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E Banking Is Branch Of ECOMMERCE Information Technology Essay

  1. Table of Content
  2. Forms of E-banking
  3. Types of Internet Websites
  4. Benefits of E-Banking
  1. Global vectors of E-banking
  2. Traditional Banking VS Online Banking
  3. Problems with Computerization
  4. E-Banking in Nigeria: A Case Study
  5. Conclusion
  6. References
  13. Retail Services
  14. Wholesale Services
  15. Common E-Banking services
  29. Research Design
  30. BASIC
  33. Information
  34. Delivery
  35. Transactional channel
  36. Customer relationship
  37. Diniz Model
  39. BASIC
  42. Information
  43. Delivery
  44. Transactional channel
  45. Customer relationship
  46. Security
  47. Measures
  48. The Proposed Model
  49. Evaluation Ratings of Bank's Website
  50. (Author's field Review, 2006)
  51. Evaluation Rating Scores
  52. Relationship between Information Delivery and Purchase channel
  53. Correlation between Customer romance and Information delivery
  54. Security Actions and Transaction features Relationship
  55. Correlation between Security Strategy and Customer Relationship
  56. Interactivity Level of banks
  57. Activity Functionality Levels

E-Banking is a branch of E-Commerce that handles the execution of Information and Communication Technology running a business Financial Management. E-banking has come a very long way with millions allocated to preparation of technological change merely to make bank services accessible with their customers from anywhere, whenever by simply a click of the mouse.

"E-commerce offers a level playing surface for large businesses, as well as small and medium-scale enterprises (SMEs) to use in the global market-place; and for local businesses and communities to participate in social, economical and cultural systems seamlessly across international boundaries (Mary-Anne, 1998)"

E-banking is a remote control delivery channel for banking services which range from opening an account, transferring money to more technical form of online deals like financial product sale, like insurance and brokerage to costs payments and direct debits.

Making repayments for goods and services in cash or non-cash varieties as well as depositing money in financial institutions and taking care of these resources are an natural constituent of economical life. Banks provide as important intermediates. Lately, with the introduction of technology and techniques, options for communication with banking companies are growing for clients. New services are originating such as home banking, phone banking, internet banking as well as others.

Electronic communication means are especially approaching to the forefront. They are far more convenient, faster, and frequently cheaper for clients. Bank experience shows it is suitable to use combinations of several communication means, depending on individual segments, clients, and types of operations, products and situations. Electronic banking is a service that specifically uses electronic communication varieties.

Table of Content



E-banking Components

Forms of E-banking

Automated Teller Machine


Internet Banking

Mail Banking

SMS Banking

Types of Internet Websites

Informational Websites

Transactional Websites

Benefits of E-Banking

Merits to the Customers

Merits to the Bank Organisation

Merits to the overall Economy

Global vectors of E-banking

E-banking Strategies

E-Banking Transactions

E-banking Scenario

Trends in E-banking

Traditional Banking VS Online Banking

Merits and Demerits of Online Banking

Merits and Demerits of Traditional Banking

Problems with Computerization

E-Banking in Nigeria: A Case Study

Concerns of E-banking In Nigeria

Adoption of E-banking In Nigeria

Research Design

Proposed Model

Efforts of the Nigerian Administration and the Regulatory Regulators.




E-banking can be defined as an electronically automated delivery of modified banking product and services via the utilization of the internet, World Wide Web, technical devices and interactive communicational programs. E-banking involves systems that enable financial firm customers, specific and businesses, to transact business; access accounts possess financial product services and information through the internet and the net as a whole. E-Banking can also be referred to as Electronic Fund Transfer (EFT) which simply signifies the copy or funds from one account to some other. Electronic banking targets the utilization of ICT to permit the external activities and financial human relationships of band of individuals and inter-organisational affairs easy.

E-Banking permits financial and non-financial organisations link their interior and external financing system more efficiently, flexibly and effectively, to work carefully and build more lasting relation with suppliers, customers and lovers as well as fulfill their goals.

Banking customers gain access to e-banking product and services using an intelligent technical device which range from Personal Digital Helper (PDA), Touch Shade Telephone, Smartphone, pocket surfer, Programmed teller machine (ATM) to the typically used personal Computer (PC).

There are various use of E-Banking, this includes:

Payment checks: checking in case a payment is transferred in an bill.

Fund Withdrawal from account with the use of an ATM machine which takes a setting of authorisation for security reasons.

Setting up Direct debit/automatic payment set up for paying a business or a person.

Account monitoring: 24/7 monitoring of what goes on in your accounts.

