Teller machine [ATM], Electronic banking ,Mobile Banking which collectively ease difficulty in banking like cost effectiveness and timely delivery of transactions other products and services As further emphasized by Nair (2005, p.151), the usefulness of information technology in the field of banking has become intensive. Nair (2005) also opines that technology has become an enabler for the needs of customers and banks to be met especially, as needs of customers' lifestyle keep changing overtime. The growth of technology has bridged the bottlenecks in product delivery to customers. Nair (2005) believes the embracing of technology by banks as a strategic and calculated attempt to improve productivity, profits, reduction of operational cost and efficiency. ABA (2004) and Fox (2005) likewise believe that electronic banking services rendered by the banking sector are often customized towards the retention of existing customers, acquisition of new customers and ultimately improvement in productivity levels, so as to gain a competitive edge in customer retention over traditional banks (who do not readily embrace e-banking). The utmost concern in a world of developed information technology is how the gap of time, distance can be bridged while at the same time maintaining effectiveness and accuracy. New trends in information technology have indicated that barriers such as time and distance could be bridged while effectively maintaining efficiency in the provision of banking services to customers. The age of internet explosion has been a great relief to the factors constraining the effectiveness and awareness in both social and transaction world. Ganti (2005, p.56) stated that the introduction of -banking shows a paradigm shift in the customer relationship marketing environment for banks. It has repositioned the modern banking sector, subsequently creating unlimited opportunities with customers becoming sophisticated. In the transactional world, the era of internet explosion has tremendously improved the banking sector through the system Known as - ELECTRONIC BANKING. In recent years the Banking sector witnessed the coming of age in Electronic banking and decline of traditional way of banking practices, research carried in 2004 by American bankers Association[ABA] evidence shows that banks offering electronic based banking services gain higher advantage in servicing banking. Electronic banking usage by banks are targeted at reducing operational cost thereby sustaining efficiency and increasing market share while retaining its customers (ABA 2004, Fox 2005).Despite the explosion, a new market based services is being offered by Electronic banking. The Stewart & Brandley (2002) in their case study titled "A delphi study of drivers and inhibitors of internet banking" indicates that countries of the world have been able to embrace the system; while some countries have advanced tremendously, others are yet struggling with constraints. The advanced countries known as technologically developed nations such as UK and USA have maximized the potentials of Information Technology in banking while developing countries such as Nigeria and Egypt are yet to fully adopt the new trend in banking technology. Ovia (2001) states that the factors constraining the growth of Electronic banking in developing countries are: Illiteracy Poor infrastructure: High cost of Telecommunication Power supply Security Lack of awareness Illiteracy The above listed constraints are huge impediments towards the adoption of e-banking in Nigeria. The study about Nigeria shows pinpoints the majority of Nigerian nationals as rural dwellers, therefore a good enlightenment campaign will result in a remarkable increase in the banking sector and the subsequent usage of electronic banking service offerings. However, it is worthy to categorically state that technological advancement has been a major driving force of "GLOBALISATION". The effects of globalization on e-banking is such that technology-related advancements achieved via e-banking has provided a solution to the problems of distance and time subsequently ensuring that customers can transact business and gain access to new markets easily.

1.2 AIMS AND OBJECTIVES

1.2.1 AIMS

The study aims to identify and discuss the impact of information technology on customers in the retail banking industry with special emphasis on the Nigerian environment as a case study. Also, factors that influence the customers in the adoption of technology, low awareness levels of technological offerings will be discussed. The affinity of Nigerian banks toward the information technology platform would also be considered.

1.2.2 OBJECTIVES

Definition of e-banking and the analysis of the advances in e-banking since its introduction in the Nigerian banking industry. Identification of the advantages e-banking brings to the banking industry. Discussion of the effect e-banking has on customers and an insight into their level of electronic usage or experience. Research and analysis of e-banking products/services/portfolio provided by banks to their customers. Identify reasons for under-development of e-banking in Nigeria To make recommendations for the modernization and development of the e-banking platform.

