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OLORUNMOLU JOSEPH OYE
PG/M.Ed/99/26884
PG/M. Sc/09/51723
INFLUENCE OF E-BANKING ON CUSTOMER SERVICES
IN YOBE STATE AS PERCEIVED BY BANKS’
CUSTOMERS
VOCATIONAL TEACHERS EDUCATION
A THESIS SUBMITTED TO THE DEPARTMENT OF VOCATIONAL TEACHERS
EDUCATION, FACULTY OF EDUCATION, UNIVERSITY OF NIGERIA, NSUKKA
Webmaster
Digitally Signed by Webmaster’s Name
DN : CN = Webmaster’s name O= University of Nigeria, Nsukka
OU = Innovation Centre
MARCH, 2009
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TITLE PAGE
INFLUENCE OF E-BANKING ON CUSTOMER SERVICES IN YOBE STATE AS
PERCEIVED BY BANKS’ CUSTOMERS
A RESEARCH PROJECT PRESENTED TO THE DEPARTMENT OF
VOCATIONAL TEACHER EDUCATION, UNIVERSITY OF NIGERIA
NSUKKA IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF MASTER DEGREE IN BUSINESS EDUCATION
BY
OLORUNMOLU JOSEPH OYE
PG/M.Ed/99/26884
MARCH, 2009
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APPROVAL PAGE
This Thesis has been approved for the Department of Vocational Teacher Education (Business
Education) University of Nigeria Nsukka.
__________________
Professor E.C. Osuala
Supervisor
________________________________
Dr. E.E. Agomuo
Head of Dept. of Voc. Teacher Education
_________________________________
Prof. (Mrs.) G.C. Offorma
Dean Faculty of Education
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CERTIFICATION
Olorunmolu, Joseph Oye, a postgraduate student in the Department of Vocational Teacher
Education with Registration Number PG/M.Ed/99/26884, has satisfactorily completed the
requirement for course and research work for the degree of master in Business Education. The
work embodied in this project is original and has not been submitted in part or in full for any
other diploma or degree of any other university.
_________________ ___________________ Olorunmolu Joseph Oye Professor E.C. Osuala Student Project Supervisor
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DEDICATION
This research work is dedicated to the God Almighty who gives and sustains life
and to my beloved and amiable wife, Mrs Helen Funmilayo, and my children Deborah
Oluwakemi, Emmanuel Apoti-Eri Oluwa, and Precious Jesutimilehin Olorunmolu for
their sacrifice during the programme.
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ACKNOWLEDGEMENTS
The researcher wishes to express his gratitude to the Almighty God, for His Divine
guidance, protection and provision throughout the programme. He equally thanks God
for enabling him complete this programme, in spite of innumerable problems he faced
during the programme.
His sincere appreciation also goes to his supervisor, Prof E.C. Osuala, Who in
spite of personal commitments, took time to supervise the work and gave necessary
guidance.
His heart-felt thanks and gratitude are also due to his beloved wife who untiredly
cares for his children throughout the period of his absence and his Children whose
endurance patience and prayer have always been a source of encouragement and
inspiration to the researcher.
He remain most grateful and indebted to Prof Okwo, Prof S.O. Olaitan and Prof.
(Mrs.) C. Obi whose sustained interest, word of encouragement, constructive criticism
and very creative guidance during the course of this study.
His immense gratitude goes his to Pastor David Samuel, Pastor Joseph Ekairia
Pastor P. Lawal, Pastor Moses Makinde, and Pastor Vincent Nwichi who constantly
prayed for him throughout the period the course. He honestly thanks the bank customers
and bank employees in Yobe State for their cooperation.
Lastly, his gratitude goes to Mr. and Mrs. Afolabi Taiwo, his research assistants
and Mr. John (JP) the typist who tirelessly worked on the project.
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TABLE OF CONTENTS
Title Page --------------------------------------------------------------------------- i
Approval Page --------------------------------------------------------------------- ii
Certification ------------------------------------------------------------------------ iii
Dedication ------------------------------------------------------------------------- iv
Acknowledgement ---------------------------------------------------------------- v
Table of Contents ----------------------------------------------------------------- vi
Abstract ----------------------------------------------------------------------------- ix
CHAPTER ONE: INTRODUCTION
Background of the Study --------------------------------------------------------- 1
Statement of the Problem -------------------------------------------------------- 4
Purpose of the Study ------------------------------------------------------------- 5
Significance of Study ------------------------------------------------------------ 6
Research Questions -------------------------------------------------------------- 7
Hypotheses -------------------------------------------------------------------------- 7
Delimitation of the study --------------------------------------------------------- 8
CHAPTER TWO: REVIEW OF RELATED LITERATURE
Conceptual and Theoretical Framework --------------------------------------- 9
Commercial Banks and Utilization of E-banking ----------------------------- 15
Electronic Banking and Customer Patronage --------------------------------- 28
Electronic Banking and Quality of Customer Services ---------------------- 30
Electronic Banking and Customers’ Satisfaction ---------------------------- 32
Benefits of Electronic Banking to Customers --------------------------------- 35
Problems Encountered by Commercial Banks in Providing
E-banking Services to the Customers ------------------------------------------ 37
Review of Related Empirical Studies ------------------------------------------ 41
Summary of Related Literature -------------------------------------------------- 44
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CHAPTER THREE: METHODOLOGY
Design of the Study --------------------------------------------------------------- 46
Area of the Study --------------------------------------------------------------- 46
Population for the Study ---------------------------------------------------------- 47
Sample ------------------------------------------------------------------------------- 48
Sampling Techniques -------------------------------------------------------------- 49
Description of the Instrument used ---------------------------------------------- 49
Validation of Instrument ---------------------------------------------------------- 51
Reliability of Instrument --------------------------------------------------------- 51
Questionnaire Administration and Retrieval ---------------------------------- 51
Method of Data Analysis --------------------------------------------------------- 52
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
Findings of the Study ------------------------------------------------------------- 74
Discussion of the Findings ------------------------------------------------------- 78
Hypotheses ------------------------------------------------------------------------- 81
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND
RECOMMENDATIONS
Re-Statement of Problem --------------------------------------------------------- 83
Description of Procedures Used ------------------------------------------------- 84
Summary of Findings ------------------------------------------------------------- 85
Conclusions ------------------------------------------------------------------------ 86
Implications of the Study --------------------------------------------------------- 86
Recommendations ----------------------------------------------------------------- 87
Suggestion for Further Studies -------------------------------------------------- 88
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References -------------------------------------------------------------------------- 89
Appendix A ------------------------------------------------------------------------- 95
Appendix B ------------------------------------------------------------------------- 96
Appendix C ------------------------------------------------------------------------- 97
Appendix D ------------------------------------------------------------------------- 107
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Abstract
The study was designed to determine the influence of e banking on customer services in
Yobe state as perceived by bank customers. The specific purpose of the study were (1) to
determine the extent commercial banks utilize e banking to influence customer services
(2) the extent e banking influence the quality of customer service (3) the extent e banking
influence customer patronage (4) the extent e banking influence customer satisfaction (5)
the extent customer benefit from e banking system (6) the problems e banking faced in the
provision of e banking in Yobe State. The descriptive survey method of research was
used. The area of the study was Yobe State. The population of the study consisted 19084
of commercial bank customers and bank employees. The sample of study comprised of
2554 banks’ customers and employees. A questionnaire was used for data collection.
Data were analyzed using mean, standard deviation and z-test. The following major
findings were made: Nine (9) e banking products were used by commercial banks in Yobe
State to influence customer service. Nine e banking services were used to influence the
quality of customer service in the state. The researcher also found that e banking
services influence customer patronage into the banking, although customers still need
more enlighten on the e banking services and products available in the bank. The study
equally revealed that commercial banks faced 10 (ten) problems in the provision of
customer service in the state. These include incessant network breakdown, power failure,
lack of skilled manpower in information technology, delay in attending to customers due
to network breakdown among others. Based on the findings, recommendations were
made on how best to improve the quality of customer services through electronic banking
in Yobe State. These include among others, government should create a conducive
environment for investors by providing better and optimal infrastructural facilities, such
as electricity, good communication Network system and other social amenities, such
education, health, housing and security.
INFLUENCE OF E-BANKING ON CUSTOMER
SERVICES IN YOBE STATE AS PERCEIVED
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BY BANKS’ CUSTOMERS
BY
OLORUNMOLU JOSEPH OYE
PG/M.Ed/99/26884
DEPARTMENT OF VOCATIONAL TEACHER
EDUCATION (BUSINESS EDUCATION)
UNIVERSITY OF NIGERIA, NSUKKA.
MARCH, 2009.
CHAPTER ONE
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INTRODUCTION
Background to the Study
Britannia Concise Encyclopedia (1995) defined Bank as a financial institution
authorized to provide variety of financial services, including customer and business loans
(generally short term), checking service, credit cards and saving accounts. A bank is a
financial institution authorized by its charter to perform certain functions (Osuala 2001).
The bank is a financial institution set-up purposely for safekeeping of money, valuable
goods and documents like wills and gold. It collects surplus funds from the general
public, safeguards them and makes them available to the true owner when required and
loans out fund (at interest) to those who need them (Obi 2002). In a nutshell, a bank is an
institution engaged in safekeeping of monies, issuing drafts, and giving loans on interest
to those who are in need of such.
The statutory functions of bank become more complex because of the complex
nature of business activities and the increase in demand and number of customers, as well
as the competitive nature of banking industry. (Irechukwu 2000). This made the bank to
look inward to customer oriented services which will enhance efficient and effective
customer services, Again, the business of banking is no longer perceived as merely the
generation of deposit, liabilities and creation of liquid assets, but rather the generation,
storage, manipulation, communication and application of financial information.
Traditional banking is characterized by physical decentralization with branches
scattered around populated areas to give customers easy geographical access. The
physical banks also serve to assure customers that their bank has substantial resources
and can guarantee the security of their saving- (Loekeft and Rifter (1997). Information
technology has however, also penetrated the banking sector.
Information technology, according to Woherem (2000), is perceived as an
instrument for engendering competitive advantage in the Enterprises as it promotes
greater efficiencies and effectiveness in financial transactions. The importance of
information technology is to enable enterprises to develop more effective and efficient
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operational and management process. Thus, the information age has brought many
technological innovations into our lives. One of the advanced technologies that have
been introduced is Electronic banking.
(E- banking) (Ainin 2005).
E- Banking is a process of transacting banking operations electronically. It is a
process of using electronic devices in carrying out banking operations. E banking does
away with most visits to the bank. It is a state-of-the-art-service that is just beginning to
take off among banking customers especially in Yobe state. Indeed E-banking has the
major potential for future development as it allows customers to do most of the things
they do at the bank like make balance enquiries, payment, transfer of funds, pay bills over
the internet. It also offers banking services outside of normal opening hours. In fact, it
has effectively “opened” banks for business twenty-four hours a day, seven days a week
(Rubino 2000).
E-banking has become increasingly prevalent, employed by financial institutions
in Yobe state to reduce costs associated with having personnel, serve customers
physically, shorten processing period increase speed, improve the flexibility of business
transactions and provide better services for all (Shin and Fang 2004). E-banking services
being rendered by commercial banks in Yobe state include online/internet banking, E-
payment, Automated Teller machines (ATMs), personal computer (PC) Flash
card/Telephone banking, Electronic fund transfer, Email, among others. These services
in the banking sector are rendered to customers.
A customer is any one who makes buying decision of product or services from an
individual or organization. Osuala (1998) explained that a customer is one who makes
the actual purchase decision. Service is at the heart of the business of banking. E-
banking has played, is playing and will continue to play a major role in the delivery of
quality service in the banking industry- (Irechukwu 2000) Financial institutions have
used e-banking to aggressively and innovatively create the requisite competitive
advantage and dramatically improve the quality of service delivery to their customers. It
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does mean that the success of any business is dependent on the customers’ satisfaction
with the products or services.
In Yobe state, e-banking services are provided by the following Commercial banks
viz, First bank plc, Unity bank, United bank for Africa (UBA), Union bank,
Intercontinental bank, Oceanic bank, Zenith bank, Diamond bank, Guarantee Trust bank,
Afrik bank, Fin bank, P H B, and First City monumental bank (FCMB). The success of
these banks depends on the satisfaction of the customers. It is often said that
understanding the motivation, expectation and desires, lay the foundations of how best to
serve the customers and this can provide information on making improvements in the
nature of business.
It is expected that with the provision of e banking by the commercial banks to the
customer services that the quality of service rendered to customers would have drastically
improved. Although, banks and their employees in Yobe state claim that e banking has
improved the quality of their customer services tremendously, customers still complain
about the quality of services rendered to them. The customers still believe that there is a
lot to be done, if customer’ satisfaction is to be enhanced. According to the customers,
they have not really enjoyed the benefit of e banking, because they still spend hours in
the banks for simple counter retard transactions like deposit, cash transfer and even cash
withdrawal. Despite the provision of e banking, there are lots of customer traffic or
patronage in most of the commercial banks in Yobe state.
It is, however, disheartening to observe that even after the provision of e banking
to customer services, some problems are still prevalent, bearing in mind that the primary
objectives of e banking are to improve the quality of customer services.
In the light of these enormous commitments on the part of commercial banks, it
becomes pertinent more than ever before for them to evolve an efficient and reliable e-
banking component to be able to survive and meet up with the modern banking
challenges. Since the provision of e-banking to customers in Yobe state is yet to meet the
expectations and satisfaction of customers, there is, therefore, an urgent need to
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determine the influence of e-banking on the customer services. These will identify areas
of strength and weakness in services rendered and hence yields information needed for
improvement.
Statement of the Problem
Banks play a major role in the social, political and economic development of a
community. They provide services that help to enhance business activities by way of
granting loans, shares, overdraft, money transfer, deposit, and withdrawal among others.
Agene in Awoniyi (2008) reported that banking services require mathematics,
manipulations, by way of calculations, receipt and payment of money to customers.
Thus, making banking job, very tedious, time consuming and tiring. Banks must think of
itself as never before as buying customers’ as doing the thing that will make people
continue to transact business with them. They must put in place strategies for meeting
and exceeding the customer needs and expectations because today’s customers are more
sophisticated and approached by many competitions (Kotler 2001)
Della in Awoniyi (2008) observed that bank activities make too much demand on
customers by spending too much time queuing up to pay in or withdraw money. These
constraints among others made banks to adopt e- banking as a way of improving services
to their numerous customers. E-banking services are meant to overcome the shortcoming
of traditional methods of banking. E banking services entail the use of electronic device
such as computer and Internet to render or aid the services rendered by manual traditional
methods of banking.
In Yobe state, with the provision of e-banking to customer services by banks,
customers still complain of delayed services. It takes hours to effect a simple transaction
and the hall is always full of customers waiting to either pay in or withdrawal money
from their accounts. The situation is even worse during festive period or when workers’
salaries and other emoluments are paid to workers at the end of the month.
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Woherem (2000) stated that although, the adoption of e banking by banks has
made some changes in time consumption in banks, the changes do not reflect the accurate
service that is expected from the banks. Some customers see banking activities in Yobe
state as time consuming or wanting. The problem of this study, therefore, is to determine
the influence of e banking on customer services in Yobe state as perceived by Bank
Customers.
Purpose of the Study
The major purpose of the study is to determine the influence of e- banking on the
provision of customer service in Yobe state as perceived by bank customers.
Specifically, the study determined:
1. The extent commercial banks utilize e-banking to influence customer services in
Yobe State
2. The extent the adoption of e- banking has influenced the quality of customer
services.
3. The extent the utilization of e-banking has influenced customer patronage through
customer services provided by banks in Yobe State
4. To what extent the utilization of e-banking has influenced customers satisfaction
with the customer services provided by banks in Yobe state.
5. The extent customers benefit from the provision of customer services through e
banking in Yobe state.
6. Ascertained the problems faced by banks in the provision of customer services
through e-banking in Yobe state.
Significance of the Study
The findings of this study will be very useful to commercial banks, bank
customers the central bank, ministry of commerce and industry and the society. The
findings of this study would enable commercial banks, employees and employers to
identify the problems confronting customers in obtaining effective and efficient customer
xviii
services through e banking and how to eliminate or at least reduce such problems. This is
because today’s customers would continue to patronize only the banks that would be
most conversant to them in terms of easy transaction. Also, the commercial banks as the
hub of the nation economy would benefit from this study as the study would enable them
understand how to impress and retain their customers by providing the relevant and
current information technology – e-banking customer services in their banks
The commercial banks customers would benefit from the findings of the work as
the study would reveal the current component of e-banking, and how e-banking
customers services could be used to facilitate easy and better banking operations.
The Central Bank as the supervisory body to all the commercial banks would
benefit from the study, for the study would reveals how effective and efficient e-banking
customer services provided by commercial banks. Also, the study would equally reveals
the problems encountered in the provision of e-banking customer services. This would
enable the central bank to formulate policy to regulate, supervise and control the
activities of commercial banks to provide better services to their numerous customers,
hence pave way for social, political and economic development of Nigeria.
The ministry of commerce and industry would benefit from this study as the study
would invent, the current problems encountered by the commercial banks in the provision
of e-banking customer services in Yobe State. This would enable the ministry to create a
conducive enabling environment for commercial bank to operate and to give the best e-
banking customers’ services to their customers in the state.
The findings of this study would also be useful to students and researchers who
may be interested in carrying out further research in this or related topic.
Research Questions
The following research questions are formulated to guide the study.
1. To what extent do commercial banks utilize e banking to influence customer
services in Yobe state?
