E- Banking in Nigeria: Issues and Challenges

Abstract

The aim of this study was to assess issues and challenges of e-banking in Nigeria. The specific objectives were to ascertain the effect of e-banking on workers, job security in Nigeria banking industry, examine the relationship between e- banking and quality of service delivery of commercial banks in Nigeria, evaluate the relationship between e-banking and security of financial transactions and to find out if e-banking influences customers satisfaction in the Nigerian banking industry. The survey and descriptive research design were adopted in the methodology of the study. The population consists of all the customers and staff of three selected banks branches in the Benin metropolis. A sample of three hundred respondents was selected using the convenience random sampling techniques. The study employs primary data using questionnaires as the research instrument. The data analysis was carried out using summary statistics and ordinary least square regression analysis. The study findings indicate that employees’ job security has a positive relationship with E-banking and significantly influence E-banking in Nigeria; customers’ satisfaction was ascertained to have a positive relationship with e-banking and also influence e-banking penetration in Nigeria; security of financial transactions was found to have a positive relationship with e-banking, it however had inverse significant impact on e-banking; services delivery has a positive relationship with e-banking. It is therefore recommended that for effective e-banking penetration, investors education and marketing of e-banking products should be the key strategy banks should use to attract more customers towards embracing e-banking and increasing security for e-banking products, reduction of charges on e-banking products and increasing more ATM outlets in Nigeria as part of measures towards enhancing quality services delivery and promotion of e-banking as this will further enhance the recent need for financial inclusion as part of the monetary policy of the Central Bank of Nigeria.

Keywords: E-banking, job security, service delivery, customers’ satisfaction and security of e-banking financial transactions.