1.3 MOTIVATION BEHIND RESEARCH TOPIC

In recent years the technological advancements has necessitated the move towards technological development in Nigeria. It is a developing country with a population of about 140 million people, and it's a country with huge telecommunication growth in Africa over the past 10 years. The country has experienced an impressive level of development in tele-density (number of telephone lines per population unit, usually 100 people) from a tele-density of 0.73 in 2001 to 46.80 in 2009 (Nigeria Communications Commission [NCC], 2009). The explosion in tele-density has immensely improved the growth rate obtained in various industries. However, despite the explosion in telecommunication activities in the Nigerian environment, Nigeria is still to meet up with the advancement in technology like other developed countries such as the United kingdom. However, (Ovia,2001) also believes that the move towards technological advancement is hampered due to lack of proper infrastructure such as power supply, communication and security is also a major problem. These are recognized as potentially huge impediment to the economic development and advancement in technology

1.4 SIGNIFICANCE OF RESEARCH TOPIC

The importance of this research is such that it emphasizes the merits and demerit of e-banking in the Nigerian retail banking industry. Subsequently, information gathered and researched would provide a good starting point towards suggestions on the improvement of banking services in Nigeria, but most importantly the formulation and implementation of policies that will incorporate technological improvements such as e-banking in the pot-pourri of banking services available to the Nigerian public. The Nigerian banking sector has not been spared with the banking boom era of the 90s which did not last long- a situation which saw many banks closing down and the eventual loss of public confidence in the banking industry, consequently leading to the creation of the failed bank tribunal by the government. The banking boom is back but the banks are facing stiff competition in retaining their customers, their customer retention ability will depend on the information technology infrastructure available. However, global recession in 2008 was marked coincidentally by failures of banks and unstable slip in economic statistics. Based on these premise, the global recession will not affect e-banking services in Nigeria due to its relatively new introduction to the Nigerian retail banking industry, and as illustrated by Fox (2005) and ABA (2004) evidence proves that banks offering these internet based pot-pourri of services are better positioned in retaining customers than traditional non - electronic banking banks.

1.5 PROJECT CONSTRAINTS

Time: Availability of time will be at a premium all through the duration of the project. Factors to also consider in the estimation of available time towards the project are coursework from other taught units and examinations. Non-commitment from respondents: Low or no response from client that are to be interviewed or not getting the information needed because is view as classified documents by the client company. Also respondents not returning questionnaires are a major constraint.

1.6 RESEARCH METHODOLOGY

The research methods that will be adopted are the primary and secondary data methods. Primary research method will involve the use of surveys for data collection: statistical data. The research technique shall be questionnaires given out randomly to people in the Lagos metropolis and bank personnel. However, the secondary research shall be based on data collection from different websites of banks and on existing factors to support the research work. Also, the University library and the internet will be a major source of information.

1.7 STRUCTURE OF THE PROJECT

This research begins with an introduction in chapter 1. Chapter 2 centers on the review of related literature. Subsequently, it covers detailed explanation on facts outlined, advantages and disadvantages. Chapter 3 shall explain the different research methodologies and reasons for using the chosen methodology. The evaluation of secondary research will be included. And chapter 4 shall give a full analysis and interpretation of results from primary research information and the future of electronic banking in Nigeria. While chapter 5 shall look at the research findings and chapter 6 looks at the conclusion and recommendations.

METHODOLOGY

3.1 RESEARCH METHODS

The research methodology is classified into two groups and the information gathered is analyzed as quantitative or qualitative data. PRIMARY RESEARCH The primary research involves communicative interaction with people. The information gathered will be analyzed to ensure its usefulness to answer the research question and for the research purpose. The information needed will be collected by questionnaire surveys, focus group, content analysis and observation. SECONDARY RESEARCH The secondary research entails the processing of information that has been previously analyzed and used for further analysis. This information can be assembled from prior research studies, journals, books, articles and online materials. Both methods have advantages and disadvantages and the suitable approach is to understand the rationale for the evaluation of the survey, the required information and the number of respondents required to arrive at a conclusion on research findings. The credibility and date of publication must also be put into consideration when applying secondary data to avoid erroneous outcomes. Since the main aim of the research is to select a method that meets the research objectives, secondary data may not have dealt with the current topic or may be outdated so it is essential for a primary research. That notwithstanding, some disadvantages of the primary method is it is time consuming because information is critically analyzed to get accuracy in results.