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2. To what extent does the adoption of e banking influence the quality of customer
services in Yobe state?
3. To what extent does the utilization of e banking influence customer patronage
through customer services provided by banks in Yobe State?
4. To what extent does the utilization of e banking influence customers’ satisfaction
with the customer services provided by banks in Yobe State?
5. To what extent do customers benefit from the provision of customer services
through e banking provided by banks in Yobe State?
6. What are the problems faced by banks in providing customers services through e-
banking in Yobe State.
Hypotheses
The following Null hypotheses will be tested at 0.05 level of significance.
HQ1. There is no significant difference in the mean responses of bank employees and
customers on the satisfaction of e-banking to customer services provided by banks
in Yobe State.
HQ2. There is no significant difference in the mean responses of banks’ employees and
customers on benefit of e- banking on customer services provided by banks in
Yobe State.
HQ3. There is no significant difference in the mean responses of bank employees and
customers on the problems faced by banks in the provision of customer services
through e banking in Yobe State.
Delimitation of the Study
The study is restricted to the influence of e banking in the provision of customer
services in Yobe State as perceived by bank customers. The study is limited to
commercial banks operating in Yobe State. The study does not cover financial
institutions other than commercial banks.
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The study will not assess other areas of commercial banking operations such as
profitability, administration and management.
xxi
CHAPTER TWO
REVIEW OF RELATED LITERATURE
In this chapter, the literature related to the present study is reviewed. The
literature for the study is reviewed under the following headings.
1. Conceptual and theoretical framework
2. Commercial banks and utilization of e-banking services.
3. E-banking and customer patronage
4. E-banking and quality of customer services
5. E-banking and customer satisfaction
6. Benefits of e banking to customers
7. Problems encountered by commercial banks in providing e-banking services to its
customers.
8. Related Empirical Studies Summary of review of related literature.
Conceptual and Theoretical Framework
Anyanwuocha (2004) defined bank as a financial institution that provides banking
and other financial services. Bank is generally understood as an institution that holds a
banking license. The banking license is granted by financial supervisor authorities to
conduct the most fundamental banking services such as accepting deposits and making
loans available to their numerous customers.
Banking according to Encyclopedia Britannia (1997), is said to be an institution
that deals with money and its substitutes and provide other money related services. In its
role as a financial intermediary, a bank accepts deposits and makes loans available to its
customers’ hence maximizing profits.
Typically, a bank generates profit from transaction fees on financial services or the
interest spread on resources it holds in trust for clients while paying them interest on the
asset. Bank offers different types of services to numerous customers, although the type
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of services offered by a bank depends upon the type of bank and the country. As
enumerated by Osuala (2004) banks provide the following services.
(a) Receive deposit
(b) Lend out money to individuals and companies (Small, Medium and Large-scale
business enterprises)
(c) Maintain current and saving accounts
(d) Cash cheques
(e) Facilitate money transactions
(f) Issue credit card
(g) Store valuable
(h) Lease equipment to companies and host of others.
There are different types of banks in Nigeria as listed by Asaolu (2003) these are:
(a) Central Bank, which is known as government bank.
(b) Merchant bank
(c) Development bank
(d) Commercial bank
Commercial banks are regarded as the most familiar financial institutions in the
financial system at any modern economy. This is because commercial banks are set-up
to meet the credit needs of an individual as well as millions of small, medium and large-
scale business enterprises in Nigeria - (Adelaja 2003). They are also located in almost all
the major towns in the country. These attributes made commercial banks more popular
than any other types of banks. For this reason, emphasis will be placed on commercial
banks.
Theoretically, the first commercial bank in Nigeria was the first bank of British
West Africa (now first Bank of Nigeria Plc) (Aliu 1992). The principal motives of
establishing commercial bank according to Mabogunje (1992) were to enhance trade and
commerce with metropolitan headquarters. They therefore, concentrated their operations
in the cities and commercial centres where:
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(a) more capital is applied in production
(b) there is greater specialization and division of labour
(c) collateral security for loans are more easily obtained
(d) visible volumes and turnover generate the highest return on investment.
Invariably, the establishments of rural branches of these banks were mandatory so
that the interest of the rural people could be catered for.
Central bank of Nigeria (2003) stated that policies have made use of modern
banking operations to meet the needs of people and to encourage the growth of business
organizations in Nigeria. This will promote social, economic and political development
of Nigeria. It will equally enhance industrial development in Nigeria hence reduce the
high rate of unemployment in Nigeria. These policies will also help the commercial
banks to compete with their foreign counterparts globally.
Commercial bank is regarded as an institution, which accepts deposits, grants
business loans and other related services to individual and business firms. Commercial
bank also allow for a variety of deposit accounts. Commercial banks are run to make
profit and are owned by a group of individuals called shareholders.
Nnadi and Falodun (2003) defined commercial bank, as a joint stock company
engaged in the banking business to receive all deposits and make loans of generally short
term in nature, Such short term is usually required in their working capital – requirement.
Saleh (2004) saw commercial bank as financial institution established by
government regulation to maximize profits by accepting deposits and lending money to
an individual and business organization.
Osuala (2004) equally defined commercial banks as a financial institution owned
by shareholders who elect a board of directors to manage the banks, operations.
Commercial bank is a profit-making venture that is saddled with accepting deposit,
lending money and keeping valuable goods and services. In a nutshell, one could deduce
from the above definitions that the chief economic function of commercial bank is to
xxiv
grant loan to the prospective lenders. Other functions of commercial bank as enumerated
by Osuala(2004) include:
(a) Accepting deposits
(b) Acting as agent of payment
(c) Miscellaneous services to customers
These includes, acting as agent in buying and selling of stocks and securities,
acting as a trustee or executors for customers, obtaining foreign currency for customers,
facilitating money transactions to mention only a few.
Banking business is one of service. The service is that financial intermediation
through the mobilization of savings from the units generating surplus funds for lending to
promote economic growth and development, which in turn, maximizes profit for the
organization. Commercial banks are also financial intermediary between the sources of
funds and the users of those funds, or in other words between the lenders and the
borrowers. It could however, be seen that the statutory functions of commercial banks
are enormous and could have great influence on the customers and the economy of the
nation.
There is a need for commercial bank to provide prompt and good services to their
customers. According to Woherem (2000) there is an increased demand for customers’
deposits and other financial related services in Nigeria, and it is imperative for banks to
provide goods and prompt services. In view of this, customers now prefer to go to
commercial banks that would serve them promptly, preferably in a pleasant, customers
and friendly environment thus looking at the level of service and professionalism at the
banks before depositing their funds. Proximity to the bank is no longer the issue, safety
and the level of service, with regard to quality; speed and efficiency have become major
imperative. On the part of commercial banks, they have realized that the one way they
can provide quality service is through the use of technology. Hence, there is a forming
rate of adopting new technologies in Nigerian banking operations. Above the
comparative environment brought about by the deregulation of the economy by the
xxv
federal government coupled with the recent adoption of universal banking and banks
consolidation in the country, technology has now become the single biggest strategic
issue in banks.
Before now when banking operations were undertaken manually, banking
transactions were very clumsy, cumbersome, extremely slow, time consuming and
frustrating to bank workers and customers spent hours in banks for transactions like
withdrawal and deposits. This was a period when simple bank transactions like cheques
encashment took several hours to effect due to manual procedures involved; local inter-
bank or inter-branch funds transfer was almost non- existent and where it existed at all,
do not satisfy the need for which it was required – prompt funds transfers. Similarly, the
processing and approval of facilities for customers also suffered from problems of
manual processing of information as the processing of customers application and its
eventual approval procedures which often required the application to move from one desk
to another, and from the branch to the area or head office as the care may be. Also, all
information into branch and inter-branch as well as inter-bank was herculean task. All
information had to be in writing and printing forms and hand-delivered from one location
to another, thus, wasting time. Communication through the analogue telephone, and telex
systems, were ineffective and unreliable to help matters. Experts saw information
technology as a viable option out of these problems mentioned above, hence the
introduction of information technology in banking operations in Nigeria.
Information technology comprises of all Electronic infrastructure and facilities
employed by banks, today, in the accurate, validations and processing of the incidence of
high transaction volumes and / or value. Together with those facilities, competitive
rendition of quality customer services and efficient data-base management for effective
control and management. Such electronic facilities in broad terms are known as e-
banking.
Shresha (2003) defined information technology as the technology involved in the
act of informing or in the collection, storage, retrieval, production, processing, diffusion
xxvi
and transmission of information, which may be used as resources or as a commodity or as
both. In other words, information technology refers to new technology of gathering,
storing, manipulating and transferring of information. It encompasses a wide range of
technologies like telephone, computer, word processing application, web browser and
services and full text document data-base and main frame computers (Okonkwo and
Afolabi 1998).
Electronic banking is an umbrella term for the process by which a customer may
perform banking transactions electronically without writing a brick-and-mortal
institution.
E-banking covers both computer and telephone banking. It offers a lot of different
advantages to the user including account balance and history, including days to day
information ability to transfer money from one account to another, and to payee for bill
payments check history, recorders, and stop payment, check credit card balances and
statements complete on line, loan applications, secure interactive messaging with staff
and much more- (http lezene artides .com) All these services are rendered to the
customers. E-banking has many services render to the customers viz internet banking,
electronic transfer, flash card, Automated teller machines (ATM) Personal Computer,
phone banking, E-payment and lots of others.
A customer according to Osuala (1998) is one who makes the actual purchase
decision. Therefore, a customer could be regarded as any one who made buying decision
of product or service from an individual or organization. Similarly, a customer to any
commercial bank is anyone who operates bank accounts and makes financial transaction
with the bank. It has been said that service is at the heart of the business of banking.
Service as defined by Kotler (2003) as any actor performances that are partly can offer to
another that is essentially intangible and does not result in the ownership of any thing. Its
production may or may not be tied to a physical product. The service sector such as bank
(commercial bank) provides benefit or satisfaction that is intangible.
xxvii
Commercial Banks and Utilization of E-banking
Banking has indeed come of age, competition, innovation and investments in
through technology, and has almost rendered obsolete traditional banking. The
technology revolution worldwide positively affected commercial bank practices and
customers are spoilt for choice below the different electronic payment services now
available. Commercial bank has become highly automated resulting in greater efficiency
and ultimate customer satisfaction (Olayemi 2008)
Additionally, the advantage of electronic commerce and marketing with internet
World Wide Web (WWW) has contributed to the technical transformation affecting the
banking industry. Goods can now be purchased on the World Wide Web (WWW) using
a credit card or electronic money (e-cash). On the global science, electronic banking
open up a new world of finance where opportunity and money know no bounds. With
services being able to move funds around the world at will, some communist even see
central bank being forced to shift their focus from the domestic to the global money
supply when considering policy mores (Sanusi 2004)
Electronic banking according to Robinson (2004) is virtual banking. Instead of
waiting in line at branches and offices, commercial bank customers around the world are
finding telephones with computer services, automated teller machines, where they can
trade stocks and even video conferencing Kiosks are staffed by experts in every thing
from mortgage loans to mutual funds. Corporations are getting pitches on new electronic
techniques for international money transfer and transaction processing. The global
banking system founded in brisk-and-mortal branches and local franchises, is being
transformed into a vast electronic web that transcends national boarders (Kesseven,
Sawkuk and Boopen 2007).
Electronic banking has been described as the use of magnetically encoded plastic
cards of terminals outside a regular bank location for cheques cashing, deposits and other
money transfer functions (Osardolor 2003). Commercial banks have gone digital and
xxviii
cash less society is slowly being evolved. In this age of electronic banking, the use of
money in tangible form becomes less important.
E-banking employed by commercial banks in Nigeria is becoming increasingly
important because of the increasing competition from non banking financed institutions
and the demand for sophisticated, efficient, commercial environment brought about by
deregulation coupled with recent adoption of universal banking and more recently, the
consolidation of commercial bank in Nigeria (Adeleke 2003). With this recent
development, the e-banking seems now to be the single biggest strategic issue in
commercial banks in Nigeria.
Commercial banks in Nigeria have now realized the immense benefit of e-banking
services as a tool in bringing down their products and services to commence and reach of
their customers and also as a way of increasing their productivity. These exists a variety
of leading products of e-banking which offer commercial banks good prospect for
attaining operational efficiency and excellence and even give a competitive edge over
other competitors. E-banking entrenches payment cards; cheques guarantee cards, gold
cards, international cards, and smart cards, (Electronic purses). Others include, Electronic
fund transfer, Automated teller machines, Home banking services through personal
computer and telephone facilities and internet/online banking (Adesina 2008). All
commercial banks offering e-banking services in Nigeria have their own selected variants
of products. These products and services help the customer to, ether opening an account,
deposit money, withdraw money or transfer money from one account to another.
Some of the e-banking products and services provided by commercial banks in
Yobe State include.
(a) Internet/online banking
(b) Electronic payment system
(c) Electronic fund transfer
(d) Personal computer ( PC)
(e) Automated teller machines (ATMs)
xxix
(f) Smart card
(g) Telephone banking
(h) Mobile banking
(i) Online transaction processing
Internet/Online Banking
Internet banking is defined by Palmta (2004) as an Internet portal through which
consumers can use different kinds of banking services ranging from bill payments to
making investment. With the exception of cash withdrawals, internet banking give
customers access to almost any type of banking transactions at the click of a mouse
(Young 2001). In deed the use of the internet as a new alternative channel for the
distribution of financial services has become a competitive necessity instead of just a way
to achieve competitive advantage with the advent of globalization and fiber car
competition (Flavlan, Torres and Guinaliu 2004, Gan, Clenes, Limsombunchi and Weng,
2006).
Commercial banks using the internet as an additional service are now on equal
footing to offer their banking services on the internet and to canvass for customers around
the world. As Korolalusta, Martila and Pento (2002) put it, this could be the reason why
the interest is widely seen as the most important delivery services in the era. Internet
banking is beneficial to both the provider and the customers. The rationales of banks
usage of the Internet banking technology from the bankers perspective are mainly related
to cost savings (Robinson 2000).
Commercial banks use on line banking as it is one of the cheapest delivery service
for banking products (Pikkarainen et al 2004) Such services according to
Jayaawavahance and Foley (2000), save time and money of the bank and added benefit of
minimizing the likelihood of committing errors by bank tellers. Internet banking offers
services regardless of geographic location and time and commercial banks also provide
services to the customers for the use of their convenience. Karja Wat et al (2002) opined
xxx
that banking (Commercial bank) is no longer bound to time and geography, customers
over the world have relatively easy access to their accounts 24 hours per day and seven
days a week. The authors further observed that with internet banking services, the
customers who felt that branch banking took too much time and effort are now able to
transact at the tip of their fingers
Competition is yet another important rationale. With the increasing competitive
pressures from existing firms and new entrants in the market, internet banking has been
an interesting way to retain existing customers and attract new ones. Robinson (2000)
believed that the supply of internet banking services enable commercial banks to
establish and extend their relationship with the customers. These are other numerous
advantages to commercial banks offered by online banking as enumerated by Tuchilla
(2000). They include:
(1) Mass customization to suit the likes of each user
(2) Innovation of new products and services
(3) More effective marketing and communication of lower costs
(4) Development of non-care product such as insurance and stock brokerage as an
expansion strategy
(5) Improved market image and better and quicker response for market evolution
(6) Convenience of the service (time saved and globally accessible service)
(7) Lower cost of transaction and more frequent monitoring of account and the host of
others
Electronic Payment System
Sanusi (2002) defined Electronic Payment System as a system, which involves the
provision of payment services, and transfer, through such devices as telephone,
computers, the internet, Automated teller machines (ATMs) smart cards, stored value
card etc. It could also be regarded as a paperless system of making payments. Coward
(2002) sees. Electronic Payment system (EPs) as a system of financial exchange between
buyers and sellers in the online environments is facilitated by a digital financial
xxxi
instrument (such as encrypted credit cards numbers electronic cheques or digital cash
backed by a bank, an intermediary or by legal tender. The Electronic Payment system
offers an alternative to the traditional system that involves the use of cash and cheques.
Electronic Payment systems have the advantage of enabling transactions to be processed
quickly, more cheaply and they also offer a much more convenient method of effecting
settlement of transactions.
According to Sanusi (2002) Electronic payment system, could broadly be divided
into two groups, namely wholesale payment system and retail payment system.
Wholesale payment systems exist for non-consumer transactions, transaction initiated
among and between banks government and other financial service firms. Examples
include the Society for Worldwide Inter-bank Financial Telecommunication (SWIFT)
Nigerian Inter-bank Settlement Systems. (NIBSS) and so on. However, retail payment
system which could be conducted either in an online or office bases encompasses those
transactions involving consumers and the use of smart cards, Automated Teller machines
(ATMs) Electronic money transfer, e-dividend, e-allotment among others.
Smart cards also known as electronic purses were recently introduced in Nigeria.
Unlike the traditional payment cards, these cards are embedded with a computer chip and
offer a variety of service depending on the requirement of the user. A smart card could
work as both a credit and debit card. When used as an electronic purse, a money value is
transferred to the card, which diminishes as the card is used at designated terminus
(Sanusi, 2002).
The card allows the loading of electronic cash for customers by a bank and the
expenditure of the cash either through withdrawal from another branch or bank also
involves in the scheme or at designated merchant point. Example of smart card used in
Nigeria today is value card, smart pay, Diamond pay card and host of others.
