1.1. Background of the study
The
rapid changes in business operations in contemporary times in the form of
technological improvement require banks in Nigeria to serve their customers
electronically. Traditionally, banks have been in the forefront of harnessing
technology to improve their products and services. The banking industry and its
environment in the 21st century is highly complex and competitive and therefore
the need for information and communication technology to take centre stage in
the operations of banks (Stevens, 2002).
Electronic
banking is critical in the transformation drive of banks in areas such as
products and services and how they are delivered to customers. Thus, it is seen
as a valuable and powerful tool in the development, growth, promotion of
innovation and enhancing competitiveness of banks (Gupta, 2008; Kamel, 2005).
Given the significant role of electronic banking in the developmental drive of
banks, information technology has been found to lead to improvement in business
efficiency and service quality and hence attract customers as well as retain
them (Kannabiran & Narayan, 2005).
According
to Chang, (2003), Electronic banking contributes significantly to the
distribution channels of banks such as automated teller machine (ATM), Phone
–banking, Tele-banking, PC-banking and now internet banking (Chang, 2003). In
addition, transfer of funds, viewing and checking savings account balances,
paying mortgages, paying bills and purchasing financial instruments and
certificates of deposits processes have improved significantly as a result of
internet banking (Mohammed et al., 2009). This implies that, Electronic banking
has resulted in efficiency in service delivery in the banking sector because
customers can transact business from one side of the country to another and from
both long and short distance.
Other
scholars argued that, electronic banking has transformed traditional banking
practices to the extent that it has been found to create a paradigm shift in
marketing practices resulting in positive performance in the banking sector
(Gonzalez, 2008; Maholtra & Singh, 2007). This shows that the delivery of
efficient and quality service is facilitated by information technology.
Similarly, Christopher et al. (2006) indicated that electronic banking provides
an important channel to sell products and services of banks and is perceived to
be a necessity for banks to be successful. Therefore, service quality and
efficiency in the banking industry has increased tremendously worldwide in the
world due to the integration of information technology into banking operation.
The present study seeks to investigate the extent to which the electronic
banking concept has impacted on customer satisfaction in Commercial Banks.
1.2.
Statement of problem
All
banks compete with each other to attract their customers in different ways
through providing convenient, accessible and acceptable services or/and
products to their customers. One of the most important of these services is the
electronic services that have contributed significantly to increase the
distance between costumers and the bank (Almazari and Siam, 2008).
E-banking
was adopted by banks so as to improve their service delivery, decongest queues
in the banking hall, enable customers withdraw cash 24/7, aid international
payment and remittance, track personal banking
transaction, request for online statement, or even transfer deposit to a
third party account. Despite the effort of banks to ensure that customers reap
the benefits of e-banking, the bank is met with complaints from customers as
regards, malfunctioning Automated Teller Machines (ATMs), network downtime,
online theft and fraud, non availability of financial service, payment of
hidden cost of electronic banking like Short Message Services (SMS), for
sending alert, mandatory acquisition of ATM cards, non acceptability of
Nigerian cards for international transaction amongst others.
This
study is aimed at finding out the reason why these problems occur and in most
cases persist, and then to make recommendations based on the outcome of the
study.
1.3. Objectives of the study
The
general purpose of the study is to investigate the impact of electronic banking
on customer satisfaction in Guarantee Trust bank plc. However, the study
specifically seeks to:
1.
Identify
the Electronic banking services offered by GTB and its usage by customers
2.
To
determine the impact of electronic- banking services on Customer Value.
3.
Examine
the impact of electronic banking on service delivery;
4.
Identify
customers‟ level of satisfaction with service delivery given the introduction
of electronic banking services.
5.
Identify
the benefits to customers for using e- banking services.
6.
Identify
the challenges facing effective implementation of electronic banking system in
Nigeria
1.4. Research questions/hypothesis
Based on the research
objectives, the study will test the following questions:
1.
What are the electronic banking products of Guaranty Trust Bank Nig Plc?
2.
Has the introduction of e-banking significantly affected service delivery of
Guaranty Trust Bank Nig Plc?
3.
Has e-banking positively affected service delivery in Guaranty Trust Bank Nig
Plc?
4.
What are the possible solutions to e-banking challenges in Nigeria?
5. Given the usage of
Electronic banking services, how satisfied are customers of the bank?
Based on the study problem, this
study aims to test the following hypotheses:
H0: Electronic banking products and services have not significantly
improved customers satisfaction
HA: Electronic banking products and services have significantly improved
customers satisfaction
1.5.
Relevance/Significance of the study
The
introduction of electronic into the banking industry has affected service
delivery in the service industry. Many banks are shifting gradually from the
traditional way of banking and are gradually introducing electronic
technologies into their service delivery.
The
outcome of this study will be of immense benefit to the management of GTB Bank
Nigeria Plc, since it will help identify most of the challenges faced by the
banks as well as the complains table by the customers. Solutions will then be
proffered on theses identified challenges. This will go a long way to help the
bank achieve its stated objectives, and in the long run increase shareholder’s
wealth. Furthermore, the study would enable banks executives and indeed the
policy makers of the banks and financial institutions to be aware of electronic
banking system as a product of electronic commerce with a view to making
strategic decisions.
1.6 limitations of the study
There
were some limitations during the study
1. Respondents
were too busy to read the questions properly and tick the answer just for the
sake of completing the survey quickly so there is no guarantee that the data
collected is 100% correct and hence while analyzing the researcher has
considered level of significance.
2. At
most cases I had to ask respondents questions in local dialect
1.7
Organizational preview : A corporate profile Guarantee Trust Bank Plc at a
glance
1.8
DEFINITION OF TERMS
Electronic
banking:
The
definition of e-banking varies amongst researches partially because electronic
banking refers to several types of services through which a bank’s customers
can request information and carry out most retail banking services via
computer, television or mobile phone (Lustsik, 2004).
Electronic
banking can be defined as the provision of information or services by a bank to
its customers, describes it as an electronic connection between bank and
customer in order to prepare, manage and control financial transactions
(Karjaluoto, 2002).