Impact Of E-Business On The Performance Of Banks In Nigeria: A Study Of United Bank For Africa (UBA)

Project and Seminar Topics with material for Banking and Finance

Impact Of E-Business On The Performance Of Banks In Nigeria: A Study Of United Bank For Africa (UBA)


The study evaluated the impact of e-business on the performance of banks in nigeria: a Study Of United Bank For Africa (UBA). Ofrecent, banking industry has witnessed a significant improvement in technological development especially in ebanking business services. It offers convenience to the customers and encourages cashless policy in the economy. The objective of this study is to examine the impact of e-business on the performance of banks in Nigeria: a Study Of United Bank For Africa (UBA). This study adopted chi-square statistical technique in the analysis of data. The result shows that there was a significant relationship between electronic banking platform and the performance of businesses in the state. It was concluded that most of the respondents agreed that ebanking system adopted by the deposit money banks in Nigeria have improved tremendously the performance of their businesses in terms of efficiency in conducting business activities. We recommended that the deposit money banks should expand on the points of Automated Teller Machine (ATM) to improve the quality of services render to allow the customers offset their bills and enhance business transactions.

Chapter One


1.1 Background of the Study

The rapid increase in the level of innovation in Information and telecommunication technology (ITC) has revolutionised the operation of the banking industries and transformed banking activities from manual (that is, brick and mortar system) to automated banking system to make payments and provide other banking services (Adesuyi et al., 2013). E-business refers to the use of computer and internet technologies to carry out banking activities such as funds transfer, account enquiries and printing of banking statements, amongst others, which tends to reduce operation cost and speed (Bajaj and Nag, 2005).

E-business was introduced in Nigeria and initially launched in 1990 with a bank which started off with the use of Automated Teller Machine to provide electronic banking services to its customers such as cash dispensing and account enquiries (Adewuyi, 2011). This thus became the advent of e-business in Nigeria banking industries. E-business in Nigeria banking industries now include Automated Teller Machine (ATM), mobile banking, home banking, internet banking, corporate electronic banking inter-bank electronic banking and electronic funds transfer. The aforementioned were further discussed in this work for detailed clarification on the topic. Since the adoption of e-e-business in Nigeria, the use of ATM has become generally acceptable with banks recording a significant amount of transactions from this e-business mean.

This research sought to identify the impact of e-business on banks performance in Nigeria. The performance of banks has various meanings to different concerned parties. This can be measured in financial and nonfinancial terms. To the bank itself and its shareholders, performance is measured in terms of profitability (Bekker, 2010). The research of Bekker (2010) also stated that performance of banks can be measured in terms of solvency and efficiency. Ittner and Larcker (2008) mentioned that customer loyalty and employee satisfaction and productivity can be used as performance measures. The research of Simpson and Kohers (2002) also found out that corporate social responsibility is positively related to financial performance.

For the purpose of this research, the impact of electronic banking on bank’s performance centers on profitability (financial performance measurement and employee efficiency (nonfinancial performance measurement).

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 impact of e-business on the performance of banks in Nigeria: a study of United Bank for Africa (UBA). 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.

The objectives of this research are to:

  1. Identify evolving issues on the adoption of e-business.
  2. Identify the impact of e-business on performance of a Nigerian bank.
  3. Provide recommendations based on results derived.

1.4 Research Question

In order to get information from respondents the following questions where formulated:

  1. What are the various types of e-payment and the extent of electronic payment in banking activities?
  2. In what extent can e-business improve or enhance banking services?
  3. What are the major problems associated with the development of electronic banking system in Nigerian?
  4. What are the solutions to the problems associated with the development of e-banking?
  5. What extent has e-payment affected banking activities?

The research shall attempt to find answers to these questions in the next chapter.

1.5 Statement of Hypothesis

Hypothesis one:
  • HO: E-business does not increase the efficiency of banks in Nigeria.
  • HI: E-Business does increase the efficiency of banks in Nigeria.

1.6 Significance of the Study

Electronic business in our economy today is a welcome development and also its impacts in the society are over-whelming, so this research is significant in so many ways.

  1. It will expose the strength and weakness of electronic banking.
  2. It will motivate banks and other economic agents to computerize their services.
  3. Knowledge in the area of electronic banking will be advanced.
  4. Apart from contributing to the knowledge of electronic banking, it forms a reference for future research in this area.