E-dividend payment
E-dividend payment is a convenient service online which means paying dividends
directly to the shareholders account instead of posting and mailing dividend warrants as
xxxii
is currently in use. A shareholder, who has a bank account (saving or current account)
with any commercial bank, gives his/her dividend paid directly into that account. The
benefits of e-dividend payment include:
(a) Increased transparency in the administration of dividend payment
(b) Eliminate the occurrence of unclaimed dividend
(c) It eliminates the problem of returned dividend warrants where a shareholder
changes address without notifying the company
(d) Saves money, no need to write cheques, use envelope or buy postage stamp.
(e) It can be paid into saving account
(f) Private and more secure
(g) Dividends paid can be captured in the shareholder monthly bank statement.
(h) Tracking of transaction faster and reports can be easily generated.
http.www.@ordo plc.com. 2008
Personal Computer (PC)
Adegunodo (1990) defined Computer as electronic machine that can accept data in
a prescribed form, store the data, process them and supply the result of processing in a
specified format as information or as signals to control automatically some other
machines or processes in a faster speed than human being. From the definition above,
one could deduce that computer could be sent to process essential attributes such as:
(a) Ability to calculate at very high speed, as some computer can count and calculate
in second what will take an individual several hours
(b) Accuracy and consistency. Human beings are prone to error but computers are by
contrast extremely accurate and consistent
(c) Ability to accept and store data and information for further use, automatically
without manual intervention
(e) Ability to make decision based on simple logical rules for their external activity
xxxiii
Personal computer banking is a form of on line banking that enables customers to
execute bank transactions from personal computer via a modern. In most personal
computer banking ventures, the bank offers the customer a proprietary financial software
programme that allows customers to perform financial transactions from his or her home
computer. The customer then dials into the bank with his or her modern, download, data
and runs the programme that is resident on the customers’ computer.
Personal computer may be a desktop computer, a laptop computer or a tablet
computer. Personal computer banking allows on hand many banking transactions via
your personal computer. Personal computer could also be used to view your account
balance, request transfers between account and pay bill electronically.
Electronic Fund Transfer
Electronic fund transfer has been defined as any transfer of fund other than a
transaction originated by a paper instrument. This is initiated through an electronic
terminal, telephone or computer or magnetic tape and that orders or authorizes a financial
institution to debit or credit an account (Gan, Demis, and Limsomborachi 2006).
Electronic fund transfer (EFT) is a system of transferring money from one bank account
directly to another without any paper money changing hand. It refers to the computer-
base-system used to perform financial transactions electronically. Examples of (EFT) in
Nigeria are, Automated Teller machines (ATMs), Western Union Money Transfer, flash
me cash, money Gram, point – of – sale (POS) among others: Point of sale transfer
allows customer to pay for purchases with a debit card, which also may be your ATM
card. They are used for both credit transfers such as payroll payment and for debit
transfers such as mortgage payments.
Fadahusi (2006) asserted that First Bank Nigeria Plc pioneered the use of
Electronic fund transfer by introducing Western Union money transfer. This was closely
followed by United Bank for Africa Nigeria Plc (UBA) with Gramm money transfer.
Today, many products have been introduced by other commercial banks. For example
xxxiv
Fin bank Nigeria Plc recently introduced flash me cash, Intercontinental Bank Nigeria Plc
introduced point-of-sale-transfer. These products could be used to transfer money from
one account to another, or purchase goods/services and money will be transferred to the
sales account for the payment of goods supplied. Most of the commercial banks in
Nigeria have introduced different types of e-banking product that distinguish them from
other commercial banks (Sanusi 2002)
Oguntuase (2006) opined that all these services allow the movement of funds from
one account to the other and from one location to other location in domestic funds
transfer, thereby obtaining the need to physically move cash which present great risk.
Many commercial banks in Yobe State now offer these banking services to attract their
numerous customers. The electronic fund transfer (EFT) enables funds transfer and
receipt transaction in minutes around the globe using a network of agents. This service
allow Nigerian nationals living outside the country to remit money to relatives and
friends or business associates in Nigeria (Woherem 2000)
Automated Teller Machines (ATMs)
Automated Teller machine (ATM) is a computerized telecommunication device
that provides financial institution customers a method of financial transaction in a public
space without the need for human clerk or bank teller (Olayemi 2004). Also, Automated
Teller machine is a mechanized banking service provider installed through the wall of a
bank branch or any strategic but secured locations) and it offers speed and round-the-
clock service in area of cash payment and statement issuance, bill settlement facilities and
deposits facilities. (Sanusi 2002) Fadahumsi (2006) observed that the first ATM machine
was introduced by the defunct Societe General Bank Nigeria Plc and now, almost all
commercial banks in Yobe State provide ATM services to their customers. According to
Adesina (2008), most of the commercial banks in Nigeria now have more ATMs than
branches and ATMs are providing a wider range of uses. He went further to mention
some of the benefits of the ATMs, which include that:
xxxv
(a) The facility allows customers to have access to cash during non-banking periods,
including weekends and public holidays.
(b) Propensity to carry large sum of money more than one needs at a particular
times is also eliminated.
(c) The ATM facility has reduced the risk of carrying cash about and this also tends to
answer the call for a cashless economy.
(d) ATMs enable customers from other banks to get their account balance and
withdraw cash even if the card is issued by another bank
Telephone Banking
Olayemi (2002) defined telephone banking as a service provided by a financial
institution, which allows its customers to perform transaction over the telephone. It
enables the customers to check their account balances, give instruction for bill payments,
transfer money between the accounts in the same banks and make payment on goods
purchased or services rendered. Personal telephone banking provides quality, efficient
banking services through a combination of self-services voice system and call-center
representatives (Martila and Martila 2005). They further listed some of the benefits of
personal telephone banking to include:
(a) Easy operation. Telephone banking is a personalized all-round service close to the
customers. Customers only need to dial number and press buttons according to the
voice prompt to complete the transaction fast and conveniently.
(b) Time saving, convenient, minimum fees. Customers can apply for telephone
banking services either by registering over the phone or at the local business
office. Much ordinary banking business could be done over phone instead of at
office, which will save them a lot of time.
(c) Wide coverage, taxable and convenient telephone banking is restricted to time and
place. It provides services 24 hours a day and seven days a week. It enables you
monitor your account timely, even when you travel to other cities.
xxxvi
(d) One number, safe, and reliable service, number is easy to remember and use. The
banks adopt advanced integrated technologies in computer and phone as well as in
communication, encryption, which makes banking services more secure and
reliable.
On-line Transaction Processing (OLTP)
This allows all or most of the branches of a bank to be integrated through a Local
Area Network (LAW) or Wide Area Network (WAN) computer system hereby making
the customers accounts to be accessible to all the branches of the bank (Woheren 2000).
It allows customers to transact their banking operations/business including cash deposit
and withdrawal at any of the branches. The service is currently available in many
commercial banks in Nigeria today.
xxxvii
Some Electronic Banking Services in Commercial Banks
The use of e-banking services by commercial banks in their operations in this
millennium continues to gather momentum. Sagoe (1999) opined that the field of
information technology opens up new option for just about every business, large or small
to think about how they want to operate. He further explained that technological power
available to a company provides all the kinds of new opportunities for new products or
new services and even for new approaches of doing business.
It is obvious today according to Shrestha (2003) that the adoption of e-banking
services in commercial banks has facilitated easy flow and easy storage of information.
E-banking service is being employed by commercial banks to improve customer services,
which include, reduction of cash by armed robbery, enhance decision making processes,
reduce the stress on management and make operations more efficient and accurate
(Fadaunsi 2006). Commercial banks in the state are actively involved in electronic
banking services. Among their products/services are, internet/online banking, telephone
banking, personal computer, Automated Teller Machine (ATMs), post-of sale (POS)
Electronic fund transfer, E-payment system, Flash-Me-Cash, among others. All
commercial banks offering e-banking services in Yobe State have their own variants of
products. These products are used to deliver quality service to customers in a more
timely, friendly and considerate manner at no extra-cost to the customers.
Some of such e-banking services as highlighted by Irechukwu (2000) are:
Opening Account
Commercial banks now provide self-service facilities known as automated
customers services machines. From these machines, prospective customers open an
account (after being screened and found eligible), complete their account, open
documents direct on-line, have their data validated, have account numbers assigned, and
advised when and how their cheque books, credit/debit cards will be delivered to them.
xxxviii
On-line Real Capabilities
This is one capability employed by commercial banks in their drive to deliver
more and more quality services to their customers. With this capability, commercial
bank can deliver the same quality of service to its customers any where irrespective of the
branch where a customer’s account is maintained. It also enables the customers to
withdraw, deposit and generally execute banking transactions at any of the banks
branches, thereby effectively making the bank a one-branch bank.
Telephone/Home/Internet Banking
This is another form of development in banking industry. Customers are allowed
transactions in the bank websites. According to Oguntuase (2006), customers by means
of home input/output terminal are connected to their banks computer system by
telephone, check account balances, find out interest rates, and transfer funds between
various accounts at the same bank. For instance, from savings to a current account,
customers could also order bills to be paid, set up standing order, apply for loan and
perform a variety of financial transactions without having their home or place of
business.
Electronic Fund Transfer
It is a method by which money is transferred from one account to another without
the need to handle money or cheque. In order for Electronic Fund transfer to operate, a
network must be established and a controlling centre called a “Switch” must be set-up,
Electronic fund transfer saves clerical work, since it reduces paper work and a bank could
have access to fund because float is eliminated. Also, Electronic fund transfer at point
of-sale (EFT POS) involves goods or services paid for at the point of sale, with
transactions either authorized (remotely or locally) automatically by the card being
swiped through the magnetic card readers or manually by the customer in putting a pin
into a hand-held pad, check and transfer.
xxxix
Cash Transaction
Automated teller machines accept and respond to entries made by customers.
Human tellers are eliminated from communication between a customer and a bank
computer system. It allows a customer to withdraw cash from his/her bank account by
entering a personal identification number (PIN) and having the account debited
immediately to his/her account. Other facilities provided by ATMs are balance available
on the screen, paper slip, statement ordering facility, travelers cheque withdrawal
payment facilities to third parties(by providing details in advance to the bank) loan
arranging, purchase of investment products among others.
Smart Card/Value Card
This card can hold and release stored amount of money and they can assess or
manipulate information on cash. Not only can this technology improve customer services
it could generate new revenue for banks. It could be used to purchase durable and non
durable goods (Oguntuase 2006).
Mobile Banking
This is the use of Global system for mobile commercial (GSM) banking services.
This will enable customers to make card loss, interactive micro-payments via mobile
phone. This could help to alert customers via mobile phone, text message every time,
there is transaction on their debit, or credit card and customers can receive account
balances via their phone.
Cheques and Clearing
Information technology helps in processing cheques and other negotiable
instruments by automating their processing. Irechukwu (2000) opined that this is made
possible as a result of the integration of the Magnetic Ink-Character Recognition (MICR)
technology into banking. The MICR technology involves the use of pre-encoders to code
instruments with serial numbers, the banks and customer’s unique details and post on
code to enter the amount on the code line of each cheque received by the collecting bank
xl
from its customers, before presenting the cheque at the clearinghouse. This facility helps
to speed up inter bank transfer transactions. A MICR machine senses data recorded on
MICR cheque and transact them in to the computer for processing.
Electronic Banking and Customer Patronage
The introduction of e-banking services by the commercial banks in Nigeria has
completely changed the face and character of commercial banks for better. Commercial
banks are now more customers centred and creative. One of the areas of manifest
creativity is in their product development. Commercial banks have developed various
products/services to attract customers. Such products or services are developed to meet
their needs and wants and to satisfy their requirement and preference.
Before the introduction of e-banking services in Nigerian banking system, banking
operations are undertaken manually. Some of their major defects of the manual banking
operations which e-banking has eliminated or reduced to bearest minimum as listed by
Oguntubo (1999) include:
(a) Long customers waiting time occasioned by lengthy verification procedures.
(b) Human errors, which lead to inaccurate account, maintained.
(c) Manual calculation of interest and charges not only waste time but then revael the
fallibility of the sound bankers.
(d) Overall figure for month and quarterly returns are not quickly obtained.
(e) There is the high cost of salaries and allowances of the many employees
maintained.
(f) Long queue when salaries and other allowances are to be paid in the banks.
To many, records are kept which do not make the banking environment attractive
enough for customers. Many people according to Fadadusi (2003) prefer keeping their
money at home rather than taking the money to bank for safekeeping. This is because,
banking activities are seem by the customers as time consuming, coupled with the fact
that some customers lost their deposits in the distressed banks. Customers have now
xli
become wiser in choosing where it is safe to put their money and where they would be
served promptly, preferably in a pleasant, courteous and friendly environment (Fadahusi
2003).
Customers are entrusted in bank facilities, which will enable them cash, their
money as quickly as possible and have ready access to some form of credits (Ainin
2005). Customers also desire fast and safer means of transferring funds. These are some
factors that will attract the prospective and existing customers to maintain an account
with the bank of their choice customers will also evaluate e-banking products and
services, based upon trust, confidence, user privacy transaction legitimacy, security
system dependability and merchant acceptance and conveyance.
Otangoran (2003) observed that since the introduction of computerized banking
(e-banking) in Nigeria, there has been increased demand of customers. Customers begin
to have confidence in the operations of commercial banks and customers continue to
demand for quality service. This made it imperative for commercial banks to improve
their service hence introducing variant products to their operations in order to get easier
and quicker services and thus compete globally with other banks in the world.
In a nutshell, there has been an increase in customer’s patronage of commercial
banks in Nigeria. This brought about customers traffic/patronage as a result of improved
and quality services provided by the commercial bank through the e-banking services.
Whorem (2000) confirmed that there has been an increased demand for customers deposit
in recent years. This may be due to customers’ awareness, and confidence in commercial
banks coupled with improved services.
Nowadays, most commercial banks compete mainly through the use of e-banking
system in the amount of time it takes to service their customers, services in commercial
bank, now take about 2 – 5 minutes, to complete as opposed to hours of queuing in
unfriendly and uncomfortable environment (Sanusi 2003). This perhaps encourages and
attracts many customers to open an account and continues to patronize them more than
ever before.
xlii
Electronic Banking and Quality of Customer Services
Technology has become the great enabler for the global banking industry, helping
today’s commercial banks meet the changing needs of their customers, while at the same
time optioning cost savings and improving operating efficiency (Whorem 2000). Modern
day customers demand a comfortable banking environment when quality service can be
delivered. David (1998) observed that (commercial banks) will need to strive at
improving the quality of their services by using modern equipment and machines that can
reduce the drudgery of long queues of customers in the banking hall.
Customers have started looking at the level of service and professionalism of the
banks (commercial banks) before depositing their fund. Proximity to the bank is no
longer the issue. Safety and level of service with regard to quality, speed and efficiency
have become the major imperative (Oguntuase 2006). Commercial banks have equally
realized that the one way they can provide quality service is through the use of e-banking.
Virtually, every commercial bank now depends on the effective use of modern
technologies for product design, rendition of services and response from market in order
to make informed decision with the objective to higher productivity and profitability
(Oguntuase 2006). One of the modern technologies, adopted by commercial bank today
is e-banking service.
Commercial banks started the use of e-banking services to provide efficient, on
line and real time services. This means that customers can now go to any part of the
country, where there is a branch of their bank and make withdrawal or conduct an
increasing range of other banking business. No doubt that with the introduction of e-
banking services by commercial banks, banking operations have changed tremendously
and their service delivery capacities have gone far beyond expectations.
The quality of banking services in Nigerian commercial bank today has improved
greatly with the presence of sophisticated equipment and machines employed by
commercial banks. They are able to render quality service to their numerous customers.
xliii
For example, the use of Automated Teller machines, internet banking, flash me-cash,
smart card, personal computer, telephone banking and a host of others. They are able to
treat customers timely and more satisfactorily. Internet service helps to provide
consolidated snapshot of customer financial relation with many providers (Shin and
Frang 2004). As customers have different accounts with multiple financial service
providers. Such service offers comprehensive financial information at one place. It is as
a result of this convincing that customers are demanding more sophisticated services
E-banking also allows companies and individual to view their bank statements on
personal computer screens in the comfort of their offices and process transactions from
there (Sagoe 2004). Customers find their personal computers to have become
indispensable as a result of the convenience they provide. Through e-banking customers
could not only monitor their accounts and transactions but also be confident that their
accounts reflect all transactions up to the moment no matter where such transaction have
taken place as a result of real time-on line banking facilities. With the telephone/mobile
banking, customers can get round-the-clock service even as the employees go to rest.
Such facilities are, as highlighted by Osadolor (2003) Telephone banking, flash me-cash,
ATMs, personal computer etc. They all ensure that the customers keep on doing business
at his convenience.
Electronic banking also enables shareholders to be credited with their dividend.
This eliminates the occurrence of unclaimed dividends (http.www.Oandoplc. Com 2008.)
The e-banking system has reduced the commercial banks in Nigeria to a one-branch bank
and made customers to have access to their accounts or transact business in any part of
the world from the home or office. With Internet banking services, people no longer visit
people for the purpose of business transactions. The customers could instead carryout
most of their transactions and discuss electronically. (Ainin 2005) This goes along way
to reduce transport expenses, hotel accommodation and rates of accidents.
The e-banking services have enhanced customer’s services by making valuable
business information available quickly, easily and in a meaningful format both to the
xliv
employees serving the customers and to the customers themselves. (Erinle 2004).
Customers’ physical presence at the bank has been reduced, through e-banking system of
operation. This helps to save time. Customers also have easy access to hi/her cash
whenever he or she needs them. In nutshell, Electronic banking has improved the quality
of service of the numerous customers.
