E Banking Is Branch Of E Commerce Information Technology Essay

E-Banking is a subdivision of E-Commerce that trades with the execution of Information and Communication Technology in Business Financial Management. E-banking has come a really long manner with 1000000s spent on readying of technological alteration merely to do banking services accessible to their clients from anyplace, at anytime by merely a chink of the mouse.

“ E-commerce offers a degree playing land for big concerns, every bit good as little and medium-scale endeavors ( SMEs ) to run in the planetary market-place ; and for regional concerns and communities to take part in societal, economic and cultural webs seamlessly across international boundaries ( Mary-Anne, 1998 ) ”

E-banking is a distant bringing channel for banking services runing from opening an history, reassigning financess to more complex signifier of on-line minutess like fiscal merchandise sale, like insurance and securities firm to measure payments and direct debits.

Making payments for goods and services in hard currency or non-cash signifiers every bit good as lodging money in fiscal establishments and pull offing these resources are an built-in component of economic life. Banks serve as of import intermediates. In recent old ages, with the development of engineerings and techniques, options for communicating with Bankss are spread outing for clients. New services are arising such as place banking, phone banking, cyberspace banking and others.

Electronic communicating agencies are peculiarly coming to the head. These are more convenient, faster, and frequently cheaper for clients. Banking experience shows it is suited to utilize combinations of several communicating agencies, depending on single sections, clients, and types of operations, merchandises and state of affairss. Electronic banking is a service that specifically uses electronic communicating signifiers.

Table of Content



E-banking Components

Forms of E-banking

Automated Teller Machine


Internet Banking

Mail Banking

SMS Banking

Types of Internet Websites

Informational Web sites

Transactional Web sites

Benefits of E-Banking

Merits to the Customers

Merits to the Banking Administration

Merits to the General Economy

Global vectors of E-banking

E-banking Schemes

E-Banking Minutess

E-banking Scenario

Tendencies in E-banking

Traditional Banking VS Online Banking

Merits and Demerits of Online Banking

Merits and Demerits of Traditional Banking

Problems with Computerization

E-Banking in Nigeria: A Case Study

Concerns of E-banking In Nigeria

Adoption of E-banking In Nigeria

Research Design

Proposed Model

Attempts of the Nigerian Government and the Regulatory Authorities.




E-banking can be defined as an electronically machine-controlled bringing of modified banking merchandise and services via the usage of the cyberspace, World Wide Web, technological devices and synergistic communicational channels. E-banking consists of systems that enable fiscal house clients, single and concerns, to transact concern ; entree histories possess fiscal merchandise services and information through the cyberspace and the web as a whole. E-Banking can besides be referred to as Electronic Fund Transfer ( EFT ) which merely implies the transportation or financess from one history to another. Electronic banking focal points on the usage of ICT to enable the external activities and fiscal relationships of group of persons and inter-organisational personal businesss easy.

E-Banking enables fiscal and non-financial administrations link their internal and external finance system more expeditiously, flexibly and efficaciously, to work closely and construct more sustainable relation with providers, clients and spouses every bit good as satisfy their outlooks.

Banking clients gain entree to e-banking merchandise and services with the assistance of an intelligent technological device runing from Personal Digital Assistant ( PDA ) , Touch Tone Telephone, Smartphone, pocket surfboarder, Automated Teller machine ( ATM ) to the largely used personal Computer ( Personal computer ) .

There are assorted usage of E-Banking, this includes:

Payment cheques: checking if a payment is deposited in an history.

Fund Withdrawal from history with the usage of an ATM machine which requires a manner of mandate for security grounds.

Puting up Direct debit/automatic payment apparatus for paying a company or a individual.

Account monitoring: 24/7 monitoring of what goes on in your history.

Use your computing machine and personal finance package to organize your entire personal fiscal direction procedure, incorporating informations and activities related to your income, disbursement, salvaging, puting, recordkeeping, bill-paying and revenue enhancements, along with basic fiscal analysis and determination devising

E-BANKING Components

The Electronic banking system can unusually change in their constellation pending on several factors. Fiscal establishments should carefully choose and take their electronic banking system constellation without excepting their outsourcing relationships based of four typical factors viz. :

The strategic purpose for electronic banking

Technological know-how

The system complexness, graduated table and range, equipments and activities ; and

The internal control and security demands.

The support of internal electronic banking services may be selected optionally by fiscal administration but instead, administrations may outsource any facet of their electronic banking systems to 3rd parties. Firms that could host electronic banking-related services for fiscal administrations are:

ISP ( internet Service suppliers )

A managed security service supplier

An cyberspace banking package processor and a nucleus banking seller

Other fiscal establishment

Recognition screening house and a recognition agency

A measure payment service supplier

These elements work together in harmoniousness to present a great accomplishment in electronic banking services and each component stand foring a considerable point of control.