1.7 Scope of Study

This research is on economic implication of electronic banking in Nigeria banks and also the various forms of payment and electronic systems used by banks. The researcher will base this work on the entire deposit money banks in Nigeria but to Diamond Bank in particular.

1.8 Limitation of Study

Time is a major factor to the researcher as research of this kind requires enough time in gathering of data, but it was not given to carryout the research, distribution, collection and analysis of questionnaire.

Also the school system has made it difficult for student to go out in search for information by not granting exeat for student. Some banks hud information from students who desires such information in other to maintain the banks secrecy thereby making it difficult for students to gather information for their research.

Finally, finance was infact the most limited factor, in spite of this the researcher have to travel out to the sampled organization to interview some of the managers and supervisors.

Chapter Five

Summary, Recommendation and Conclusion

5.1 Summary of Finding

The introduction of electronic banking in Nigeria has a strong influence on the development of the payment system in particular and the banking system in general. However, the introduction of the system, involves commitment of huge amount of financial resources on computer technology and telecommunication facilities, computer technology is a primary requirement for the proper functioning of the electronic monetary transfer system (EMTS)/electronic banking.

The use of computer in payment system would not reduce the importance of branch banking in Nigeria or reduce customer’s confidence on the banking industry, from responses obtained from staff of the bank studied; the introduction of electronic banking has rather increased customers loyalty to banks in general.

The major problems hindering the effective operation of electronic banking in Nigeria are infrastructural deficiencies such as erratic power supply, lack of government support and high charge on payment terminals (POS, ATMS) e.t.c. These problems are only peculiar to Nigeria as it is known that in developed countries issues like power failure or failure links are not in existence.

However, the introduction of electronic Banking System has also contributed significantly to bank income by way of fee or changes gotten from these services.

5.2 Recomendation

Uninterrupted Power Supply

The government should endeavor to provide 24 hours uninterrupted power supply because without electricity these products cannot be boosted and effective, but in this country there is erratic power supply, therefore all banking industry should have a standby generator incase of power failure, in other to cover the deficiency of power failure.

Government Supports:
  1. In smooth functioning of the payment system the government have the major role to play, in aspect of financing the payment system which require a lot of capital to maintain and also in the aspect of creating awareness the government should endeavor to inform the public about the benefits derived on the payment system.
  2. Provision of skilled manpower and computer Wizard in operation of the payment system
  3. Skilled manpower and computer wizard should be employed by every Bank, in other to stop, prevent fraudulent personal and hackers from manipulating the Banks data and stealing money from the Banks accounts.
  4. Provision and maintenance of public network, system such as telephone (Nitel) the availability of these basic infrastructures is fundamental to the efficient functioning of the payments system.
  5. Failure to maintain these infrastructures implies that the banks must be ready to provide their own communication networks and operate electronic generating sets to ensure reliable power supply.
Collaboration Among Banks:

Electronic payment system as a result of its huge financial involvement requires that banks must jointly set and manage a network system such as ATMs v-cards etc. collaboration helps to spread and reduce the initial costs of setting up the electronic Banking system.

5.3 Conclusion

The Nigeria system is as old as the banking industry; this dynamism is manifested by the nature and quality of payment products paraded in the system. These products range from common paper money, cheque, cash to electronic payment Products such as Automated teller machine (ATM), SMARTCARD telephone Banking, internet Banking etc with the introduction of these electronic payments products, it is expected that the volume and cost of processing cheque will be drastically reduced or eliminated.

The C.B.N other financial authorities and banks have a role to play in enhancing the system through effective banking and momentary policies, efficiency and stability are also ensured and promoted. Furthermore, to sustain the electronic payment system, certain strategic measures must be taken to reduce negative effects of the problems identified as obstacles to the smooth functioning of the system.

Get Complete Project Material

5,000 5000

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…

Step One Purchase

Make Payment (Through Transfer) of ₦5,000 to Any of the Account Below

Access Bank PlcAcc No: 0811003731
Samphina Academy
Current Account
Zenith BankAcc No: 1225513212
Samphina Academy
Current Account

Or CLICK HERE To Pay With Debit Card

CLICK HERE To Purchase Material ($15)
Make Payment of 120 GHS to 0553978005 | Douglas Cloud Osabutey | MTN MoMo

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: Impact Of E-Business On The Performance Of Banks In Nigeria: A Study Of United Bank For Africa (UBA)

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply

  Contact Our Help Desk

Need a Different Topic? Perform a Quick Search

List of Related Works

Click on Any Topic to Preview the Content

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.