Appraisal of the Economic Implication of Electronic Banking in Nigeria Bank (Study of Diamond Bank PLC):- Onalu, Esther C.

ABSTRACT

As bank operations become complex and as the users of financial services increase it therefore becomes imperative to study the economic implication of electronic banking system in Nigeria banks. The objective includes; evaluating the economic impact of electronic banking on the operations of financial institution in the country, examine the effect of electronic banking on bank. Customer relationship, and ascertain the challenges facing the operations of electronic banking in Nigeria. Survey research design was employed in this study as the primary data was generated using questionnaire. Chi-square was used Ito analyze the data and the findings show that the introduction ofj electronic banking in Nigeria has a strong influence on the development of the payment system in particular and- the banking system in general. The major problems hindering the effective operation of electronic banking in Nigeria are infrastructural deficiencies such as erratic power supply, lack of government support and high charge on payment terminals (PCS, ATMS) etc. These problems are only peculiar to Nigeria as it is known that in developed countries issues like power failure or failure links are not in existence. Therefore, this work concludes that electronic banking has reduced the expected volume and cost of rending various financial services by banks.