Effect Of Internet On The Performance Of Office Manager In Some Selected Bank In Auchi (A Case Study Of Access Bank, Eco Bank And First Bank)

Description

ABSTRACT

E-business is revolutionizing the way business is conducted in every industry. Banks are no exception to this transformation. This study aims at examining the effect of internet on the performance of an office manager in banking industry some selected banks in Auchi, Edo State, Nigeria. Specifically, it looks at concerns such as the various banking services available through internet banking in Auchi, Edo State, Nigeria, factors influencing internet banking adoption in Nigeria, factors impacting negatively on customers‟ utilization of internet banking and banks‟ perceptions of Internet banking and its operational value. The study was based on both qualitative and quantitative approaches and questionnaires were administered to some selected Internet banking customers and managers of the three banks using purposive and simple random sampling techniques. Findings from the study indicate that internet services in in office managers in Auchi, Edo State, Nigeria makes their work easy include checking of balances and account activity, request for cheque book and same bank funds transfer. However, customers are enthused by the service as shown by the expectations of advance services. The availability of other electronic products, frequency of internet use and management’s commitment to internet banking are some of the factors that affect internet banking adoption. Some level of value in terms of banking operations is derived from internet banking. Improved customer service delivery, lower transaction costs and improved cross-selling opportunities are some of the benefits. This study concludes by highlighting the fact that internet banking is still in its teething stage and that most of the banks do not offer full-fledged Internet banking though they have plans to do so. Bankers see Internet banking as a strategic opportunity that can be used to reduce transaction costs and enhance customer service delivery. The study provides some recommendations towards improving internet in banking industry in Nigeria such as developing appropriate internet banking marketing strategies that maximizes value for customers and satisfaction in the long run.

TABLE OF CONTENTS

ABSTRACT

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

LIST OF ABBREVIATIONS

CHAPTER ONE

INTRODUCTION

• 1 BACKGROUND OF STUDY
• 2 AIM OF THE STUDY
• 3 PROBLEM STATEMENT
• 4 OBJECTIVE OF THE STUDY
• 5 RESEARCH QUESTIONS
• 6 SIGNIFICANCE OF STUDY
• 7 SCOPE OF STUDY AND LIMITATIONS
• 8 ORGANIZATION OF THE STUDY

CHAPTER TWO LITERATURE REVIEW

• 0 ………………………………………………………………………………………………………………….. INTRODUCTION
• 1 …………………………………………………………………………………………… WHAT IS INTERNET BANKING?
• 2 INTERNET BANKING ADOPTION
• 3 WHY ADOPT INTERNET BANKING
• 4 INTERNET BANKING ACCEPTANCE USING TECHNOLOGY ACCEPTANCE MODEL
  • 5 INTERNET BANKING ACCEPTANCE BASED ON SERVICE QUALITY
• 6 BENEFITS OF INTERNET BANKING
  1. Less Expensive to Maintain
  2. Gain Customer Loyalty
  3. Ease of Bank Account Monitoring
  4. Ease of Transacting
  5. Quick Detection of Fraud
• 7 CHALLENGES OF INTERNET BANKING
  1. Technophobia
  2. High Cost of Internet Services
  3. Security
  4. Fraud
  5. Up Time of Internet Banking Service
  6. Expensive and Unreliable Internet Connection

1. Internet Banking Security
   1. Automatic Session Timeout
   2. Scramble Pad
   3. Digital Certificates
   4. Encryption
   5. Identity Verification
   6. Appropriate Web Browsers
   7. Strong User Credentials
   8. Cautious Use of the Service
2. Internet Banking Fraud

• 8 ………………………………………………………………………………………………………………….. SOME MEASURES TAKEN TO IMPROVE INTERNET BANKING SECURITY
  1. One Time Passwords
  2. Hardware Tokens
  3. Transaction Specific OTPs
  4. OTP by SMS
  5. Smart Cards and USB Tokens
  6. Transaction Monitoring

1. Internet Banking In Auchi

• Conclusion

CHAPTER THREE

• METHODOLOGY

Introduction

3.1       RESEARCH PURPOSE

• RESEARCH APPROACH

3.3 RESEARCH STRATEGY

• DATA COLLECTION
  • Primary Data
  • Secondary Data
• TARGET POPULATION AND SAMPLE SIZE
• SAMPLING TECHNIQUE
• DATA COLLECTION METHODS
• DATA ANALYSIS
• QUALITY DATA
• PROFILE OF THE BANKS UNDER STUDY
  • Eco Bank
  • First bank
  • Access bank

