Electronic Banking System and the Nigerian Banking Environment: An Empirical Review

This research investigated the impact of electronic banking on Nigerian banking environment. The introduction and increased usage of electronic banking has increased banks profitability, created new frontiers, horizons and opportunities for the banking industry in Nigeria. The study population consist of three (3)deposit money banks (DMBs) which includes;First bank of Nigeria, Guarantee trust bank(GTB) and United bank for Africa (UBA), through the judgement sampling technique, data was collected by means of questionnaire in which a total number of a hundred and twenty (120) questionnaires were administered to different bank customers and staff of the 3 selected deposit money bank and a hundred and five (105) were returned for valid analysis. The statistical package for social science (SPSS) using correlation and regression technique was used as an analytical tool for running the primary data. The result of the analysis showed that the deposit money banks are now able to give better services to their customers’ which has improved the efficiency and effectiveness of their operations.In general, electronic banking has made banking transactions easier and faster by bringing services close to their customers. The study further recommended that the Central bank of Nigeria (CBN) should adopt a policy that would require all DMBs to charge two or more digits on every over the counter transactions especially withdrawals and a single or no-digit charges on any electronic platform of withdrawals and payments.