3.2 METHOD CHOSEN

With regards to this research, both methods were used because Electronic banking is still relatively new in contemporary networking circles and previous research in this area is limited in comparison to other related topics. One reason for choosing the primary data is because it is believed to be versatile and flexible in nature. "The performance ordinarily has a more profound effect on the survey results than has any other single element of survey" (Alreck - Settle 2004, p.89). While secondary research allows for comparism of data collected from previous studies, they are required for guidance of the primary research (Frankfort - Nachmias 1996, p.306). However the use of only secondary research will not give the required results. Through secondary research, banks adoption of Electronic banking in relation to the level of customer adoption and service rendered and the evaluation of secondary research data have aided in scrutinizing problems associated with the research topic. Furthermore, analyzing to what extent Electronic banking is adopted by Nigerian banks and customer's level of adoption of these services. Valuable information was retrieved from secondary research in the analysis of the research topic. However, some limitations were that collated data was not enough to summarize and draw conclusions and so the use of primary method (Questionnaire) was applied to ascertain the authenticity of information obtained from secondary data was accurate. However the limitation of using a primary research is slow response from respondents and some not even returning the questionnaire. The objectives of the primary research is To identify the level of adoption of customers to Electronic banking. To research and analyze the degree of Electronic banking services offered by banks. The questionnaires were distributed via email. Another format for this was personal interview with banks with some open ended questions such as "What measures are on ground to enhance internet banking security?" This allowed for respondents to answer the questions freely without restriction of options. The information retrieved was accurate because all banks have distinctive security software in operation. The second format, the close ended questionnaire, was for respondents to fill, with a number of options to choose from. This is fast and easy to return without delay.

3.3 THE RESEARCH PLAN

The research plan is a blueprint of sampling unit, sampling frame, sampling procedures and design. The sample unit was in form of a survey carried out within the heart of commerce in Nigeria, Lagos state. The sampling frame comprises of all the banks in the Lagos metropolis and with a sample size of '10' to enable good response for accuracy than loads of questionnaires filled incorrectly. The method used was stratified sampling to ensure diverse groups of people were well represented in the sample and to also increase accuracy level in the estimation of parameters. The sampling procedure was in two parts with focus aimed at two groups. The first is the service provider i.e. the banks, comprising of the old and new generation banks. The second is the service users i.e. customers. The total of questionnaires that were distributed was 80 and 68 was returned. The questions were directed toward the students, working class and to the general public as well as tailored questions towards internet usage accessibility and electronic banking service awareness. The researcher gathered useful information with the adoption of this method and the same question was sent to all respondents for ease of analysis and because the viability and reliability of a research study largely depends on information consistency to obtain reliable results.

3.4 ANALYSIS OF SECONDARY DATA

Data assembled from previous research was beneficial in evaluating the research topic. When considering secondary research, the data analyzed does not meet the researcher's need as results were not completely accurate in fulfilling the aims of the research. Despite this limitation, a careful examination was made to ensure that data collected were from sources that could justify precise information and to also ensure accurate documentation of findings is presented correctly after evaluation. The secondary data was analysis on works done at Nigerian institutions, Obafemi Awolowo University and the University of Benin. However, the research aim differs from the research project as the focus was Electronic banking in Nigeria. Nonetheless, important information was retrieved for the aim of drawing conclusions.

3.5 SUMMARY

In the methodology chapter, the various available research methods have been examined and have been used to justify a chosen method. A sample size would have generated a more accurate result but despite this and the limitations faced, evaluating secondary data has assisted in consolidating research findings.

RESEARCH ANALYSIS

4.1 INTRODUCTION

In this chapter, analysis will be carried out on data that are gathered from the survey findings. Primary data of Questionnaire A was to the service users or exploiters. This was oriented for the accessibility of the internet and having knowledge of electronic banking. And Questionnaire B of the primary data was to the service supplier or providers. And to analyse the secondary data and equating solutions from primary data in order to break down the findings and to check if the research question has been correctly answered. In order to involve all the categories of respondents the questionnaires were randomly sent out and wasn't for just a particular group. With this method the researcher will be able to gather information required for the research aim, and the research findings will be well analysed. The total of questionnaires that were distributed was 80 and 68 was returned, electronic banking users were 72% while non electronic banking was 28%. Regardless of the little number of that responded, due to response, the rates of questionnaires are usually below 40% and results should still be broadly acceptable stated by (Cano, 2008) which has guide the researcher to resolve that a 30% response rate would be regarded valid for this research and results purpose.

