Appraisal of the effect of electronic payment system on customer satisfaction in Nigeria banking system

Appraisal of the effect of
electronic payment system on customer satisfaction in Nigeria banking system. A
study of Access bank Plc, Calabar 

CHAPTER ONE

INTRODUCTION

1.1.  Descriptive Background of the Study

Today’s
business environment is extremely dynamic in nature. It has experienced rapid
changes as a result of technological improvements, increased awareness and
demands for banks 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, thus, information and
communication technology (ICT) is at the centre of this global change.  Amedu (2005) asserts that banks over the time
have been using electronic and telecommunication networks for delivering a wide
range of value added products and services. Therefore, information systems
could not be ignored because they play a critical role in current Banking
system in Nigeria.

Electronic banking
is known as e-banking, virtual banking or an online Banking, it is a service
that allows customers to access their bank information, conduct financial
transactions, make deposits, withdrawals and pay bills through the internet
without having physical visit to their banks. It provides the convenience of
accessing banking facilities from the comfort of their home/offices. (Awamleh
& Fernandez, 2005).

The concept of
electronic banking system began when the first Automated Teller Machine were
instated in the 1970s. An ATM machines allowed deposits to be made from the
remote locations a convenience for customers who otherwise would have had to
withdraw cash personally from their bank. The advantages offered by ATM
Machines quickly split over to encompass other areas of bank services,
computerizing manual system for greater efficiency and time savings. The
concept behind ATM machines gave rise to smart cards, intranets and internet
banking, electronic funds transfer {EFT}, NIBSS (Nigerian interbank settlements
system), POS {Point of Sales Service.}, Access mobile, and other electronic
devices (Ahasanul, 2010).

The growth in
the application and acceptance of internet-driven technologies means that
delivering an enhanced service is more achievable than ever before, however it
is also more complex and fraught with potential costs and risk. The internet
introduces customers to a new perception of business time as always available
and demanding an urgent and rapid response. The serves as a challenge for
managers who must to reconcile their business and their own personal
perceptions of time with the perceived reality of internet time, as the
internet has decisively shifted the balance of power to the customer.

Presently,
banks in Nigeria are adding value to their services for customer’s
satisfaction. The customers have more choices in choosing their banks because
the new age IT (Information Technology) is bringing about sweeping changes in
the banking industry, forcing them to reengineer many of their basic processes
and systems. Few of the technology-driven electronic banking services being
offered are viz. Automated teller machines ATM, Electronic Clearing Service
(ECS), electronic funds transfer (EFT), tele-banking, internet banking etc. New
technological capabilities are now being effectively used to create value and
to better manage customer relationship in Nigeria banking system. (Raji, 2010).

1.2 Objectives of the study

The main objective of this
research is to appraise the effect of electronic payment system on customer
satisfaction in Nigeria banking system. Specifically, the study will examine
the following objectives:-

i.     To evaluate the effects of electronic payment
system on banks customers.

ii.    To assess the impact of
electronic payment system on the bank’s service delivery.

iii. To examine the effect of
electronic payments on competitive advantage of the bank.

iv.       To ascertain the effect
of electronic payment system on increase in market size of the banks.

1.3  Research
questions

 The following research questions
were developed in order to guide the study:

i.     Does the electronic
payment system enhance service delivery in the banking system?

ii.    Does the electronic
payment system increase the market size of the banks?

iii.   Does the electronic payment
system enhance the competitive advantage of the bank’s?

iv.  Does the electronic
payment system enhance customer satisfaction of the banks?     

1.4  Scope of the study

In terms of coverage, this study will focus on the
effect of electronic payment system on customer satisfaction in Access bank
Plc. This means that issues relating to electronic banking will be explained. In view of the technicalities involved, it would
be unrealistic to assume that all necessary facts have been gathered in the
process of the study. 

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