Impact of information technology on banking

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The Impact Of Information Technology On Banking Activities,(A Case Study Of Woodland Bank)


The introduction of technology has done more benefit than harm in evaluating and comparing their functions and services being delivered by the system technology. Technology is the modern and better ways of doing things either by Business activities like; banking services and Government services, organisation services in relating to their employee, customers, and any third parties with-in the office environment.

The term called ‘’Information Age’’ was highly pronounce in 1990, in which many countries and business environment adopted it in performing or transacting their business activities.

The innovation of information technology prior to 1990 has brought about some benefit to productivities of an organisation, this increases the level of it production cycle, in decision making for top-level management in communicating with-in an organisation by using new technologies e.g. organisation intranet, telephone, video calling. Internet form of transacting business, through online calling, and video conferencing .etc

The ‘’information Age’’ is widely accepted by many telecommunication companies that actually lead to real development and growth into that sector, such as using of wire cable which has been replaced by wireless services which is base on internet server.

Before the introduction of ‘’Information Age’’ there was nothing like mobile phone but nowadays there are many wireless mobile phone for business communication and also radio calling with-in a particular range covered.

Also technology introduction has brought about what is called ‘’Data Communication’’ for business uses, without any physical contact between organisations, government or any business entities either by Fax machine or Internet services etc.

Information system is the process or means of transacting business activities by an organisation and their employee or the customers also relate to their business or services provider by gathering, analysing, processing, store, use and disseminating information (Business Information System).Fourth edition by Paul Bocij, Andrew greasley, Simon Hickies. Published 2008).

It is very obvious that both information system and technology depend on one another, because one of it, cannot work separately without the support of one e.g. Technology equipment would produced data or process information that could result into information system; therefore both are interwoven. Bill Gate (2001) ‘’Says information technology and business are becoming in extricable interwoven’’. So both work together in an organisation environment to give an absolute service and enhance business activities in other to increase their organisation integrity and it business value. Organisation are very much concern about the information that could add value and growth to their business operations because to gather information could cost a fortune and business entities could not spend so much money without deriving much benefit that improve their productivities.

The advance information technology in an organisation needs skill and knowledgeable employee or manager’s in-order to manage and utilize their function and it services in order to deliver a better and good services. With information technology employee are now enjoying organisation work with ease, that has also reduces the work load, with modern equipment there are no physical storage of business information but store on database; such organisation information stored and make copies for emergency purposes and business related information can be used as reference, and can even be shared among employee and also and among top-level management for quick and fast decision making.

There are many information systems that boost business activities e.g. Transaction Processing System (TPS), Management Information System (MIS), Decision Support System (DSS), Office Automation System (OAS), and Expert System (ES).

Information technology has brought about highly competitive environment among business and organisation in the area of performing their business activities and making customers to have alternative choice to decide the best services that meet there different requirement ; therefore organisation would like to put-in place a better accessible technology more than their rivals in the same environment.

Information system was define by Buckingham et at (1987) as system which assembles, store, process and delivers information that is relevant to an organisation (or to society), in such a way that the information is accessible and useful to those who wish to use it, including manager s, staff, clients and citizens.

There are some vital- point from the definition that focused on the end –result of information system, that in a real sense, it does not exist on their own but to perform a specific or multi-function services to an organisation.

Information system interacts with people, object, procedure and sub-system to perform organisational goals and sub-system are the making-up of a real system.

Information’s made-up of raw data that are meaningless but has been utilize and transform to a useful detail that are called information which would enhance organisation goals and objectives.

Information system is like human beings life that has life cycle, which is called System Development Life Cycle (SDLC) that needs to pass through some stages as follows: Feasibility Study, System Investigation, System Analysis, System Design, Implementation, Review and Maintenance.