Use your personal computer and personal funding software to organize your total personal financial management process, integrating data and activities related to your earnings, spending, saving, investing, recordkeeping, bill-paying and taxes, along with basic financial evaluation and decision making


The Electronic bank operating system can remarkably vary in their construction pending on several factors. Financial institutions should carefully choose and choose their digital banking system settings without excluding their outsourcing relationships centered of four distinctive factors specifically:

The strategic aim for electronic banking

Technological know-how

The system intricacy, scale and opportunity, tools and activities; and

The inside control and security requirements.

The support of inner electronic bank services may be decided on optionally by financial company but additionally, organisations may outsource any facet of their electronic bank systems to third people. Firms which could host electronic banking-related services for financial organisations are:

ISP (internet Service providers)

A monitored security service provider

An internet banking software processor chip and a primary banking vendor

Other financial institution

Credit sorting organization and a credit bureau

A bill payment service provider

These elements work together in harmony to provide a great success in electronic bank services and each factor representing a significant point of control.

Through a combo of both inner and external alternatives, management has various options when shaping the overall system creation for the many components of an e-banking system. Nevertheless, putting simplicity into consideration, one or more technology provider can host the e-banking application and various network components. The organisation's ISP hosts the organisation's internet banking server, firewall, website and all necessary security diagnosis system.

There are some functions e-banking rely on in order to are expected plus some, if not absolutely all of the functions is seen in procedure anytime e-banking is services and procedure where each aspect represent a significant control point. A few of these processes seen in an average e-banking system include:

Internal network server

A core handling system

Security management

Network Administration

Website design and hosting

Firewall settings and management

E-business application (e. g. financing, bill/goods payment)


Automated Teller Machine (ATM)

A stand-alone digital machine within an available area for general public use which is connected to a data system and components and then handled by a financial organisations customer to withdraw cash and other account balance and services via a very secure mode of communication. Most ATMs in the united kingdom allow interbank use sometimes for free or incurred a' a fixed amount and the machines offers cash drawback, balance enquiry with printed receipt, money copy between accounts, mobile top-up as well as account deposit either in cash or cheques.

Every customer owned by a banking organisation is given a plastic material smartcard that includes a chip on it and the chip contains the customer's bill details and a PIN (personal Recognition Quantity) is issued with the smartcard as a function of security for the user to access the profile. The PIN provides user authorisation in to the account but the PIN must be matched get back in the record of the credit card before gain access to is granted if upon three unsuccessful trials, the profile is locked and has to be reactivated however the expert of the banking organisation.


As the name advises, it's an electric cheque. Basically, it's the electronic version of a newspaper cheque which owns the information and framework as its counterpart and functions exactly as the paper cheque works.

Internet Banking

This enables accounts users manage various bank activities via the utilization of the internet on the pc. These activities runs from 24/7 accounts monitoring, balance investigations, funds transfer and paying bills.

To gain access to internet banking, an individual will need to have to sign-up for this feature and in exchange, the banking company issues the customer some authorisation and security measures only to be recognized to the account user.

This includes:

An account number

A password

A security question (as an account confirmation if bank account number and password matches)

A security answer.

Mail Banking

This permits the likelihood for customer to communicate with their banking companies by electronic mail and the most used of this service is sending bank assertions to members at an agreed period to the client's mailbox.

SMS Banking (short communication service bank)

This feature allows customers to obtain information either from other banks division or for his or her balance information using a text dispatched from the client's mobile phone which as well, can be utilized as both unaggressive and active procedure like the classic telephone cooking.

Information sent on request is mostly about current interest or exchange rate dispatched by the lender which feature is convenient by the bank due to its convenience and less-protection included but a security password can be used.


Before the net as a whole was opened to participants of the general public, research and educational organisations and government agencies could actually view and gain available information to each other by the use of text-only websites but since the embrace of the World Wide Web, there has been more website than ever.

There are various types of websites particularly:

Personal websites

Community Building website

Informational Website

Online Business Brochure


Photo Writing Websites

Transactional websites

But in this program, two most important types of financial websites will be looked at: informational website and transactional website.


As the name suggests informational from "information" provides numerous customers usage of information in regards to a financial company products and services. These websites are unique because it allows site visitors contribution to readymade articles and publications for editing information to be shared or sold. A company could setup a website to list product, specs, instructions and review about a certain item. This will serve as a business lead for people to find assistant and fact which site can be linked to an e-business site for better customer experience and even expose the effectiveness of your sites lifetime.

An example of informational websites includes yahoo. com and Wikipedia. org, the web encyclopaedia.

