Impact of E-Banking on the Development of Banking Sector in Nigeria

The new millennium brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some eyes while making it available to others.Today's business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and demands Banks to serve their customers electronically.Banks have traditionally been in the forefront of harnessing technology to improve their products and services.The Banking industry of the 21st century operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate.Information and Communication Technology (ICT) is at the centre of this global change curve of E-banking System in Nigeria today.Assert that they have over the time, been using electronic and telecommunication networks for delivering a wide range of value added products and services, managers in Banking industry in Nigeria cannot ignore Information Systems because they play a critical impact in current Banking system, they point out that the entire cash flow of most fortune Banks are linked to Information System.In this work study, I intend to trace the historical development of competition in the Nigeria banking sector by considering the services rendered by banks especially between the pre and the post consolidation era.There is a paradigms shift in the types of services rendered by the Nigeria banks shortly after consolidations.The competition witness among banks has been a factor in relation to the services delivery.The era of universal banking became operational and more visible after the N25billion minimum capital base for Nigerian banks.The banking reform which stipulated a minimum capital of N25billion in 2004 brought about merger and acquisition, raising capital from the capital market, as well as foreign direct investment into the banking sectors.This made them to be operating between N50 and N100 billion capital bases.A good number of them became diversified in their service delivery and move on to become a global player.However, some observers still believes that there are factors that influence bank customers" preferences.This study would look critically at banking services delivery in the financial sector and Abstract: Automation through computer network has become a necessity in the world of banking today thus this research work sets out to investigate the impact of electronic banking in the development of Nigerian banking sector.Electronic banking has become a very important and indispensable too1 for the present survival and growth of financial institutions considering the dramatic increase in the number of banks in Nigeria in recent years.The methodology of the study as discussed in Chapter three it comprises of the research and questionnaire design, data collection and data analysis techniques.The Main research question, Research questions and Questions were used in the course of this research work.After a thorough investigation, it was discovered that electronic banking has both negative and positive impact in the Nigerian banking sector.While it has greatly improved service delivery on the positive angle but on the negative side, it is prone to electronic fraud and unauthorized access to information.