Through a combination of both internal and external solutions, direction has assorted options when determining the overall system formation for the assorted elements of an e-banking system. However, seting simpleness into consideration, one or more engineering service supplier can host the e-banking application and assorted web constituents. The administration ‘s ISP hosts the administration ‘s cyberspace banking waiter, firewall, web site and all necessary security sensing system.

There are some procedures e-banking rely on in order to work as expected and some, if non all of the procedures can be seen in operation anytime e-banking is in services and operation where each component represent a considerable control point. Some of these procedures seen in a typical e-banking system include:

Internal web waiter

A nucleus processing system

Security direction

Network Administration

Website design and hosting

Firewall constellation and direction

E-business application ( e.g. loaning, bill/goods payment )


Automated Teller Machine ( ATM )

A stand-alone electronic machine in an unfastened country for public usage which is connected to a information system and constituents and so operated by a fiscal administrations client to retreat hard currency and other history balance and services via a really unafraid manner of communicating. Most ATMs in the UK allow interbank usage sometimes for free or charged a ‘ a fixed sum and the machines offers hard currency backdown, balance question with printed reception, money transportation between histories, nomadic top-up every bit good as fund sedimentation either in hard currency or checks.

Every client belonging to a banking administration is issued a plastic smartcard which has a bit on it and the bit contains the client ‘s history inside informations and a PIN ( personal Identification Number ) is issued with the smartcard as a manner of security for the user to entree the history. The PIN gives the user mandate into the history but the PIN has to be matched with that in the record of the card before entree is granted and if upon three unsuccessful tests, the history is locked and has to be reactivated but the authorization of the banking administration.


As the name suggests, it ‘s an electronic check. Basically, it ‘s the electronic version of a paper check which possesses the information and model as its opposite number and maps precisely as the paper check plants.

Internet Banking

This enables history users handle assorted banking activities via the usage of the cyberspace on their personal computing machine. These activities ranges from 24/7 history monitoring, balance cheques, financess transfer and paying measures.

To derive entree to internet banking, the user must hold to sign-up for this characteristic and in return, the banking administration issues the client some mandate and security steps merely to be known to the history user.

This includes:

An history figure

A watchword

A security inquiry ( as an history verification if history figure and watchword lucifers )

A security reply.

Mail Banking

This enables the possibility for client to pass on with their Bankss by electronic mail and the most used of this service is directing bank statements to account holders at an in agreement period to the client ‘s letter box.

SMS Banking ( short message service banking )

This characteristic allows clients to bespeak for information either from their Bankss section or for their history balance information with the assistance of a text message sent from the client ‘s Mobile phone which every bit good, can be used as both inactive and active operation similar to the authoritative telephone baking.

Information sent on petition is largely about current involvement rate or exchange rate sent by the bank and this characteristic is convenient by the bank due to its simpleness and less-protection involved but a watchword is used.


Before the web as a whole was opened to members of the populace, research and educational administrations and authorities bureaus were able to see and derive available information to each other by the usage of text-only web sites but since the embracing of the World Wide Web, there has been more website than of all time.

There are assorted types of web sites viz. :

Personal web sites

Community Building web site

Informational Website

Online Business Brochure

Web logs

Photo Sharing Web sites

Transactional web sites

But in this class, two primary types of fiscal web sites will be viewed: informational web site and transactional web site.


As the name suggests informational from “ information ” provides legion clients entree to information about a fiscal administration merchandises and services. These web sites are alone because it allows visitants part to readymade articles and diaries for redacting information to be shared or sold. A concern could setup a web site to name merchandise, specification, instructions and reexamine about a certain point. This will function as a lead for people to detect helper and kernel and this site can be linked to an e-business site for better client experience and even expose the utility of your sites being.

An illustration of informational web sites includes google.com and Wikipedia.org, the on-line encyclopedia.

There are certain hazard issues that has to be examined and reviewed due to the nature of information stored and retrieved in informational web sites which include:

There is a possible entree to private and confidential financial/customer information if the web site is n’t isolated from the fiscal administrations internal web.

There is a immense hazard in distributing virus and other malicious programming codification to computing machines pass oning with the administrations website

Potential client misdemeanors and liability for incorrect and deficient information about merchandises and services and monetary value listing presented on the web site ; and

A negative public position if the administration ‘s online web site services are defaced.


These website provide clients with the ability to procedure minutess through a fiscal administration ‘s web site by originating banking minutess or purchasing merchandises and services. Banking minutess can run from basic retail history balance enquiry to a big intra-business financess transportation. E-banking services can be classified based on the type of client and services they support.

Common e-banking retail and sweeping services largely offered by fiscal establishments are listed in the tabular array below.