There are certain risk conditions that should be examined and examined because of the mother nature of information stored and retrieved in informational websites which include:

There is a potential access to private and confidential financial/customer information if the website isn't isolated from the financial organisations interior network.

There is an enormous risk in growing computer virus and other malicious coding code to computers communicating with the organisations website

Potential customer violations and responsibility for wrong and inadequate information about products and services and price listing presented on the website; and

A negative general public view if the organisation's on-line website services are defaced.


These website provide customers having the ability to process transactions via a financial organisation's website by initiating banking trades or buying products and services. Bank transactions can range between basic retail balance inquiry to a large intra-business funds transfer. E-banking services can be grouped based on the kind of customer and services they support.

Common e-banking retail and low cost services mostly proposed by financial institutions are listed in the stand below.

Retail Services

Wholesale Services

Account Management

Account Management

Bill repayment and Presentment

Cash management

New bank account opening

Small business applications, approvals, or advances

Customer Wire transfer

Investment/Brokerage Services

Commercial wire transfers

Loan request and approval

Business-to-business payments

Account aggregation

Employee benefits/pension administration

Common E-Banking services

Due to the nature of transactional websites which allows the electric exchange and copy of hypersensitive customer information and funds copy, these website expose the services of financial organisations to raised risk than every other kind of website. Inexpensive e-banking systems typically expose financial organisations to the best degree of risk during each business deal, since commercial transactions usually involve bigger currency amounts. The next issues is highly recommended when researching transactional e-banking services:

Liability for unauthorized orders;

Verification of both new and existing customers being able to access e-banking services with the procedure of authentication;

Law violations, customer personal privacy, anti-terrorism, anti-money laundering;

Security control for safeguarding customer information;

Fraud loss scheduled to disproval of individuals identification or business trying to get new accounts; and

Customer dissatisfaction, negative general population view and potential responsibility resulting from failure to process third-party obligations as directed or unauthorized access to confidential customer information during storage area.


Since the launch of e-banking, there has been a rapid spread in its daily use either to the financial company or for the clients all over the world. All financial organisations are making higher use of the facilities provided by e-banking to raised the services and also to have an edge in the competitive market. The following things summarize the merits of e-banking.

Merits to customers:

Customers generally, have been distinctively damaged in an optimistic way by E-banking. Regular tasks have been substituted automatically which results in comfort and stress free. The merits include:

With the use of ATMs, customers have access to their bill to withdraw cash anytime of your day at any ATM cash point throughout the united states.

Transactions can be carried out at any time of the day, 7 days per week by just a mouse click away.

Increase in the usage of smartcards in different format which is trusted across the globe i. e. bank cards and debit cards.

Online bank made easy to customers with an internet account.

Services available in a finance institutions local branch can all be reached in the finance institutions website.

The customer barely needs to go to the local standard bank branch only if necessary because of the versatility provided by the online service.

Attractive rates of interest and many incentives given out when accounts are exposed online.

Consolidated portfolio User interface for customers managing their debit, credit, home loans and other financial belongings.

Merits to banking organisation

When the utilization of ICT is been included into any business, there are advantages imprinted in it due to the growth of E-banking infrastructure and these are sighted below:

The vast reach and delivery capabilities of computer network such as the internet are better off than some other branch network.

Enormous newspaper work in the bank sector has been reduced due to the implementation of e-banking.

Financial organisation is becoming highly competitive between each other as a result of upsurge in e-banking.

E-banking has helped the banking institutions in managing their overheads and working cost.

Huge data warehouse for documents, storage space and retrieval of information, ventures and customer details has been sorted out by e-banking.

Banks cut costs over time by not paying for tellers or controlling branches.

Efficiency and client satisfaction is advanced.

Huge customer appeal credited to online services offered (see image below).

e-bill effect. png

Source: Aspen Analytics, The E-Bill Impact: The Effect on Customer Attrition from Lenders offering E-Bill, Nov. 2007

Merits to the overall economy:

The technology of the internet and the internet has prompted an electronic/automatic trend in the financial bank sector using its flexibility and powerful character aided in managing numerous services of banking activities.

The adoption and delivery of digital bank products and services is existing partially as a product of customer demand and because of the rise in competition within the banking sector but many few bankers have succeeded in deploying effective approaches for fully utilize the services of the internet.


E-banking has generally serviced both the members of the public as well as the financial company which created a creation of an improved enabling society that supports progress and development, productivity and prosperity. Setting aside its benefits in form of cost lowering, delivery time cutting down, high efficiency, waste reduction, electronically handled e-banking and completely environment monitoring discourage many unlawful and illegimate conducts associated with banking industry like frauds, money laundering and embezzlements. Customer database been closely watched by e-banking. E-banking in addition has helped in documents of the economical activity of the public.