Electronic Banking and Customers Satisfaction
The banking sector has rendered an enhanced level of productivity and profitable
with the handling of high volume of transactions that would have been in possible
without the use of e-banking services. According to Erinle (2004), the increasing
volume, complexity, competitiveness customer satisfaction and globalization of financial
service have brought about the use of e-banking services in the banking industries in
Nigeria. These have induced a number of technological developments in the banking
industry which include:
(a) Introduction of computers to cope with the phenomenal, increase in the volume of
transactions, product development, credit management and business process re-
engineering.
(b) The use of automated bank notes processing system by the central bank of Nigeria
(CBN)
(c) The introduction of the magnetic ink character recognition (MICR) which is an
automated system for sorting cheques and other payment instruments.
(d) The use of automated teller machines (ATMs)
(e) The use of smart card/value card
(f) The setting up of inter bank statement system.
(g) On-line real time banking
(h) Electronic fund transfer system and telephone banking
(i) Electronic payment system
(j) The planned clearing system
xlv
(k) The introduction of modern e-banking facilities such as flash me-cash, point of
sale (pos), e-dividend, e-allotment and a host of others.
With the fore-going, it is evident that the key to achieving the banks goal lies in
determining the needs and wants of customers and delivering the desired satisfaction
more efficiently and effectively than other competitors. A satisfied client customer will
not only talk favorably to others about his banks, he will also pay less attention to
competitors as to patronize new products (Fadahusi 2006).
Recognizing the importance of e-banking in providing quality banking services and
satisfying the ever demanding customers, the value of state-of-art-technology in e-
banking products/service in the development of banking system in Nigeria has been
stunning in recent times (Whoherem 2000). Erinle (2004) opined that commercial banks
are doing everything possible to buy customers by rendering quality and satisfying
services in such a way that customers would want to continue to do business with them.
This can only be done by providing more e-banking products or service that will better
the life of the customers, in terms of quick and accurate information to the customers.
The commercial bank and the customers must always have access to what they want and
need.
E-banking allows banks to increase accuracy and efficiency of business
transaction processing. Esangbedo (2002) noted that customers are delighted when they
receive faster services, convenient business hours, a feeling of being wanted and prompt
and fair resolution of problems.
It is evident that e-banking is adding value to customer satisfaction. With the e-
banking products and services employed by commercial banks, one should not doubt that
many banks can satisfy their customers. Esangbedo, (2002) noted that e-banking is
helping to delight customers by making valuable business information available, quickly,
easily and in a meaningful format both to employees servicing the customers and to the
customers themselves. Nowadays, most of the commercial bank business is carried out
over networks connecting people and companies and this has a value to the customers.
xlvi
E-banking is creating new ways to learn about and track down customers, create products
and services tailored to meet customer needs and distribute products more effectively and
efficiently (Fadahusi 2006) E-banking service also helps customers to settle bills without
having to leave his home.
Some of the products of e-banking are designed to bring customers and
organizations together, to improve efficiency and add value to customer satisfaction.
According to Osuala (2004) customer satisfaction is heightened due to better access to
order promotional data. E-banking provides opportunity to reach new customers faster
and easier than ever before. Commercial banks need low-cost customer prospecting
methods and e-banking service is a better tool to catch many potential customers quickly
and also helps to retail them because they are delighted with service provided. Osuala
(2004) opined that Nigerian banks (Commercial banks) now realize that today banking
requires prompt delivery of services, efficiency and the ability of customers to e served in
any part of their branches and in any part of the country without any encumbrances
E-banking system enables e-customer relationship management. This is a
business strategy focused on growing customer profitability by knowing, caring and
delivering value to customers. The e-banking service improves business relationship
with customers and the same time promotes corporate image. Customers have great
regards and admiration for banks that are on line. On-line real time banking services
have now become a birth right of the customer, as the customer demands flexibility in
operating an accounts in any branch of a bank irrespective of which branch the account
was domiciled. Through internet or on line banking, customers would enjoy sitting in the
comfort of their homes and offices and with a personal computer log in to their banks
savers and transact banking activities (Ovia, 2001)
Benefits of Electronic – Banking to Customers
The banking industry in Nigeria has witnessed unprecedented growth in the past
decade, due mainly to the deregulation banking (Banking consolidation) licenses. Banks
xlvii
(commercial banks) have expanded their branch networks at a very rapid rate and there
are now for more employees, larger customers and staff data base, more robust computer
system and a generally higher level of automation and computerization (e-banking
service/products) than in the late 80s (Woherem 2003) These have brought about an
increase in the need to exchange information between different banks and between
branches of the same bank.
Based on the above, commercial banks in Nigeria introduced e-banking service
delivery systems as cited by Woherem (2003) He further said that through the integrated
banking system, using wide Area networks (WAWS), the customers no longer have to
carry cash for long distance, but could withdraw money in any branch of the bank in any
part in the country. The present vogue of having an on line real time banking network
across branches of the same bank has also promised the importance of electronic
telecommunications between banks. The on line real time banking network enables
customers to withdraw, deposit and generally execute banking transactions at any of the
banks, branches thereby effectively making the bank a one branch bank.
Sanusi (2003) opined that, formerly trade in foreign exchange used to be the
exclusive preserve of a very big financial institutions Ajadi, (2003) stated that with the
advent of the on line internet and personal computer hardware/soft ware systems, similar
banks and even individual wish to appropriate skills to participate in trade profitably.
Forex trading is now conducted on the world’s convertible currencies via the Internet
from bank desktop computers, individual’s laptop and cyber cafes. E-banking services
employed by commercial banks have no doubt enhanced operation and efficiency in
terms of creating innovation and knowledge management (Fadahusi 2006). It provides
commercial banks the opportunity to lower the costs per business transaction.
E-banking system enables banks to do things faster, accomplish more and spend
money more effectively (Ainin 2005). It also keeps costs low and margin high.
Commercial banks need low cost. Customer prospecting methods and e-banking is a
better tool to catch many potential customers and also retail them. E-banking service also
xlviii
enables shareholders to receive the dividend directly to their bank account. This
eliminates the occurrence of unclaimed dividend payment and also eliminates the
problem of returned dividend warrants where a shareholder changes address without
notifying the company.
Prospective shareholders could through e-banking services subscribe for shares
through e-allotment. This can be done through Internet or online banking. E-banking
services have reduced customers’ physical presence at the bank. That helps to save time.
E-payment system enables customers to with draw cash, make deposit or transfer fund
between account, and between banks. This can be done in 24 hours and seven days per
week including public holidays. Point of sale transfer could help customers to pay for
goods purchased or service rendered with a debit card, which could be your ATM card.
Electronic banking could also help the customers to transfer funds through electronic
fund transfer which cold substitute the one cheques and other payment transaction.
Oguntuase (2006) enumerated some of the other benefits of e-banking in Nigeria
to include
(a) E-banking service has reduced the time spent and reduced long queue of
customers in the bank hall.
(b) With the adoption of e-banking services, there is improvement in the quality of
products/services rendered by commercial banks, with regard to reports, statement
of account, prompt attention to customers and the overall customer satisfaction.
(c) E-banking has aided and increased competitive ability of banks and patronage of
customers to the banks.
(d) E-banking system made transactions easy to be processed with high speed and
accuracy.
(e) E-banking service enhances efficient and effective performance hence the growth
and development of banking industry in Nigeria.
xlix
Problems Encountered by Commercial Banks in Providing E-banking Services to
the Customers
Dewa (2001) stated that service is a very fundamental cores to real banking and in
fact, the pivot around which banks revolve for survival. Irechukwu (2000) observed that
banking business is one of the services. The service is that of financial intermediation
through the mobilization of savings from the units generating surplus funds for leading to
promote economic growth and development, which in turn, maximizes profit for the
organization.
E-banking services have been seen as identifying and stimulating demand by
making available the banking services in the most efficient and effective manner to
potential customers and yet achieving the profit and other objectives related to the
identification, stimulation and satisfaction of demand for the bank services (Dewa 2001).
Unfortunately, the quality of e-banking services provided by the commercial banks in
Nigeria has continued to be under criticisms despite the fact that e-banking has been
deployed in the banking sector (Adesina 2008). There are several cases of complaint
about the unbearable long time customers experience before bank transactions are
completed.
With all the benefits of e-banking, one is still surprised to hear and witness
complaints from customers for spending long hours in the bank. For simple counter
Woherem (2003) observed that despite the fact that many commercial banks based their
marketing strategy on the possession of supposedly on line (internet) real time systems,
they found that their system links are down for about 50 percent of the time. Many
customers feel cheated by this reality and do complain about the incessant down time.
They are promised an on line real time system, only to find out that the banks systems are
down most of the time. Even though some of the commercial banks have wide Area
networks (WANs) to provide on line real time services to their customers’ nationwide,
commercial bank find that they cannot do so most of the time due to constant link failures
l
from NITEL lines. These often are caused as a result of spike and surges of inconsistent
Electric Power supply.
Employees face a lot of problems in rendering effective e-baking services to their
customers. One of such problems is lack of skilled manpower in information technology.
Woherem (2002) asserted that there is no enough skilled manpower in information
technology in Nigeria. He supported his claim by saying that for the past several years,
he has been interviewing graduates of computer science for jobs in the banking sector,
but found that their knowledge of the different facet of computer science is usually taken
for granted. He further discovered that the existing information technology staff in most
banks and other institutions in the country are not even better off. Most bank employees
handling information technology related services do not have any basic qualification in
computer education. They are not versatile in manipulating the computer to supply very
vital and urgent information required by the customers.
Commercial bank employees also lack internal maintance skills. Some of them
lack the ability to fix their computer by themselves internally. They depend much on
external consultants, which often take time and more fund to provide. The employees
should carry out some minor repair in their computers. Also, there is a problem of non-
availability of spare parts and consumables confront the employees for rendering efficient
services of modern technology characterized by incessant changes. Bank employees
must be willing to adapt to these frequent changes if they are not to be let out by these
changes. Woherem (2000) also identified high cost as fundamental problem. He further
said that funds that can be used to buy new information technology and for modernizing
existing systems are generally in short supply.
The cost of e-banking facilities is not only hardware/ softwares but also other costs
like salaries/benefits of expert information technology personnel, Education and training
of operating employees, maintance and upgrading costs and hosts of others (Woherem
2000). Besides, computer technology keeps on changing at a fast rate.
li
There is also the problem of internal maintance skills and culture by bank
employees. Most of the commercial banks depend on external consultants for the
maintance of the system. This again, goes to compound the problem of lack of fund.
Also, there is generally lack of maintenance culture by Nigeria public. This has led to
incessant break down in most of the equipment required for information exchange, with
its attendance, inefficiencies in the banking sector (Woherem 2000). System and
infrastructure failures can adequately affect the entity’s reputation and result in a
potential loss to customers. Olayemi (2003) said such failures could result to low data,
system failures, which could be caused by server failure or software’s failure either at the
entity or at the service organization used for our sourced functions.
The problem of information security concern is our whelming and it discourages
customers from embracing information technology fully. Data information is transferred
through wires (or space), which could be tapped. Although various data
encryption and description techniques are being developed, cases of hocking into
personal and institutional computers are there (Irechukwu 2000). No doubt, open
electronic delivery channels create new security issues for banks with respect to
confidentiality and integrity of information non-repudiation of transactions,
authentication of users and access control (Fadahusi 2006). It is imperative to mention
that with electronic money, a breach of security control results in fraudulently created
liabilities of the banks.
Ovia (2001) listed some security implications to e-banking services in Nigeria to
include:
(a) Hackers on the net could manipulate customers account balances by breaking into
banks’ database.
(b) Unauthorized access to customers’ account and other confidential information is
also inherent danger when deploying internet banking facilities.
(c) Classified information could be made available to competitors of the banks
deploying internet banking facilities.
lii
(d) Accounting could be inadventerily be opened for others; on the average customers
are not trained for better jobs.
(e) Virus attack on banking application servers could disrupt banking operations or
ground them to a half. Example I love you buy’ virus.
(f) Customers password and user I.D card could be extracted by hackers and
subsequently used for preparation of fraud.
(g) Loss of data between the transaction, print and the internet banking server can
cause information to be wrongly presented.
(h) Involvement of these account holders in on line transaction processing via internet
banking is prone to error.
Adesina (2008) equally observed the problems of automated teller machines
(ATMs) posed to the customers. This ranges from non-availability of cash in the
machines, debiting more than dispersed and in some cases debiting for payments not
successfully made. He went further that the machine despised for less than the amount
requested and yet debit against the requested sum. Some people have traced these
problems to the familiar Nigerian factors, a factor that tends to prevent any and every
good thing that other country (ies) even takes for granted. The identification of these
problems is paramount so that government, commercial banks and the internet providers
can begin to think about how to solve them, hence promote economic growth of the
nation.
Review of Related Empirical Studies
Researches studies have identified confirmed variables, which could be highly
critical for the successful operation of commercial banks in the provision of e-banking
services to the customers. Oguntuase (2006) carried out a study on the effect of
Information Technology in productivity and profitability of Bank in Nigeria (A case
study of Afri. Bank Plc Nigeria). The main purpose of the study was to determine the
extent to which Information Technology acquisition and application by the Nigerian
liii
banking sector has contributed to the sector’s productivity and profitability through
improved service delivery to the customers, considering the increase volume, complexity,
and competitiveness of banking services. The population of the study comprised of the
banks in the country and he eventually used a sample size of five commercial banks, all
situated in south west- Lagos, Osun, Ogun, Oyo and Ondo states. He used 50 customers
and 30 staff as his respondents.
The findings revealed that I.I had significantly improved the banking productivity
and profitability. The study further reveled that I.T had brought about improvement in
quality of products/services, reports, statement of account, prompt attentions to customers
and the overall customer satisfaction. The study failed to mention the problems
encountered by the bank in I T service delivery.
The present study is related to Oguntuase, study in that it analyzes the influence of
e-banking in quality service delivery and customer satisfaction. However, the present
study differs from Oguntuase’s study, because it covers Oguntuase’s study as purported
to have covered the whole country, even though; his sample size were made up of the
whole country. The sample size covers only one commercial bank (Afri Ban plc Nigeria)
in four South West. The study did not reveal some modern e-banking service/products
offered by commercial banks, which the current study aimed at one, would have expected
that he would have covered some major cities in the country, since his study covered the
whole country. Also, the study would have mentioned the problems in Information
Technology service delivery, which the present study is, expected to reveal.
Also, reviewed was the work of Fadahunsi (2003) on impact of computerization
on customers’ service delivery and performance of Omega bank plc. The population of
the study was the entire omega bank’s Employees – Managers and computer operators of
the bank in Nigeria. The researcher drew a sample size of 100 respondents comprising
the manager and computer operators but failed to include the customers in his
respondents. All his respondents were from Omega bank plc Lagos National
headquarters.
liv
The study was aimed at finding out if computerization of Omega bank plc has had
any impact on its performance most especially in the area of customer service delivery.
Problems associated with computerization of banks were also highlighted. The result
from the study showed that through computerization of banks, service delivery is
enhanced. It was also discovered that computerization of banks had helped in job
performance and increased earning and profits of Omega bank plc.
This study is related to Fadahunsi’s study because it analyses the extent of e-
banking services provided by commercial banks in Yobe state and its influence in quality
service delivery to customers. The study is also related because the problems
encountered by commercial banks in providing e-banking service were also discussed.
The study, however, differs from Fadahunsi’s work because it did not consider
other e-banking services/products provided by commercial banks. This study also differs
from Fadahunsi’s work because it did not consider the problems encountered by
commercial bank in rendering different e-banking service/products to customers.
Babatunde (1994) conducted a study on computer application to on-line/retain
banking in the banking industry.
Some of the specific purposes of the study were:
1. Identify the uses which computers could be put to in order to increase the
efficiency of banks and at the same time achieve competitive edge in the banking
sector
2. Determine whether customer-waiting time in banking hall has reduced with the
introduction and application of computer. His samples consist of 5 bank
managers, 16 computer employees and 90 customers from their banks in Abuja.
The results from the study showed that computer could be used in various banking
services to increase efficiency and gain competitive advantage in Nigerian banking,
especially, uses the area of daily routine, job of cash deposit and withdrawal and also for
safe and fast means of fund transfers. It was also discovered that the introduction of
lv
products, like smartcard/value card and on-line services could be used to gain
competitive advantage and to reposition the banks.
This study is related to Babatunde’s study in the sense that it also analyses one of
the services and products of e-banking provided by commercial banks to its customers.
This study is also related, because it discussed the use of e-banking services and products
to provide quality service to the customers and as a competitive tool by commercial
banks. This study is also related to Babatunde’s work because the problems encountered
in providing e-banking service were also discussed. However, this study is different from
Babatunde work because it carried a wide scope more than the banks. This study differs
from Babantunde’s work because it discussed the quality of services customers could
enjoy in the provision of e-banking services and products. The modern e-banking
services and product provided by commercial banks also made this study differ from
Babatunde’s work
Summary of Related Literature
A review of relevant literature was presented in this chapter: The review indicates
that e-banking service is a system that enables financial institutions, customers,
individuals or business access accounts, transact business, or obtain information in
finance products and services through public or private networks including the internet.
From the literature reviewed, however, it was discovered that e-banking products and
services are the heartbeat of commercial banks, if the banks are to render quality and
satisfactory services to the numerous customers. The expert also revealed that the
various products of e-banking such as electronic payment system, internet banking,
electronic fund transfer (EFT) mobile/telephone banking, personal computer banking,
automated teller machine (ATMs) smartcard, value card, point-of-sale (POS) flash-me
cash and host of others provided by commercial banks were also discussed.