Retail Servicess

Sweeping Servicess

Account Management

Account Management

Bill payment and Presentment

Cash direction

New history gap

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Small concern loan applications, blessings, or progresss

Customer Wire transportation

Investment/Brokerage Servicess

Commercial wire transportations

Loan application and blessing

Business-to-business payments

Account collection

Employee benefits/pension disposal

Common E-Banking services

Due to the nature of transactional web sites which enables the electronic exchange and transportation of sensitive client information and financess transfer, these website expose the services of fiscal administrations to higher hazard than any other type of web site. Sweeping e-banking systems typically expose fiscal administrations to the highest degree of hazard during each dealing, since commercial minutess normally involve larger currency sums. The undermentioned issues should be considered when reexamining transactional e-banking services:

Liability for unauthorised minutess ;

Confirmation of both new and bing clients accessing e-banking services with the procedure of hallmark ;

Law misdemeanors, client privateness, anti-terrorism, anti-money laundering ;

Security control for safeguarding client information ;

Fraud loss due to disproval of persons individuality or concern using for new histories ; and

Customer dissatisfaction, negative public position and possible liability ensuing from failure to treat third-party payments as directed or unauthorised entree to confidential client information during storage.


Since the debut of e-banking, there has been a rapid spread in its day-to-day usage either to the fiscal administration or for the clients all around the Earth. All fiscal administrations are doing greater usage of the installations provided by e-banking to better the services and to hold an border in the competitory market. The undermentioned points sum up the virtues of e-banking.

Merits to clients:

Customers by and large, have been distinctively affected in a positive manner by E-banking. Ordinary undertakings have now been replaced automatically which consequences in comfort and emphasis free. The virtues include:

With the usage of ATMs, clients have entree to their history to retreat financess at any clip of the twenty-four hours at any ATM hard currency point throughout the state.

Minutess can be done at any clip of the twenty-four hours, seven yearss a hebdomad by merely a mouse chink off.

Addition in the use of smartcards in different format which is widely used across the Earth i.e. recognition cards and debit cards.

Online banking made easy to clients with an on-line history.

Servicess available in a Bankss local subdivision can all be accessed in the Bankss website.

The client barely needs to see the local bank subdivision merely if necessary due to the flexibleness provided by the on-line service.

Attractive involvement rates and many inducements given out when histories are opened online.

Amalgamate portfolio Interface for clients pull offing their debit, recognition, mortgages and other fiscal assets.

Merits to banking administration

When the usage of ICT is been incorporated into any concern, there are advantages engraved in it due to the growing of E-banking substructure and these are sighted below:

The broad range and bringing capablenesss of computing machine web such as the cyberspace are better off than any other subdivision web.

Enormous paper work in the banking sector has been reduced due to the execution of e-banking.

Fiscal administration has become extremely competitory amongst each other as a consequence of addition in e-banking.

E-banking has helped the Bankss in commanding their operating expenses and runing cost.

Huge informations warehouse for certification, storage and retrieval of records, minutess and client inside informations has been sorted out by e-banking.

Banks save money in the long tally by non paying for Tellers or pull offing subdivisions.

Efficiency and client satisfaction is improved.

Huge client attractive force due to online services offered ( see image below ) .

e-bill effect.png

Beginning: Aspen Analytics, The E-Bill Consequence: The Impact on Customer Attrition from Banks that Offer E-Bill, Nov. 2007

Merits to the general economic system:

The innovation of the cyberspace and the World Wide Web has triggered an electronic/automatic revolution in the fiscal banking sector with its flexibleness and dynamic nature aided in equilibrating legion services of banking activities.

The acceptance and bringing of electronic banking merchandises and services is bing partially as a merchandise of client demand and because of the rise in competition within the banking sector but many few Bankss have succeeded in deploying effectual schemes for to the full use the services of the cyberspace.


E-banking has widely serviced both the members of the populace every bit good as the fiscal administration which created a creative activity of a better enabling society that supports growing and development, productiveness and prosperity. Puting aside its benefits in signifier of cost decrease, bringing clip economy, high efficiency, waste decrease, electronically controlled e-banking and thoroughly environment monitoring discourage many illegal and illegimate behaviors associated with banking industry like frauds, money laundering and peculations. Customer database been closely monitored by e-banking. E-banking has besides helped in certification of the economic activity of the multitudes.

Global E-banking administration is covered by four primary subdivisions viz. :

E-banking Schemes: cardinal schemes that all Bankss must use to accomplish extremum value through the electronic channel.

E-banking Minutess: this sector deals with cross boundary line minutess, nomadic payment, B2B minutess and E-billing system.

E-banking Scenario: the province, chances and issues associating to e-banking and the impact of e-banking on the banking administration construction.

Tendencies in E-banking: this subdivision focuses on the creative activity of new engineerings in Bankss.


A survey revealed that less than 15 per centum of Bankss with transactional web site will harvest net incomes straight as a consequence to those sites. Therefore, fiscal administration must admit the earnestness of the challenge in front and come up with a scheme that will enable purchase opportunities presented by the World Wide Web.