4.2 Questionnaire A

For easier and more detailed analysis of the information gathered, the results of questionnaires were put into charts and graph. According to Nachmias and Guerrero (2006, p.329) using a chart from the results gives way for simpler explanation for understanding.

4.2.1 Questionnaire Results

Question 1: What is your Gender? Male = 43 responses Female = 25 responses In figure 4.1 the chart below shows the average of male and female respondents. The male respondents were averaged up to 65% while the female respondents were 35%. This indicates the increase of male users of electronic banking is more than the female users.

Figure 4.1 Male and Female Respondents.

Question 2: What age category do you fall into? 18 - 30 = 28 responses 31 - 40 = 21 responses 41 - 50 = 12 responses 51 - 64 = 7 responses 65 and Above = None In figure 4.2 the graph below, is the representation of age respondents who brought back questionnaires, 42% falls under the ages of 18 - 30 years, 32% falls under 31 - 40 years and another 18% was 41 - 50 years while ages 51 - 64 was 8% but they was no feedback on the 65 and above. Research made shows that ages 65 and above fall under the retirement stage or age and majority of them do not comprehend the utility of new technologies. However, Matilia & Pento (2002) indicates the majority of electronic banking users are comparatively young and have been educated to use computers and the internet. This also shows that electronic banking in the society is mainly members of the working class.

Figure 4.2 Age Category of Respondents.

Question 3: What your level of education? O' Levels = 9 responses BSc = 31 responses OND = 4 responses HND = 15 responses MBA = 9 responses In figure 4.3 this chart below shows the different respondent's educational level is shown. 50% are University graduates (Bsc) holders, 20% are higher national diploma (HND) holders while master business administration (MBA) and O' level holders shares the same average with 12% each. This shows that electronic banking users are educated. Sathye (1999, p.326) aver that people using electronic banking are well and highly educated.

Figure 4.3 Educational Levels of Respondents.

Question 4: What is your occupation? Accountants = 11 responses Doctors = 8 responses Engineers = 11 responses Lawyers = 4 responses Others = 20 responses Students = 11 responses Teachers = 4 responses In figure 4.4 the chart below is a representation of different respondent's occupation from questionnaires that were returned. Accountants, Students and engineers share the same percentage with 16% each, Lawyers and Teachers also share the same percentage with 8.5% each, Doctors were 10 % and for respondents with other occupations which are not listed like farmers, traders and so on were 25%.

Figure 4.4 Occupations of Respondents.

Question 5: Do you have internet experience? Yes = 52 responses No = 17 responses In figure 4.5 the chart below represents the average of respondents that has experience with the internet which is 85% while the average of respondents without internet experience is 15% which makes a huge difference between them.

Figure 4.5 Respondents With Internet Experience.

Question 6: Do you have internet access? Yes = 45 responses No = 23 responsses In figure 4.6 the chart below is the representation of the total average of respondents that gave on questionnaires. In this chart 72% agreed and said yes to have access to the internet while 28% said NO they don't have access to the internet.

Figure 4.6 Respondents With Internet Access.

Question 7: How frequently do you use the internet? Often/Daily = 24 responses Few times a week = 19 responses Once in 2 weeks = 11 responses Once in 4 weeks = 8 responses Once in 6 weeks = 6 responses Once in 2months = 2 responses In figure 4.7 the frequency of internet usage is shown in the chart below. 35% of respondents use the internet often/daily, many respondents which average to 40.5% use the internet a couple of times a week, 10.5% use the internet once in two weeks, 8% use the internet once in a 4weeks, 4% use the internet once in 6 weeks, while 2% use the internet once every 2months. With research on respondents that are under categories 40.5% and 35% were people who have full-time office jobs and have internet access in their workplace and some who could afford internet in their homes.

Figure 4.7 Frequencies of Internet Users.

Question 8: Are you aware of electronic banking? Yes = 59 responses No = 9 responses In figure 4.8 the chart below the average of respondents aware of electronic banking are shown. 92% of the average represents those aware of electronic banking while 8% were not aware of electronic banking.

Figure 4.8 Awareness of E-Banking of Respondents.

