Investigating the Factors Required for a Successful E-Banking Implementation in Developing Countries. a Case Study of a Nigerian Bank

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Technology is the powerful force that drives the world into a converging commonality. (Levit, 1992). According to Combs et al., (1992). Technology has been one of the most indispensible and vital factors for the development of mankind since the beginning of time. Technology is of no doubt very beneficial to man because it brings about easier and more convenient way of doing things. The successful use and implementation of Information and communication technology (ICT) in developed countries has raised expectations in many developing countries that ICT can be used to enhance productivity and efficiency, hence creating a faster development in their environments (Krishna & Walsam, 2005). Okpaku (2003) suggests that ICTs combined with knowledge management hold much possiblity for driving the development process. Developed countries adopt technology and manage it properly but this is not so easy for developing countries. Walsham and Sahay, (2006) stated that the key challenge with respect to ICT is to address the issues concerning the people who are unable to access the technologies and use them efficiently. ICTs are very necessary to developing countries. But the question is how beneficial are ICTs for these developing countries? (Walsham & Sahay, 2006). Developing countries find it very tasking to implement ICTs and there have been several cases of failure due to several issues. Heeks (2008) suggests that educational systems in developing countries are often inadequate to meet the challenges faced in those countries, thus causing failure in the implementation and management of newly invented technologies. These new technologies include e-commerce, e-banking etc. Electronic banking is generally regarded as a way of providing banking services to customers with the internet, at a reduced cost to the banking industry and better convenience to customers (Pousttchi & Schurig, 2004). It is obvious that people are reacting positively to the invention of electronic banking because it is really convenient and it aids flexibility in banking. It has also made work a lot easier for the bank staff because customers can attend to minor issues such as accessing their account balance and viewing their statement of account from their homes or offices. E-banking consists of several technologies and channels, which include telephone banking through the use of both landlines and cell phones, direct bill payment, electronic funds transfer (EFT), and, most recently, PC or online (internet) banking (Lassar, Manolis & Lassar, 2005). Online banking and other electronic payment systems are new, and the development and diffusion of these technologies by financial institutions is expected to bring about a more efficient banking system (Akinci, Aksoy & Atilgan, 2004). Chou and Chou (2000) identified five elementary services linked with online banking, these services are checking of account balances and transaction histories, payment of bills, transferring funds between accounts, requesting credit card advances and ordering cheques. Before the innovation of electronic banking system, banking could only be done traditionally i.e. in the bank. That caused problems such as long queues, inconvenience, time wasting etc. One had to always go to the bank to perform transactions. This was really inconveniencing and time consuming, thus this lead to the invention of e-banking. Electronic banking provides flexibility in banking i.e. anytime and anywhere banking. These benefits provide comfort, convenience and user flexibility in making bank transactions. Due to the advent of electronic banking, banks now have a centralised network thus enabling transactions to be carried out in any branch, not necessarily where one opened their account, also transactions can be carried out without the customer been physically present at the bank (for example, using the ATM). The omission of the middlemen (i.e. workers) in the electronic banking procedure is...
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