The topic for the research has been selected with special interest to reveal the impact of E-banking on Bank Performance in Nigeria: A Case Study OF Zenith Bank Plc. An appropriate capital structure is a critical decision for any business organization and this decision is very important not just because of its need to maximized Shareholder’s wealth or increase the market value of companies but also because of the impact such decision has on the company ability to deal with the competitive environment. This project encompasses a comprehensive survey of companies; the research was divided into five main chapters. The first chapter is the introduction, highlighting the objective, scope, significance and limitation of the study. It also talks about the problem encountered in the course of the research and states the research hypothesis. The second chapter is the literature review where capital structure and market value as well as other related and associated terms and concepts were defined and explained. The research methodology takes the third chapter stating the research design, population, research sample, method of data collection and the relevant methodology. Chapter four carries data presentation, analysis and interpretation of the result. In chapter five, summary, findings recommendations and conclusion were presented to finally emphasize the fact that optimum capital structure is a positive line of action for a company that want to succeed.




In the bid to catch up with global development and improve the quality-of-service delivery, the world has witnessed an information and technological revolution. This revolution has touched every aspect of people’s lives including the banking industry. Such changes and developments have impacted quality services and enhances the future of banking activities, consequently, as a result of the increased demand for customer deposit, Nigeria banks, especially new generation banks, have realize the imperative of good and prompt services. Also, due to the fact that some customers lost their deposits distressed banks, customers have now become wiser, more discerning, alert and sophisticated with regards to choosing where it is safe to put their money, and where they would be secured promptly. Thus, they have started looking at the level of services and professionalism of the bank before depositing their funds.

Proximately to the bank is no longer the issue; safety and the level of services, with regards to quality speed and efficiency have become the major issues on the part of the banks, they have realized that the one way they can provide quality service is through the use of technology. Hence, Nigeria banks have not doubt invested much on technology, and have widely adopted electronic and telecommunication networks for delivery a wide range of value-added products and services. They have in the last few years transformed from manual to automated system. According to Abraham (1998), he was of the opinion that as we move into 21st century, banks all over the world realize that only those that overhaul the whole of hire payment and delivery system and operations are likely to survive and prosper in the new millennium. This is due to the pressure of globalization, consolidation, deregulation and rapidly changing technology and information to achieve maximum returns and attracting large numbers client. Unlike before when ledger-cards were used, today banking has been connected to computer networks, thereby facilitating the practice of intern-bank/inter branch banking transaction. The introduction of mobile telephone in 2001 and improved access to personal computers and internet services facilities have also added to the growth of electronic banking in the banks in Nigeria. Many banks have installed a modern computer inter-connectivity backbone that enable them achieve communication of data and multimedia over intranets extranets and with the whole world over the internets. They also have achieved management/staff computer literacy, knowing how to locate, analyze, store and use information to make decision based on their organized data. Ehiduru (2018) expressed that as new generation banks started to use technology to provide efficient, online and real-time services. This means that their customers can for the first time in the history of banking in the country, go to any part of the country where there is branch of their banks and make withdrawals. Electronic Banking encompasses different forms of modern information technology and activities in bank such as Internet Banking, Smart-Cards, Electronic Fund Transfer (EFT), Automated Teller Machine (ATM), Electronic Commerce, Electronic Data Interchange (EDI), Automated Cheque Clearance Faculties ACCF) and many other. All these are banking system services to attain a greater height of excellence.

It is amazing what electronic services have done in the banking industry. This study seeks to examine the impact of e-banking on bank performance in Nigeria.


Basically, the research work is designed to provide answers to the following fundamental questions as regard to the problems that are facing the banking system. The following are the statement of research problems.

What are the current state of diffusions and problems of the bank in adopting electronic banking system?

What are the major development in informant technology that are affecting or bound to affect the growth of e-banking industry?

How are the banks ready to carryout the requirements of electronic banking in their three banking operations?

Withdrawals or conducts of an increasing ranges of other banking business. Before it new era of banking in Nigeria, the industry was characterized by inefficiency, bureaucracy and truly frustrating on the amount of time it takes to services their customers. As a result of anchoring their operation on computer-based delivery system this generation banks have become very profitable. Umoron (1999) as many banks introduced a great volume and complexity of operations, increased in innovation and variety in products and services rendered, financial liberation, redesigning business process and refined their services towards customers. There are changes which are witnessed everyday in the banking system and all other sectors that are deploying electronic banking capital abilities. This manual development which is the central part of most banking activities here in Nigeria today. The technological development has gone a long way to affect the operating system of Nigeria banks by introducing modern system of banking where banks now operate through the electronic banking system. Electronic banking has added beauty and excellence in the banking system.

