Chapter One — 1.1 Background to the Study

Electronic Banking (E-Banking) has increasingly attracted the attention of researchers, regulators, and practitioners concerned with economic growth. This growing interest reflects the recognition that electronic banking (e-banking) does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Microfinance Banks in Nigeria.

Selected Microfinance Banks in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on electronic banking (e-banking), there remains limited consensus on the precise nature of its relationship with economic growth, particularly within Selected Microfinance Banks in Nigeria. Many organizations continue to make decisions about electronic banking (e-banking) without a clear, evidence-based understanding of how those decisions ultimately affect economic growth. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Electronic Banking (E-Banking) on economic growth in Selected Microfinance Banks in Nigeria.
2. To assess the extent to which electronic banking (e-banking) influences economic growth within the study area.
3. To identify the challenges associated with electronic banking (e-banking) in relation to economic growth.
4. To recommend strategies for optimizing electronic banking (e-banking) in order to improve economic growth.

1.4 Research Questions

1. What is the effect of electronic banking (e-banking) on economic growth in Selected Microfinance Banks in Nigeria?
2. To what extent does electronic banking (e-banking) influence economic growth within the study area?
3. What challenges are associated with electronic banking (e-banking) in relation to economic growth?
4. What strategies can be adopted to optimize electronic banking (e-banking) in order to improve economic growth?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around economic growth. For managers and practitioners within Selected Microfinance Banks in Nigeria, the study provides practical insight into how electronic banking (e-banking) can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this MSc study confines itself to Selected Microfinance Banks in Nigeria, focusing specifically on how electronic banking (e-banking) relates to economic growth within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.