Global E-banking company is included in four primary areas namely:

E-banking Strategies: key strategies that bankers must utilise to achieve top value through the electronic digital channel.

E-banking Deals: this sector handles cross border ventures, mobile repayment, B2B deals and E-billing system.

E-banking Scenario: the state, leads and issues relating to e-banking and the impact of e-banking on the banking organisation structure.

Trends in E-banking: this section targets the creation of new systems in banks.


A study unveiled that less than 15 percent of banks with transactional website will enjoy profits directly therefore to those sites. Therefore, financial company must recognize the seriousness of the challenge ahead and come up with a strategy that will permit leverage chances provided by the internet.

E-banking relies on the introduction of new business strategies based on networks. The planet has become progressively inter-connected through telecommunication sites and computer systems. These offer fast, flexible, and cost-effective ways of doing business.

There is not a set appropriate strategy in E-banking that would work for every bank industry but if they embark on a defensive or an offensive strategy, they still need to be current with the business trends and scientific evolution of the Web space although, not every business has been e-business understood. Like Wells Fargo, early electronic digital businesses espouse, who first of all- not only got into the electronic bank sector but exhibited flexibility to change as the marketplace expands.

The degree of e-banking should be well considered by the financial company that will provide numerous customer sections based on their needs and risk management analysis. An approved proper e-banking large should be consulted before getting an contract or final decision should be produced with concerns to the client demands, expertise, charge execution, maintenance cost, competition and capital support. Financial organisations often consider the most likely setting of overall business strategy in terms of submitting its products and services on informational websites or transactional websites which will often used to determine organisational success also to ensure the delivery of those product and services; the financial organisation may possess multiple pages within an online site for different business functions.

E-banking is a distant delivery route for bank services ranging from opening a merchant account, transferring money to more technical form of online deals like financial product sale, like insurance and brokerage to invoice payments and direct debits.

Although internet bank is still the most important and most trusted, a new challenge has emerged in the form of mobile banking which is an additional opportunity for banks to provide basic urgent obtain their new and existing customers. Mobile bank allows financial organisations extend their customer romantic relationship and customized information by using new technologies with their valued customers.


With the increasing cost of banking transactions, providing numerous customers with affordable services; huge level of e-banking orders are been processed everyday and this is becoming ever more popular as the number and value of e-banking deals in the country have shown a rather impressive progress in years. That is achieved using new solutions which transformed traditional banking trades. The traditional means of banking involves literally going to the lender to execute all banking functions from the simplest to the intricate transactions which the banks had to hire several staffs to attend to the clients enquiries.

Electronic Fund Transfers got introduced which minimised the average customer holding out times by allowing customers to handle banking transactions on their own and whenever. There are several practical services offered by Electronic fund Exchanges and this includes:

The use of Automated Teller Machines - usually known as ATM or 24-hour tellers are electronic digital terminals which allows banking almost at anytime of the day. These machines allow lender customers to make deposits, withdraw cash, or copy money between accounts. To use this service, members employ a credit card with chip and a PIN (Personal recognition Number) to access the consideration and perform necessary actions in the accounts. Unauthorized users are declined and the cards can be stop to avoid fraud. Some ATMs are free and some charge just a little access price.

E-check conversion changes a paper check into an e-payment in a store or whenever a firm will get check in the mail. While using e-check in stores, the cashier operates the e-check via an electronic system that catches the banking details and amount information on the check and stores the record. Thereafter, a receipt is released as a confirmation of popularity for the customer's record. The e-check functions just as the paper check and all terms and conditions are applied equally.

Direct Debit Orders allows repayment to be produced with a standard bank debit cards in the name of the bank account holder which can also be your ATM greeting card. Payments for acquisitions can be used in business stores, shopping retailers, online and over the telephone. The process is fast and easy to transfer money and make repayments provided the amount in the profile includes all purchase necessary. It ought to be encouraged to learn through the credit cards terms of use and conditions of the bank organisation.

Direct deposit permit authorization of specific debris such as Sociable Security inspections, pay checks back on a regular basis. Pre-authorize withdrawals may also be set up in order to pay recurring charges such as insurance premium, mortgages and utility bills, paid automatically.

Phone bank allows instant contact with the bank modern culture to authorize certain payment, transfers, balance request and transactional acknowledgements to be delivered to the profile holder over the phone. Agreement needs to be made with the bank organisations to utilize this feature and is sometimes billed at a stated fee.

ebanking_chart_howmake. jpg

Bank account information is very delicate and hence, special good care should be studied into consideration when giving out information on debit greeting card or visa or mastercard either on the internet or over the telephone. Financial organisations should be approached about any protections offered for these transactional cards.


