E-BANKING PRACTICES AND BANKS PERFORMANCE

The new millennium brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some individuals while making it available to others. Today’s business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and these demand Banks to serve their customers electronically. Banks have always been in the forefront of harnessing technology to improve their products and 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. Information and Communication Technology (ICT) is at the centre of this global change curve of Electronic Banking System in Nigeria today. (Stevens 2012). The Banking industry has over the time, been using electronic and telecommunication networks for delivering a wide range of value added products and services, managers in Banking industry in Nigeria cannot ignore Information Systems because they play a critical impact in current Banking system, they point out that the entire cash flow of most fortune Banks are linked to Information System.
The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services have become a subject of fundamental importance and concerns to all Banks and indeed a prerequisite for local and global competitiveness in the Banking sector. The advancement in technology has played an important role in improving service delivery standards in the Banking industry. In its simplest form, Automated Teller Machines (ATMs) and deposit machines now allow consumers carry out banking transactions beyond banking hours.
The internet is revolutionizing sales techniques and perceptions of leading brands, and the internet is intensifying competition in all its forms. Banking sector continues to use the internet to add value to their customers’ satisfaction; but in order for this to work effectively - maximizing opportunities, reducing risks and overcoming problems – an E-Banking strategy is required. The growth of the Web and Internet as new channels, the growth in their use by customers and the floor of companies entering the market, presents a series of key challenges to companies. It is easy and cheap to put up a website. But to create an environment delivering effective service on the Web to a significant proportion of your customer base requires an E-Banking strategy. Electronic Banking offers different online services like balance enquiry, request for cheque books, stop payment instructions, transfer instructions, account opening, payment of bills, E-statement and other form of transitional Banking services.
In Nigeria, customers of banks today are no longerabout safety of their funds and increase returns on their investments only; Customers demand efficient, fast and convenient services. Customers want a Bank that will offer them services that will meet their particular needs (personalized Banking) and support their Business goals for instance; businessmen want to travel without carryout cash for security reasons. They want to be able to check their balance online, find out if a cheque is cleared, transfer funds among accounts and even want to download transaction records into their own computer at work or home. Customers want a preferential treatment and full attention by their choice Bank. All these are only achievable through electronic Banking.
In line with rendering qualities and acceptable services that most Banks in Nigeria are gearing toward and investing large sum of money in information and communication Technology, expectedly such Banks services have been improved. United Bank for Africa (UBA), Zenith Bank, GT Bank (to mention few) are in the forefront in the use of IT in rendering services to their Customers (The Guardian Newspaper April 18, 2014). It also seeks the challenges involved in Electronic Banking and Best industrial practice and the approach of implementing them in Nigeria Banking system.
The main objective of this research work is to examine impact of electronic Banking in Banking Performance on how difference channels could enhance the delivery of consumers and retail products, and also how Banks choose to support their Electronic Banking component/services internally, such as internet services provider, Internet banking software, Core banking vendor, Managed security service provider, Bill payment provider, Credit Business and Credit scoring company, E-Banking systems rely on a number of common components or process
Specifically the study objectives are to;
I. Evaluate the prospects of electronic banking to enhance customer’s satisfaction
II. Evaluate the impact of electronic banking on performance in banking sector
I11. Examine the effects of electronic banking on Bank customer satisfaction.
1V.  To what extent do banks E-banking platform comply with the CBN policy frame work.
V.  what are the challenges to effective E-banking operations.
One of the questions currently being addressed is the impact of electronic Banking on traditional banking practices; there are two views that are prevalent in the Market. The controversies that the internet is a revolution that will sweep away the old practice, argument in are as follow;
1. Does Electronic Banking give consumers much more choices and will consumers be less inclined to remain loyal.
2. Deposits will go elsewhere because these banks will have to fight to regain their customer base. There would be increase in their cost of funds, making their businesses less viable.
3. Can the portal provide momentous share of banking profits.