Electronic banking refers to providing services, such as opening a deposit account, transferring funds among different account and electronic bill presentment and payment. This can be offered to two main ways. First, an existing bank with physical offices can establish a website and offer these services to its customers in addition to its traditional delivery channels. Second, it is to establish a virtual bank.

· What are customer’s reactions towards electronic banking as regard services delivery?

· How supportive is the available infrastructure to electronic banking?

· What are the issue and technical domains needed to be mastered by Nigeria banks in order to compete with the rest of the world?


Besides, the study would attempt to investigate the role of e-banking services in the banking system in Nigeria. This study would also affect the Nigeria banking system. Thus the main objective of this study are as follows.

To investigate the degree of e-banking.

To determine the degree of acceptance of the e-banking services.

To compare traditional baking services with electronic banking.

To investigate the benefit and challenges of E-banking system in Nigeria.

To determine the factors that hinder proper functioning of E-banking.


At the end of this research, answers would have been provided to the following questions.

What are the electronic business and internet?

What is the main motive for banks to turn toward providing electronic banking services, and does it face difficulties and barriers for this sake?

Is the prevailing framework of electronic transaction sufficient to protect working banks information system and consequently does their bank have the required electronic software and human competence to keep up with digital world and achieve the banking distinction?

To realize the practical facts of providing banking services through banks websites and consequently is the client educated and the employee trained to electronic dealings?

Does the current services rendered sufficient to meet competitive purpose and to achieve the quality of banking services?


A hypothesis is a tentative answer to a research question. It is often stated in the form of a relationship between a dependent and an independent variable.

Ho: That adoption of electronic banking by commercial banks will not aid speedy financial transactions.

Hi: That electronic banking in commercial bank will not have negative impact on the standards of banking activities.


The importance, relevance, and considerable values of electronic banking system in Nigeria are too numerous to mention. Electronic banking as seen to be the modern system of banking has various anticipated value that it will ad to the growth and effectiveness of the banking system in Nigeria. By the end of the study, all financial institutions, especially the banking sector will see the need to get involved in electronic system of banking at those that are involved the usage of it. Also, the problem and prospects will be explicitly brought out.

On the other hand, it will bring to the mind of customer’s better visualization and impression in regard to the type of banking services they will require.


The scope of the study will cover the problems and prospects of the electronic banking as it affects banks in Nigeria. Being aware of the great changes caused by technology, especially in Zenith Bank Plc, the study will cover all aspect of electronic services in the bank as modern attribute, which will include Internet Banking, automate Teller Machine, Electronic Fund Transfers, cash and electronic baking embodies will also be revealed in the study.

It should be noted and anticipated that during the courses of this research work, some limitation will be encountered such as:

The fact that not all workers in the banks have in depth knowledge of all electronic gadget used in the bank. This will serve as limitation due to the fact that they were not able to give required information when called upon.

Financial constrained, which has led to the reduction to release, paramount information that are vital to the research.


This takes a look at the various aspects of e-banking in the banking industries. E-banking encompasses different forms of modern information technology and activities. Below are various aspects of e-banking services.

Internet Banking: It is the online banking services for personal or business banking customers with an account in another branch. The services incorporate features which enables registered users have access to their account details from anywhere they find themselves. It allows users check their account balances, statement, change or cancel standing order, print and download their transaction details on to third party for analysis.

Mobile Banking: This is a form of banking services that allows customers perform some transaction on their account using a G.SM phone. It also gives room for users to monitor their accounts analysis, anywhere. This solution is a convenient, cost effective, and secure means of gaining access to one’s account via the short messaging services (SMS) features of their mobile phones.

Values Card: It is smart card that stores money electronically saving users the burden and risk involved in carrying large sums of money around.

Online Banking: After fulfilling the necessary condition of automated online banking is no doubt important commitment to e-banking that a banking institution, can make. Online banking basically allows a customer to transact business in any branch irrespective of branch his/her account is domiciled. In many nations, online banking is gradually beginning to encroach into the banking terrain all over the world.