CHAPTER FOUR

ANALYSIS, DISCUSSION AND REPRESENTATION OF RESULTS

• INTRODUCTION
• 1 DEMOGRAPHIC DATA
• 2 INTERNET BANKING SERVICES IN AUCHI
• 3 FACTORS INFLUENCING INTERNET BANKING ADOPTION IN AUCHI
  • 4 FREQUENCY OF INTERNET USE
  • 5 MANAGEMENT‟S COMMITMENT TO INTERNET BANKING
  • 6 CUSTOMERS EXPECTATIONS AND REQUIREMENT OF INTERNET BANKING SERVICE
  • 7 CHALLENGES AFFECTING INTERNET BANKING
• 8 FACTORS IMPACTING NEGATIVELY ON CUSTOMERS UTILIZATION OF INTERNET BANKING
  • 9 AVAILABILITY OF OTHER ELECTRONIC DELIVERY CHANNELS
  • 10 ISSUES WITH THE USE OF INTERNET BANKING
• 11HOW INTERNET BANKING AFFECT CUSTOMERS IN AUCHI
• 12 INTERNET BANKING FRAUD IN AUCHI NIGERIA
• 13 BANKS‟ PERCEPTIONS OF INTERNET BANKING AND ITS OPERATIONAL VALUE
• 14 CUSTOMERS SATISFACTION LEVEL OF INTERNET BANKING SERVICE IN NIGERIA

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1	SUMMARY OF FINDINGS
	Internet Banking Services Offered
	Factors Influencing Internet Banking Adoption in Auchi
	Factors impacting negatively on Internet banking Utilization
	High Usage of ATMs
	Security Risk and Access to Internet
	Effect of Internet banking on Customers
	Internet Banking Fraud
5.2	Internet banking and its Operational value CONCLUSION
5.3	RECOMMENDATIONS

5.4   REFERENCES AND BIBLIOGRAPHY

APPENDIX A              QUESTIONNAIRE FOR CUSTOMERS

APPENDIX B	QUESTIONNAIRE FOR BANK STAFF
APPENDIX  C	INTERVIEW GUIDE

LIST OF FIGURE

LIST OF TABLE

LIST OF TABLES

LIST OF ABBREVIATIONS

DSTV	–	Digital Satellite Television
ICTs	–	Information and communications technologies
OTP	–	One Time Passwords
PC	–	Personal Computer
PDF	–	Portable Document Format
PE	–	Perceived Enjoyment
PEOU	–	Perceived Ease Of Use
PU	–	Perceived Usefulness
SERVQUAL	–	Service Quality
SMS	–	Short Message Service
TAM	–	Technology Acceptance Model

 

CHAPTER ONE

1.0                                                          INTRODUCTION

The Internet usage has increased in the current generation due to the change in the astounding rates with the advancements in the technology. The studies carrying out ion the impact of the technological advancements have revealed that the technology has been impringed in all aspects of the common people’s life. The electronically handling capability for all the complicated works are increased in this situation. The Internet is treated as the global trend which can reduce the time and distance to perform the important transactions. The change emerged to the internet banking from the conventional banking is termed to be leap transformation.

The banking sector in the current days is able to provide with the novel services to the consumers through effective exploitation of the internet. This has given the advantages in two folds that are for bank as well as for the customers. The banks have emerged in to hi – tech service providers and to develop the services to eliminate the banking concerns with better focus on the needs and requirements of clients. The current banking sector is implementing novel technologies and expertises to make the complication and concerns of original banking plan to much easier and easily accessible by the consumers. The commencement of the electronic banking initiated with the ATMs. And at present the trend has emerged to carry out the transactions through mobile phone, through internet, direct bill payment, electronic fund transfer and the I – banking. The augmentation in the E – commerce and the utilization of the internet banking has been supporting the transactions in the banking with better security options with confidentiality in transaction has led to the importance of Internet banking in the current day.

Thus the current project is aimed carry out a thorough study on the impact of Internet and the applicability of the same in the highly service oriented sector like banking. Thus the project is able to reveal the benefits that will improve the customer loyalty which is very much necessary in the banking sector further the project will explain the extent of applicability of internet in banking sector. Thus the importance of internet in the current banking sector is analyzed through this. For this study both qualitative approach and the qualitative approach (or primary research) and the secondary research such as Literature review in order to accomplish the study.

1.1                                 BACKGROUND OF STUDY

The banking industry has developed from traditional, brick and mortar‟ to Internet in banking industry, that is, using internet facilities in the banking operation. Internet banking refers to the use of the Internet as a remote delivery channel for banking services, including viewing and verifying transactions on account, Checking Balances, Printing Statements, Monitor uncredited and unpaid cheques, and many more which was previously carried out by office managers in the banking hall. The service provided by banks on the Internet has evolved from simple consultation of account to a full range of banking services. Compared to the traditional form of banking, the Internet has the advantage of eliminating most of the network and software costs attached to other electronic banking innovations through the use of browsers, with the consequence that the unit cost is only a small percentage of traditional costs (Clemons and Hitt, 2000). Jones et al (2004) in their studies found that banks saved 107 times of total cost when internet banking services were employed. Pennathur (2001) found that Internet banking increase operational, legal, reputation risks, and increase competition thus promoting better services amongst competing banks. Internet banking also allow customers to interact more intensively than before with the front office of the bank and, at the same time allow banks to centralize back office operations and increase their efficiency. It‟s day and night availability makes it so convenient for the banks‟ clients.