The experts also revealed that Nigerian commercial banks, since late 90s have
generally performed well in their investments profiles as a result of the procession of e-
lvi
banking services to the customer services, compared to other industrial sector in the
country. The literature reviewed the researcher revealed that e-banking services provided
by commercial banks in Nigeria have helped in quality service delivery and customer
satisfaction. However, the experts noted that a lot still needs to be done in order catch up
with the rest of the world, if Nigerian banks would be relevant in the globalized banking
in the 21st century.
The experts equally revealed that E-banking services in banking sectors have
proven to be the major success stories of this century, such as (ATMs) point-of sale, flash
me cash, LAN and WAN, credit cards among others. They are being used as both
competitive weapon and as a means of ensuring a more efficient and effective operation
and delivery of their product or services to the customers. The experts also revealed the
quality of customer services with the provision of e-banking services to customers. Also,
the benefits of e-banking in the provision of customer services were equally revealed.
The experts concluded that e-banking products/services have enhanced customer
satisfaction.
It was revealed by the experts that with the introduction of e-banking services by
commercial banks, there have been increases in customer patronage in the banking sector.
Customers now begin to have confidence in transacting business with commercial banks.
The problems confronting employees in offering effective customer services were also
revealed by the Expert-some of which include, lack of competent and skilled manpower
coupled with lack of basic computer qualification by bank workers, problem of learning a
new sequence of operation of e-banking hardware and soft ware by employees’ lack of
maintenance skills and so on.
Experts also revealed problems militating against the provision of e-banking
services by commercial banks. These are; link failure from NITEL lines as a result of
power failure, high cost of buying and installing e-banking products, lack of maintenance
culture and a host of others.
lvii
From the empirical studies reviewed, not much was said about e-banking products
especially, the newly introduced e-banking products provided by commercial banks to
customers. There is a need to determine the influence of e-banking on the customer in
Yobe State as perceived by customers. These e-banking services will enhance economic
growth hence social, political and economic development in Nigeria.
CHAPTER THREE
METHODOLOGY
This chapter describes the procedures used for the study. These are, the design of
the study, the area of the study, the population of the study, samples and sampling
technique of the study, description of instrument used, validation and reliability of the
instrument, methods of data collection and method of data analysis.
Design for the Study
The study employed the descriptive survey research design. A survey is
considered appropriate because the study would determine the influence of e-banking on
the provision of customer services in Yobe state as perceived by bank customers.
According to Osuala (2005) a survey research design is about people, their attitudes,
opinions, motivation and other characteristics. Also, through survey, the researcher
identifies present conditions; prevailing needs as well also provide information on which
sound decisions are based.
Area of the Study
This study was conducted in Yobe state of Nigeria where banks operate e-banking
services. Yobe state is in the North East geo-political zone and it comprises of 17 local
government areas.
lviii
The choice of Yobe state is necessary because, in spite of the influence of e-
banking services on the provision of customer services in the state, the customers still
spend too much time queuing up for their turn to pay or withdraw money from the banks.
Therefore, there is a need for commercial banks to improve on their e-banking services to
customers hence strengthen the economic growth of Yobe state. This will equally help in
poverty reduction hence enhancing social, economic and political development of Yobe
state.
lix
Population for the Study
The population of the study was made of 19084 respondents of banks employees
and bank customers. The population was drawn from 13 banks providing e-banking
services to their customers in Yobe State. The banks are First Bank Nigeria Plc, Union
bank Nigeria Plc, United Bank for Africa Plc (UBA), Unity bank Nig Plc, Fin bank Nig.
Plc, Intercontinental bank Nig Plc, Zenith bank Nig Plc, Oceanic bank Nig. Plc, Diamond
bank Nig Plc, First City Monument bank Plc, Guarantee Trust bank Nig Plc, PHB Nig
Plc and Afri bank Nig Plc.
The commercial banks have a total population of 356 employees made up of 43
managers, 81 supervisors and 232 other staff members. These staff are involved in daily
banking activities and therefore would be in a position to give the required information
on the e-banking services provided by commercial banks to customers.
There are 18,728 customers of commercial banks in Yobe state. These customers
are either public servants or businessmen and women. Business people may be depositing
and withdrawing every time. They can equally transact other business through the bank
unlike the salary workers. The rationale for choosing these categories of customers is
that, they are involved in daily banking business and therefore would be in a position to
give the needed information on the e-banking services provided by the commercial banks
in Yobe state. (Min of commerce and industry, statistics division 2008).
lx
Table One: Population distribution of commercial banks employees and customers S/N NAME OF BANK LOCATION NO OF
EMPLOYEES
NO OF
CUSTOMERS
1 First bank plc Damaturu 50 3150
2 United bank for Africa UBA Damaturu 45 2910
3 Union bank plc Damaturu 30 2360
4 Zenith bank nig plc Damaturu 28 981
5 Unity bank plc Damaturu 20 2178
6 Intercontinental bank plc Damaturu 30 1150
7 Diamond bank plc Damaturu 20 606
8 Bank PHB plc Damaturu 28 2430
9 Fin bank plc Potiskum 25 952
10 First City monument bank plc
(FCMB)
Damaturu 18 464
11 Guarantee Trust Bank plc Damaturu 25 550
12 Oceanic bank plc Damaturu 27 738
13 Afri bank plc Damaturu 10 259
Total 356 18,728
Min. of Comm. and Ind. Statistics Division Damaturu 2008.
Sample
The sample of the study was made 2,554 comprising 213 bank employees and
2,341 bank customers.
lxi
Sampling Technique
A simple random sampling technique was used to select the respondents from the
356 bank employees and 18,728 bank customers. The simple random sampling technique
was adopted to systematically select 60 percent of the respondents from the bank
employees and 0.125 percent of the banks customers. The selection is in line with Nwana
(1981) postulation that if the population of a study is in a few hundreds a 40% or more
sample will do; if many hundreds a 20% sample will do; if a few thousands, a 10%
sample will do; and if several thousands a 5% or less will do. The sample of the study
comprises 25 employees (representing 60% of managers’ populating) 49 employees
(representing 60% of supervisors’ population) and 139 employees (representing 60% of
other staff members of the banks). 2341 bank customers were used as sample
(representing 0.125percent.
Table Two: Sample of Respondents’ Distribution
Respondents Population Sample %Relative to
population
Employee (managers) 43 25 60%
Employees (supervisors) 81 49 60%
Employees (others) 232 139 60%
Customers 18,728 2,341 0.125%
19,084 2, 554
Source: Ministry of commerce and industry, statistics division 2008 Damaturu.
Description of the Instrument Used
A structured questionnaire, on a five-point Likert rating scale was used to collect
data for the study. The questionnaire items are generated based on the information
gathered from the review of related literature. The instrument contains 75 items and is
divided into seven sections (A,B,C,D,E,F, and G)
lxii
Section A contains items designed to obtain personal information of the
respondents. This section has items with options and blank spaces to enable the
respondents’ tick (√) or complete as appropriate.
Section B deals with research question one, which is how utilization of e-banking
influence customer services in Yobe state. This section covers items 1 – 16. It is
structured on five point likert scales, very great extent, great extent, undecided, little
extent and least extent.
Section C deals with research question two. The section covers items 17 – 26 (that
is 10 items). These items were used to determine the extent e-banking influence the
quality of customer services.
Section D answers threes, which is to ascertain the extent the utilization of e-
banking influence customers’ patronage to the bank. It contains 10 items (items 27-36).
Section E deals with research question four it covers items 37-48 and they are to
be used to ascertain the extent e-banking influence customers’ satisfaction.
Section F answers research question five which was used to ascertain the extent
customers have benefited from the e-banking services provided by banks in Yobe state.
The section covers items 49-63.This section was structured in a five point likert scale as
follows:
Highly beneficial HB - 5points
Beneficial B - 4points
Undecided U - 3points
Less Beneficial LB - 2points
Not Beneficial NB - 1point
Section G deals with research question six which is to be used to ascertain the
problems faced by banks in the provision of customer services through e-banking in
Yobe state. The section covers items 64-75.
The items in section G was structured on a five point like scale using response
categories of strongly agree, Agree, Undecided, Disagree, and Strongly Disagree.
lxiii
Validation of Instrument
The questionnaire was subjected to face validation by three lecturers in
Department of Vocational Teacher Education, University of Nigeria, Nsukka. The
validators critique, suggestions and recommendations on the items in the questionnaire
were used to make the final amendment of the instrument before administering it to the
respondents.
Reliability of Instrument
In order to establish the reliability of the instrument, a pilot test of 30 customers
and 10 bank employees comprising four managers, three supervisors and three other bank
staff was conducted in Maiduguri, Borno state, a neighboring State, which is outside the
study area. Cronbach Alpha Reliability test was used to determine the internal
consistency of the instrument. This was based on the fact that Cronbach Alpha
Reliability can establish the internal consistency on multiple responses. The reliability
test uses general formula, which deals with multiple score items (Ahmad, 2007). This
yields a reliability index of 0.99 which showed that the instrument was reliable.
Questionnaire Administration and Retrieval
The instrument was administered by the researcher with the help of three trained
research assistants to 2554 respondents through personal contact. The respondents
comprising 2341 bank customers and 213 bank employees. Only dully completed
questionnaire returned was used for analyzing and answering the research questions and
the hypotheses of the study.
lxiv
Method of Data Analysis
The data collection from the use of the questionnaire was analyzed using mean
and standard deviation to answer each of the six research questions. However, each of
the three hypotheses was tested using z-test statistic at 0.05 level of significance. The
analysis was computer based with the use of the statistical package for Social Sciences
(SPSS 12.0 version).
The mean for the response scale was 3.00. The lower limit of the mean is 2.50
while the upper limit is 3.50 with an interval scale of 0.05 from the mean. Item with
mean value of 3.50 and above was accepted while item with the mean value of less than
3.50 was rejected. The three Null hypotheses were tested using z-test and the p-values
were compared with 0.05, the hypothesis of no significant difference was held at
probability of 0.05 level of significance; but where the p-value is less than 0.05, the
hypothesis of no significant difference was rejected at 0.05 level of significance and at
2097 degree of freedom.
lxv
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
This chapter dealt with the summary of analyzed data and results were presented
in line with research questions and hypotheses that were formulated. The results of data
analysis for the research questions were first presented followed by results of hypotheses
for the study.
Research Question 1
To what extent do commercial banks utilize e-banking to influence customer
service in Yobe State?
The items dealing with the extent commercial banks utilize e-banking to influence
customer service in Yobe state, covered items 1 to 16 and the data are presented in the
table below.
Table 3: Extent to which Commercial Banks Utilize E-banking to Influence
Customer services in Yobe State
S/No Item Statements RESPONSES
X
SD
Remarks
VGE GE UD LE LSE
1 Commercial banks utilize e-
banking to influence customer
Service
702 648
228 256
266 3.60 1.38 Great
extent
2 Commercial banks utilize
ATM to influence to
Customer service.
690
729 196 294 191
3.69 1.29 Great
extent
3 Electronic funds transfer is
utilized by commercial banks
to influence customer services.
710 641 169 286 294 3.56 1.42 Great
extent
4 Personal computer is utilized
to influence customer service
628
556 191 404 321 3.36 1.47 Little
extent
5 With e-banking services
transactions to parts of the
742 588
293 196
281 3.74 1.26 Great
extent
lxvi
country is made easy.
6 Provision of bank statement
and checking of bank account
is made easy.
736
622 184 281
277
3.54 1.43 Great
extent
7 Commercial banks utilize
telephone-banking to influence
customer service.
760 577 209 281 273
3.61 1.42 Great
extent
8 With the e-banking services,
customers’ physical presences
in the bank are reduced.
738 615 222 249
276 3.61 1.40 Great
extent
9 Commercial banks utilize
ATMs to influence customer
service after the bank normal
hours.
812 732 113 177 276 3.77 1.38 Great
extent
10 E-banking services enable
customers to open new bank
account promptly and without
wasting much time.
728 599 221 247 305
3.57 1.43 Great
extent
11 Commercial banks utilize on-
line/internet banking services
to influence customer service.
715
661 234 298
194 3.67 1.32 Great
extent
12 E-banking services enable
customers to purchase goods
and services without physical
cash.
692 663 308 106 331 3.80 1.29 Great
extent
13 Through the utilization of e-
banking services, customers
are provided with smart cards
for their business transactions.
870 511 177 237 305 3.63 1.44 Great
extent
14 E-banking services enable
customers have access to the
account 24 hours
755 715 211 225 196
3.76 1.30 Great
extent
15 Commercial banks utilizes e 670 715 184 319 264 3.55 1.39 Great
lxvii
payment system to influence
customer service
extent
16 Commercial banks utilize
flash-me- cash to influence
customer service
648 696 176 299 281 3.53 1.40 Great
extent
Table 3 above showed that for item 1, 702 respondents agreed to very great extent,
648 to great extent, 228 to undecided, 258 to little extent and 266 to least extent. The
mean of 3.60 was an indication that majority of the respondents agreed that commercial
banks utilize e banking to influence customer service. In item 2, 690 respondents agreed
to very large extent, 729 to large extent, 196 to undecided, 294 to little extent while
191to least extent. The mean of 3.69 was a clear indication that majority of the
respondents agreed that commercial banks utilize Automated Teller Machines to
influence customer service. In item 3, 710 respondents agreed to very great extent, 641
to great extent, 169 to undecided, 286 to little extent and 294 to least extent. The mean of
3.56 showed that majority of the respondents agreed that Electronic Funds Transfer is
being utilized by the commercial banks to influence customer service. In item 4, 628 of
the respondents agreed to very great extent, 556 to great extent, 191 to undecided, 404 to
little extent and 321 to least extent. The mean of 3.36 indicated that majority of the
respondents disagreed that commercial banks utilize personal computer to influence
customer service. In item 5, 742 respondents agreed to very great extent, 588 to great
extent, 293 to undecided, 196 to little extent and 281 to least extent. The high mean of 3-
74 was an indication that majority of the respondents agreed that with e banking services
transaction to other parts of the country is made easy. With the utilization of e banking
service, production of bank statement and checking of bank account is made easy. Item 7
shows that 760 respondents agreed to very great extent, 577 to great extent,209 to
undecided, 281 to little extent and 273 to least extent. The mean of 3.61 indicated that
majority of the respondents agreed that commercial banks utilize Telephone banking to
lxviii
influence customer service. In item 8 shows that 738 respondents agreed to very great
extent, 615 to great extent, 222 to undecided, 249 to little extent and 276 to least extent.
The mean of 3.61 showed that majority of the respondents agreed that, with e banking
service, Customers’ physical presences in the bank are reduced. Item 9 indicates that 812
respondents agreed to very great extent, 732 to great extent, 113 to undecided, 177 to
little extent and 276 to least extent. The high mean of3.77 showed that majority of the
respondents agreed that commercial banks utilize ATMs to provide customer service
after the bank normal hours. Item 10 shows that 728 respondents agreed to very great
extent, 599 to great extent, 221 to undecided, 247 to little extent and 305 to least extent.
The mean of 3.57 indicated that majority of the respondents agreed that e banking enable
customers to open new bank account promptly and without wasting of time. Item 11
shows that 715 respondents agreed to very great extent, 661 to great extent, 234 to
undecided, 298 to little extent and 194 to least extent. The mean of 3.56 revealed that
majority of the respondents agreed that commercial banks utilize Online/Internet banking
service to influence customer service in Yobe State. Item 12 shows that 692 respondents
agreed to very great extent, 663 to great extent, 308 to undecided, 106 to little extent and
331 to least extent. The mean of 3.80 showed that majority of the respondents agreed
that enable customers to purchase goods and services without physical cash. Item 13
shows that 870 respondents agreed to very great extent, 511 to great extent, 177 to
undecided, 237 to little extent and 305 to least extent. The mean of 3.63 showed that
majority of the respondents agreed that commercial banks utilize smart cards to influence
customer service. In item 14,shows that 755 respondents agreed to very great extent, 715
to great extent, 211 to undecided, 225 to little extent and 276 to least extent. The mean of
3.76 showed that majority of the respondents agreed that e banking services enable
customers have access to their account 24 hours.
Item 15 shows that 670 respondents agreed to very great extent, 663 to great
extent, 184 to undecided, 319 to little extent and 264 to least extent. The mean of 3.55
showed that majority of the respondents agreed that commercial banks utilize e payment
lxix
to influence customer service. Item 16 shows that 648 respondents agreed to very great
extent, 696 to great extent, 176 to undecided, 299 to little extent and 281 to least extent.
The mean of 3.53 showed that majority of the respondents agreed that commercial banks
utilize Flash-Me-Cash to influence customer service.
Research Question 2: To what extent does the adoption of e-banking influence the
quality of customer service?
Table 4: Mean Responses on the extent the Adoption of E-banking Influence the
Quality of Customer Services.
S/No Items Statements RESPONSES X SD Remarks
VGE GE UD LE LSE 17 E-banking services made cash
withdraw fast, simple and
interesting
671 692 204 268 265 3.51 1.41 Great
extent
18 E-banking services/products
help banks to improve on
their customer service.
746 642
148 290 274
3.66 1.34 Great
extent
19 E-banking services enable
banks to give prompt
attention to customers
734 663 210
214 279
3.64 1.40 Great
extent
20 Through e-banking services,
large volume of business
transactions is handled
effectively, and efficiently.
536 630
179 490
265
3.32 1.39 Little
extent
21 E-banking services make
bank transactions easy
747 657
223 199 274 3.67 1.38 Great
extent
22 Through e-banking, there is a
reduction in time spent on
queue in the bank.
