This project work entitled “Impact of internet banking system in Nigeria banking environment” with particular reference to Union Bank of Nigeria. The project is divided into five chapters. The chapter one of the work covers areas such as the introduction, the back ground of the study, statement of the problem, significance of the study, purpose of the study, research questions and definition of terms. Chapter two contains or discusses the literature review and other functions of the topic under study. The chapter three contains. The research design and methodology sources of data collection, population and sample size, methods of investigation, scope and limitation of the study. The chapter four contains the presentation and analysis of data, analysis of the data, and interpretation of result. The chapter five which is the last chapter of the work contains the summary of findings conclusion and recommendation.

CHAPTER ONE

1.0 INTRODUCTION

This is the methodology chapter of the chapters, it briefly explains the background of the study statement of the problem, objective of the study, research questions, statement of hypothesis, significance of the study, scope of the study, limitation of the study and definition of terms

1.1 BACKGROUND OF THE STUDY

In Nigeria, the banking industry witnessed lots of challenges due to increase in the awareness and utilization of banking service. The staff strength and branches of most Nigeria banks inspite of this adjustment the banks cannot satisfy the demands. Some transactions were based on manual and physical present of their customers.

Modern banking system brought relief to the increased volume and complexity of banking operations and services delivery. Experimentation with banking system and electronic fund transfer gradually become part of daily transaction as arrangement were made with banks using micro computer to pay some bill owned big department stores and companies by this practices the internet becomes a services delivery mechanism of their customer has equally embraced it.

Meanwhile information technology through banking system is radically changing how banking is done all over the world and Nigeria is not an exception. The volume and speed of banking system which has created a lot of changes and business opportunities for banks, corporate bnks nad industries. Infact Nigeria is believed to be the largest intenet user in West African with about 100,000 internet user as at year 2000.

It was estimated to have risen to 350,000. However, the population size in Nigeria calls for accelerated sensitization on the need to embrace information technology as the prove of an enabling environment for it’s operation internet is inevitable fo the need to embrace information technology as the prove of an enabling environment for it’s operation internet is inevitable for the success of any modern banking institution since it is a competitive tool as at creates room for customer service and reduce the cost of operations, promotes profitability growth and efficient portfolio management.

The emergence of a crop to new generation banks coupled with computerization of the Nigeria banking system. Remarkably information technology is dynamic continuously coming up in new challenges for human capital development virtually every Nigeria banks claims to be having banking system and on line union bank of Nigeria Plc harbours large amount of information online and of course the marketing distribution costs. Indeed banking system has brought a greater advantage for one bank over another depending on it’s application, operation and service delivery.

1.2 STATEMENT OF PROBLEMS

Banks since the inception of the use of internet banking system in the rate 1980s have not made their presence felt much.

These are as the result of problems associated with the use of banking system includes the following.

1. Nigerians poor infrastructures.

2. Lack of security

3 Lost of ownership and adoption

4. Poor orientation (Illiteracy)

1. NIGERIANS POOR INFRASTRUCTURES

The first major challenge for the future of banking system is Nigerians poor infrastructure word bank data indicated that there are only 6 computers and 4 mainline telephone line per thousand people. Electricity supply is sporadic and inefficient. Most importantly, Nigeria has very low internet penetration, with less than one internet services provided for thousand people.