Nigeria, like any third world country is not yet at the level of Western societies and therefore cannot be expected to have similar levels of banking services. A high percentage of people in the country are unbanked. Out of a population of about 23 million, only 2.2 million people have bank accounts (Business & Finance | Tue, 15 Dec 2009). This rather low patronage of banking services is attributed to the fact that a greater proportion of Nigerian communities are illiterates and the economy is to large extent cash based.

However, globalization and the need to upgrade services to an internationally accepted level have prompted some Nigerian banks to offer Internet banking services. In Nigerian the face of banking is fast changing and focus is now on new delivery channels, to improve customer service and give way to 24 hours a day access to banking services. With internet banking, customers are supposed to transact from the comfort of their homes and offices and be able to do most of the transactions which would have been done in the banking halls which gives much stress to the office manager. Using a PC with an internet connection, they are able to transact on their traditional accounts such as cash withdrawals, Transfers from one account to the other, payments of utility bills, viewing and printing of statements, request for cheque books etc.

1.2                                       AIM OF THE STUDY

The main aim of the project is to determine the impact of the internet in the today’s banking sector using office manager as the focus point.

1.3                                OBJECTIVE OF THE STUDY

The main objective of this thesis is to assess the effect of internet on the performance of office manager in some banks in Auchi Edo state Nigeria with Access bank, Eco bank and First bank as case study. The goal of this study is accomplished by focusing on these specific objectives.

• To identify factors influencing internet banking adoption in Auchi, Edo state, Nigeria.
• To identify banking services that could be utilized with internet banking of Access bank, Eco bank and First bank.
• To identify factors impacting negatively on Access bank, Eco bank and First bank customers‟ utilization of internet
• To identify Access bank, Eco bank and First bank perceptions of Internet banking and its operational
• To analyze the concept of the conventional banking sector
• To evaluate the major issues and concerns of conventional banking sector through literature review.
• The conduct the primary study to evaluate the importance of internet in today’s banking
• To carry out analysis to assess the benefits of internet for banking.
• To recommend viable suggestions to improve the customer loyalty through the internet in banking sector.

1.4                                   PROBLEM STATEMENT

Internet banking is the latest development that has added a new dimension to banking transactions by making it more convenient and also contributes to the elimination of long wearisome queues in banking halls. Nonetheless, there are some problems which do not encourage banking through the internet and causes many customers to be physically present in the bank premises instead of taking advantage of internet banking. Low broadband internet penetration, customers’ preference for traditional branches, fear of online threats/scams, lack of basic knowledge of computers and the high cost of internet accessibility are some of the problems threatening the growth of internet banking in Nigeria. Unfortunately this new additional way of doing business comes with risks. This study therefore seeks to look at the perceptions of banks and their customers regarding the effect of internet banking innovation on banking services in Nigeria.

1.5                                   RESEARCH QUESTIONS

The research questions to be addressed by this study are:

1. What factors influence internet banking adoption in Auchi?
2. What banking services can be utilized through internet banking of Access bank, Eco bank and First bank?
3. Are there any negative factors affecting Access bank, Eco bank and first bank customers‟ utilization of Internet banking?
4. What are Access bank, Eco bank and First bank ‟ perceptions of Internet banking and its operational value?

1.5                                               SIGNIFICANCE OF STUDY

Mansel et al (2004) contend that “the Internet is becoming an important business tool”. However there are challenges to realize full benefits of Internet banking including organizational ability to utilize the technology, management attitudes, resource constraints, and knowledge issues. According to Chircu and Kauffman (2000) as cited by Woldie et al (2008), the lack of adequate information technology infrastructure remains a critical barrier in supporting the continual growth of online commerce.

The banking industry in Auchi is a service industry crucial to the growth of its economy. This thesis explores internet banking services in Auchi along with challenges in the provision of this service. The study further looks at how customers perceive its usefulness in relation to traditional banking services, its role in the developing Nigerian economy and the financial sector in general.

 

1.6                            SCOPE OF STUDY AND LIMITATIONS

This study will be limited to stakeholders (banks and customers) perceived value in internet banking. Investigations will focus on customers of internet banking services provided by three banks (Access bank, Eco bank and First bank) in Auchi as well as staff of the banks.

1.7                                 ORGANIZATION OF THE STUDY

This study is organized into five chapters. The Introduction, which is Chapter one, consist the background of the study, statement of the problem, the main and specific objectives of the study, research questions, significance of the study and how the study is organized . Chapter two discusses literature related to the study while research methodology is discussed in chapter three. The fourth chapter presents the data and analysis based on the objectives and research questions. Chapter five presents the summary of findings, conclusions and recommendations.

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