Question 9: Do you have experience with any electronic banking service? Yes = 49 responses No = 19 responses In figure 4.9 the average of respondents that use electronic banking. 74% of respondents said yes for using one form of electronic banking or the other, and 26% of respondents said no. Nevertheless 25% out of the 74% respondents said they don't know the type of electronic banking they use, and they were added to the 74% because the answer yes on question on if they have used any form of electronic banking service.

Figure 4.9 Respondents That Have Experience With E-Banking.

Question 10: Which type of electronic banking service do you use? Online Banking = 14 responses ATM = 32 responses Telephone banking = 11 responses Post banking = 7 responses Branch banking = 4 responses In figure 4.10 this chart shows the total average of respondents using any form of electronic banking. The Automated Teller Machine (ATM) has the highest amount of respondents with 60%. The ATM is virtually the most utilized source of electronic banking for the respondents. The ATM is a single machine that has several features such as check onscreen balance, pays cash, prints account statement and so on. The ATM is widely known and is the most popular electronic banking source and the reason for this is that it's easy to use and its convenience for accessing your account anywhere 24 hours a day 7 days a week without stepping into the bank. 17% of respondent's uses online banking and another 15% of respondents use telephone banking. These two sources of electronic baking are mainly used by business people or companies for transaction, direct debit and so on. 3% of respondents also use post banking and 5% use branch banking.

Figure 4.10 E-Banking Preferred Options By Respondents.

Question 11: How frequently do you use electronic banking services? Often/Daily = 32 responses Few times a week = 20 responses Once in 3 weeks = 10 responses Once in 6 weeks = 8 responses Once in 2months = 6 responses In figure 4.11 this chart shows the frequency of electronic banking usage is shown below. 54% use e-banking service very often, 24% of respondents use e-banking service once a week, 15% use electronic banking once in 3 weeks, 4.5% use the service once in 6 weeks while 2.5% use electronic banking service once in 2 months. This shows that users are increasingly adapting to the style of electronic banking.

Figure 4.11 E-Banking Usages of Respondents.

4.2.2 Summary

The survey results have actually shown the level of internet experience and the accessibility to internet by customers/clients. The customers/clients awareness of electronic banking was also shown; it could be viewed by the average of respondents using some of the electronic banking system such as Automated Teller Machine, Online banking and Telephone banking. With the automated teller machines (ATMs) having up to 60% of electronic banking awareness simply means it's the most commonly used service. The ATM is easy to use and could be accessible anywhere 24 hours a day 7 days a week. Nevertheless a significant amount of respondents don't know the kind of electronic banking service they use; shown in the questionnaires that was returned. So therefore it is the banks responsibility to educate customers/client on these electronic banking services and their benefits.

4.3 Questionnaire B

In this part questions are being directed to the banks to measure the kinds of electronic banking services they offer, and what they benefit from the services. Also, for any advertisement to attract new customers and to improve customer satisfaction. The two banks that were interviewed had one form of electronic banking system or the other. Both banks are being categorized into two different classes, old generation bank and new generation bank. The table below shows both banks that were interviewed and the electronic banking services they render, and they are into Mobile or Telephone banking service, Automated Teller Machine (ATM) service, Branch banking service and Online banking service. Nevertheless, both banks are not into Post banking service. One of the questions asked is if electronic banking has improved their place in the banking world and both banks replied with the same answer yes, that means the help of electronic banking has increased their in the industry and has given them the edge over competitors that have not yet applied these new technologies. However, the satisfactory level for customers has also increased and one of the reasons for that is because customers now have 24 hours access. The banks themselves has also benefited from the introduction of electronic banking in the sense that it has been helpful to reduce cost and man power. Research results from the banks that were interviewed shows that the banks has invested so much on security for the safety of customers to protect them from electronic theft. So therefore the installation security software's has given banks the opportunity to protect customers' personal information and to gain trust from their customers. Another question asked was if they have any advertising or improvement plans on electronic banking services, and both banks said yes to the question and are making plans for introducing internet access with a mobile phone and advertising it in public places such as shopping malls, post office and fuel stations for the improvement of electronic banking to catch the attention for new customers. Then the last question asked was how much is their estimated yearly turnover since electronic banking was introduced. The table shows results in a clearer understanding.

