Review Article Open Access

Electronic Payment Systems and Tele-banking Services in Nigeria

Abstract

The paper examined electronic payment systems and tele-banking services in Nigeria. Thirty six out of the 89 banks in Nigeria as at the end of 2005 were selected for the study. Questionnaire method was used to gather data from bank workers. Findings revealed that there has been a very modest move away from cash. Some payments are now being automated and absolute volumes of cash transactions have declined. Connectivity via the use of Local Area Network (LAN) and wide area network has facilitated electronic transfer of funds. Thirty five out of the 36 banks studied have fully networked their systems to ease communication of account information. The use of Smart Cards, Point of Sales System and Computerized Credit Ratings were not very popular as less than half of the studied banks had fully adopted them. The least fully adopted technologies were ATM, Electronic Home and Office Banking and Telephone Banking. Low rate of adoption of these technologies might be due to low level of economic development, ineffectiveness of NITEL, epileptic supply of power, high cost, fear of fraudulent practices and lack of facilities necessary for their operation. The paper concluded that Tele-banking is capable of broadening the customer relationship, retain customer loyalty and enable banks to gain commanding height of market share if their attendant problems are taken care of.

Dr. Agboola A.

To read the full article Download Full Article | Visit Full Article