European Journal of Social Sciences Studies ISSN: 2501-8590 ISSN-L: 2501-8590 Available on-line at: www.oapub.org/soc Volume 2 │ Issue 9 │ 2017 doi: 10.5281/zenodo.1066242 ASSESSMENT OF E-COMMERCE USAGE FOR EFFECTIVE SERVICE DELIVERY IN NIGERIA BANKING SECTOR Soneye Gbolade Michaeli PhD, Department of Business Education, Tai Solarin University of Education, Ijagun Nigeria Abstract: This study assessed the extent of e-commerce usage for effective service delivery in Nigeria banking sector. Four research questions and four null hypotheses guided the study. Descriptive survey research design was adopted for the study. The study covered 64 microfinance banks in Oyo State, South-West, Nigeria. The population was made up of 1275 staffs from the 64 microfinance banks. The sample size consisted of 28 microfinance banks of which 280 staffs were purposively selected. A 28-item structured questionnaire was used as instrument for data collection. Four experts carried out the face and content validity of the instrument. The reliability was determined using Cronbach’s Alpha statistic Reliability Coefficient and reliability coefficient of 0.86 was obtained. The arithmetic mean and standard deviation were used to analyze data, answer research questions and determine the homogeneity or otherwise of the respondents’ means while ANOVA was used to test the null hypotheses at 0.05 level of significance. The findings revealed that microfinance banks in Oyo State have not use electronic payment cards as e-commerce delivery channels. They also use Internet marketing for product advertising and loan availability display; electronic fund transfer but have not been using it for online customers’ enlightment, online promotion of services and sending statements of account. It was recommended among other things, that management of microfinance banks should adopt most of the e-commerce delivery channel used by commercial banks in order to boost their standard of operation within the banking sector also, microfinance bank management should engage, encourage and Copyright © The Author(s). All Rights Reserved. © 2015 – 2017 Open Access Publishing Group 86 Soneye Gbolade Michael ASSESSMENT OF E-COMMERCE USAGE FOR EFFECTIVE SERVICE DELIVERY IN NIGERIA BANKING SECTOR sponsor their staff for re-training programmes to update their ICT knowledge, skills and competencies to effectively use the resources for quality customer service delivery. Keywords: usage, e-commerce, banking sector 1. Introduction Information and Communication Technologies (ICTs) have become key tools and have a revolutionary impact on how people see and live in the world. The place of ICTs in commercial activities and the world in general cannot be ignored. Modern day businesses are conducted and facilitated through the use of telephones, fax machines and computer communication networks through the internet. This phenomenon has given birth to the contemporary e-commerce, e-government, e-medicine, e-banking and e-education among others. Bandele (2006) summed up that ICT is a revolution that involves the use of computers, internet and other telecommunication technology in every aspect of human endeavour. He posited that ICT is simply about sharing and having access to data with ease. It is regarded as the super highway through which information is transmitted and shared by people all over the world. Ozoji as cited in (Jimoh, 2007) perceived ICT as the handling and processing of information (texts, images, graphs, instruction) for use, by means of electronic and communication devices such as computers, cameras, telephone. Ofodu (2007) also refers to ICT as electronic or computerized devices, assisted by human and interactive materials that can be used for a wide range of transactions as well as for personal use. From these views, ICT could therefore be seen as processing and sharing of information using all kinds of electronic device, an umbrella that includes all technologies for the manipulation and communication of information. Watson (2001) observed that, ICTs has revolutionized the way people work today and are now transforming the commercial system. The emergence of ICTs (especially the internet) has revolutionized the mode of conducting business activities across globe. It has change the way businesses operate in this technology era which invariably change business structure, increases competition, create competitive advantages and modified business operations (Ongori, 2009). ICTs have brought about various platforms which serve as veritable tools for improving business growth and economic development. These platforms which serve as new ways of conducting business include e-commerce. E-commerce is the use of the internet and other electronic means for marketing, identification, payment and exchange of goods and services. According to Harrison (2012) e-commerce is the process of buying, selling, transferring, marketing or exchange of product and services or information via electronic means. It is the sharing of business European Journal of Social Sciences Studies - Volume 2 │ Issue 9 │ 2017 87 Soneye Gbolade Michael ASSESSMENT OF E-COMMERCE USAGE FOR EFFECTIVE SERVICE DELIVERY IN NIGERIA BANKING SECTOR information, maintaining relationships and conducting other business transactions by means of