This research work examines the impact of e-payment system in operation efficiency in Nigeria banks which was limited to the United Bank for Africa plc. The objectives of the study were to know the importance of automation in providing efficient banking services and to assist the various types of technologies that are used by various banks. Data was collected using primary and secondary sources such as questionnaire, interview and financial records, chi-square method was used to analyze the data collected which lead to the conclusion of hypothesis that alternative hypothesis (Hi) would be accepted which state that the introduction of e-payment in the operation of bank have made significant positive impact on efficient services delivery. Recommendation was made that adequate training staff is necessary to improve skills and exposure must be carried out by management to ensure proper and effective use of available computers resources and to also cope with terming customers population.





According to Ibitoye and Ajayi (1999) Banking operation in Nigeria started sometime in 1891 when it became apparent that banking facilities are urgently needed in Lagos state. In 1892, the African Banking Corporation (the First Commercial Bank in Nigeria) which is established to carter for the distribution of Bank of England notes on behalf of the British treasury and since then the number of banks has increased within the banking industry. Banking is a sector that has product delivery all over the world but mostly in the developed countries predominantly in less than a decade which was introduced by the new generation banks on realizing error of the old banks that carry out manual banking operation. Banking system within an economy may be describe as the framework of laws and regulations of banks and practices which control the flow of financial resources within the economy. Perry, (1996) describe a bank as an establishment which deals in money receiving it on deposit on demand, collecting cheques for customers and lending or investing the surplus until it is require.

The Structural Adjustment Programme (SAP) was introduced into banking business in 1986 designed to alter the structure and operational mechanism of the financial system which change not only the structure but also the contend of banking business positively, the technology of delivery banking services and range of productions in the market was drastically changed, and the change has been a good revolution for banking system. While others see them as another boom compared to what was witnessed in the fifties, there was on increase in the volume of profit and this did not happen by change because banks had to introduce new product or services in order to meet the every changing needs to their numerous customers. SAP has brought this to aid the kind of banking services rendered by the first generation banks which have been described as “it is a fact that in any economy where few dominant control the force”, there will be some structural adequacies as well as lesser quality of product and customer oriented services.

Automation in banking is a natural fall out of the intensive competition going on in the market; it as brought the efforts of banks to introduce electronic banking. Which electronics money transmission is an example of the E-banking services.

The emergence of E-banking can be traced down to the following reasons.

  1. To retain or increased the market share in response to the deregulated and intensely competitive environment.
  2. To meet the delaying and increasing customer needs.
  3. To improve the effectiveness of the bank activities.
  4. To improve the effectiveness of the banking business.

A layman defines computer as an electronic machine that takes in input, process it, and produces output automatically under the control of a stored programme. Andersen, (1974) define computer as a machine which create logical operation in accordance with a predefined programme and transfer the processed data to the output device either for further processing a management control report. The computer consists of the hardware and software. The hardware does nothing unless it is told what to do. i.e it does not function until certain instructions are passed to it; the programme called software described the logical function and a property associated with computer hardware.

Electronic banking comes in the following forms.

  1. Automated Teller Machine (ATM)
  2. Electronic Fund Transfer (EFT)
  3. Magnetic link character
  4. Soil image machine
  5. Counting machine
  6. The punch card reader

E-banking has both positive and negative benefit costs while the positive impact of these changes in term of enhance productivity, secures and profitability are well organized the negative or cost implication in both monetary and real teams tested not to be fully appreciated.

However, since late 1980 the magnitude, character ranges and financial services industry in Nigeria have been phenomenal. They represent organized environment of economic agents and are the country. Although their impact hand been mixed on the whole world which these changes are positive, calculated to improve efficiency, and enlarge market share to ensure survival of the banks in some cases and enhance services delivered on profitability.



The purpose of the study are primarily to know how electronic aid replacing intrusive labour operation and this helps reducing wasting the time of customers which has resulted increase in quality of profitability in banks.

Also to create awareness to the banks on the use of computers because of their numerous advantages over the manual banking system another area of interest for the study is to makes the banks aware that not only banks are in business that is this is a competitive venture, therefore the competitive is not just among the banks but also other non banks are striving hard as an institution, therefore as a result of this banks must strive hard to improve their services as to have a large market share.