The introduction of electronic banking has been described as a veritable strategy that will promote economic development and the financial sector in the country.

The Ilorin branch Controller, Central Bank of Nigeria, Mr. Monday Olotewo, and Chairman, Chartered Institute of Bankers of  Nigeria, Ilorin branch, Mr. Frank Akinola, stated this during a lecture organised by the Ilorin Bankers’ Committee in Ilorin on Monday.

The lecture was titled, ‘Electronic banking as a strategy for promoting economic development in Nigeria.’

Olotewo said the introduction of various e-payment initiatives by the CBN had improved the Nigerian Payment System.

He stated that the cheque truncation system introduced in Lagos in August 2012 had reduced the days and costs of clearing instruments.

He added that with effect from March 25, the cheque truncation system would become fully operational in all the states of the federation, adding that the Clearing House activities would stop.

Akinola said though all the deposit money banks in Nigeria had declared e-business as one of the core strategies for the future development, at the same time, e-banking acceptance depended probably on bank service quality, customer preferences and satisfaction.

He noted that banks had embraced innovative banking technologies in recent years.

He added that almost all banks had invested in expanding and improving the information technology system.

Akinola, however, said low information technology penetration; low level of awareness of the banking public; inconsistent government policies resulting in policy summersault; increase in financial crime rate, attitudinal problems  and poor infrastructure were some of the challenges of e-banking in the country.

Kwara State Governor, Alhaji Abdulfatah Ahmed, who was represented by the Permanent Secretary, Ministry of Finance, Alhaji Abdulrauf Ayinla, said there was the need for banks to train their employees  so that they the could check frauds resulting from ICT and e-banking applications.

“We must admit that technology in ICT is rapidly changing. Banks must  deploy a lot of resources not only to acquire ICT but to train personnel that will run the system and check fraudulent activities of people knowledgeable in ICT,” Ahmed said.