785 585 171 280
279 3.60 1.41 Great
extent
23 There is improvement on
quick financial report and
bank statement to customers
through e-banking
770 749 184 210
187
3.81 1.27 Great
extent
24 E-banking services make a 671 698 173 289 269 3.62 1.42 Great
lxx
positive impact on the growth
and development of bank.
extent
25 Easy access to service ensures
accuracy of information is
made possible through e-
banking
670 651 212 293
274 3.55 1.39 Great
extent
26 Prompt attention to customers
complaints are made possible
through e-banking
648 635 192 339 286
3.63 1.31 Great
extent
27 Through e-banking service
inter-account funds transfer is
made possible.
708 587 227 310
264 3.55 1.40 Great
extent
28 Online banking enables
customers to order for cheque
books.
328 554 432 470 303 3.06 1.30 Little
extent
29 e-banking services enable
customers to purchase
recharge card to their mobile
phones electronically
719 698
197 179 307
3.64 1.40 Great
extent
30 Standing order transaction is
made possible through online
banking.
444 598
442 333 282
3.28 1.32 Little
extent
31 Online banking enables
customers to transfer money
to their foreign account.
490
560 435 328 287
3.30 1.35 Little
extent
As can be seen from the data presented in Table 4, above, item 17 shows that 671
respondents agreed to very great extent,692 to great extent, 204 to undecided, 268 to
little extent and 265 to least extent. The high mean of 3.51 showed that majority of the
respondents agreed that e banking services make cash withdraw fast, simple and
interesting. In item 18, 746 respondents agreed to very great extent, 642 to great extent,
lxxi
148 to undecided, 290 to little extent and 274 to least extent. The responses yielded a
mean score of 3.66. It indicates that majority of the respondents agreed that e banking
services/products help banks to improve on their customer services.
Item 19 shows that 734 respondents agreed to very great extent,663 to great
extent, 210 to undecided, 214 to little extent and 279 to least extent. The high mean
of3.64 was an indication that majority of the respondents agreed that e banking services
enable banks to give prompt attention to customers. In item 20, 536 respondents agreed to
very great extent, 630 to great extent, 179 to undecided, 490 to little extent and 265 to
least extent. The low mean score of 3.32 indicated that majority of the respondents
disagreed that through e banking; large volume business transactions are handled
effectively and efficiently. In item 22, 785 respondents agreed to very great extent, 585
to great extent, 171 to undecided, 280 to little extent and 279 to least extent. The high
mean score of 3.60 indicated that majority of the respondents agreed that through e
banking, there is a reduction in time spent on queue in the bank.
In item 23, 707 respondents agreed to very great extent, 749 to great extent, 184 to
undecided, 210 to little extent and 187 to least extent. The high mean score of 3.81
revealed that majority of the respondents agreed that there is improvement of quick
financial report and bank statement to customers through e banking. In item 24, 671
respondents agreed to very great extent, 698 to great extent, 173 to undecided, 289 to
little extent and 269 to least extent. The high mean of3.62 showed that majority of the
respondents agreed to that e banking services make a positive impact on the growth and
development of banks. Item 25 indicates that 670 respondents agreed to very great
extent, 651 to great extent, 212 to undecided, 293 to little extent and 274 to least extent.
The high mean of3.55 showed that majority of the respondents agreed that easy access to
service ensure accuracy of information is made possible through e banking. Item 26
revealed that 648 respondents agreed to very great extent, 635 to great extent, 192 to
undecided, 339 to little extent and 286 to least extent. The high mean score of 3.63
lxxii
revealed that majority of the respondents agreed that prompt attentions to customers’
complaint are made possible through e banking.
In item 27, 708respondents agreed to very great extent, 587 to great extent, 227 to
undecided, 310 to little extent and 264 to least extent. The high mean score of 3.55
revealed that majority of the respondents agreed that through e banking inter account
funds transfer is made possible. Item 28 shows that 328 respondents agreed to very great
extent, 554 to great extent, 432 to undecided, 470 to little extent and 303 to least extent.
The low mean score of 3.06 revealed that majority of the respondents disagreed that
customers could order for cheque book through online banking. In item 2 9, 719
respondents agreed to very great extent, 698 to great extent, 197 to undecided, 179 to
little extent and 307 to least extent. The high mean score of 3.81 revealed that majority
of the respondents agreed that e banking services enable customers to purchase recharge
card electronically. In item 30,444 respondents agreed to very great extent, 598 to great
extent, 442 to undecided, 333 to little extent and 282 to least extent. The low mean score
of 3.28 revealed that majority of the respondents disagreed that standing order
transactions is made possible through Online banking. In item 31, 490 respondents
agreed to very great extent, 560 to great extent, 435 to undecided, 328 to little extent and
287 to least extent. The low mean score of 3.30 indicated that majority of the
respondents disagreed that Online banking enables customers to transfer money into their
foreign account.
Research Question 3: To what extent does the utilization of e-banking influence
customer patronage through customer services provided by banks in Yobe state?
lxxiii
Table 5: Mean Responses on the extent the Utilization of E-banking Influence
Customer Patronage through Customer Services Provided by Banks in Yobe State.
S/No Item Statements RESPONSES X SD Remarks
VGE GE UD LE LSE
32 E-banking services have
brought about great
increase in customer
patronage
714 717 220 180 267 3.68 1.36 Great extent
33 E-banking services
enable customers to
have more confidence in
banking operations.
691 647 217 268 277
3.57 1.39 Great extent
34 Effective e-banking
system has made
customers to transact
more business than ever
before
729 650 331
206 274
3.64 1.38 Great extent
35 There has been
improvement in
customer patronage to
banks with utilization of
e-banking services
700 707 200
228 265 3.67 1.37 Great extent
36 Bank customers have
increased in recent years
with the utilization of e-
banking services.
725 669 152
330 224 3.63 1.37 Great extent
37 Customers are more
enlightened on e-
banking service.
606 615 210
449
238 3.45 1.37 Great extent
38 Customers are
encouraged to transact
business with
685 651 329 158 277 4.00 0.989 Great extent
lxxiv
commercial banks as a
result of the utilization of
e banking
services/products.
39 With e-banking services,
customers often
encourage their
colleagues to patronize
the bank
631 714 205 283 267 3.55 1.37 Great extent
40 Customers are more
interested in banking
transaction with e-
banking services than
ever before.
669 692
173 301 265 3.57 1.39 Great extent
41 E-banking services have
influence customer
patronage/traffic.
721 648
238 218
265
3.63 1.38 Great extent
For item 32, 714 respondents agreed to very great extent, 717 to great extent, 220
to undecided, 180 to little extent and 267 to least extent. The responses yielded a mean
score of 3.68 and imply that most respondents agreed that e banking services have
brought about great increase in customer patronage. With regard to item 33, of the 2099
respondents who responded to this item, 691 very great extent, 647 great extent, 217
undecided, 268 little extent and 277 least extent. This shows a high mean score of 3.57
and implies that majority of the respondents agreed that with e banking services
customers have more confident in banking operations. The responses to item 34 showed
that 729 very great extent, 650 great extent, 331 undecided, 206 little extent and 274 least
extent. The responses yielded a high mean score of 3.64; it indicates that effective
banking system has made customers to transact more business than ever before. For item
35, 700 banks customers and banks employees agreed to very great extent, 707to great
lxxv
extent, 200 to undecided, 228 to little extent and 265 to least extent. The mean of 3.67
indicated that majority of the respondents agreed that there has been in customer
patronage to banks with utilization of e banking services.
In item 37, 606 respondents agreed to very great extent, 615 to great extent, 210 to
undecided, 449 to little extent and 238 to least extent. The low mean score of 3.45
indicated that majority of the respondents disagreed that customers are more enlightened
on e banking service. In item 38, 685 respondents agreed to very great extent, 651 to
great extent, 329 to undecided, 158 to little extent and 277 to least extent. The mean of
4.00 indicated that majority of the respondents agreed that customers are encouraged due
to e banking service new products to transact business with commercial banks. The
responses to item 39 showed that 631 very great extent, 714 great extent, 205 undecided,
283 little extent and 267 least extent. The responses yielded a high mean score of 3.55; it
indicates that with utilization of e banking services/products, customers often encourage
their colleagues to patronize the bank. The responses to item 41 showed that 669 very
great extent, 692 great extent, 173 undecided, 301 little extent and 265 least extent. The
responses yielded a high mean score of 3.63; it indicates that e banking services have
influence customer patronage.
Research Question 4: To what extent does the utilization of e banking influence
customer satisfaction in Yobe State.
Table 6: Mean Responses on the extent the Utilization of E-banking Influence
Customer Satisfaction in Yobe State.
S/No Item Statements RESPONSES X SD
Remarks
VGE GE UD LE LSE
42 Customers appreciate the use of
Automated Teller Machines
(ATMs) to meet their business
needs.
682 751 248 138 281 3.79 1.28 Great
extent
43 Customers are satisfied the use of
Smart Card for the business
725 659 272 174
270 3.66 1.36 Great
extent
lxxvi
transactions,
44 Customers are satisfied with the
use of Electronic Fund Transfer.
714 762
204 215 205 3.67 1.34 Great
extent
45 Customers are satisfied with the
benefit of e-banking services in
terms of speed, accuracy and
efficiently.
491 638 349 336
286 3.34 1.35 Little
extent
46 Customers are satisfied with the
use of Electronic Payment System
for their business transactions.
662 620 353 192 273
3.53 1.43 Great
extent
47 Customers are satisfied with the
use of Flash-Me Cash to transfer
cash from one bank account to
another.
692 615 330 178 285
3.64 1.300 Little
extent
48 Customers are satisfied with the
quality of e banking products and
services from my bank.
467 635
398 323 277 3.31 1.33
Little
extent
49 Customers’ credit experience
with the bank is satisfactory.
472 570
379 342
337 3.24 1.39 Little
extent
50 Customers are satisfied with
prompt, effective and efficient
services through the utilization
of e-banking services.
484 642 344 339 291 3.38 1.29 Little
extent
In item 45, 491 respondents agreed to very great extent, 638 to great extent, 349 to
undecided, 336 to little extent and 286 to least extent. The low mean of 3.34 indicated
that the majority of the customers disagreed that customers are satisfied with the benefit
of e banking services in terms of speed, accuracy and efficiently. In item 46, 662
respondents agreed to very great extent, 620 to great extent, 353 to undecided, 192 to
little extent and 273 to least extent. The high mean of 3.53 indicated that the majority of
the customers agreed that customers are satisfied with the use of Electronic Payment
system for their business transactions. In item 47, 692 respondents agreed to very great
lxxvii
extent, 615 to great extent, 330 to undecided, 178 to little extent and 285 to least extent.
The high mean of 3.64 indicated that the majority of the respondents were satisfied with
use of flash-Me-cash to transfer cash from one bank account to another. In item 48, 467
respondents agreed to very great extent, 635 to great extent, 398 to undecided, 323 to
little extent and 277 to least extent. The low mean of 3.31 indicated that the majority of
the customers disagreed that customers are satisfied with the quality of e banking
products/services from the banks. Items 49, 472 respondents agreed to very great extent,
570 to great extent, 379 to undecided 342 to little extent and 337 to least extent. The low
mean of 3.34 revealed that the majority of the customers disagreed that customers’ credit
experience with the bank is satisfactory.
In item 50,482 respondents agreed to very great extent, 642 to great extent, 344 to
undecided, 339 to little extent and 291 to least extent. The low mean of 3.38 indicated
that the majority of the customers disagreed that customers are satisfied with prompt,
effective and efficient services through the utilization of e banking services. In item 51,
458 respondents agreed to very great extent, 569 to great extent, 403 to undecided, 394 to
little extent and 276 to least extent. The high mean of 3.53 indicated that the majority of
the customers agreed that customers are satisfied with the use of Telephone banking
system. In item 52, 655 respondents agreed to very great extent, 650 to great extent, 364
to undecided, 123 to little extent and 308 to least extent. The high mean of 3.58 indicated
that the majority of the customers agreed that customers are satisfied with the use of E-
dividend system to transfer dividend into their account.
In item 53,657 respondents agreed to very great extent, 640 to great extent, 393 to
undecided, 144 to little extent and 265 to least extent. The high mean of 3.61 indicated
that the majority of the customers agreed that customers are satisfied with the use of
Mobile Banking system for the business operations.
Research Question 5: To what extent do customers benefit from the provision of
customer services through e banking provided by banks in Yobe state.
lxxviii
Table 7: Mean Responses on the extent Customers’ Benefit from the Provision of
Customer Services through E-banking Provided by Banks in Yobe State.
S/No Item Statements RESPONSES X SD Remarks
HB B U LB NB
54 Customers benefit from using ATMs
to transact business outside the
normal working hours
850 530 281 208 231 3.65 1.38 Beneficial
55 Customers benefit from using
electronic fund transfer (EFT) to
transfer cash from one bank account
to another of the same bank or
different banks
603 623 344 269 262 3.50 1.38 Beneficial
56 Customers benefit from using e-
payment from making cash purchases
without carrying physical cash
640 642 327 213 278 3.51 1.39 Beneficial
57 Propensity of carrying large cash
which reduces theft cases is made
possible through e-banking services.
641 640 248 297 274 3.51 1.39 Beneficial
58 As a result of E-banking services
customers benefit from better and
quick services.
603 703 221 308
265 3.50 1.38 Beneficial
59 On line enables Customers easy and
prompt communication of their
business transactions.
525 635 396 306
274 3.40 1.35 Not
beneficial
60 The provision of e-banking services
influence customer
accuracy of financial transactions
716
694 201 209
270 3.61 1.38 Beneficial
61 Customers benefit from Automated
Customers service machines (ACSN)
in prompt opening a new account.
434 557 445 387 277
3.23 1.33 Not
Beneficial
62 The provision of e banking services
influence customer user trust
relationship.
656
681 217 285
261 3.56 1.39 Beneficial
lxxix
63 Customers benefit from the use of
personal computer to access their
bank account from house or office.
524 540 393 342 301 3.16 1.45 Not
Beneficial
64 Customers benefit from the use of
personal computer by reducing their
physical presence in the bank hall.
710 587 249 266 278 3.59 1.42 Beneficial
65 The provisions of e-banking services
have enabled easy production of
mini-bank statement.
699
603 281 249 268 3.58 1.38 Beneficial
66 Customers benefit from e-banking
services by payment of their bills
electronically
638 658 319 234
301 3.50 1.38 Beneficial
67 Customers’ benefit through internet
banking by downloading easily
business transactions with the bank.
442 610 427 336 285 3.28 1.33 Not
Beneficial
68 Customers benefit from provision of
e banking services/products.
457 586 414 365 278 3.28 1.33 Not
Beneficial
The responses to item 54 shows that 850 respondents agreed to a highly beneficial,
530 to beneficial, 281 to undecided, 208 to less beneficial and 231 to not beneficial. The
item analysis yielded a high mean score of 3.65 which indicates that majority of the
respondents agreed that customers benefit from using ATMs to transact outside the
normal working hours. In item 55, 603 respondents agreed to highly beneficial, 623 to
beneficial, 344 to undecided, 269 to less beneficial and 262 to not beneficial. The mean
of 3.50 was an indication that majority of the respondents agreed that customers benefit
from using Electronic Funds Transfer to transfer cash from one bank account to another
of the same bank or different banks. Of the 2099 respondents who responded to items56,
640 highly beneficial, 642 beneficial, 327 undecided, 213 less beneficial and 278 not
beneficial. The responses yielded a mean score of 3.51, which shows that the customers
agreed that customers benefit from using Electronic Payment from making cash
purchases without carrying physical cash.
lxxx
In item 57, 641 respondents agreed to highly beneficial, 640 to beneficial, 248 to
undecided, 297 to less beneficial and 274 to not beneficial. The high mean of 3.51 was
an indication that majority of the respondents agreed that through e banking services, the
propensity of carrying large cash which reduces theft cases is made possible. Item 58
shows that respondents agreed to highly beneficial, 623 to beneficial, 344 to undecided,
269 to less beneficial and 262 to not beneficial. The mean of 3.50 was an indication that
majority of the respondents agreed that as a result of e banking services customers
benefit from quick and better services offered by commercial banks. In item 59, 529
respondents agreed to highly beneficial, 635 to beneficial, 346 to undecided, 306 to less
beneficial and 274 to not beneficial. The low mean of 3.40 was an indication that
majority of the respondents disagreed that customers benefit from the use of Online for
easy and prompt communication of their business transaction. In item 61, 434
respondents agreed to highly beneficial, 557 to beneficial, 445 to undecided, 387 to less
beneficial and 277 to not beneficial. The low mean of 3.23 was an indication that
majority of the respondents disagreed that customers benefit from Automated Customers
Service Machines (ACSN) in prompt opening of a new account.
The responses to item 63 shows that 524 respondents agreed to a highly
beneficial, 540 to beneficial, 393 to undecided, 342 to less beneficial and 301 to not
beneficial. The item analysis yielded a low mean score of 3.16 which indicates that
majority of the respondents disagreed that customers benefit from the use of personal
computer to access their bank account from the house /office. In item 64,710 respondents
agreed to highly beneficial, 587 to beneficial, 249 to undecided, 266 to less beneficial
and 278 to not beneficial. The mean of 3.5 was an indication that majority of the
respondents agreed that customers benefit from the e banking services by reducing their
physical presence in the bank hall. item 65, reveals that 699 respondents agreed to highly
beneficial, 603 to beneficial, 281 to undecided, 249 to less beneficial and 268 to not
beneficial. The high mean of 3.58 was an indication that majority of the respondents
agreed that the provision of e banking services have enable easy production of min-bank
lxxxi
statement. item 66, indicates that 638 respondents agreed to highly beneficial, 658 to
beneficial, 319 to undecided, 234 to less beneficial and 301 to not beneficial. The high
mean of 3.51 was an indication that majority of the respondents agreed that customers
benefit from e banking services by payment of their bills electronically.
