Prior to the advent of electronic banking, the manual system of banking data, recording and retrieval was in use. As the wind of change started blowing most banks if not all adopted the use of electronic banking (e-banking) for transaction just like any other part of the world, in Nigeria today, e-banking is fast becoming the rule rather than exception. A number of good reasons are adduced for this dynamic change in banking systems especially Nigerian deposit money Bank. One of these reasons is the inherent benefit of e-banking to save time and magnificent efficiency in the speed in the transaction of banking activities and consequently enhancing the performance of banks. Another benefit is the accuracy and reliability of this information if accurate data are inputted. This work is designed to find out the following things; the benefit and problems of electronic banking on Nigerian deposit money Bank. The method of data collection were secondary data which comprises of electronic banking guidelines, financial summary of the Bank over the years, annual report of Bank, journals and magazines of e-banking, computer data base accessed through the internet. analysis tool used to test the hypotheses is the simple linear regression and the student’s t-test. The findings were: the application of e-banking has enhanced the profitability (operating profit, profit before tax and profit after tax) of banks. The study recommends that there is the need for Nigerian deposit money Bank to upgrade their information and communication technology infrastructural facilities, cost of installing a sound ICT should be minimized or regulated by the government and more so, Government should as matter of urgency fix the issue of power supply.




The importance of an efficient telecommunication industry to the socio economic development of any nation is not in doubt and cannot be over-emphasized. It has proved to be such a critical factor in the overall development of societies that it has become both a factor and an indicator of socio-economic development. Without efficient telecommunication system there can be no electronic banking. Electronic banking is an offshoot of internet payment resulting from electronic transaction leading to internet marketing. Following the consolidation of the Nigerian Banking sector in 2005, electronic and internet banking, including mobile banking services and its application has been on the increase in Nigeria. This is so because of the elaborate platform provided by internet technology. The improved internet technology has brought all players into a “Global village”. Businesses and many Nigerian Banks have spread their operations beyond their immediate boarders by tapping into the internet (Oseni, 2008). According to Layi (2008), electronic banking is the wave of the future. It provides enormous benefits to consumers in terms of the ease and cost of transactions. But it also poses new challenges for the country authorities, in regulating and supervising the financial system, and in designing and implementing macro economic policy. However, e-banking has been around for some time in the form of Automatic Teller Machines (ATMs), telephone and mobile transactions, etc. Most recently, it has however been transformed by the internet, a new delivery channel for banking services that benefits both the customers and banks. Access is fast, convenient, available, round the clock and wherever customers are located. Besides, banks can provide services more efficiently and at substantially lower cost with electronic banking. E-banking also make easier for customers to compare banks services and products, increases competition among banks, and allow banks to penetrate new markets and thus expand their geographical reach. Some even see electronic banking as an opportunity for countries with under developed financial system to leap frog developmental stages, customers in such countries can access services more easily from banks abroad and through wireless communication systems, which are developing more rapidly than traditional “wired” communication networks. The adverse effects of this technology boom are that e-banking is not only susceptible to, but may exacerbate some of the same risks inherent in traditional banking. In addition, it poses new challenges, in response many national regulations should be exacted to achieve their main objectives. That is ensuring the safety and soundness of the domestic banking system, promoting market discipline and protecting customer’s rights and the public burst in the banking system. Policy makers are also becoming increasingly aware of the greater potential impacts of the macro economic policy on capital movements (Nsouli and Schaecter, 2010).

Implication of electronic banking in Nigeria; the implication here is that with the introduction of computer technology and other electronic information devices into the banking system in Nigeria, bankers are in a better position to provide better quality services to the banking public, sustain their loyalty and offer them their products and services when and where they want them (Oseni, 2008). In realization of the numerous benefits which banks can derive from this era of computer technology and electronic information age, the First Bank of Nigeria Plc has been in the forefront to embrace the electronic banking system, hence it is taken here as a case study.


The history of First Bank of Nigeria could be traced to as far back as the free banking era of 1892-1952. This era was characterized by the absence of any banking legislation. First Bank of Nigeria (FBN) Plc for over the century has distinguished itself as a leading banking institution and major contributor to the economic advancement and development of Nigeria. Founded in 1894 by a shipping magnet from Liverpool, Sir Alfred Jones, the bank commenced operation in the office of Elder Dempster and Company in Lagos (FBN, 2008). It was incorporated as a limited liability company on March 31, 1894 with head office in Liverpool. It started business under the corporate name of the Bank for British West Africa (BBWA) with a paid-up capital of 12 pounds sterling, after absorbing its predecessor, the African Banking Corporation which was established earlier in 1892 (FBN, 2008). This signaled the pre-eminent position, which the Colonial Government bestowed on it to perform the traditional functions of the Central Bank such as issue of specie in the West African sub-region. To justify its West African coverage, a branch was opened in Accra, Gold Cold Coast (now Ghana) in 1896 and another in Freetown, Sierra Leone in 1898. These marked the genesis of the bank’s international banking operations (FBN, 2008). The second branch of the bank in Nigeria was opened in the Old Calabar in 1900 and two years later, the services were extended to Northern Nigeria. The bank maintains the largest branch network in the banking industry in Nigeria (FBN, 2008). To satisfy the need of its customers, First Bank has diversified into a wide range of banking activities and services. These include, corporate and retail banking, registrarship, trusteeship and insurance brokerage (FBN, 2008). In addition, as part of its strategy of progressive internationally, in November 2002, the bank became the first financial institution in Nigeria to establish a subsidiary bank in United Kingdom. Over the years, the bank has experienced phenomenal growth. With the era of the consolidation in Nigeria in 2005, the Bank was able to raise the required capital base as stipulated by the Apex bank in Nigeria (FBN, 2008). In 1969, the bank was incorporated locally as Standard Bank of Nigeria Ltd in line with the Companies Act of 1968 (now Companies and Allied Matter Act, 1990), changes in the name of the bank also occurred in 1979. First Bank of Nigeria got listed in the Nigerian Stock Exchange (NSE) in March 1971 and won the Nigerian Stock Exchange President’s Merit Award nine times for best financial reporting in the banking sector (FBN, 2008). First Bank Plc is said to be one of the long standing banks in Nigeria. It celebrated its one century anniversary in 1994 and since has joined the new generation banks in improving banking services through information technology.