E-banking is mostly used in the financial sectors across the globe and it is commonly the lead expert in E-business but studies uncovered that e-banking still has too much to offer. E-banking is followed typically in developed countries as a mode of working ethics through the availability of the internet as an internet bank branch while the developing nations use the internet as information dissemination.

E-banking were only available in the early 1980s in NY, US. Relating to "Banking and Funding on the web", that was edited by Mary J. Cronin, distinctive banks offered home banking services to individuals and small-businesses to maintain e-check e book registers, check bank account balances and fund transfers between accounts. Although e-banking was released in the mid-1970s to be able to reduce back-office check-processing costs, the finance institutions which embarked on the system failed to attract enough customers to break even and were deserted in 1989.

In 2001, over 50 percent of the banking institutions were offering E-banking services in the US but however, small banking organisations experienced no competitive merit over huge bankers in conditions of services rendered although internet business strategies was been executed.

In the 1990s, large lenders awaken to the huge reputation and opportunities of the internet to market their products and services intensely. According to a research carried out by Online Banking Report, at the end of 1999, less than 0. 4 percent of households in the U. S. were utilizing online banking. Later in early 2004, some 33 million U. S. homes (equal to 31% of the market) were using a form of e-banking or another and five years after, corresponding to Gartner Group Survey, 47 percent of the People in america loan company online. The FDIC statistics published unveiled that only 40 percent of US banking institutions offer e-banking facilities worthy of mentioning. Others may possess a web based presence but don't possess website deals to demonstrate their presence on the internet.

Hence, the internet was used as a brochure without physical interaction to the clients. This offered entrance and development opportunities that small banking companies typically lack.

E-banking arrived in the united kingdom almost concurrently with the US. It had been introduces by the Nottingham Building Culture in 1983 which introduced UK's first home bank service with a computerised information service managed by British telecom. Approximately 60 percent of the UK financial industry was centralised in e-business in early on 2001 and with the expected 10-fold surge of the e-business market in 2005 in UK, the talk about of the financial services will further increase. Some loan provider customers choose internet banking anticipated to dismay with normal steps, policies and methods. The total trim of human involvement tends to charm to some people and a lot of people move to internet banking for security reasons and convenience. This comes up as a result of assurance banks give to safe guard transactions and better security.

The internet is accelerating hard to reset the banking organisation into three divisions namely: production, distribution and advice. This is due to the combined aftereffect of internet drive:

New technological instruments to lessen transactional cost and physical loan provider relationship

The adoption of new and much more targeted business models

High amount of doubt posed by new entrants on business models.

ebanking. jpg

E-banking in European countries as well as the rest of the world is still at the evolutionary level, it's obvious that a huge impact is been sensed on the traditional way of bank. Large banks in elements of the developed world will surely have a competitive benefit over small banking companies due to the competence to execute new systems but remain not well prepared. Hence, medium-sized and small banks have a significant role on the electronic banking front side end if strict procedures can be implemented swiftly and effectively.


The developments in e-baking varies every once in awhile although e-banking is getting huge ground from banks functioning through websites permitting customers not only to request account checks, interest levels but also to explore a whole wide selection of transactional product and services.

Internet bank data appears to be scarce and definitional variations make comparability difficult in cross-countries. Internet banking has gained muck reputation in Korea, Spain, Austria, and Switzerland, where all banking institutions offers up to 75 percent on internet services.

ebanking_chart_onlineusage. jpg

According to a research carried out by yStats. com, a study company founded in 2005 for the study of objective, demand-based and up-to-date data on marketplaces and competitors for top level professionals, made key findings on the global use of online repayments. The Quantitative information on different payment methods found in B2C E-Commerce marketplaces worldwide insurance quotes:

In the US, "CHARGE CARD" (67%) was the preferred payment method for trip online shopping in '09 2009, followed by "Debit Credit card" (36%).

While German men use bank cards for more than 40% of online buys, women continue steadily to use the original direct debit method.

"Sella" (31%) was Italy's preferred online payment company in '09 2009, followed by "Cartasi" (19%) and "PayPal" (15%).

Furthermore, "iDeal" was the most accepted repayment method in holland in '09 2009, with 89% of retailers agreeing to it.

"Money Copy" (43%) was the most well-liked payment method of B2C E-Commerce consumers in China in '09 2009.


There are several distinctions between traditional banking and online bank although some people are still sceptical about the basic safety of hypersensitive information when working with online banking so therefore, they stick with their old way of banking.

