the effect of electronic payment system on customer satisfaction in nigeria banking system

8/20/2019 The Effect of Electronic Payment System on Customer Satisfaction in Nigeria Banking System

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T'e e(ect o) e&ectronic p%*ment +*+tem on c,+tomer

+%ti+)%ction in Nigeri% -%ning +*+tem.

(Banking and Finance)

/H"PTE ONE

INTO/TION

1.1. 3%cgro,n o) t'e St,*

Today’s business environment is extremely dynamic in

nature. It has experienced rapid changes as a result of

technological improvements increased a!areness and

demands for banks services. The Banking industry of the "#st

century operates in a complex and competitive environment

characteri$ed by these changing conditions and highly

unpredictable economic climate thus information and

communication technology (I%T) is at the centre of this global

change. &medu ("'') asserts that banks over the time have

been using electronic and telecommunication net!orks for

delivering a !ide range of value added products and services.

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Therefore information systems could not be ignored because

they play a critical role in current Banking system in igeria.

*lectronic banking is kno!n as e+banking virtual banking

or an online Banking it is a service that allo!s customers to

access their bank information conduct ,nancial transactions

make deposits !ithdra!als and pay bills through the internet

!ithout having physical visit to their banks. It provides the

convenience of accessing banking facilities from the comfort of

their home-oces. (&!amleh / Fernande$ "'').

The concept of electronic banking system began !hen the

,rst &utomated Teller 0achine !ere instated in the #12's. &n

&T0 machines allo!ed deposits to be made from the remote

locations++ a convenience for customers !ho other!ise !ould

have had to !ithdra! cash personally from their bank. The

advantages o3ered by &T0 0achines 4uickly split over to

encompass other areas of bank services computeri$ing manual

system for greater eciency and time savings. The concept

behind &T0 machines gave rise to smart cards intranets and

internet banking electronic funds transfer 5*FT6 IB77

(igerian interbank settlements system) 897 58oint of 7ales


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7ervice.6 &ccess mobile and other electronic devices

(&hasanul "'#').

The gro!th in the application and acceptance of internet+

driven technologies means that delivering an enhanced service

is more achievable than ever before ho!ever it is also more

complex and fraught !ith potential costs and risk. The internet

introduces customers to a ne! perception of business time as

al!ays available and demanding an urgent and rapid response.

The serves as a challenge for managers !ho must to reconcile

their business and their o!n personal perceptions of time !ith

the perceived reality of internet time as the internet has

decisively shifted the balance of po!er to the customer.

8resently banks in igeria are adding value to their

services for customer’s satisfaction. The customers have more

choices in choosing their banks because the ne! age IT

(Information Technology) is bringing about s!eeping changes in

the banking industry forcing them to reengineer many of their

basic processes and systems. Fe! of the technology+driven

electronic banking services being o3ered are vi$. &utomated

teller machines &T0 *lectronic %learing 7ervice (*%7)


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electronic funds transfer (*FT) tele+banking internet banking

etc. e! technological capabilities are no! being e3ectively

used to create value and to better manage customer

relationship in igeria banking system. (:a;i "'#').

1.2 St%tement o) t'e pro-&em

In igeria customers of banks seek for safety of their

funds and increased returns on their investment. %ustomers

demand ecient fast and convenient services. 0any

customers today !ant banks that o3er them services that !ill

meet their particular needs and support their business goals.

For instance a business man !ants to travel !ithout carrying

cash for security reasons. The central bank of igeria has

emphasi$ed the need for banks to provide more ecient

services to their intending and potentials customers. Therefore

the introduction of electronic banking system in the igerian

,nancial industry is expected to play an important role in the

delivery of ecient and e3ective services.


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management and human resources !hich !ould have given

them more competitive advantages and attract more

customers to themselves. 9ne is therefore inclined to !onder

!hat could be responsible for the non adoption of the present

banking gadgets. Is it that the present employees of the banks

cannot make use of these advance gadgets= 9r are the gadgets

too costly to be ac4uired by the banks= These are the 4uestions

!hich this pro;ect intends to seek appropriate solution.

1. O-jecti5e+ o) t'e +t,*

The main ob;ective of this research is to appraise the e3ect

of electronic payment system on customer satisfaction in

igeria banking system. 7peci,cally the study !ill examine the

follo!ing ob;ectives>+

i. To evaluate the e3ects of electronic payment system on

banks customers.

ii. To assess the impact of electronic payment system on the

bank’s service delivery.

iii.To examine the e3ect of electronic payments on

competitive advantage of the bank.iv. To ascertain the e3ect of electronic payment system on

increase in market si$e of the banks.

1.4 e+e%rc' ,e+tion+


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The follo!ing research 4uestions !ere developed in order to

guide the study>

i. ?oes the electronic payment system enhance service

delivery in the banking system=

ii. ?oes the electronic payment system increase the market

si$e of the banks=

iii.?oes the electronic payment system enhance the

competitive advantage of the bank’s=

iv. ?oes the electronic payment system enhance customer

satisfaction of the banks=

1.7 e+e%rc' '*pot'e+e+

The follo!ing hypotheses !ere formulated@'#> There is no relationship bet!een electronic payment

system and banks service delivery in igeria banking

sector

@'"> There is no relationship bet!een electronic payments

system and customer satisfaction in igeria banking

sector.

1.6 Signic%nce o) t'e +t,* This study !ill be of immense bene,t to the intending and

present customers of the banks as it !ill open their eyes to the

great advantages of the usage of electronic banking and also to


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the bank as the introduction and selling of this product !ill

bring about increase in the bank customers base increase in

deposit and as tools for favorable competitions in the industry.

The research is e4ually signi,cant because it !ould provide

ans!ers to factors militating against the implementation of

electronic banking in the ,nancial industry as a !hole and also

valuable tool for students academician institutions and

individuals that !ants to kno! more about electronic banking

system.

1. "++,mption+ o) t'e +t,*

The assumptions that !ill guide the procedure for the

study includeA

i. *lectronic banking !as assumed to be important means of

enhancing customer satisfaction

ii. That the elements that !ill make up the case study

corporate !ith the researcher by ,lling and returning the

4uestionnaires that !ill be administered.

iii. That the respondents that !ill be selected for the study

have ade4uate kno!ledge and information about

manpo!er planning process.


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iv. That the information that !ill be supplied by the

respondents !ill be assumed to remain constant through

the period of the study.

1.8 Scope %n &imit%tion+ o) t'e +t,*

In terms of coverage this study !ill focus on the e3ect of

electronic payment system on customer satisfaction in &ccess

bank 8lc.. This means that issues relating to electronic banking

!ill be explained. In vie! of the technicalities involved it !ould

be unrealistic to assume that all necessary facts have been

gathered in the process of the study. Information is limited to

those accesses and made available by the respondents and

also have gathered from end users. 0ore so since ,nancial

industries have many forms the study !ill only be limited to

access bank plc of igeria. 7ome of the constraints are>+i. Time constraints

The researcher ,nds it dicult to go round all the bank

branches due to limited time availability as a result of this the

data !ere only collected from fe! banks randomly.ii. Inade4uate data*lectronic banking is a recent developed system in !hich not

all banks have embraced those that have embraced it !ere

able to give their information to the researcher and those that


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have not fully embraced it !ere unable to give accurate data to

researcher.iii. ack of funds

?ue to the nature of this !ork researcher ,nd it dicult to

raise the funds needed to carry out the research appropriately

as a result of this fe! banks branches !ere selected based on

the available ,nance to enable researcher get the needed

information.

the effect of electronic payment system on customer satisfaction in nigeria banking system

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