telecommunication network (Zwass, 2003). In the words of Laudon and Laudon (2007) e-commerce is the process of buying and selling of goods and services electronically involving transaction using the internet, network and other digital technologies. It is the technology-mediated exchange between individuals and organizations as well as the electronically based intra or inter organizational activities that facilitates such exchanges (Rayport and Jaworski, 2003). E-commerce exposes business organizations to global market which enable business to expand their reach beyond the country of location (Payne, 2003). E-commerce is largely visible in the banking industry inform of electronic banking because latest developments in Ecommerce are witnessed in electronic banking services (Oloyede, Azeez and Aluko, 2015). It is widely believed that e-commerce as a board concept contributes greatly to the rapid development of banking sector because it improves flow of information and increases coordination of actions among banks and customers. However, e-banking is a subset of e-commerce which has been widely adopted in the Nigeria banking sector. Various services of e-commerce can be achieved through e-banking delivery channels to include online banking, internet marketing and advertising, electronic fund transfer, electronic payment card, automated teller machine, cell phone or mobile banking and online customer contact or communication among others. Microfinance banks are those banks licensed to carry on the business of providing financial services such as saving and deposits, loans, domestic fund transfer, other financial and non-financial service to microfinance clients (Central Bank of Nigeria, 2012). Microfinance banks are those banks licensed by Central Bank of Nigeria to render microfinance services to small enterprises of individuals. According to CBN (2012), the target clients of microfinance services are owners of small enterprises, economically active low-income earners, low-income households, un-banked and underserved people in particular vulnerable groups such as women, physically challenged, youths, micro entrepreneurs, informal sector operators and subsistence farmers in urban and rural areas. Majorly, microfinance banks in Nigeria are owned by either individual, group of individuals, community development association, private corporate entities or foreign investors. The potential of microfinance in poverty reduction, economic growth and development has put the issue of microfinance delivery in the mind of stakeholders including the government. The important roles played by microfinance institutions has put microfinance banks among the top agenda of the government and other stakeholders leading them to taken active measures to ensure an efficient and effective microfinance delivery across the country. According to Soludo (2010), these measures on the part of government include increasing the financial base of microfinance banks; formulating strong policy for the operation of European Journal of Social Sciences Studies - Volume 2 │ Issue 9 │ 2017 88 Soneye Gbolade Michael ASSESSMENT OF E-COMMERCE USAGE FOR EFFECTIVE SERVICE DELIVERY IN NIGERIA BANKING SECTOR microfinance banks and categorizing and expanding them beyond the unit community banks of those days. Meanwhile, stakeholders are concerned with activities such as implementation of guidelines introduced by the apex bank, adopting banking innovations most especially in the area of ICT which has brought the utilization of ecommerce into banking sector. While some banks embraced some of the e-commerce delivery channels as innovating way of doing their business some failed to do so especially the microfinance banks. The implementation of the microfinance banks policy and their operation has not address the current realities development and innovation in the sub-sector (CBN, 2012). This necessitated the need for the review of previous regulatory and supervisory guideline to address those issues that may hinder microfinance institutions from operating in line with current innovations in the banking sector. For instance, the amended microfinance banks regulatory and supervisory guideline issued by Central Bank of Nigeria in 2012 addressed issues such as recapitalization, categorization, director’s specification, product and services and statement of permissive activities. It is believed that a robust capital base as contained in the guideline will address some of the challenges such as connectivity power failure, and technical know-how. Also the quality of management of microfinance banks has been strengthened in the guideline to ensure an effective management board for their smooth running. It is believed that the current guidelines ought to have raised the standard of microfinance banks in their mode of operation especially in the adoption of e-commerce delivery channels to better their business and increase competitive advantage in the banking sector. Base on this, there is need for proper examination on the usage of e-commerce as a delivery channels by banking sector in Oyo state, Nigeria. For viewing / downloading the full article, please access the following link: https://oapub.org/soc/index.php/EJSSS/article/view/262 European Journal of Social Sciences Studies - Volume 2 │ Issue 9 │ 2017 89