The distinctive feature between both is that is physical and the other is virtual nonetheless they both provide same products and services. The major difference is based on the convenience opportune by online bank specifically when it offers to making repayments, obtaining up-to-date username and passwords, or profile reconciliation. Rather than physically consulting with a bank branch, access to your account is manufactured easy to execute bank transactions using your computer.

At the comfort and privacy of your home, one can now have the ability to complete various basic bank or investment company transactions with just a click of the mouse. However, like any other customer related services, traditional and online banking has its merits and demerits which should be carefully known.


Efficiency and convenience offered for customers to complete multiple responsibilities like bill payment, balance checks, deposit and drawback of funds and much more, without giving their abode. With online banking, customers' preserves time and perform various transactions more efficiently.

Customers now have unlimited usage of their account at anytime of your day including holidays and weekends, even though out of the country of home, customers can still access their consideration once there is internet connection on their PC.

Most banking companies offer less charges and higher return rate with every transaction carried out online, including high interest on checking account and lender CDs or certificates of deposits and they can also offer additional financial services and other financial products to its prospects.

The drawback of online banking is that with all the sophisticated software, security programs and tools used online by bankers, several security issues remain raised like personality fraud, credit risk which places accounts in situations to be hacked. Transfer/operations risk arises from fraud, problems during handling and system disruptions or other unanticipated incidents leading to organisation's inability to deliver products or services.


As convenience and time efficiency reaches stake specifically for the addicts of multi-tasking, some customers still favor traditional way of banking when compared with the online method. Security and assistance seems to be the reason why some customers still adhere to traditional method because if there seems to be a problem, they can simply call for the help of a bank personnel/representative to aid them even although process usually takes longer, it will put their head relaxed.

A process stream chart showing a normal banking scenario VS online bank scenario of Barclays Bank or investment company.


Modern business today, whether small, medium or large, considers computerisation of these operations. Although computerisation is expensive and needs gigantic investment in both hardware and software and the general maintenance, if it is managed properly, the procedure will profit both the owner and the business enterprise significantly.

When ICT can be used in the right areas, it will become a fundamental element of the business enterprise and a great support to business proprietor and staffs. The opportunities computerisation offers is vast and it will depend on the business owners particular needs.

As much as the professionals of applying computerisation is notable, so are the negative aspects which mainly happens credited to poor decision and strategy when launching computer systems into any business can lead to huge issues with costs, time and people. An IT action plan can help improve decision making process that your plans calls for:

The applying for grants the business enterprise future It requires by expanding an IT strategy

Budgeting the cost and suppliers of research

Informational sites could be changed by hackers using different advertising methods.

Risk assessment conduction relating to the id of potential issues and dangers and how to handle them.

Purchasing the best system for the business needs

Hidden cost of computerisation such as maintenance cost, advice and training.

Improved time management to judge the time had a need to develop and put into practice and learning a new system for the business enterprise.

Continuous involvement and training of staff during setup

Addressing health insurance and safety problems while using the new system, and

Electronic mail can be sent to the wrong recipient as an error.

Not forgetting the customers and suppliers reviews/comments on the new system


According to Mohammad, 2004, the Internet has brought about a fundamental shift in national economies that are isolated from the other person by obstacles to cross-border trade and investment; isolated by distance, time areas and vocabulary; and isolated by nationwide difference in federal government polices, culture and business systems.


Regardless of the global concern posed on internet banking in Nigeria, the Nigerian overall economy still remains a strong push in Africa although the country has a very high reputation for internet-related frauds on the globe, which tagged her as the headquarters of Advance charge fraudulence, code "419", named after section '419' of the Nigerian Offender Code that deals with "acquiring properties by false pretences; Cheating. " This details why legislation is becoming of high importance in the complete internet bank development process in Nigeria.

The Nigerian First lender was proven in 1892 as the African Banking Corporation, when banking legislation wasn't in existence until when the traditional banking system was put in place in 1952 with the industry experiencing loads of regulatory and institutional advances. The bank industry in Nigeria was faced with heavy challenges, including the famous fraud impact and corruption, public self confidence erosion, poor capital bottom part, the habitual behaviour pattern of stress and failing. Hence, "the Central Loan company of Nigeria brought on a motive to solve and reform the banking sector in the country in June, 2004, which was targeted mainly to minimise the amount of banks in Nigeria from 89 to 25, making the emerging banks much better and reliable (Ezeoha, 2005)".

