Electronic Commerce, Automation and Online Banking in Nigeria: Challenges and Benefits

Electronic Commerce, Automation and Online Banking in Nigeria: Challenges and Benefits

Stephen A. Ojeka (Covenant University, Nigeria) and O. Ailemen Ikpefan (Covenant University, Nigeria)
Copyright: © 2012 |Pages: 16
DOI: 10.4018/jide.2012010102
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Electronic banking has been around for some time in the form of automatic teller machines and telephone transactions. More recently, it has been metamorphosed by the Internet with a new look and delivery channel for banking services that benefits both customers and banks. The objective of this paper is to find out the correlation between the anticipated benefits/challenges and encountered benefits/challenges. This paper empirically adopted the use of survey research to explore in quantitative terms the various challenges and benefits e-business poses to Nigerian businesses, with particular reference to Banking and Finance Industry. It was found out that there is a statistically significant difference between the anticipated and encountered benefits and major challenges in the potential security breaches faced by the customers. Constant training of employees both local and international on new development in online trading should be encouraged.
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1. Introduction

E-banking includes familiar and relatively mature electronically-based products in developing markets, such as telephone banking, credit cards, ATMs, and direct deposit. It also includes electronic bill payments and products mostly in the developing stage, including stored-value cards (e.g., smart cards/smart money) and Internet-based stored value products. E-banking in developing countries is in the early stages of development. Most banking in developing countries is still done the conventional way. However, there is an increasing growth of online banking, indicating a promising future for online banking and Nigeria banks are taking good advantage of it.

Nigerian banks started very low in the quest for the adoption for electronic banking but this slow pace witnessed at the beginning of last decade is fast changing for the better in term of adoption of e-banking. Adeyemi (2008) posited that slow adoption of electronic banking practice is rapidly changing for the better. This assertion was supported by Ayo et al. (2007) where they posited that with improved technological development and provision of basic infrastructure there will be improved e-Commerce and e-Payment services with overall reduction in the amount of currency in circulation.

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