1.1 BACKGROUND OF THE STUDY
Over the years, banking services have gone through series of development. It has evolved in terms of instruments and breadth of functioning. Okeke, Nwatu and Ezeh (2017) explained that these modifications have been occasioned by continuous financial sector reforms and policy in the environment. The Central Bank of Nigeria (CBN) reform on payment system is mapped out to make sure that a sizeable percentage of currency in circulation is arrested. Over time, what the CBN is targeting is a more or less cashless economy (Okeke et al, 2017). The launch of technology based payment system is done to enhance customers’ satisfaction, relief staff stress and also make the society a cashless economy (Kelvin, 2012). Tijani and Ilugbemi (2015), opined that paying and accepting money between buyers and sellers are not compulsorily to be done via raw cash exchange but exchange can be made using electronic payment system (EPS) like Point-of-sale (POS), Automated teller machine (ATM), terminal, Online web portal, Mobile money solutions and a host other. In Nigeria, electronic banking realignment was tailored towards lessening the number of banks in the country and making the upcoming banks much powerful and dependable (Soludo, 2007). The banking sector realignment that propelled increase financing on deposits money banks in Nigeria led in unification of banks since 2005. Therefore, this has made the post unified banks struggle for refined and enhanced customer service delivery through technology acquisition scheme. The strive for enhanced and refined customer’s service delivery by banks could be tracked down to increasing demand for improved services by the customers who would like to transact their banking transaction at any time and at a suitable location (Oladejo, 2016). Bank service delivery is the center of attention of customer’s satisfaction and has not been completely amplified and strengthened. This is due to bank workers are desperately under pressure attending the need of long queue of customers. Customers have to spend a whole day to transact business in the bank. This enlightened several reforms in the banking industry. In actuality, the financial sector felt the banking industries are not delivering as anticipated and incapable to compete worldwide as a result of the poor capital base. This ended in bank reforms that lessened the number of banks in Nigeria to twenty-three (23) banks in 2005 and later to nineteen (19) recently (CBN bulletin, 2017). The reform also introduced payment system, records keeping, and a lot more other linked bank transaction activities that welcomed Information and Communication Technology. This is anticipated to bring an advancement in service delivery. Suggestions vary as to whether this electronic payment system was introduced to alleviate customers’ hardship or not. At the time, some school of thought felt the hardship has been entirely eradicated (Idris, Olumoko & Ajemunigbohun, 2013; Jean 2018; Oladejo 2016 & Shagari & Olusegun 2014). Others assume that so much has not been achieved in term of good service delivery (Okeke, Nwatu & Eze 2017 & Okoro 2014). It is on this note of inconclusive findings that geared the study to investigate effect of e-payment system on service delivery of Banks in Nigeria: A study of access bank of Nigeria plc.
1.2 Statement of the Problem
Countries across the globe have observed success stories due to using enhanced technology for banking services, such technologies like Local Area Network (LAN), Wider Area Network (WAN), Credit Cards, Electronic Point-of-Sales (POS) system, Automated Teller Machine (ATM), and online web portal. Besides, the information filling system, unified banking system and client information filling (CIF) systems are now electronically done and being regularly used by many banks in other to make sure well-organised, structured and successful operations (Okoro, 2014). E-payment instrument is noted as significant fragment that give rise to availability of a guaranteed and trusted e-payment system (Sumanjeet, 2009: Baddedley, 2004). A lot of researchers (such as Roy & Sinha, 2014; Hassan, Mamman & Farouk, 2013; Joseph & Richard, 2015; Manocharan, 2007 and Kabir, Saidin & Ahmi, 2015) gave resultant effects of e-payment instruments on customer service delivery. The result of their research have shown positive effects between electronic payment systems and service delivery in banking industry (Abubakar, Shagari & Olusegun, 2015; Jean, 2018; Tennyson & Mercy, 2014; Oladejo 2016 and Tijani & Ilugbemi, 2015), others have given a negative reports (Okeke, Nwatu & Eze, 2017 ; Okoro, 2014 ). The results seem indecisive, in consequence, this paper tends to empirically examine these electronic banking instruments which are Automated Teller Machines (ATM) and Point of Sales (POS) terminal usage in the Nigerian business background. The employment of these instruments over the years have been given mixed outcome among both the customers and even the bank officials in Nigeria.
1.3 Objectives of the Study
The study will examine effect of e-payment system on service delivery of Banks in Nigeria: A study of access bank of Nigeria plc.
The specific objectives of the study are to:
i. To examine the significant influence of the use of Automated Teller Machine (ATM) on service delivery of access bank of Nigeria plc.
ii. evaluate if Point-of-Sale (POS) terminal has improved service delivery of access bank of Nigeria plc.
1.4 Research Questions
In an effort to achieve the objectives in this paper, the following research questions were formulated.
i. What is the influence of Automated Teller Machine usage on service delivery of access bank of Nigeria plc?
ii. How has Point-Of-Sale terminal usage improved service delivery of access bank of Nigeria plc?
1.5 Research Hypotheses
The following hypotheses were formulated
H01: Automated Teller Machine usage is significantly correlated with the service delivery of access bank of Nigeria plc.
H02: The use of Point-of-Sales terminal has significantly enhanced service delivery in access bank of Nigeria plc.
1.6 Significance of the Study
Outcome of this study will educate government, community leaders, management of Access bank plc in Nigeria, policy makers in the banking sector, stakeholders and the general public on the effect of e-payment system on service delivery of Banks in Nigeria. The results of this research will also enlighten the aforementioned categories on the origin and objectives of effect of e-payment system on service delivery of Banks in Nigeria,
The findings from this study will constitute a basis for future research and also contributing to the body of knowledge since it will be used as empirical literature.
Outcome of this study will also be a guide for policy formulation both at state and national level as a way of improving service delivery of banks in Nigeria through e-payment systems.
1.7 Scope of the Study
The study covers effect of e-payment system on service delivery of Banks in Nigeria: A study of access bank of Nigeria plc. It will specifically cover the origin, objectives, activities and effect of e-payment system on service delivery of Banks in Nigeria using access bank of Nigeria plc as case study. Therefore, this research will focus on Access bank Nigeria plc in Akwa Ibom state and their staff. Questionnaire will be used for data collection.