The Central loan provider of Nigeria (CBN), in its survey conducted in 2002, reported that from the qualified 89 commercial banks in existence, 17 only offered internet bank, 24 offered basic phone bank, 7 posses Computerized Teller Machines services as the other 13 offered other forms of e-banking which means that as of that period, 19. 1 percent of the bankers offered internet bank, implying that internet banking was yet to explode despite its huge advantages against the traditional mode of banking. The generally acclaimed reason why the banks didn't embrace the good thing about e-banking is having less adequate infrastructures like electrical energy and telecommunication, which e-banking strongly rely on.

Andrew (2004) put the total amount recognized from e-commerce at $233 billion in 2000 and an estimated body of $6. 8 trillion in the year 2004. This amount is much and is likely to be much more right now. However, cyber-crime is another major menace to the survival of e-commerce. It offers a direct financial damage that was estimated in the entire year 2000 to be at par with the benefits of IT running a business (Vasili, 2003). According to the FBI report of 2004, the cost of cyber-crime was put at about $400 billion (Maiami Herald, 2005). The issue of cyber-crime has exclusively been in charge of the low level of e-commerce execution in Nigeria.

A major pre-requisite in the utilization of e-commerce is the e-payment system, but Nigeria is a cash-carrying market with over 90 percent of funds in blood circulation at any point in time. This implies payment of goods and services is mostly cash-in-hand with reasons scheduled to ignorance, advanced of illiteracy and lack of infrastructure to ensure supply and transactional security (Ojo 2004, Ovia 2002, and Bickersteth 2005).


With regards to the fear posed to an average Nigerian to embrace e-banking in Nigeria, the global image of Nigeria being a dubious and fraudulent current economic climate using phony loan company websites to assemble funds from unaware victims, is well strengthened. The adoption of e-banking activities in Nigeria still has quite a distance to be embraced but by adapting the famous Diniz model of internet adoption used in the U. S. to enlighten the folks of Nigeria to its benefits.

A website study of banks provided by Diniz (1998) in the USA, break down the operation of websites in a variety of paths to provide in-depth knowledge on three opportunities that technology could gain banks. These portions are shown thus:

Information delivery

Transaction Channel

Customers Relationship

Research Design

A model was suggested by Diniz (1998) to judge lenders' websites in america and the same model was screened to see the adoption on e-banking in the Nigerian bankers which was been subject to to review web banking models adopted in the US. The suggested model serves as an analytical tool to classify and compare the several types of banking companies and their size relatively. However, the sections of the models' website efficiency are:

information Delivery - due to banks portion as information providers

Transactions Channel - provides resources for loans just as in loan company branches of ATMs.

Customer relationship - a tool to improve customer relationships and satisfaction.

Each event portions are further split into three separate levels of interactivity which includes: Basic; Intermediary; and Advanced. The model is shown as below.






Electronic Brochure

Search Engine



Report download


Means of Contact

Recruitment forms

Discussion group

Special Events

Hot links

Interface Customization

Transactional channel

Opening Account

Balance Enquiry

Electronic Cash

Cheque e book requests

Fund Transfer

Electronic Signature

Card Requests

Bill Payments

Electronic Cheques

Customer relationship


Investment Advisor

Video Conference

Suggestion forms



Complain Forms

Software Download

Services Development

Diniz Model

Source: www. arraydev. com\commerce\jibc\980606. htm


Nigeria, having been thought to be Advance fee scams headquarters on earth; due to its reputation for dubious internet scams, it's essential that the problem of security is attended to properly. Then, the bankers website are evaluated predicated on the suggested model similar to that proposed by Diniz (1998) but with a security column included - just to ensure maximum protection and Confidence used. The modified model is illustrated thus:






Electronic Brochure

Search Engine



Report download


Means of Contact

Recruitment forms

Discussion group

Special Events

Hot links

Interface Customization

Transactional channel

Opening Account

Balance Enquiry

Electronic Cash

Cheque book requests

Fund Transfer

Electronic Signature

Card Requests

Bill Payments

Electronic Cheques

Customer relationship


Investment Advisor

Video Conference

Suggestion forms



Complain Forms

Software Download

Services Development



User Name

Customer Code

Digital Signature/Certificate

Password/Security password Change


SSL 128 Little Encryption

The Proposed Model

An evaluation of lenders' sites was created from the above model and a "Grand Credit score" which is obtained by totalling the model items; will be assigned to each loan company. Thus, a loan company can get as the total count up of model items; a maximum report of 36 points

The banks positioned 1 -6 in Nigeria, was then produced from these scores as effect of adopting e-banking. Each interactivity level and sizing is looked into in 12 banking institutions and thus, the results:

Evaluation Ratings of Bank's Website

(Author's field Review, 2006)

Evaluation Rating Scores

The previously discussed relationship between your four functionality scores as well as the three interactivity ratings is plotted over a graph with all the possible mixtures. The graphs are shown thus:

Relationship between Information Delivery and Purchase channel

In the above graph, the outcome shows there is absolutely no romance information delivery and business deal route; reflecting that Nigerian bankers are implementing an adequately developed websites to cover their non-transactional activities.

