1.1 Background to the Study

Banks have been significantly affected by the evaluation of technology; competition between banks has forced them to find new market to expand, and the number of financial institutions that offer electronic banking products increased. Hence, banks have begun to offer electronic banking services to improve the effectiveness of distribution channels through reducing the transaction cost and increasing the speed of services. Recently, electronic banking has become the way for the development of banking system, and the role of electronic banking is increasing in many countries. It offers opportunities to create services processes that demand few internal resources, and therefore, lower cost. As well as it provides wider availability and possibility to reach more customers. From the customers’ point of view, electronic banking allows customers easier access to financial services and time saving in managing their finance (Almazari and Siam, 2008; Ayrga, 2011; Tan and Teo, 2000). Indeed, the emergence of electronic banking has prompted many banks to develop marketing and information technology strategies in order to stay competitive. Venkatesh, Morris, and Davis (2003) noted that the successful implementation of information systems is dependent on the extent to which such a system is used and eventually adapted by the potential users. Information system implementation is not likely to be considered successful if users are unmotivated to use that type of technology, and thus it will not bring full benefits to the organization. In order to motivate customers to use electronic banking, banks must make key improvements that address the customers’ concerns.

The banking sector has been the backbone of every country. It implements and brings about economic reforms. Any change in this sector through technology has a sweeping impact on any country. The developments in information collection, storage, processing and transmission technologies have influenced all aspects of the banking activity. Moreover the changing business environment offers challenges and opportunities to the organizations. The changing customers’ perception of quality poses unique challenge. Excellence in quality has become an imperative for organizational sustainability (Lewis et al., 1991). The developments of technology shave enabled organizations to provide superior services for customers’ satisfaction (Surjadjaja et al., 2003). As it was discovered that there is need of high quality service to its customers the banks started introducing the quick system to ensure that its customers are being satisfied like, mobile money, electronic transfer etc. The new systems facilitates settlement of inter-bank fund transfers, cheques and electronic funds transfer clearing obligations, payment card switch balances and money market transactions. Electronic transfer is also used to bridge the gap between the rural and urban society. Is plays an important role in the access of financial services and the development of financial services. Mobile banking offers an opportunity to “revolutionize” access to finance.

1.2 Statement of the Problem

The use of e money transfer has become extremely popular among customers as convenient mode of transactions”. The technological innovation has transformed the banking sector. The advantages of using e money transfer have given new impetus in dimensions of service quality and banks are offering new choices to customers. Cabas (2001) noted investment opportunities, reduction in costs, satisfaction of customers and competitiveness as motives to enhance the used of software to the existing network. Moutinho (2002) established that software application facility resulted in speed of transactions and saved time for customers. Due to the growth and development of banking industry, the need for having effective and efficiency in service became the great issue to be tackled. The number of bank customers preferring to use self-service delivery systems is on the increase. This preference is attributed to increased autonomy in executing the transactions. Banks are increasing their technology-based service options to remain competitive. Despite the banking sector introducing the e-banking as one of the delivery channel, there are still problem of inconvenience of services, fear of technology security and confidentiality, technical know-how, the technology usage and reliability. Therefore, this study aimed assessing of the factors affecting the electronic money transfer in banking with views to minimizing the challenges faced by electronic money transfer, using Access Bank as a case study.

1.3 Objective of the Study

The main objective of this study is to find out and assess the factors that affects electronic money transfer in Access bank, specifically the study intends to: 1. Find out the levels in which people are using electronic money transfer in Nigeria 2. Find out and analyze the factors that affects electronic money transfer in Access bank 3. examine the impact of electronic money transfer on the performance of the Banking sector.

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