Names

Of

Banks

Electronic banking services

Electronic banking services provided

Has it Enhance Position

Reduction of operational

Cost

Improved

Customers

Satisfaction

Software in

Used

Plans for improvement

Turn

over

Union Bank PLC Yes Online banking, telephone banking, ATM and Branch banking Yes Yes Yes Transactional code Internet access with mobile phone 93.7b Guarantee Trust Bank Yes Online banking, telephone banking, ATM and Branch banking Yes Yes Yes Transactional code Internet access with mobile phone 91.2b

4.4 Secondary Data Analysis

In this section the focus is on two various research survey carried out by some Nigerian institutions. After analyzing this research, it will be utilized in results comparison from primary research. Franfort (2006, p.206) suggests more credibility will be gain on research finding if it comes out in number of reports and when collected data is analyzed in different times. It can also be utilized to explain and describe change. Nevertheless, some specific research purpose was not met by researcher in the survey from early research. Instead, it is more focused on the adoption of electronic banking and providing the use of electronic payment services in Nigeria. This is seen in the secondary research as a major limitation, regardless of this limitation the use of secondary research was utilized as a technical compliment review of literature and primary research for the aim of verifying and testing results. These permit researchers to make conclusive findings.

4.4.1 Research Survey 1

4.4.1.1 Background

The adoption of electronic banking in Nigeria was the name of the title of this research which was handled by chiemeke in 2006, a Nigerian senior lecturer of computer science department in the University of Benin Nigeria. The aim of this research is to measure the stage of electronic banking services rendered by banks after deregulating the banking society and component that affects its adoption. The method used in the survey has a similarity with Diniz, (1998) model for evaluating status of the banks websites for transaction channels, Information delivery, Security level and customer relationship.

4.4.1.2 Results from Finding

The research result on electronic banking services reveals that it has been rendered from the basic level of fundamental interaction. In the evaluation, out of 12 points score the results was between 4.5 and 11 points which means the basic level were high. However, as the interactivity level increases the scores reduces. Likewise, the outcome of functionality which was between 4 and 9.5 out of a total of 12 points, which indicate all banks do have information sites. Nevertheless, they were low scores on the transactional level of functionality which was between the range of 0.5 and 4.5. These indicate that electronic banking services rendered were on a low level. In addition, the score for the security level were also low with 47.7 percent adopted security level. However, some other known facts affecting electronic banking in Nigeria were poor power supply and unsatisfactory operational infrastructure. The aim of the research was at the banks and the adoption of electronic banking services rendered such as customer relationship, Transaction channels, Security level and information delivery and with the customers level of awareness of online banking service had no attention. The research questions of researchers were not answered, but nevertheless the transaction level of functionality questions were partly answered on the research question. This reason is probably because the two banks questioned are already offering one form of electronic banking service or the other.

4.4.2 Research Survey 2

4.4.2.1 Background

The title of this research was called Telephone - banking services and electronic payment system in Nigeria. Agboola conducted this research in 2006, another Nigerian senior lecturer in the Obafemi Awolowo University Nigeria. The evaluation of Telephone banking service and electronic payment system offered and used by Nigerian banks was the aim of this research. The method used on the research was the distribution of questionnaires and interview of banks personnel. As at that time chosen sample size was 36 banks out of the 89 banks.

4.4.2.2 Result from Findings

The adoption rate of e-payment services results from analysis revealed that the most adopted technology is the Local Area Network (LAN) out of the 36 banks interviewed 35 banks adopted it. Likewise, out of the 36 banks interviewed 34 banks have adopted MICR cheques and already put to full use. Nevertheless, some technologies had low adoption rates. Telephone banking was one for them with a low adoption rate of 22%, the adoption rate for Automated Teller Machine (ATM) was 16.7% while the Home and office e-banking was 19.4%. This research supports the Chiemeka (2006) finding of inadequate power supply and poor operational infrastructure. Consequently, the focus of this research was on electronic payment devices used by banks and not on the awareness level of customers or e-banking adoption. However, to some extent the research question was answered, this observation could be seen from results with the adoption rate on telephone banking and 22% and the ATM having 16.7%. this shows that the banks are gradually adopting to these services.

4.4.3 Summary

Identification of some form e-banking supporting the primary research has been identified by both research surveys. This clearly indicates the gradual process of customers adoption to these services and e-banking is been offered by the banks to some extent.

