Page 1 of 21
Journal for Studies in Management and Planning
Available at
http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 03
April 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 585
Challenges and Prospects of Electronic
Banking in Nigeria
Kabiru Garba Muhammad*
*Lecturer, Faculty of Law, Usmanu Danfodiyo University, Sokoto – Nigeria.
kaybeedlaw@gmail.com
Abstract
E-banking presents benefits such as online banking and elongated banking hours to
customers. These benefits provide comfort, convenience and ease of use for bank
transactions. Before the advent of e-banking, customers could only make transactions from a
bank’s brick and mortar branch offices. E-banking has facilitated the integration of the
functions of some large banks that have several branches around the country on a centralised
network so that transactions can be carried out at any branch on the network without the
customer being physically present in the branch. Nevertheless, e-banking like any other
human activities is fraught with different challenges as well as prospects. The paper discussed
the challenges and prospects of e-banking in Nigeria using the data gathered through the
administration of questionnaires in Sokoto metropolis.
1. Introduction
The focus of this paper is on the challenges and prospects of electronic banking (e-banking)
in Nigeria. E-banking presents benefits such as online banking and elongated banking hours
to customers. These benefits provide comfort, convenience and ease of use for bank
transactions. Before the advent of e-banking, customers could only make transactions from a
bank’s brick and mortar branch offices. E-banking has facilitated the integration of the
functions of some large banks that have several branches around the country on a centralised
network so that transactions can be carried out at any branch on the network without the
customer being physically present in the branch.1
In addition, e-banking enables customers to access their accounts and perform online
transactions anytime of the day as they would on the physical floors of the bank at their own
comfort, pace and convenience without any human intervention. The omission of middlemen
in the e-banking operation is also beneficial to the bank in terms of reduced labour costs and
1 F. K. Andoh-Baidoo, and B. Osatuyi, Examining Online Banking Initiative in Nigeria: A Value Network
Approach <http://www.ejisdc.org/ojs2/index.php/ejisdc/article/viewFile/455/283> (06 August 2013).
Page 2 of 21
Journal for Studies in Management and Planning
Available at
http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 03
April 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 586
increased efficiencies in the banking operations which may enable the bank to provide value- added services to its customers.2 Nevertheless, e-banking like any other human activities is
fraught with different challenges as well as prospects as discerned from the data gathered
through the administration of questionnaires in Sokoto metropolis.
In line with the above, the paper presents the analysis and interpretation of data collated
through the administration of delivery and collection questionnaires. The questionnaires were
targeted at one hundred and twenty (120) respondents; out of which, sixty (60) were lawyers
and the other sixty (60) were bankers. One hundred and twelve (112) copies of the
questionnaires were recovered, which constitutes 93.33% of the distributed copies. Fifty
seven (57) of the sixty (60) copies distributed to lawyers were recovered, this forms 95%. In
the same vein, fifty five (55) of the sixty copies distributed to bankers were recovered, this
forms 91.7%.
2. Method of Data Collection
Data is collected using different tools such as observation, interviews or questionnaires. Use
of questionnaires as general term however includes all techniques of data collection in which
each person is asked to respond to the same set of questions in a predetermined order.3
Design of questionnaires will affect the response rate and the reliability and validity of the
data intended to be collected. Response rates, validity and reliability can be maximised by:
careful design of individual questions; clear and pleasing layout of the questionnaires; lucid
explanation of the purpose of the questionnaires; pilot testing; and careful planned and
executed administration.4
The main purpose of any research questionnaires should be to help the researcher in
extracting maximum data, with the help of minimum questions, from the respondents. The
questionnaires thus act as standard guide for the researcher who needs to ask the questions in
same way because without this standardisation, the process can get haphazard.
2
ibid.
3 M. Saunders, et al., Research Methods for Business Students, 5th Ed., (Pearson Education Limited, Essex,
2009), p.360.
4
ibid, p.361.
Page 3 of 21
Journal for Studies in Management and Planning
Available at
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e-ISSN: 2395-0463
Volume 01 Issue 03
April 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 587
Questionnaires are very important part of data collection methodology which ultimately
facilitates the analysis.5
Design of questionnaires differs according to how it is administered, and in particular, the
level of contact the researcher has with the respondents. There are basically two types of
questionnaires: self-administered and interviewer-administered questionnaires.6
Self-administered questionnaires are usually completed by the respondents. These include
internet/intranet mediated questionnaires which are administered electronically; postal/mail
questionnaires which are posted to respondents who return them by post after completion;
and delivery and collection questionnaires which are delivered by hand to each respondent
and collected later.7
On the other hand, in interviewer-administered questionnaires, responses are recorded by the
interviewer on the basis of each respondent’s answer. These include telephone questionnaires
which are administered using the telephone; and structured interviews where interviewers
meet respondents and ask questions face to face.8
The method adopted in the collection of data in this paper is the administration of delivery
and collection questionnaires which is influenced by factors such as: characteristics of the
respondents; importance of reaching particular persons as respondents; importance of
respondent’s answers not being contaminated or distorted; size of sample required for the
analysis; type of questions asked and number of questions asked.
Hence, the targeted respondents for this purpose were one hundred and twenty (120), out of
which one hundred and twelve (112) responded constituting 93.33% as illustrated in diagram
1 below.
5 How to Write a Research Questionnaire, <http://www.dissertationdeal.com/publications/how-to-write-a- research-questionnaire?page_subcat=advice&page_cat=advice/analysis> (01 August 2013).
6 M. Saunders, et al, op cit, pp.362-363.
7
ibid.
8
ibid.
