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CHAPTER ONE INTRODUCTION 1.0 BACKGROUND OF THE STUDY Banks play a vital and dynamic part in a country’s financial and economic development. The development of a country is exceptionally affected by successful banking in the different areas of the economy. Specialists in the banking industry confront an expansive number of complex difficulties in the worldwide commercial center. It is vital for banks to better comprehend the changing needs of customers so as to receive the most recent data innovation framework in order to contend more adequately with other worldwide associations (Malhotra & Mukherjee, 2004). The revolution of Information Technology (IT) has influenced every facet of life, among them is the financial sector. The presentation of electronic banking has revolutionized and redefined the way banks operate now. E-banking is a quick spreading service that permits clients to utilize the computer to access account-specific information and potentially direct exchanges from a remote area – for example, home or the workplace. ATM cards, credit cards ,debit cards, smart cards ,POS ,all these have eased up human life to an extent that today life without these happen to be hard and loaded with inconveniences. The financial business over time has opened to noteworthy change that can be called e-developments which is progressing quickly in all areas of financial intermediation and financial markets, for example, e-finance, e-money, electronic banking (e-banking), e-brokering, e-insurance, e-exchanges, and even e-supervision. The newly introduced technology is becoming the most vital element in the future of banking, influencing their marketing and business strategies. The appropriation of e-banking began to happen quite extensively as a channel of circulation for financial services due to fast advances in technology and intensive competitive banking markets in recent years (Auta, 2010).


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