E-banking relies on the development of new concern schemes based on webs. The universe has become progressively inter-connected through telecommunication webs and computing machines. These offer fast, flexible, and cost-efficient ways of making concern.

There is no set appropriate scheme in E-banking that is suited for every banking industry but whether they embark on a defensive or an violative scheme, they still have to be up to day of the month with the concern tendencies and technological development of the Web infinite although, non every concern has been e-business understood. Like Wells Fargo, early electronic concerns espouse, who firstly- non merely entered the electronic banking sector but showed flexibleness to alter as the market expands.

The degree of e-banking should be good considered by the fiscal administration that will supply legion client sections based on their demands and hazard direction appraisal. An sanctioned strategic e-banking wide should be consulted before making an understanding or concluding determination should be made with considerations to the client demands, expertness, expense execution, care cost, competition and capital support. Fiscal administrations frequently consider the most appropriate manner of overall concern scheme in footings of printing its merchandises and services on informational web sites or transactional web sites which can sometimes used to find organizational success and to guarantee the bringing of those merchandise and services ; the fiscal administration may possess multiple pages within a web site for different concern maps.

E-banking is a distant bringing channel for banking services runing from opening an history, reassigning financess to more complex signifier of on-line minutess like fiscal merchandise sale, like insurance and securities firm to measure payments and direct debits.

Although cyberspace banking is still the most influential and most widely used, a new challenge has emerged in the signifier of Mobile banking which is an extra chance for Bankss to offer basic pressing petition for their new and bing clients. Mobile banking allows fiscal administrations extend their client relationship and personalized information with the usage of new engineerings to their valued clients.


With the increasing cost of banking minutess, supplying legion clients with cost effectual services ; immense volume of e-banking minutess are been processed mundane and this is going progressively popular as the figure and value of e-banking minutess in the state have shown a instead impressive growing in old ages. This is achieved with the assistance of new engineerings which transformed traditional banking minutess. The traditional agencies of banking involves physically traveling to the bank to put to death all banking operations from the simplest to the complex minutess which the Bankss had to use several staffs to go to to the clients questions.

Electronic Fund Transfers got introduced and this minimised the mean client waiting times by leting clients to transport out banking minutess on their ain and at anytime. There are several practical services offered by Electronic fund Transfers and this includes:

The usage of Automated Teller Machines – otherwise known as ATM or 24-hour Tellers are electronic terminuss that allows banking about at anytime of the twenty-four hours. These machines enable bank clients to do sedimentations, withdraw hard currency, or reassign financess between histories. To utilize this service, account holders make usage of a fictile card with bit and a PIN ( Personal designation Number ) to entree the history and carry out necessary actions in the history. Unauthorized users are declined and the card can be block to avoid fraud. Some ATMs are free and some charge a small entree fee.

E-check transition converts a paper cheque into an e-payment in a shop or when a house receives look into in the mail. Using the e-check in shops, the teller runs the e-check through an electronic system that captures the banking inside informations and sum inside informations on the cheque and shops the record. Thereafter, a reception is issued as a verification of credence for the client ‘s record. The e-check maps precisely as the paper cheque and all footings and conditions are applied every bit.

Direct Debit Transactions allows payment to be made with a bank debit card in the name of the history holder which besides can be your ATM card. Payments for purchases can be used in concern shops, shopping mercantile establishments, online and over the phone. The procedure is fast and easy to reassign financess and do payments provided the sum in the history covers all purchase necessary. It should be encouraged to read through the cards footings of usage and conditions of the banking administration.

Direct sedimentation enable mandate of specific sedimentations such as Social Security cheques, wage cheques to your history on a regular footing. Pre-authorize backdowns may besides be set up so as to pay repeating measures such as insurance premium, mortgages and public-service corporation measures, paid automatically.

Telephone banking allows instant contact with the bank society to authorise certain payment, transportations, account balance petition and transactional recognitions to be sent to the history holder over the phone. Agreement has to be made with the banking administrations to utilize this characteristic and is sometimes charged at a declared fee.


Bank history information is really sensitive and hence, particular attention should be taken into consideration when giving out inside informations of debit card or recognition card either on the cyberspace or over the phone. Fiscal administrations should be contacted about any protections offered for these transactional cards.

E-BANKING Scenario

E-banking is largely used in the fiscal sectors across the Earth and it tends to be the lead maestro in E-business but surveies revealed that e-banking still has a batch to offer. E-banking is adopted largely in developed states as a manner of working moralss through the handiness of the cyberspace as an on-line bank subdivision while the developing states make usage of the cyberspace as information airing.

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E-banking started in the early 1980s in New York, US. Harmonizing to “ Banking and Finance on the Internet ” , which was edited by Mary J. Cronin, typical Bankss offered place banking services to persons and small-businesses to keep e-check book registries, look into history balances and fund transportations between histories. Although e-banking was introduced in the mid-1970s so as to cut down back-office check-processing costs, the Bankss which embarked on the system failed to pull adequate clients to interrupt even and were deserted in 1989.

