A Colossal Investigation on the Relationship Between the of E-Naira and E-banking
Objective of the Study
The broad objective of this study is to examine the relationship between eNaira and e-banking. Specifically, the study seeks to:
- Investigate the promising benefits of the eNaira invention in Nigeria.
- Determine if eNaira will create a new market for financial institutions to increase their customer base and add value to their account owners.
- Ascertain if there is any significant relationship between eNaira and e-banking.
The term “Electronic Banking” or “Internet banking” is defined as a remote banking services provided by the authorized banks, or their representatives through devices operated either under the bank’s direct control or management or under the outsourcing agreement. In other words, e-banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a branch and also includes the systems that enable customers of banks, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet [15,16]. The terms which are used to describe the various forms of e-banking are, personal computer (PC) banking; Internet banking; virtual banking; online banking; home banking and remote electronicbanking. E-banking also involves phone banking and the use of automated teller machines (ATMs). E- banking is a process in which accounts can be accessed and manipulated to perform transactions via internet by using personal computers, mobile devices and other web-based applications. These banking helps bank customers to manage their transactions online without been physically present in the banking hall or premises [17-19]. Online Banking services are a 24 hours link to an account information with view of all customer’s banking transactions that enables him/her to access details regarding current, saving, overdraft accounts, loan particulars, Letter of 2 Credit, check book status, exchange rate value of foreign currencies and many other relevant details. In addition to it, by using the online Banking Services customers can make local, National and International remittances. These services also enable them to access and print a bank statement free of cost without visiting the bank. Information technology extend a huge benefit to banks and financial institutions to provide these services by exploiting an extensive public network infrastructure.
Electronic banking, also known as electronic funds transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. You can use electronic funds transfer to:
- Have your paycheck deposited directly into your bank or credit union checking account.
- Withdraw money from your checking account from an ATM machine with a personal identification number (PIN), at your convenience, day or night.
- Instruct your bank or credit union to automatically pay certain monthly bills from your account, such as your auto loan or your mortgage payment.
- Have the bank or credit union transfer funds each month from your checking account to your mutual fund account.
- Have your government social security benefits check or your tax refund deposited directly into your checking account.
- Buy groceries, gasoline and other purchases at the point-ofsale, using a check card rather than cash, credit or a personal check.
- Use a smart card with a prepaid amount of money embedded in it for use instead of cash at a pay phone, expressway road toll, or on college campuses at the library’s photocopy machine or bookstores.
- Use your computer and personal finance software to coordinate your total personal financial management process, integrating data and activities related to your income, spending, saving, investing, recordkeeping, bill-paying and taxes, along with basic financial analysis and decision making
Electronic banking has been variously defined. For example, Abubakar (2014b) sees electronic banking as the provision of variety of banking services at any point in time other than the banking hall through electronic and mobile platforms. Akinyele and Olorunleke (2010) assert that electronic banking is the provision of information about the bank and its product via a page on the internet. Additionally, Mohammed, Siba and Sreekmar (2009) opined that electronic banking uses the internet as the delivery channel by which to conduct banking activities. Electronic banking is the use of electronic and telecommunication networks to deliver a wide range of value added products and services to bank customers (Steven, 2002). Okoro (2014) defines electronic banking as the use computers and telecommunication to carry out banking transactions instead of human interactions. Mohammad (2009) posits that electronic banking includes all types of banking activities performed through electronic network. It is the most recent delivery channel of banking services which is used for both business-to-business and business-to-customers transactions. Imiefoh (2012) maintains that electronic banking is an umbrella term for the process by which a customer performs banking transactions electronically without visiting a brick and mortar institution. In addition, the introduction of electronic banking according to Fagbuyi (2003) would increase the potential of business to attain greater productivity and profitability as trading and transactions, which would be carried out via communication networks would be a lot faster and distance would no longer be barrier to effective transactions. Ayo, Adewoye and Oni (2010) assert that E-banking helps banks to increase speed, shorten processing periods, improve the flexibility of business transactions and reduce cost associated with having personnel serve customers physically. In support of the argument for e-banking, Wada and Odulaja (2012) opined that e-banking has enabled banks overcome borders, adopt strategic outlook and bringin new possibilities. They further assert that e-banking is able to enlarge customer relationships, loyalty and has given banks competitive advantage as far market share is concerned. Similarly, Christopher et al. (2006) revealed that electronic banking has become an important channel to sell products and services and is perceived to be a necessity in order to stay profitable and successful. Mobile e-banking also offers tremendous profit potential by providing mobile financial services to attract the mobile consumers. In fact, it is apparent that many banks are motivated to implement e-banking by forces relating to the maximization of the earning through increased market scope and improved customer relationship due to product delivery convenience and service customization (Simpson, 2002; Wind, 2001).
