State of Online Banking in Nigeria - Term Paper Example

Chapter Five 5.0. Analysis and Discussion 5.1. Introduction In this chapter the entire findings of the research study are discussed with the objective of determining the answers of the research question and to attain the research objectives. The results of the interviews as well as the key findings of the secondary research are analyzed and interpreted in the chapter so that the entire research work and discussion can come towards a logical conclusion where the research objectives could be achieved. The chapter contains the examination of the Nigerian banking sector with regard to the provision and quality of online banking services. This examination enables highlighting the factors behind failure/success of online banking in Nigeria. In order to conduct this examination, the secondary research findings are used along with the views gathered from the interviews. The core issues have been discussed in this chapter to show that the topic has been unfolded with the help of the secondary and primary research and the dissertation is heading towards the attainment of all of the objectives that were set out for the research study. 5.2 Analysis of Research Findings The secondary and primary research enable having a deep insight over the past and present state of online banking in Nigeria. The review of related available literature shows how Nigerian banks have proceeded towards their present state of online banking services whereas the interview responses show the experiences of the people and enable to trace the differences between and after the implementation of ICT within Nigerian banking sector. It is unveiled from the research works that the Nigerian banking sector has gone through long history of reforms and regulations to attain its current status. The efforts of government to liberalize the Nigerian economy has drawn significant impact upon the performance of banking sector and with the help of foreign investment and ownership, it became possible for the Nigerian banks to adopt new technologies and banking tools within their services. At present online banking facilities are commonly provided by the Nigerian banks like Electronic data exchange facilities, MICR cheques, electronic home and office banking and the customers are widely using these services. The spread of internet due to increased numbers of ISPs and GMS networks has allowed the banks to provide the online banking facilities to their customers and numerous banking networks are found providing different online banking services to the people. however, it is also a fact that the customers and the banking professionals have several reservations over the performance of banks in Nigeria with respect to the provision of online banking tools and services and it is also very important that these issues and reservations must be addressed by the government and the banks to improve the quality of online banking in Nigeria. The research shows that the use of online banking services has become a common practice for the Nigerian people. Especially, the male professionals of 18-25 years of age use online banking services at regular intervals and it has become a common practice since last five to ten years. The use of online banking is found more common among the working population of the urban areas as compared with that of rural areas. The elder people are found to have more conscious regarding the use of online banking while the youngsters mostly welcome the flexibility of online banking and tend to use these services more frequently as compared with the old age people. The access to the websites of other banks via internet has made it acceptable for people to use the online services whereas the recommendations of family and friends also compel people to use online banking services. It implies that the spread of internet has made room for the acceptability of internet in Nigeria because professionals and customers widely visited the websites of other countries’ banks and came to know about the flexibility and benefits of online banking and then prepare their selves to use online banking tools provided by the banks in their own country. Most of the people prefer to use online banking services from their offices and homes and didn’t find it safe and secure to use public internet places and libraries to perform their banking transactions. The customers are found satisfied with the current state of online banking services being provided by the banks however the majority of people expect to see significant level of improvement within the quality of the services of banks. Most of the customers and professional agree that Nigerian banks are not making full use of the technology advancements and there is great need of adopting updated technology with the banking services to make them more fast and easy accessible. Internet has been commonly used by the banks for managing various online banking services however, the speed of internet should be fastened through advanced technology so that the customer can access the websites more easily and could perform their banking functions in better ways. At present, majority of the customers and professional found that the websites of major Nigerian banks are easily accessible and they are able to log on to their account with no major difficulty however, when they proceed with their banking activities they found the websites responding slowly and wish to have faster services to save their time. It is also commonly agreed that lot of time of the people has been saved by the online banking services and most of the customers get more time to perform their various other social and personal activities. It implies that online banking has significantly added convenience and flexibility to the life of the Nigerian people and they now commonly use variety of online banking services like ATM, online funds transfer, telephone banking and smart cards. The implementation of