Item 67, shows that 442 respondents agreed to highly beneficial, 610 to
beneficial, 427 to undecided, 336 to less beneficial and 285 to not beneficial. The low
mean of 3.28 was an indication that majority of the respondents disagreed that
customers benefit through internet banking by downloading easily business transactions
with the bank. The responses to item 68 shows that 457 respondents agreed to a highly
beneficial, 586 to beneficial, 414 to undecided, 365 to less beneficial and 278 to not
beneficial. The item analysis yielded a low mean score of 3.28 which indicates that
majority of the respondents disagreed that customers benefit by provision of e banking
services/products from disbursement of retirement benefits, dividends and other
investment benefits from business organization /government.
Research Question 6: What are the problems faced by banks in provision customer
services though e banking.
Table 8. Mean Responses on the Problems Faced by Banks in Providing Customer
Services through E-banking.
S/No Item Statements RESPONSES X SD Remarks
SA A U D SD
69 Incessant breakdown of NIT EL
services
702 501 267 330 300 3.50 1.38
Agreed
70 Incessant power failure from power
Holding company
679 566
180 353
322 3.44 1.47 Undecided
71 Lack of skilled manpower in
information technology.
711
694 189
204
302 3.62 1.40 Agreed
72 High competition resulting from
information
Technology
712
633
192 252
311
3.56 1.43 Agreed
lxxxii
73 Delay in attending to customers
due to Net work failure.
678 718 201
311 192
3.66 1.31 Agreed
74 Inadequate training/working skills
for staff.
710 577 247 280 396 3.54 1.43 Agreed
75 Lack of computer parts and
consumables needed in the
provision of e-banking services.
444 521 419 436 280 3.24 1.38 Undecided
76 Most customers are illiterate 735 504 296 303 262 3.55 1.41 Agreed
77 Information security system 451 299 457 540 353 2.98 1.39 Undecided
78 Lack of maintenance culture 727 633 217 262 261 3.63 1.38 Agreed
79 Problems of learning sequence of
operation on information
technology.
765 602
195 289
249
3.64 1.34 Agreed
80 Loss of data, which leads to wrong
information preservation.
718 586
173
346
277
3.53 1.43 Agreed
Based on the data presented on Table 7, 702 bank customers and employees agreed that
incessant breakdown of NITEL services is one of the problems faced by commercial
banks in the provision of e banking to customer service in Yobe State, 501agreed, 267
were undecided, 330 disagreed and 300 strongly disagreed. With a mean score of 3.50, it
implies that the respondents agreed that incessant breakdown of NITEL services
constitutes a problem to commercial banks in provision of e banking to customer service.
For item 70, 679 strongly agreed, 566 agreed, 180 undecided, 353 disagreed, 322 strongly
disagreed. With low mean score of 3.44, it implies that majority of the respondents were
undecided that incessant power failure from the Power Holding Company is one of the
problems commercial banks faced in the provision of customer service in Yobe State
In item 71, 711 responses strongly agreed, 694 agreed, 189 undecided, 204 and 302
strongly disagreed. The high mean of 3.62 indicated that the majority of the customers
were undecided that lack of skilled manpower in information technology is a problem
lxxxiii
faced by commercial banks in providing e banking to customer services. For item 72,712
strongly agreed, 633 agreed, 192 undecided, 252 disagreed and 311 strongly disagreed.
The responses yielded a high mean score of 3.56. It shows that majority of the
respondents agreed that high competition resulting from information is a problem faced by
commercial banks in the provision of e banking to customer service.
In item 73, 678 responses strongly agreed, 718 agreed, 201 undecided, 311 disagreed,
192 strongly disagreed. With a high mean score of 3.66, which indicates that majority of
the respondents agreed that delay in attending to customers due to Net work failure is a
problem faced by commercial banks in the provision of e banking to customer service.
For item 74,710 strongly agreed, 577 agreed, 247 undecided, 280 disagreed and 396
strongly disagreed. This result yielded a high mean score of 3.54 and it implies that
majority of the respondents agreed that inadequate training/working skills for staff of the
banks is another problem faced by commercial banks in providing e banking to customer
service. On lack of computer parts and consumables needed in the provision of e banking
services in item 75, 444responded strongly agreed, 521 agreed, 419 undecided, 436
disagreed and 280 strongly disagreed. The responded yielded a low mean score of 3.24.
This revealed that the most of the respondents were undecided on the statement as one of
the problems faced by commercial banks in the provision of e banking to customer
service. With reference to item 76, 735 responded strongly agreed, 504 agreed, 296
undecided, 303 disagreed and 262 strongly agreed. The responses revealed a high mean
score of 3.55. It indicates that majority of the respondents agreed that most customers are
illiterate as another problem faced by commercial bank in the provision of e banking to
customer service.
In item 77, 451responded strongly agreed, 299 agreed, 457 undecided, 540
disagreed and 353 strongly disagreed. The responded yielded a low mean score of 2.98.
This revealed that the most of the respondents were undecided on the statement as one of
the problems faced by commercial banks in the provision of e banking to customer
lxxxiv
service. With reference to item 78, 727 responded strongly agreed,633 agreed, 217
undecided, 261 disagreed and 262 strongly agreed. The responses revealed a high mean
score of 3.65. It indicates that majority of the respondents agreed that lack of
maintenance culture is another problem faced by commercial banks in the provision of e
banking to customer service in Yobe State. On problems of learning sequence of
operation in information technology, in item 79, 765 responses strongly agreed, 602
agreed, 195 undecided, 289 disagreed and 249 strongly disagreed. The high mean score
of 3.64 indicates that majority of the respondents agreed that problem of learning
sequence of operation in information technology is another problem faced by commercial
banks in the provision of e banking to customer service. With reference to item 80, 718
responded strongly agreed, 586 agreed, 173 undecided, 346 disagreed and 277 strongly
agreed. The responses revealed a high mean score of 3.53. It indicates that majority of
the respondents agreed that loss of data, which leads to wrong information preservation is
a problem face by commercial banks in the provision of e banking to customer service.
Hypothesis 1: There is no significant mean difference (p 0.05) between the mean
responses of bank customers and those of bank employees with regard to the satisfaction
of e- banking to customer services as provided by bank in Yobe State.
Table 9: Comparison of the t-test Difference between the Mean Responses of Bank
Customers and those of Bank Employees on the Satisfaction of E-Banking to
Customer Services as Provided by Bank Yobe state
S/NO Groups X SD N Df S.E z-cal z-critical Level of
significance
Remarks
1 Banks
customers
3.50 1.34 1899
2 Banks
employees
3.51 1.35 200 2097 1.198 0.36 1.96 0.05 NS
Table 9 above revealed that the z-test analysis of z-calculated has 0.36value which is less
than the z-critical value of 1.96 at 0.05 level of significance. This showed that there is no
statistical significant difference between the mean scores of bank customers and bank
lxxxv
employees on the satisfaction of e bankingto customer service provided by banks in Yobe
State.
Hypothesis 2: There is no mean significant difference (p 0.05) between the mean
responses of bank customers and those of bank employees with regard to the benefit of e-
banking on customer services as provided by bank in Yobe State.
Table 10: Comparison of the t-test Difference between the mean Responses of Bank
Customers and Bank Employees on the Benefit of E-banking on Customer Service
Provided by Banks by Banks Customers and Bank Employees
S/NO Groups X SD N Df S.E z-cal z-critical Level of
significance
Remarks
1 Banks
customers
3.58 1.40 1899
2 Banks
employees
3.85 1.20 200 2097 0.091 1.06 1.96 0.05 NS
As can be seen in table 9, the z-test analysis showed that the z-calculated value of
1.06 Is less that the z-critical value of 1.96 at 0.05 level of significance. This indicated
that there is no statistical significant difference between the mean scores of bank
customers and bank employees on the benefit of e banking to customer services provided
by banks in Yobe State.
Hypothesis 3: There is no mean significant difference (p 0.05) between the mean
responses of bank customers and those of bank employees with regard to the problems
faced by banks in the provision of customer services through e-banking in Yobe State.
lxxxvi
Table 11: The t-test Analysis of the Mean Responses of Bank Customers and those
of Bank Employees on the Problems faced by Banks in the Provision of Customer
Services through E-banking in Yobe State
S/NO Groups X SD N Df S.E z-cal z-critical Level of
significance
Remarks
1 Banks
customers
3.50 1.34 1899
2 Banks
employees
3.49 1.38 200 2097 0.94 0.69 1.96 0.05 NS
Table 10 indicates that z-calculated value of 0.69 is less than the z-critical value of 1.96
at0.05 level of significance. This implied that the null hypothesis of no significant
difference is accepted. The result implies that there is no significant difference in the
mean responses of bank customers and bank employees on the problem faced by banks in
the provision of customer service.
Findings of the Study
The followings are the findings arising from the analysis of the data.
Research Question 1
Commercial banks utilize the following e banking to influence customer service as
revealed by the study.
(a). Automated Teller Machines (ATMs).
(b). Electronic Fund Transfer.
(c). Electronic Payment
(d). Telephone Banking
(e). Mobile Banking
(f). Internet Banking
(g) . Smart Cards/Value cards
(g). Flash –Me – Cash
(h). Point of Sale (POS)
lxxxvii
However, bank customers and employees disagreed with following e banking
products/services
(a). Personal Computer
(b). Online banking for downloading of business transactions.
Research Question 2
The findings showed that e banking has influenced the quality of customer
services in the following areas:
(a). Facilitate cash withdrawal.
(b). Give prompt attention to customers’ complaint.
(c). Make bank transactions easier
(d). Reduce the time spent on queue in the bank
(e). Provide access to service which ensure accuracy of information and
service.
(f). Facilitate inter account funds transfer
(g). Recharge of mobile phone
(h). Provide access to bank for 24 hours including Public Holiday.
(i). Easy production of mini-bank statement.
Research Question 3
The findings of this study revealed that e banking influences customer patronage
thus.
(a) Great increase in customers patronage
(b) There is more confident in bank than ever before
(c) Customers transact more business than ever before
(d) Banks customers have increase in recent years
(e) Customers are encouraged due to e banking services to transact business with
bank.
(f) Customers often encourage their colleagues to patronage the banks
lxxxviii
(g) Customers are more interested in e banking services/products than ever before.
The study equally revealed that the customer need more enlighten on the e
banking services /products available to customer services.
Research Question 4
It was found that customers are satisfied with the following e banking products.
(a) Automated Teller Machines (ATMs)
(b) Use of Smart Card/Value Card
(c) Electronic funds Transfer System
(d) Telephone Banking
(e) Electronic Payment System
(f) Flash-Me –Cash
(g) E-Dividend
(h) Point of Sale (POS)
(i) Mobile Phone
(j) Inter bank statement system.
However, the customers are not satisfied with the following e banking products.
(a) Online banking by downloading information from the Net
(b) Personal Computer.
Research Question 5
It was also found that customers benefit from the provision of following e banking
services.
(a) Better and quick services
(b) Propensity of carrying large cash
(c) Customers’ presence in the banks reduced.
(d) Easy production of mini-bank statement
(e) Payment of bills electronically.
(f) Customers’ accuracy of financial transactions.
lxxxix
(g) Easy transfer of funds from one account to another bank account of the same of
different bank.
The study further revealed that customers could not benefit from the following e-banking
services.
(a) The use of Automated Customers Service Machines (ACSM) in Opening New
bank account.
(b) Access to the bank account in the house or office through Personal Computer.
(c) The use of online banking by down loading business transactions easily.
Research Questions 6
It was found that commercial banks encountered the following problems in
providing e banking services to customers.
(a) Incessant breakdown of Network Service by NITEL
(b) Power failure
(c) Lack of skilled manpower in information technology.
(d) Delay in attending to customers due to computer breakdown of Network.
(e) Inadequate training /working skills for staff.
(f) Most of the customers are illiteracy
(g) High competition resulting from information technology.
(h) Lack of maintenance culture.
(i) Problems of learning sequence of operation of information.
(j) Loss of data which lead to wrong information preservation.
The study further revealed that, lack of computer parts and consumable and
information security system did not constitute any problem in providing e banking
services to customers in Yobe State.
xc
Hypothesis 1
There was no significant difference in the mean responses of the banks’ customers
and employees on the satisfaction of e banking provided to customers by banks in Yobe
State. The calculated z-test value of 0.036 was less than the critical value of 1.96 at 0.05
level of significance.
Hypothesis 2
There was no significant difference in the mean responses of banks’ customers and
employees on the benefit customers derive from e banking services provided by the
banks in Yobe state. The calculated z-test value of 1.06 was less than the z-critical value
of 1.96 at 0.05 level of significance.
Hypothesis 3
There is no significant difference in the mean responses of banks’ customers and
employees on the problems faced by commercial banks ona the provision of e banking
services to customers in Yobe State. The calculated z-test value of 0.69 is less than the z-
critical value of 1.96 at 0.05 level of significance.
Discussion of the Findings
Research Questions
1. It was found that eleven e-banking services were used by the banks in Yobe State
to influence customer services. This finding is in line with Oguntuase (2006)study
which revealed that commercial banks in South West (Lagos, Oyo,Ogun,Ondo,
Osun and Ekiti) use e banking services/products to influence customers services.
The study equally revealed that e banking services enhanced service delivery to
customers, considering the increase volume, complexity of banking services.
Woherem,(2000) observed that customers prefer to go to commercial banks that
would serve them promptly, preferably in a pleasant and friendly environment .
2. Table4 revealed that e banking has influenced the quality of customer services in
Yobe State, through the use of e banking services. This finding is consistent with
the earlier report of Oguntuase,(2006) of similar study on the effect of e banking
xci
in the productivity and profitability of bank in Nigeria. The study further revealed
that e banking has brought about improvement in quality of products/services,
reports, statement of account, prompt attentions to customers and overall customer
satisfaction. Irechukwu (2000) observed that financial institutions have used e
banking to aggressively and innovatively create the requisite competitive
advantage and dramatically improve the quality of service deliver to their
customers. But evidence gathered from the findings on the e banking and the
quality of customer service by banks’ customers and employees indicated a few e
banking services have not be effectively use to influence the quality of customer
service. These include online/internet banking, personal computer (PC) which
could not be used to order cheque, standing order and downloading business
transactions by the customers. This may be because of incessant Network failure
and the large numbers of illiteracy among the banks customers.
3. Furthermore, the findings revealed that the utilization of e banking influenced
customer patronage of the banks. This was indicated in Table 5. This is in line
with woherem,(2000)assertion that there has been an increased demand in
customer deposit in recent years. This may be due to customers’ awareness and
confidence in commercial banks coupled with improved services. Fadahusi,
(2003) in a similar study, revealed that computerization of banks has had impact
on its performance most especially in the area of customer service delivery. The
study also discovered that banks’ customers have increased in recent years, hence
increased earning and profits of commercial bank s in Lagos State. However, the
study showed that customers are not so much enlightened on some of the e
banking services provided by commercial banks.
4. The banks’ customers in Yobe State are satisfied with some of the e banking
products as showed on Table six. The satisfaction was indicated in areas of
Automated Teller Machines (ATMs), Telephone banking, use of Smart card,
Electronic Fund Transfer System, Electronic Payment System, Mobile Banking,
xcii
Flash Me-Cash among others. However, the bank customers were not satisfied in
the following areas: online banking, downloading information from the Net and
the use of personal computer to transaction business from either their house or
office. Woherem (2003) supported this finding. Adesina,(2008) observed that
there are several cases of complaint about the unbearable long time customers
experience before bank transactions are complete.
5. This finding agreed with the study of Babatunde (1994) who in his study
discovered that customers benefit from e banking in the area of efficiency in
service delivery, daily routine, job of cash deposit and withdrawal, safe and fast
means of fund transfers. Oguntuase, (2006) pointed out some of the benefits of e
banking in Nigeria. These include, reduction in the time spent and long queue of
customers in the bank hall, improvement on the quality of services, with regard to
reports, statement of account, prompt attention to customers and the overall
customers satisfaction, bank transactions easy to be processed with high speed and
accuracy, among others.
6. The problems revealed by the study include incessant breakdown of Network
Service, Power Failure, Lack of skilled manpower in information technology,
delay in attending to customers due to computer breakdown, inadequate
training/working skills for staff, illiteracy of customers, lack of maintenance
culture among others. Dewa, (2001) observed that the quality of e banking
services provided by commercial banks in Nigeria has continued to be under
criticisms despite the fact that e banking has been deployed in the banking system.
But evidence gathered from the findings on the problems faced by commercial
banks in providing e banking to customers indicated that lack of computer parts
and consumable and information security system did not constitute any problems
to commercial banks in Yobe State.
Hypotheses
xciii
1. It was found that there is no was no statistical significant difference between the
mean responses of bank customers and bank employees on the satisfaction of e
banking to customer service. The null hypothesis (Ho) was accepted because the
z-calculated value of 0.36 was less than z-critical value of 1.96. The similarity in
their mean rating is consistent with Oguntuase,(2006) who reported that
commercial banks in the South West (Lagos, Oyo, Ogun, Ondo,Osun and Ekiti
State) utilize e banking services/products to satisfy their customers. These e
banking services/products include, Automated Teller Machines (ATMs), E-
payment, Electronic Fund Transfer, Telephone Banking, Mobile phone among
others.
