Appraisal of the Economic Implication of Electronic Banking in Nigeria Banks (a Case Study of Diamond Bank Plc Nigeria)
APPRAISAL OF THE ECONOMIC IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF DIAMOND BANK PLC NIGERIA)
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY Before the emergence of modern banking system, banking operation was manually done which lead to a slow down in settlement of transactions. This manual system involves posting transactions from one ledger to another which human handles. Figures or counting of money which should be done through computers or electronic machine were computed and counted manually which were not 100% accurate thereby resulting to human errors. Most bank then use only one computer in carrying out transactions which ameliorate the sluggish nature of banking transaction. Nigeria do not embrace electronic banking early compared to developed countries. Nigeria adopted electronic banking system in the early 2000s. During the introduction of electronic banking system, the use of raw cash was said to have bred corruption through the “cash and carry syndrome” usually linked with the swift movement of Ghana-must go” bags by some politicians. Such bags as some analyst say, are a major source of corrupt practices as dubious persons seeks to bribe their way to avoid been checked in some sensitive areas or places in a corrupt society. Since electronic banking started in all Nigeria banks, it has been a woe for civil servants; checks show that some staff in establishments such as the national boundary commission for instance, are yet to receive their salaries for the previous months as efforts to electrically transfer salaries into their account have failed according to Ibrahim, D. (2009). “One bank will tell you it has transferred your salaries but the supposed recipient bank will tell you it has not received anything leaving you even more confused”, says John, I. (2009). Olekah, J. (2009) while acknowledging the initial hiccups that dogged the system, advises stakeholders
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY Before the emergence of modern banking system, banking operation was manually done which lead to a slow down in settlement of transactions. This manual system involves posting transactions from one ledger to another which human handles. Figures or counting of money which should be done through computers or electronic machine were computed and counted manually which were not 100% accurate thereby resulting to human errors. Most bank then use only one computer in carrying out transactions which ameliorate the sluggish nature of banking transaction. Nigeria do not embrace electronic banking early compared to developed countries. Nigeria adopted electronic banking system in the early 2000s. During the introduction of electronic banking system, the use of raw cash was said to have bred corruption through the “cash and carry syndrome” usually linked with the swift movement of Ghana-must go” bags by some politicians. Such bags as some analyst say, are a major source of corrupt practices as dubious persons seeks to bribe their way to avoid been checked in some sensitive areas or places in a corrupt society. Since electronic banking started in all Nigeria banks, it has been a woe for civil servants; checks show that some staff in establishments such as the national boundary commission for instance, are yet to receive their salaries for the previous months as efforts to electrically transfer salaries into their account have failed according to Ibrahim, D. (2009). “One bank will tell you it has transferred your salaries but the supposed recipient bank will tell you it has not received anything leaving you even more confused”, says John, I. (2009). Olekah, J. (2009) while acknowledging the initial hiccups that dogged the system, advises stakeholders
Bibliography: Anyanwaokoro, M. (1999). Theory and Policy of Money and Banking, Enugu, Nigeria: Hossana Publications. Anyanwaokoro, M. (2001). Element, Practice and Processes of Banking Operations, Enugu, Nigeria: Hossana Publication. Anyanwaokoro, M. (2006). Nigeria Banking Laws and Regulations, Enugu, Nigeria: Hossana Publication. Clive, W. (2007). Academics Dictionary of Banking, New Delhi, India: Arrangement Academic New Delhi. Omotayo, G. (2007). A Dictionary of Finance, West Bourme, England: West Bourme Business School. Onwurah, A. (1998). Introduction to Academics Research Methods, Enugu, Nigeria: Gostak Printing and Pub. Co. Ltd. Orjih, J. (1996). Element of Banking, Enugu, Nigeria: Rock Communication Publication. Orjih, J. (1999). Business Research Methodology, Enugu, Nigeria: Metteson Publishers. Edet, O. (2008). Electronic Banking in Banking Industries and its Effects. International Journal of Investment and Finance, Vol. 3, A.P 10-16. Hodagho, E. (1996). Assessment of Risk Involved in the Payment System. A paper Presented at C.B.N Seminar on Payment System, Vol. 1, P.A 22- 46. Suleiman, B. (2007). Report on the Survey of Developments in the e- payments and Service Products of Banking and other Financial Institutions in Nigeria. Central Bank of Nigeria Library, P.A 6- 14. Usman, S. (1998). Electronic Banking in Nigeria and the Automation of the Nigeria Financial System. A Paper presented at C.B.N seminar on the Dynamic of Managing the Nigeria System in 21st century, Vol. 1, P.A. 12-30. Ibrahim, D. (2009, April 12). Boosting Payment Solution with Visa Card. James, A. (2009 April 21). Boosting Payment Solution with visa Cards. Daily Champion, P.A.12. James, O. (2009, April 21). E-payment and its Challenges. Daily Champion, P.A. 13. Mundu, H. (2010, May 21). Importance of e-payment on Clearing and Forwarding. Daily Sun, P.A.8. Oleka, J. (2009, April 21). E-payment and Its Challenges. Daily Champion, P.A.13.