ICT within Nigerian banking sector is found having positive impact upon the quality and speed of banking in Nigeria and the communication between the customers and the banks’ management has also considerable increased through the websites of the banks providing online banking tools. Despite the fact that online banking was mostly welcomes by the Nigerian banking professionals and customers, it is also true that there were several groups of people that were resistant to this change and were not open to adopt online banking. It is unveiled that online banking was more adopted by the urban populations due to easy access to internet whereas the business people also prefer to use online banking because they found it more flexible and time saving. Gender tends to play little role in determining the people’s behaviour and response towards online banking whereas the education level, locality and working status heavily affected the way people have responded towards online banking in Nigeria. It is also revealed that people are not completely satisfied with the present state on online banking in Nigeria. Most of the people believe that the Nigerian banking sector has shown great performance and improvement over the last five to ten years however, still there is great room for improvement. The quality of online banking needs to be improved through adopting of latest and updated technologies within the sector so that the customers could become able to access the banks’ website for the performance of wide range of online banking activities. Hence, it is revealed that the current state of performance of online banking in Nigeria is hopeful. It could not be said that online banking is completely successful in Nigeria but at the same time it could not be regarded a failed function of the Nigerian banks because the banks are efficiently providing the online banking services and people are widely availing those and found it more flexible and convenient. It is also found that the spread of internet has supported the online banking services in Nigeria but lack of heavy investments and implementation of latest technology has affected the quality of online banking. The Nigerian banks still need more investments so that they could provide updated and advanced facilities to their customers as lack of use of latest technology appears to be important factor behind the low quality performance of Nigerian banks while offering online banking services to the customers. 5.3. Conclusion The chapter contains the outcome of the entire research work and all the issues related with the research study are discussed in the chapter to come to the attainment of the research objectives. The chapter presented the interpretations and analysis of the secondary and primary research results and presented the analysis of online banking in Nigeria Chapter Six 6.0. Evaluation 6.1. Introduction In this chapter all the work done in for the study is critically analyzed to evaluate the work in terms of attainment of research goals. The chapter analyses the research work in terms of usage of secondary and primary data collected sources and evaluated the research work to conclude if these sources and data collection tools are significantly used for gathering data and analyzing the core issues associated with the topic of the dissertation. 6.2 Evaluation of research work The dissertation employs a qualitative research approach to analyze the progress of online banking in Nigeria to examine the success/failure factors. For the attainment of this objective, the interviews of banking professional and customers of three Nigerian banks have been conducted along with the review of secondary literature. The information collected from these sources has been used for presenting the case study of the sector and the issues associated with the quality and standard of online banking in Nigeria have been discussed with the help of the information gathered from these sources. The findings of the research are organized according to primary and secondary research. The dissertation contains the key findings derived from the secondary analysis of data and also presents the views and opinions of the people associated with the banking sector to show their experiences and opinions regarding the services and quality of online banking in Nigeria. With the help of the collected information, the issue has been discussed in detail and the performance of Nigerian banks in provision of online banking has been analyzed to find out the success and failure factors. The objective of the dissertation was to discuss the performance of online banking in Nigeria by conducting the case study. For this purpose, three banks were chosen on the base of their services and network in rural and urban areas. The study of the professionals and customers of these banks allow the analysis of the situation and the objective of the study is attained through the selection and examination of these banks. From this perspective, the research study succeeds to accomplish its goal and the decided objectives are attained with the help of employment of appropriate research method and data collection tool. Thus, it could be said that the dissertation has achieved its goals successfully. Though there were some limitation encountered during the data collection due to time shortage and slow responses from the study participants but still the research study report was compiled within the decided time frame and all the material has been organized under different chapters and appendix. 6.3 Summary The chapter evaluated the research work in terms of the attainment of the decided research objectives. It is explained in the chapter that the dissertation has employed appropriate research methodology and data collection tool for preparing the case study of Nigerian banking sector and all the efforts are resulted in the presentation of detailed analysis of online banking services provided by the Nigerian banks. Read More