RESEARCH FINDINGS

5.1 INTRODUCTION

In this chapter, conclusions will be drawn on research findings and analysis from previous chapters will serve as a review mechanism for the aims and objectives of this project.

5.2 RESEARCH FINDINGS

The non adoptions of electronic banking were the key elements that were discussed from the review of associated literatures. In previous research, indications showing the huge impediment to non adoption of electronic banking were lack of awareness and security. Meanwhile electronic banking from retail banks point of view is seen as a competitive advantage retaining their customers and the banks will greatly depend on their new technology adoption in the banking sector and with the advancement of technologies they can compete and be ahead of their competitors, this clearly means adoption electronic banking services has greater advantages over its disadvantages. The aims of the research were to analyse the level of customer's awareness to electronic banking services and the rate of adoption of electronic banking service by Nigerian banks. Results from survey shows that electronic banking services are already in use by the two banks that were interviewed but both banks were not into post banking and the two banks are also introducing internet access with a mobile phone and advertising it in public places such as shopping malls, post office and fuel stations for the improvement of electronic banking to have a competitive advantage in the market, to retain existing customers and to catch the attention for new customers. However, the adoption of electronic banking and the level of awareness from customer shows 72% of respondents have access to internet while 28% do not have access to the internet. The level of internet experience and frequent use of computers in their workplace allows accessibility to the internet by customers/clients. On electronic banking level of awareness and the usage of its services, the percentage of respondents that are aware of electronic banking 92% and just 8% were not aware, and with another large 74% claim they are electronic banking users while 26% do not make use of electronic banking, and to a surprise 25% out of the 74% do not even know the type of electronic banking service they are using and this was because the electronic banking services listed on the questionnaire were not known as types of electronic banking by these respondents which still falls back to customers lack of awareness. Consequently, the Automated Teller Machine (ATM) has up to 60% adoption according to questionnaire results on the types on of electronic banking services being used, the ATM is easy to use, has 24 hours access and very convenient it is also said to have met customers' needs. This research findings has endorsed (Agboola, 2006) on adopting automated payment systems gradually and less use of cash. Likewise, an interesting point noticed from the questionnaire results is the difference between male and female users using electronic banking services. These results shows that they are more male users using electronic services than the female with 65% male respondent s using these to 35% female, and this is because more male find the interest of going to the cyber caf© and using the internet and by using the internet they get to actually know more about electronic banking services. However, questionnaire results for the educational level and age range of respondents shows that between ages 21 - 30 and 31 - 40 are highly educated and use the internet frequently, and their educational level in the questionnaire results, research findings indicates that users using electronic banking are educated and young. (Pento, 2002) findings indicate that users of electronic banking are well educated and have good experience using the internet, and most of them have access to the internet in their place of work and for those that can afford it get it have it in their homes. And a major barrier still affecting the adoption of electronic in Nigeria is still illiteracy according to (Ovia, 2001). From the secondary data findings of the research shows that the banks elementary stage has low adoption rate of electronic payment systems, banks should have informative websites rather than Transactional websites. However, primary research findings indicates that the bank interview all have electronic banking services rendered and have also laid down plans on how to improve electronic banking services in the future and obviously from the research results the banks and customers has made progressive acceptance on electronic banking services.

5.3 SUMMARY

On research findings from the above discussion, it ought to have been seen that the introduction of electronic banking by banks has given them the opportunity to gain competitive advantage to attract new customers and to retain old ones and also to take up technical challenges. However, it is important that the banks educate their customers' on the benefits and importance electronic banking could bring and to always upgrade their websites to be transactional and also to make their operational infrastructure get better. But if they don't the banks have the problem of customers low adoption will remain. In conclusion, some issues have to be addressed for the future of electronic banking in developing countries such as Nigeria, is the creation of awareness, security and constraints like poor infrastructure. Consequently, if these issues are addressed more customers will adopt electronic banking and the Nigerian banks would be able to gain global presence. Results from reviewing literature on electronic banking shows its jussive mood to investigate, the customers level of adoption in Nigeria and suggests key solutions to the constraints affecting electronic banking in Nigeria. All the same electronic banking has come to stay and has been well appreciated in the world and has given developing countries a future in the global economy.

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