In 2001, over 50 per centum of the Bankss were offering E-banking services in the US but nevertheless, little banking administrations had no competitory virtue over immense Bankss in footings of services rendered although cyberspace concern schemes was been implemented.

In the 1990s, big Bankss awaken to the huge popularity and chances of the cyberspace to publicize their merchandises and services to a great extent. Harmonizing to a research carried out by Online Banking Report, at the terminal of 1999, less than 0.4 per centum of families in the U.S. were utilizing on-line banking. Later in early 2004, some 33 million U.S. families ( tantamount to 31 % of the market ) were utilizing a signifier of e-banking or another and five old ages after, harmonizing to Gartner Group Survey, 47 per centum of the Americans bank online. The FDIC statistics published revealed that merely 40 per centum of US Bankss offer e-banking installations worth adverting. The others may possess an on-line presence but do n’t hold website minutess to turn out their being on the cyberspace.

Hence, the cyberspace was used as a booklet without physical interaction to the clients. This offered entry and enlargement chances that little Bankss traditionally lack.

E-banking arrived in the UK about at the same time with the US. It was introduces by the Nottingham Building Society in 1983 which introduced UK ‘s first place banking service via a computerised information service owned by British telecom. Approximately 60 per centum of the UK fiscal industry was centralised in e-business in early 2001 and with the awaited 10-fold rush of the e-business market in 2005 in UK, the portion of the fiscal services will farther increase. Some bank clients turn to internet banking due to depress with normal processs, policies and patterns. The entire cut of human intercession tends to appeal to some people and some people switch to internet banking for security grounds and convenience. This arises because of the confidence Bankss give to safe guard minutess and better security.

The cyberspace is speed uping difficult to reset the banking administration into three divisions viz. : production, distribution and advice. This is due to the combined consequence of internet thrust:

New technological equipments to cut down transactional cost and physical bank relationship

The acceptance of new and more focussed concern theoretical accounts

High grade of uncertainness posed by new entrants on concern theoretical accounts.


E-banking in Europe every bit good as the remainder of the universe is still at the evolutionary phase, it ‘s obvious that a immense impact is been felt on the traditional manner of banking. Large Bankss in parts of the developed universe will certainly hold a competitory advantage over little Bankss due to the competency to implement new engineerings but are still non prepared. Hence, moderate-sized and little Bankss have a important function on the electronic banking front terminal if rigorous steps can be implemented quickly and efficaciously.

Tendencies IN E-BANKING

The tendencies in e-baking varies from clip to clip although e-banking is deriving immense land from Bankss runing through web sites enabling clients non merely to bespeak history cheques, involvement rates but besides to research a whole broad scope of transactional merchandise and services.

Internet banking informations seems to be scarce and definitional differences make comparing hard in cross-countries. Internet banking has gained muck popularity in Korea, Spain, Austria, and Switzerland, where all Bankss offers up to 75 per centum on cyberspace services.


Harmonizing to a research carried out by yStats.com, a research company founded in 2005 for the research of nonsubjective, demand-based and up-to-date informations on markets and rivals for top directors, made cardinal findings on the planetary usage of on-line payments. The Quantitative information on different payment methods used in B2C E-Commerce markets worldwide quotation marks:

In the US, “ Credit Card ” ( 67 % ) was the preferable payment method for holiday on-line shopping in 2009, followed by “ Debit Card ” ( 36 % ) .

While German work forces use recognition cards for more than 40 % of online purchases, adult females continue to utilize the traditional direct debit method.

“ Sella ” ( 31 % ) was Italy ‘s preferable on-line payment company in 2009, followed by “ Cartasi ” ( 19 % ) and “ PayPal ” ( 15 % ) .

Furthermore, “ ideal ” was the most recognized payment method in the Netherlands in 2009, with 89 % of merchandisers accepting it.

“ Money Transportation ” ( 43 % ) was the preferable payment method of B2C E-Commerce consumers in China in 2009.


There are several differences between traditional banking and online banking although some people are still doubting about the safety of sensitive information when utilizing online banking so hence, they stick with their old manner of banking.

The typical characteristic between both is that one is physical and the other is practical but they both offer the same merchandises and services. The major difference lies in the convenience opportune by on-line banking specifically when it deals to doing payments, obtaining up-to-date history information, or history rapprochement. Rather than physically confer withing a bank subdivision, entree to your history is made easy to execute bank minutess utilizing your computing machine.

At the comfort and privateness of your place, one can now be able to finish assorted basic bank minutess with merely a chink of the mouse. However, like any other client related services, traditional and on-line banking has its virtues and demerits which should be carefully noted.


