Banking Sector Technology Discrepancies: The Cost and Effect on Service Delivery

Abstract

Today, the banking system is witnessing a lot of transformation via the aid of technology; this technological transformation is coming at cost to both the banks and the customers of the banks. The cost of technology based services of the banks to the customers is coming in various ways and format, sometime; it is of value to net the cost of the new technology against the benefits to the customers. The cost and effect of the new technology in the banks otherwise known as the electronic banking system is the core of this study.The study is an application of a survey design using structured questionnaire to capture variables of import to the study. The binomial test was adopted for the study.The study revealed that the whole of the E-banking system is coming at a higher cost to the customers than the manual banking of the past. The major cost is still being borne by the banks. It was also revealed that the E-banking promote better customers’ relationship in the banking sectors. The net benefit over cost of the E-banking system is of value.The study recommended that the central bank of Nigeria (CBN) should institute various customer-protection service and customers complaint centre to promote fairness and equity in service delivery in the banking sectors.+The need to also institute due process compliances system is equally germane for effective service provision at reduced charges.

Keywords: electronic banking, information technology