AN ASSESSMENT OF THE EFFECTIVENESS AND EFFICIENCY OF E-BANKING IN NIGERIA

Posted on by shekknett

By

Yekeen O. Abdul-Maliq

Banking and Finance Department

University of Abuja, Nigeria.

Tel: +2348059056369/+2348037770262 e-mail: [email protected]

Abstract

This paper assesses e-banking services in Nigeria with a view to determining the types of e-banking products/services in Nigeria; their effectiveness and efficiency. The research reveals that more than 50% of Nigerians have easy access to e-banking services. The research also reveals that ATM service is the most popular e-banking product in Nigeria. And that the younger generation especially students, use e-banking services most. Problem of low server capacity, delay in cash replenishment and card seizure is commonly encountered and that e-banking is yet to have any effect on banking habit in Nigeria.

Key words: e-banking, assessment, low-server-capacity, replenishment, seizure.

Introduction

The history of money and banking is akin to that of Siamese twins. They were virtually born together and have always been growing together. According to Miller and Van-Hoose (1995); as soon as money emerged as medium of exchange, especially in the forms of Gold, Silver and Copper, banking accepting money from the public subject to repayment on demand started. Okafor (2006) and Miller Van-Hoose (1995) report that as a result of municipal and crown governments trying to take advantage of seigniorage, they started to unofficially tokenize money via the practice of bi-metal coins (bi-metalism). The full tokenization of money was achieved in 1971 when President Nixon of the United States ‘closed the old window by withdrawing the gold backing for the US dollar (ie. automatic conversion of dollar to gold), Okafor (2006). Since then the history of money and banking the later being the vehicle by which the former is transmitted through the economy: money has metamorphosed twice and banking had followed in both instances. First, was the transformation from commodity, to commodity-backed money and finally to paper (fiat) money, this first metamorphosis of money was completed in 1971 while the second was in 1995 when the first successful electronic delivery of banking services was effected by Security First Network Bank of USA as reported by Agawal et al (2002).