Efficiency and convenience offered for clients to finish multiple undertakings like measure payment, balance cheques, sedimentation and backdown of financess and a batch more, without go forthing their residence. With on-line banking, clients ‘ saves clip and put to death assorted minutess more expeditiously.

Customers now have limitless entree to their history at anytime of the twenty-four hours including vacations and weekends, even when out of their state of abode, clients can still entree their history one time there is internet connexion on their Personal computer.

Most Bankss offer less charges and higher return rate with every dealing carried out online, including high involvement rate on nest eggs history and bank Cadmiums or certifications of sedimentations and they can besides offer extra fiscal services and other fiscal merchandises to its possible clients.

The disadvantage of on-line banking is that with all the sophisticated package, security plans and tools used online by Bankss, several security issues are still raised like individuality larceny, recognition hazard which puts histories in state of affairss of being hacked. Transaction/operations risk arises from fraud, mistakes during processing and system breaks or other unforeseen events ensuing in administration ‘s inability to present merchandises or services.


As convenience and clip efficiency is at interest peculiarly for the lovers of multi-tasking, some clients still prefer traditional manner of banking as compared to the online method. Security and aid seems to be the ground why some clients still stick to traditional method because if there seems to be a job, they can easy name for aid from a bank staff/representative to help them even though the procedure might take longer, it will set their head at easiness.

A procedure flow chart demoing a traditional banking scenario VS online banking scenario of Barclays Bank.


Modern concern today, whether little, medium or big, considers computerisation of their operations. Although computerisation is expensive and needs tremendous investing in both the hardware and package and the general care, when it ‘s managed decently, the procedure will gain both the proprietor and the concern significantly.

When ICT is used in the right sectors, it will go an built-in portion of the concern and a great support to concern proprietor and staffs. The chances computerisation offers is huge and it depends on the concern proprietors peculiar demands.

Equally much as the pros of implementing computerisation is noticeable, so are the cons which chiefly happens due to hapless determination and scheme when presenting computing machines into any concern can take to immense jobs with costs, clip and people. An IT action program will assist better determination devising procedure which the programs will affect:

The ideas on the concern hereafter IT needs by developing an IT scheme

Budgeting the cost and providers of research

Informational sites could be altered by hackers utilizing different advertisement steps.

Risk appraisal conductivity affecting the designation of possible issues and menaces and how to turn to them.

Buying the best system for the concern demands

Hidden cost of computerisation such as care cost, advice and preparation.

Improved clip direction to measure the clip needed to develop and implement and larning a new system for the concern.

Continuous engagement and preparation of staff during apparatus

Addressing wellness and safety issues while utilizing the new system, and

Electronic mail can be sent to the incorrect receiver as an mistake.

Not burying the clients and providers feedback/comments on the new system


Harmonizing to Mohammad, 2004, the Internet has brought about a cardinal displacement in national economic systems that are isolated from each other by barriers to cross-border trade and investing ; isolated by distance, clip zones and linguistic communication ; and isolated by national difference in authorities ordinances, civilization and concern systems.


Regardless of the planetary concern posed on cyberspace banking in Nigeria, the Nigerian economic system still remains a strong force in Africa although the state has a really high repute for internet-related frauds in the universe, which tagged her as the central office of Advance fee fraud, codification “ 419 ” , named after subdivision ‘419 ‘ of the Nigerian Criminal Code that deals with “ geting belongingss by false pretensions ; Cheating. ” This inside informations why ordinance has become of high importance in the whole cyberspace banking development procedure in Nigeria.

The Nigerian First bank was established in 1892 as the African Banking Corporation, when banking statute law was n’t in being until when the conventional banking system was put in topographic point in 1952 with the industry sing tonss of regulative and institutional progresss. The banking industry in Nigeria was faced with heavy challenges, including the celebrated fraud impact and corruptness, public assurance eroding, hapless capital base, the accustomed behavior form of hurt and failure. Hence, “ the Central Bank of Nigeria triggered a motivation to decide and reform the banking sector in the state in June, 2004, which was targeted chiefly to understate the figure of Bankss in Nigeria from 89 to 25, doing the emerging Bankss much stronger and dependable ( Ezeoha, 2005 ) ” .

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The Central bank of Nigeria ( CBN ) , in its study conducted in 2002, reported that out of the accredited 89 commercial Bankss in being, 17 merely offered cyberspace banking, 24 offered basic telephone banking, 7 posses Automated Teller Machines services while the other 13 offered other signifiers of e-banking which implies that as of that period, 19.1 per centum of the Bankss offered internet banking, connoting that cyberspace banking was yet to detonate despite its immense advantages against the traditional manner of banking. The largely acclaimed ground why the Bankss failed to encompass the advantage of e-banking is the deficiency of equal substructures like electrical power and telecommunication, which e-banking strongly rely on.