2. Hypothesis 2 revealed the mean rating of the respondents on the benefit of e
banking to customer services provided by banks in Yobe State. The results of the
comparison showed that no significant difference existed in the mean rating of the
respondents. This is because the z-calculated value of 1-06 is less than z-critical
value of1.96 hence the null hypothesis is accepted. The findings agreed with the
Babatunde (1994) who opined that customers benefit from e banking services in
the area of efficiency in service delivery, daily routine, job of cash deposit and
withdrawal, safe and fast means of fund transfers. E banking services enable
customer easy access to production of mini-bank statement, reduce customers’
physical presence in the bank hall, access their bank account in the house or office
, better and quick services delivery, payment of their bills electronically, access to
your bank account 24 hours include public holidays among others.
3. Hypothesis 3 compared the mean rating of bank customers and bank employees
with problems faced by commercial bank in providing e banking to customer
service. At point 0.05 level of significance, there was no significant difference in
the mean rating of two groups concerning the measures. It thus implied that null
hypothesis was accepted because the z-calculated value of 0.69 was less than z-
critical value of 1.96. This indicated that majority of the respondents were in
xciv
agreement in the problems encountered by the banks in providing e banking to
customer services. A number of problems were identified which the commercial
banks encountered in providing e banking services. The finding is in line with the
emphasis of Dewa,(2001) who observed the quality of e banking services provided
by the commercial banks in Nigeria has continued to be under serious criticisms
despite the fact that e banking has been deployed to the bank sector.
xcv
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter presented the summary, conclusion and recommendations.
Re-Statement of Problem
Banks are expected to play a major role in the social, economic and political
development of a community. They provide services that help to enhance business
activities by granting loans, shares, overdraft, money transfer, deposit and withdrawal
among others. Agene in Awoniyi, (2008) noted that banking services require
mathematics, manipulations, by way of calculations, receipt and payment of money to
customers. Thus, making banking job very tedious, time consuming and tiring. Banks
must think of itself as never before as buying customers’ as doing the thing that will
make people continue to transact business with them. Kotler, (2001) observed that banks
must put in place strategies for meeting and exceeding the customer needs and
expectations because today’s customers are more sophisticated and approached by many
competitions. Banks’ activities make too much demand for customers who spend too
much time queuing up to pay in or withdraw money. These constraints made banks to
adopt e-banking as a way of improving services to their numerous customers. E-banking
services are meant to overcome the shortcoming of traditional methods of banking. E-
banking services entail the use of electronic device such as computer and internet to
render or aid the services rendered by traditional bank.
In Yobe State, with the addition of e-banking to customer services by banks,
customer still complain of delayed services, it takes hours to effect a simple transaction
and the hall is always full of customers waiting to either pay in or withdraw money from
their accounts. The situation is even worse during festive period or when workers’
salaries and other emoluments are paid to workers at the end of the month. Woherem,
(2000) stated that although, the adoption of e banking by bank has made some changes
in time consumption in banks, the changes do not reflect the accurate service that is
xcvi
expected from the banks. Some customers see banking activities in Yobe State as time
consuming or wanting. The problem of this study is therefore, to determine the influence
of e banking on customer services in Yobe State as perceived by bank customers.
Description of Procedures Used
The major purpose of the study was to determine the extent e banking influence
customer service in Yobe state as perceived by bank customers. Six specific purposes
were formulated in line with the major purpose of the study. The study answered six
research questions and tested three hypotheses.
Survey research design was employed for the study. A structured questionnaire
was developed and utilized. The target population comprised of nineteen thousand and
eighty four (19084) banks’ customers and employees in Yobe State. The sample of the
study consisted of two thousand five hundred and fifty four (2554) made up of two
hundred and thirteen (213) banks’ employees and two thousand three hundred and forty
one (2341) banks’ customers in Yobe State. The questionnaire was validated by three
lecturers in the Department of Vocational Teacher Education, University of Nigeria,
Nsukka. The suggestions of the lecturers were used to improve the instrument used for
the study. A total of 2600 copies of the questionnaire were distributed to the respondents
by the researcher and three research assistants who made repeated calls to commercial
banks in Yobe State. Fifty (50) copies of the questionnaire were wrongly filled and 301
copies were not returned. However, 2,099 copies were correctly filled and returned,
representing 82percent. Cronbach Alpha method of establishing reliability was used to
determine the internal consistency of the instrument for data collection. The data
collected were analyzed using mean and standard deviation for answering the six research
questions while z-test statistics was used to test the three null hypotheses at 0.05 level of
significance.
Summary of Findings
Based on the data analysed, the following findings were made:
xcvii
1. It was found that e banking Services were used by the commercial banks in Yobe
State to influence customer services.
2. It was found that the following e banking services influenced the quality of
customer services in Yobe State. These include, fast withdrawal of cash and
deposit, prompt attention to customers’ complain, easy in banking transactions,
reduction in time spent on queue in the bank, easy production of min-bank
statement, recharge of mobile phone, access to bank for 24 hours including
holidays, interbank, transfer accuracy of information among others.
3. The study also revealed that e banking services influenced customer patronage in
bank in Yobe state. With the adoption of e banking service there had been great
increase in customer patronage in the banks in Yobe State.
4. Customers were satisfied with the following e banking services offered in Yobe
State: Automated Teller Machines (ATMs), Smart Card, Electronic Fund Transfer
(EFT), Telephone Banking, Electronic Payment System, Flash Me – Cash System,
E Dividend, Point of Sale (POS), Mobile Phone Banking, and Inter Bank
Statement System. However, customers were not satisfied with the Online
banking and Personal Computer banking.
5. It was found that customers benefited immensely from the utilization of e banking
in providing customer services.
6. Ten major problems were found to militate against the commercial banks in the
provision of e banking services to the customers.
With regard to the hypotheses,
(a). There was no significant difference in the mean responses of banks’ customers
and employees on the satisfaction of customers with e banking service in Yobe
state.
(b). There was no significant difference in the mean responses of bank s’ customers
and employees on the benefit of e banking to customer service in Yobe state.
xcviii
(c). There was no significant difference in the mean responses of banks’ customers and
employees on the problems faced by commercial banks in providing customer
service in Yobe State.
Conclusions
Based on the findings made, the following conclusions were made:
(a) There is a great increase in the numbers of commercial bank customers with the
adoption of e banking services. At least the quality of services rendered to
customers has improved greatly.
(b) Customers are satisfied with some of the e banking service offered to bank
customers; however, a lot needs to be done to improve the customer service in the
State.
(c) There are benefits that customers accrued from the utilization of e banking by
commercial banks in Yobe state. This has promoted social, economic, and
political development of the state.
(d) Commercial banks were faced with a lot of problems in the provision of e
banking to customers in the state. These problems needed to be tackled in order to
enhance effective and efficient customer services. Finally, commercial banks
would grow tremendously, if the proprietors can invest more on the information
technology to boast their daily banking operations.
Implications of the Study
The findings of this study have implications for commercial banks, bank
customers, ministry of commerce and industry. Commercial banks would discover the
various new e banking services to improve the quality of service to the customers. They
would understand how to impress and retain their customers by providing modern and
relevant e banking services to customers. Banks’ customers would be sensitized about
the current component of e banking and how the components would facilitate easy
banking operations.
xcix
The Ministry of commerce and industry through the study would study the current
problems encountered by commercial banks to produce quality service to customers in
the state and create a conducive enabling environment for commercial bank to operate.
Finally, the findings would be useful to the prospective customers. The knowledge
gained from the findings would reveal the various e banking services and how customers
could benefit from the services for better service delivery.
Recommendations
Based on the findings of the study and the conclusions made, the following
recommendations were made:
1. Commercial banks should invest more on information technology both in terms of
staff training on information technology as well as training all categories of bank
staff to become IT literate. This would enable them to compete with their foreign
counterpart in the world.
2. Government should create an enabling environment for investors by providing
better and optimal infrastructural facilities, such as electricity, good
communication Network system and other social amenities, such education,
health, housing and security.
3. Banks should provide a sizeable proportion of financial resources for the provision
of and the use of information technology.
4. Banks should ensure that their workforce regularly undergo training and retraining
in order to be conversant with the ever changing trend in information
communication technology (ICT) and e business.
5. The banks should promote the important of maintaining existing infrastructure and
equipment for better service delivery.
Suggestion for Further Studies
The following are suggestions for further research:
c
1. The present study should be replicated in other states of the federation or geo-
political zone on the influence of e banking to customer service.
2. Researchers should investigate into the extent e banking influence on the
productivity and profitability of banks.
3. Researchers should investigate the influence of e banking on customers’
satisfaction.
ci
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APPENDIX A
Department of Vocation Teacher Education
cvii
Faculty of Education
University of Nigeria
Nsukka.
3rd
March, 2009
…………………………………………
…………………………………………
…………………………………………
Sir/Madam,
REQUEST FOR VALIDATION OF RESEARCH INSTRUMENT
I am a Postgraduate student in the Department of Vocational and Teacher
Education, Faculty of Education, University of Nigeria Nsukka. The topic of my
research work is influence of e-banking on the provision of customers, services in Yobe
State as perceived by bank customers.
I sincerely request you Sir/Madam to please help validate the questionnaire items
as regards to appropriateness to the various research questions. Your comment(s) will
help improve the final instrument.
Attached is a draft copy of the questionnaire for your study.
Thanks for your anticipated cooperation
Yours faithfully,
Olorunmolu Joseph O.
PG/MED/99/26884
cviii
APPENDIX B
Department of Vocation Teacher Education
Faculty of Education
University of Nigeria , Nsukka.
3rd
March, 2009
Dear Sir/Madam,
REQUEST TO RESPOND TO QUSTIONNAIRE
The attached Questionnaire is part of a study being under taken in the Department
of Vocational Teacher Education, Faculty of Education, University of Nigeria Nsukka.
The purpose of the study is to determine the influence of e banking on customer services
as perceived by banks’ customers. You are please requested to respond to the items as
objectively as you can.
Every information will be treated confidentially and use for the research work
only.
Yours faithfully,
Olorunmolu Joseph.
cix
APPENDIX C
QUESTIONNAIRE
Instruction. Please complete the following by ticking (√) or filling the spaces provided
Section A General Information
Name of your bank -----------------------------------
Location of your bank -------------------------------
What is your status with the bank employee [ ] customer [ ]
For bank, employee, your position in the bank
manager [ ] supervisor [ ] other staff [ ]
How long have you been operating business with your bank? Less than 2 yrs 2-
4yrs [ ] 5-7yrears [ ] 8 years and above [ ]
As a customer, what type of account do you operate with the bank? Saving account [
] current account [ ] both.
As customer, my account in the bank is mainly for business [ ]
salary [ ] others (specify) [ ]
I am aware of adoption of electronic banking facility in your bank
Yes [ ] No [ ]
Section B. Research Question One: To what extent do commercial banks utilize e-
banking to influence customer services.
Please complete as appropriate by ticking (√) the extent commercial banks utilize
e- banking in providing customer services.
Key:
Very great Extent VGE
Large extent GE
Undecided U
Little Extent LE
Least Extent LSE
cx
S/N ITEM STATEMENT VGE GE U LE LSE
1 Commercial banks utilize e-banking to
influence customer service
2 Commercial banks utilize ATM to influence
to customer service.
3 Electronic funds transfer is utilized by
commercial banks to influence customer
services.
4 Personal computer is utilized to influence
customer service
5 With e-banking services transactions to parts
of the country is made easy.
6 Provision of bank statement and checking of
bank account is made easy.
7 Commercial banks utilize telephone-banking
to influence customer service.
8 With the e-banking services, customers’
physical presences in the bank are reduced.
9 Commercial banks utilize ATMs to influence
customer service after the bank normal hours.
10 E-banking services enable customers to open
new bank account promptly and without
wasting much time.
11 Commercial banks utilize on-line/internet
banking services to influence customer
service.
12 E-banking services enable customers to
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purchase goods and services without physical
cash.
13 Through the utilization of e-banking services,
customers are provided with smart cards for
their business transactions.
14 E-banking services enable customers have
access to the account 24 hours
15 Commercial banks utilize e payment system
to influence customer service
16 Commercial banks utilize Flash –Me- Cash to
influence customer service
Section C: Research Question Two: To what extent does the adoption of e-banking
influence the quality of customer services.
S/N ITEM STATEMENT VGE GE U LE LSE
17 E-banking services make cash withdraw
fast, simple and interesting.
18 E-banking services/products help banks to
improve on their customer service.
19 E-banking services enable banks to give
prompt attention to customers
20 Through e-banking services, large volume
of business transactions is handled
effectively, and efficiently.
21 E-banking services make bank transactions
easy
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22 Through e-banking, there is a reduction in
time spent on queue in the bank.
23 There is improvement on quick financial
report and bank statement to customers
through e-banking
24 E-banking services make a positive impact
on the growth and development of bank.
25 Easy access to service ensures accuracy of
information is made possible through e-
banking
26 Prompt attention to customers complaints
are made possible through e-banking
27 Through e-banking service inter-account
funds transfer is made possible.
28 Online banking enables customers to order
for cheque books.
29 e-banking services enable customers to
purchase recharge card to their mobile
phones electronically
30 Standing order transaction is made possible
through online banking.
31 Online banking enables customers to
transfer money to their foreign account.
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Section D. Research Question Three: To what extent does the utilization of e banking
influence customer patronage through customer services provided by banks in Yobe
state?
S/N ITEM STATEMENT VGE GE U LE LSE
32 E-banking services have brought about great
increase in customer patronage
33 E-banking services enable customers to have
more confident in banking operations.
34
Effective e-banking system has made customers
to transact more business than ever before
35 There has been improvement in customer
patronage to banks with utilization of e-banking
services
36 Bank customers have increased in recent years
with the utilization of e-banking services.
37 Customers are more enlightened on e-banking
service.
38 Customers are encouraged to transact business
with commercial banks as a result of the
utilization of e banking services/products.
39 With e-banking services, customers often
encourage their colleagues to patronize the bank
40 Customers are more interested in banking
transaction with e-banking services than ever
before.
41 E-banking services have influence customer
patronage/traffic.
cxiv
Section D. Research Question Four: To what extent does the utilization of e-banking
influence customer satisfaction?
S/N ITEM STATEMENT VGE GE U LE LSE
42 Customers appreciate the use of Automated
Teller Machines (ATMs) to meet their business
needs.
43 Customers are satisfied the use of Smart Card
for the business transactions,
44 Customers are satisfied with the use of
Electronic Fund Transfer.
45 Customers are satisfied with the benefit of e-
banking services in terms of speed, accuracy
and efficiently.
46 Customers are satisfied with the use of
Electronic Payment System for their business
transactions.
47 Customers are satisfied with the use of Flash-
Me Cash to transfer cash from one bank
account to another.
48 Customers are satisfied with the quality of e
banking products and services from my bank.
49 Customers’ credit experience with the bank is
satisfactory.
50 Customers are satisfied with prompt, effective
and efficient services through the utilization of
e-banking services.
51 Customers are satisfied with the use of
cxv
Telephone banking system.
52 Customers are satisfied with the use of E-
dividend system to transfer dividend into their
account.
53 Customers are satisfied with the use of Mobile
Banking system for the business operations.
Section E. Research Question five: To what extent do customers benefit from the
provision of customer services through e-banking provided by banks.
Please indicate with a tick (√) the extent customers benefit from the provision of
customers services through e-banking.
Key:
Highly beneficial HB
Beneficial B
Undecided U
Less Beneficial LB
Not Beneficial NB
S/N ITEM STATEMENT HB B U LB NB
54 Customers benefit from using ATMs to transact
business outside the normal working hours
55 Customers benefit from using electronic fund
transfer (EFT) to transfer cash from one bank
account to another of the same bank or different
banks
56 Customers benefit from using e-payment from
making cash purchases without carrying physical
cash
cxvi
57 Propensity of carrying large cash which reduces
theft cases is made possible through e-banking
services.
58 As a result of E-banking services customers
benefit from better and quick services.
59 On line enables Customers easy and prompt
communication of their business transactions.
60 The provision of e-banking services influence
customer accuracy of financial transactions
61 Customers benefit from Automated Customers
service machines (ACSN) in prompt opening a
new account.
62 The provision of e banking services influence
customer user trust relationship.
63 Customers benefit from the use of personal
computer to access their bank account from house
or office.
64 Customers benefit from the use of personal
computer by reducing their physical presence in
the bank hall.
65 The provisions of e-banking services have enabled
easy production of mini-bank statement.
66 Customers benefit from e-banking services by
payment of their bills electronically
67 Customers’ benefit through internet banking by
downloading easily business transactions with the
bank.
cxvii
68 Customers benefit from provision of e-banking
services/products
Section F. Research Question Six: What are the problems faced by banks in providing
customers services through e-banking.
Please indicate with a tick (√) the degree of agreement or disagreement to the
following problems which banks face in provision of customers service through e-
banking.
Key:
Strongly Agree SA
Agree A
Undecided U
Disagree D
Strongly Disagree SD
S/N ITEM STATEMENT SA A U D SD
69 Incessant breakdown of NIT EL services
70 Incessant power failure from power Holding
company
71 Lack of skilled manpower in information
technology.
72 High competition resulting from information
technology
73 Delay in attending to customers due to Net work
failure.
74 Inadequate training/working skills for staff.
75 Lack of computer parts and consumables needed
in the provision of e-banking services.
cxviii
76 Most customers are illiterate
77 Information security system
78 Lack of maintenance culture
79 Problems of learning sequence of operation of
information.
80 Loss of data, which leads to wrong information
preservation.