Thesis Abstract

Abstract
Electronic banking has become a significant aspect of the banking industry in Nigeria, revolutionizing the way banks operate and customers conduct their financial transactions. This research focuses on exploring the implications of electronic banking on the economic performance of Nigerian banks, using Diamond Bank as a case study. The study employs a mixed-methods approach, combining quantitative analysis of financial data with qualitative insights from interviews with bank officials and customers. The findings reveal that the adoption of electronic banking services by Diamond Bank has positively impacted its economic performance in various ways. Firstly, the implementation of electronic banking has led to increased operational efficiency, cost savings, and improved service delivery. The automation of routine transactions has reduced the need for manual intervention, resulting in faster processing times and lower operational costs for the bank. Secondly, electronic banking has expanded Diamond Bank's customer base and improved customer retention. The convenience and accessibility of online and mobile banking platforms have attracted new customers and encouraged existing ones to continue using the bank's services. This has translated into increased revenue streams for the bank and enhanced customer loyalty. Furthermore, electronic banking has enhanced the overall competitiveness of Diamond Bank in the Nigerian banking sector. By offering a wide range of electronic banking products and services, Diamond Bank has been able to differentiate itself from competitors and attract tech-savvy customers who prefer digital banking solutions. This competitive advantage has enabled the bank to strengthen its market position and increase its market share. Despite the numerous benefits of electronic banking, the study also identifies some challenges faced by Diamond Bank in implementing these services. These challenges include cybersecurity threats, technological infrastructure limitations, and customer education on using electronic banking platforms securely. Addressing these challenges will be crucial for Diamond Bank to fully leverage the potential of electronic banking and continue to drive its economic growth. In conclusion, electronic banking has significantly influenced the economic performance of Nigerian banks like Diamond Bank, leading to improved operational efficiency, increased revenue, expanded customer base, and enhanced competitiveness. By addressing the challenges associated with electronic banking, Diamond Bank can further optimize its electronic banking services and sustain its economic growth in the dynamic Nigerian banking industry.

Thesis Overview

.1 BACKGROUND OF STUDY

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1.2      STATEMENT OF PROBLEMS
                        As earlier pointed out, 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.
Another problem that emerged was that banks do not have information backup to fall back on should there be any computer break down.
In 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, couple 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 where formulated:
What are the various types of electronic payment and the extent of electronic payment in banking activities?
In what extent can e-banking improve or enhance banking services?
What are the major problems associated with the development of electronic banking system in Nigerian?
What are the solutions to the problems associated with the development of e-banking?
What extent has e-payment affected banking activities?
The research shall attempt to find answers to these questions in the next chapter.