Andrew ( 2004 ) put the entire sum realized from e-commerce at $ 233 billion in 2000 and an estimated figure of $ 6.8 trillion in the twelvemonth 2004. This sum is much and is expected to be a batch more by now. However, cyber-crime is another major menace to the endurance of e-commerce. It has a direct economic harm which was estimated in the twelvemonth 2000 to be at par with the benefits of IT in concern ( Vasili, 2003 ) . Harmonizing to the FBI study of 2004, the cost of cyber-crime was put at approximately $ 400 billion ( Maiami Herald, 2005 ) . The issue of cyber-crime has entirely been responsible for the low degree of e-commerce execution in Nigeria.

A major pre-requisite in the usage of e-commerce is the e-payment system, but Nigeria is a cash-carrying economic system with over 90 per centum of financess in circulation at any point in clip. This implies payment of goods and services is largely cash-in-hand with grounds due to ignorance, high degree of illiteracy and deficiency of substructure to vouch handiness and transactional security ( Ojo 2004, Ovia 2002, and Bickersteth 2005 ) .


With respects to the fright posed to an mean Nigerian to encompass e-banking in Nigeria, the planetary image of Nigeria being a doubtful and deceitful economic system utilizing bogus bank web sites to garner financess from incognizant victims, is good reinforced. The acceptance of e-banking activities in Nigeria still has a long manner to be embraced but by accommodating the celebrated Diniz theoretical account of internet acceptance used in the U.S. to edify the people of Nigeria to its benefits.

A website study of Bankss presented by Diniz ( 1998 ) in the USA, interrupt down the functionality of web sites in assorted waies to give in-depth cognition on three chances that engineering could profit Bankss. These subdivisions are listed therefore:

Information bringing

Transaction Channel

Customers Relationship

Research Design

A theoretical account was proposed by Diniz ( 1998 ) to measure Bankss ‘ web sites in the USA and the same theoretical account was screened to determine the acceptance on e-banking in the Nigerian Bankss which was undergone to analyze web banking theoretical accounts adopted in the US. The proposed theoretical account serves as an analytical tool to sort and compare the different types of Bankss and their size comparatively. However, the subdivisions of the theoretical accounts ‘ website functionality are:

information Delivery – due to Bankss functioning as information suppliers

Minutess Channel – provides beginnings for loans precisely as in bank subdivisions of ATMs.

Customer relationship – a tool to heighten client relationships and satisfaction.

Each event subdivisions are farther divided into three separate degrees of interactivity which includes: Basic ; Intermediary ; and Advanced. The theoretical account is shown as below.






Electronic Booklet

Search Engine



Report download


Meanss of Contact

Recruitment signifiers

Discussion group

Particular Events

Hot links

Interface Customization

Transactional channel

Opening History

Balance Enquiry

Electronic Cash

Cheque book petitions

Fund Transportation

Electronic Signature

Card Requests

Bill Payments

Electronic Checks

Customer relationship

Electronic mail

Investing Adviser

Video Conference

Suggestion signifiers



Complain Forms

Software Download

Servicess Development

Diniz Model

Beginning: www.arraydev.comcommercejibc980606.htm


Nigeria, holding been regarded as Advance fee fraud central office in the universe ; due to its repute for doubtful cyberspace cozenages, it ‘s a necessity that the issue of security is addressed decently. So hence, the Bankss website are evaluated based on the proposed theoretical account similar to that proposed by Diniz ( 1998 ) but with a security column included – merely to guarantee maximal safety and Confidence in usage. The modified theoretical account is illustrated therefore:






Electronic Booklet

Search Engine



Report download


Meanss of Contact

Recruitment signifiers

Discussion group

Particular Events

Hot links

Interface Customization

Transactional channel

Opening History

Balance Enquiry

Electronic Cash

Cheque book petitions

Fund Transportation

Electronic Signature

Card Requests

Bill Payments

Electronic Checks

Customer relationship

Electronic mail

Investing Adviser

Video Conference

Suggestion signifiers



Complain Forms

Software Download

Servicess Development



User Name

Customer Code

Digital Signature/Certificate

Password/Password Change


SSL 128 Bit Encryption

The Proposed Model

An rating of Bankss ‘ sites was made from the above theoretical account and a “ Grand Score ” which is obtained by numbering the theoretical account points ; will be assigned to each bank. Thus, a bank can acquire as the entire count of theoretical account points ; a maximal mark of 36 points

The Bankss ranked 1 -6 in Nigeria, was so created from these tonss as consequence of following e-banking. Each interactivity degree and dimension is investigated in 12 Bankss and therefore, the tonss:

Evaluation Tonss of Bank ‘s Website

( Writer ‘s field Survey, 2006 )

Evaluation Ranking Tonss

The antecedently explained relationship between the four functionality tonss every bit good as the three interactivity tonss is plotted on a graph with all the possible combinations. The graphs are shown therefore:

Relationship between Information Delivery and Transaction channel

In the above graph, the end product shows there is no relationship information bringing and dealing channel ; reflecting that Nigerian Bankss are implementing a decently developed information sites to conceal their non-transactional activities.