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine a collosal investigation on the relationship between the of E-naira and E-banking. CBN Abuja form the population of the study.
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
SUMMARY, CONCLUSION AND RECOMMENDATION
It is important to ascertain that the objective of this study was to ascertain a collosal investigation on the relationship between the of E-naira and E-banking. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing a collosal investigation on the relationship between the of E-naira and E-banking.
This study was on a collosal investigation on the relationship between the of E-naira and E-banking. Three objectives were raised which included: Investigate the promising benefits of the eNaira invention in Nigeria, determine if eNaira will create a new market for financial institutions to increase their customer base and add value to their account owners and ascertain if there is any significant relationship between eNaira and e-banking. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from CBN, Abuja. Hypothesis was tested using Chi-Square statistical tool (SPSS).
In conclusion, the E-naira and E-banking are two distinct concepts in the realm of digital finance. The E-naira refers to a digital currency introduced by a central bank, typically with the aim of providing a secure and regulated form of digital payment within a specific country. On the other hand, E-banking encompasses the electronic banking services offered by financial institutions, allowing customers to access and manage their accounts through digital channels such as internet banking or mobile banking.
The key differences between the E-naira and E-banking lie in their nature and purpose, centralized control, currency functionality, and technology infrastructure. The E-naira is a centrally controlled digital currency regulated by a central bank, while E-banking services are provided by multiple financial institutions and subject to banking authorities’ regulations. The E-naira serves as a medium of exchange, unit of account, and store of value, whereas E-banking focuses on facilitating various financial transactions and account management. While digital currencies like the E-naira often rely on blockchain or distributed ledger technology, it is not a fundamental requirement for E-banking services.
It is important to note that this conclusion is based on a general understanding of digital currencies and e-banking, and specific details may vary depending on the context and implementation of the E-naira or any other digital currency. For accurate and up-to-date information, it is advisable to refer to official sources or recent research and studies conducted on the subject matter.
- Education and Awareness: Governments and central banks should prioritize educating the public about the benefits, risks, and proper usage of digital currencies like the E-naira. Similarly, financial institutions should continue to educate their customers about the features and benefits of e-banking services. This will help promote adoption and ensure that users are well-informed.
- Regulatory Framework: Central banks and regulatory bodies should establish clear and comprehensive regulatory frameworks for digital currencies, including the E-naira. These frameworks should address issues such as anti-money laundering (AML), consumer protection, cybersecurity, and privacy concerns. Similarly, regulations should be in place for e-banking services to protect customers’ financial information and ensure fair practices.
- Infrastructure Development: Governments and financial institutions should invest in robust technological infrastructure to support both digital currencies and e-banking services. This includes improving internet connectivity, enhancing security measures, and promoting interoperability among different financial systems. Such investments will foster a seamless and secure digital financial ecosystem.
- Collaboration: Collaboration between central banks, financial institutions, and technology providers is crucial for the successful implementation and integration of digital currencies and e-banking services. Open dialogue and cooperation can help address challenges, share best practices, and ensure a smooth user experience.
- User-Friendly Interfaces: User experience plays a vital role in the adoption of digital currencies and e-banking services. Governments and financial institutions should prioritize designing intuitive and user-friendly interfaces for digital currency wallets and e-banking platforms. This will make it easier for individuals to access and utilize these services effectively.
- Security Measures: Robust security measures should be implemented to safeguard digital currency transactions and e-banking activities. This includes employing advanced encryption protocols, two-factor authentication, and regularly updating security systems to protect against cyber threats and fraud.
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