Correlation between Customer romance and Information delivery

Since the grade of customer relationship depends on a large volume on the nature of information delivery, some obvious relationship can be observed between information and romantic relationship which is shown in these diagram.

Security Actions and Transaction features Relationship

Since the transactional mother nature generally is reliant on the span of the security options available, a relationship is seen between transaction and security.

Correlation between Security Strategy and Customer Relationship

A positive relationship is noticeable between customer romance and customer security meaning the more relationship between banking institutions and customers, the likely-hood these are to feel safe with e-banking activities.

The banking service offered in Nigeria as the effect revealed reaches BASIC level. The results achieved by the banks are high at the very basic level.

Interactivity Level of banks

The bankers were found to poses mainly websites with ratings between 4. 5 and 11 from the overall report of 12 tips. However, the results severely reduced as Interactivity level multiply. The scores at the information level are higher than other level with results between 4 and 9. 5 out of 12 maximum points.

Activity Functionality Levels


The Central Bank of Nigeria developed the electronic bank guidelines produced from the study of a complex Committee on Electronic Banking in 2003 to find adequate mode of procedure of e-banking in the united states. The adoption of the set of guidelines of the study and advice on e-banking in August 2003.

The E-Government project - a civil service reform which was developed to help make the civil service of Nigeria proactive, effective and efficient to the needs of the general public. The job is a joint venture between both the public and private operating industries under the safety of Country wide e-Government Strategies Small (NeGST) and the National Information Technology

Department Firm (NITDA). "The project was made to reduce the bureaucracy that attends to federal businesses in the united states through the launch of e-tax, e-learning, e-traffic, e-procurement, e-pricing, e-mail, e-tourism, e-payment, e-revenue, e-legislation, e-policing, e-judiciary, e-health, e-agriculture, e-services, e-kiosk, e-buka etc (Soun, 2004)".

The Nigerian Federal government enforced a number of regulatory bodies in its work to sanitise the pace of fraudulent procedures in the financial sector of the nation by producing: the National Drug law Enforcement Agency (NDLEA) Take action of 1989; the Separate Corrupt Practices Fee (ICPC) Action of 1999; the money laundry Function of 1995; the Failed Bank (restoration of debt and financial malpractice of banks) Act of 1994; the Country wide Cybercrime Working Group (NCWG); and the Economic and financial offences Commission payment (EFCC) - all with a perspective to laundering the image of the united states prior to the international community and within.

Setting aside the vast technical specifications, the rules have been widely criticized as not being sufficient to check the fast expansion of internet banking against the disadvantage of growing class in cyber technology related frauds and offences. a closer look at the contents of the guidelines displays that the document fails to match with the four key areas where internet banking may have regulatory impact - controlling concerns about existing public policy issues; changing the traditional lines after which existing regulatory constructions are laid; rebalancing industry discretion and regulatory guidelines; and changing the scope and nature of existing dangers. This gave rise to another guide by the committee's survey, which recommended that all finance institutions with the motive to provide transactional services for e-banking services should obtain an approval-in-principle from CBN before embarking on these services - but this was omitted completely.

The Nigerian IT insurance policy, founded in 2000 is in charge of the monumental development in the sector with its vision is to make Nigeria an IT experienced country in the complete of Africa and mostly, an integral player in the information society. The mission includes the utilization of IT for: poverty eradication, education, job creation, governance, health, agriculture, creation of riches and so on but still, Nigeria was reported as the most effective growing Telecoms country in Africa in 2006.

Wire Nigeria aka "The WIN job" which its main function was to provide ICT infrastructure to all or any the nooks and crannies of the united states and the provision of VSAT 774 local Governments in the country as well as installing fibre optic backbone across the nation.


As more and more banks are embracing the execution of it to empower its business by including non-banking features with their sites to be before their competition as well as contending internationally and empowering the clients by giving information which is necessary for better decision making.

With the peak of the internet yet to be explored, the potential of using e-banking will be to never step feet in bank branch again if the services remains free and banks have to realise that surviving the new generation e-economy has too much to offer in terms of delivering some or almost all their banking services on the internet as well as continuing to encourage their traditional structure.

The emerging movements of e-banking have managed to get a business actuality which in couple of years to come, will be produced essential to everyone; redefine method of trading and strengthen partnership between organizations and customers.

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