Correlation between Customer relationship and Information bringing

Since the quality of client relationship depends on a big volume on the nature of information bringing, some seeable relationship can be noticed between information and relationship which is shown in the above diagram.

Security Measures and Transaction functionality Relationship

Since the transactional nature in most instances is reliant on the span of the security measures available, a clear relationship is observed between dealing and security.

Correlation between Security Measure and Customer Relationship

A positive correlativity is apparent between client relationship and client security which means that the more relation between Bankss and clients, the likely-hood they are to experience safe with e-banking activities.

The banking service offered in Nigeria as the consequence revealed is at BASIC degree. The tonss attained by the Bankss are high at the really basic degree.

Interactivity Level of Bankss

The Bankss were found to airss chiefly information sites with tonss between 4.5 and 11 out of the overall mark of 12 points. However, the tonss badly diminished as Interactivity degree multiply. The tonss at the information degree are higher than any other degree with tonss between 4 and 9.5 out of 12 maximal points.

Activity Functionality Levels


The Central Bank of Nigeria came up with the electronic banking guidelines formed from the research of a proficient Committee on Electronic Banking in 2003 to seek for equal manner of operation of e-banking in the state. The acceptance of the set of guidelines of the research and recommendation on e-banking in August 2003.

The E-Government undertaking – a civil service reform which was developed to do the civil service of Nigeria proactive, effectual and efficient to the demands of the general populace. The undertaking is a joint venture between both the populace and private operating sectors under the protection of National e-Government Schemes Limited ( NeGST ) and the National Information Technology

Department Agency ( NITDA ) . “ The undertaking was designed to cut down the bureaucratism that attends to authorities concerns in the state through the debut of e-tax, e-learning, e-traffic, e-procurement, e-pricing, e-mail, e-tourism, e-payment, e-revenue, e-legislation, e-policing, e-judiciary, e-health, e-agriculture, e-services, e-kiosk, e-buka etc ( Soun, 2004 ) ” .

The Nigerian Government enforced a figure of regulative organic structures in its attempt to sanitize the rate of deceitful patterns in the fiscal sector of the state by presenting: the National Drug jurisprudence Enforcement Agency ( NDLEA ) Act of 1989 ; the Independent Corrupt Practices Commission ( ICPC ) Act of 1999 ; the money wash Act of 1995 ; the Failed Bank ( recovery of debt and fiscal malpractice of Bankss ) Act of 1994 ; the National Cybercrime Working Group ( NCWG ) ; and the Economic and fiscal offenses Commission ( EFCC ) – all with a position to washing the image of the state before the international community and within.

Puting aside the huge proficient specifications, the guidelines have been widely criticized as non being sufficient to look into the fast growing of cyberspace banking against the drawback of turning edification in cyber engineering related frauds and offenses. a closer expression at the contents of the guidelines reflects that the papers fails to fit up with the four key countries where cyberspace banking may hold regulative impact – handling concerns about bing public policy issues ; altering the traditional lines upon which bing regulative constructions are laid ; rebalancing industry discretion and regulative regulations ; and altering the range and nature of bing hazards. This gave rise to another guideline by the commission ‘s study, which recommended that all Bankss with the purpose to offer transactional services for e-banking services should obtain an approval-in-principle from CBN before shiping on these services – but this was omitted wholly.

The Nigerian IT policy, founded in 2000 is responsible for the monumental development in the sector with its vision is to do Nigeria an IT competent state in the whole of Africa and largely, a cardinal participant in the information society. The mission includes the usage of IT for: poorness obliteration, instruction, occupation creative activity, administration, wellness, agribusiness, creative activity of wealth and so on but however, Nigeria was reported as the fastest turning Telecoms state in Africa in 2006.

Wire Nigeria aka “ The WIN undertaking ” which its chief map was to supply ICT substructure to all the nooks and crevices of the state and the proviso of VSAT 774 local Governments in the state every bit good as put ining fibre ocular anchor across the state.


As more and more Bankss are encompassing the execution of information engineering to authorise its concern by including non-banking characteristics to their sites to be in front of their rivals every bit good as viing globally and authorising the clients by supplying information which is needed for better determination devising.

With the extremum of the cyberspace yet to be explored, the potency of utilizing e-banking will be ne’er to step pes in bank subdivision once more if the services remains free and Bankss have to gain that lasting the new coevals e-economy has a batch to offer in footings of presenting some or all their banking services on the cyberspace every bit good as go oning to promote their traditional construction.

The emerging tendencies of e-banking have made it a concern world which in few old ages to come, will be made a necessity to everyone ; redefine concern relationship and beef up partnership between corporations and clients.