Now focusing on the impact of information technology in Banking Sector, the new-era of banking system has embarrassed information system absolutely because of the great benefit it brought to real development and potential customer. Banking industry are enjoying the new-generation of advanced technology in providing their services since 1990’ which has made banking industry one of the most important sector with-in the economy of a nation.

It is very obvious that prior to the advancement in technologies, banking industry was engaging in old ways of transacting their banking services and the work load was highly cumbersome and miss-placement of customers details or file was experienced, hence queuing and delay was also in vogue comparing to what is in vogue now but with modern technologies all these problems has been the things of the pass.

Nowadays most of the banking services are done with modern technologies with advanced information system like Cash-Withdrawal, Cash Transfer, Cash Payment, Direct Debit, Analysing Credit Rate, and Decision on Loan Facilities. Transacting business among financial sector, and some services that customers could do on their own without any banker, but with the support of advanced technologies e.g. changing of pin-number, purchasing on the internet etc.

With advancement in technologies, banking industry now provides Insurance Services, Mortgage Services, and Financial advice to their customer.

Conclusively, this research work intend to analysed the impact of information system via technologies in banking industry and the benefit it brought into the system and how it has made ease the banking services to the customers.

Aims Of Objectives

1)This research intend to analysis the problems and difficulties faced by

the technology advancement in (Woodland bank) Lagos branch.

2)This research work also intend to study the problem of identity theft and card authorisation by quantifying in term of lost revenue

3)This research intends to proffer solution to the identity theft and card authorisation.

4)This research work also intends to examine the risk issues and financial implication, plus its cost benefit.

5)This research would provide recommendations to Woodland bank Lagos branch.

How To Acheived The Objectives

1 .This research intends to achieve its objectives by looking at the bottle neck and short comings of technology advancement in Woodland bank Lagos.

2 .By evaluating various types of credit and debit card fraud.

3 .This research intends to achieve it aims by providing some securities measure.

4 .This objectives could be achieved by looking at the financial position of the researching branch.

5 .By analysing all the advantages, of all the issues involved in theft identity.

Research Methodology

This research methodology would be carried out by gathering, processing, Analysing, Interpreting, Evaluating raw data information into visible and useful information through the use of interview and observation and will be used in deciding some fact. The interview question would be both structure and unstructured that will give people chances to express their opinions toward a particular question.

Also this research work will be carried out through the use Journals, Text-book, Seminal reports, interview and observation, Internet etc.

Unforeseeable Limitations/Problems

These are the likely problems this research work could encounter or face in the process of achieving the project.

The Following Are The Limitation

Limited time: - There could be a hindrance to meet-up with the time limit given to complete this research; therefore this research needs to work with the schedules time.

Information sourcing:- This could be another big problem in the cost of carrying out a research work due to the fact that, some information are very vital for the success of the project and can be difficult to obtain due to frustration from people in-charge of such information.

Fund or cost:- Sourcing information could be expensive, sometime due to the cost of travelling to access the information and the cost of making questionnaires.

Chapter Two

Literature Review

On-line banking is the positive syndrome in the banking environment that made delivery of banking services as fast and quick as possible. Visually, almost all banking services could be done on-line except of having liquid cash.

Even with on-line banking, many business transaction could be done with bank authorised Credit/Debit card, any where in the world as much as is permitted.

Therefore, on-line bank is the means of communicating, transacting, and delivery if banking services to their stakeholders or customers and also stakeholders transacting business with their banker via internet which can be done at any point in time, regardless of bank work hours.

On-line banking has made-life easer for stakeholder because transfer of fund can be carryout on your palm or at your resident without consulting your bank physical and your bank card I.e. Credit/Debit card can be used to purchase goods and services in which your bank would remit the amount in-question to the seller provided there sufficient in the account, I.e. e-commerce, electronics way of transacting business.

According to Woodland bank Lagos branch, I spoke with, the said online banking technologies is the most sensitive and risky due to the activities of the “Hackers “using their computer knowledge to track vital information’s, while the bankers had put in place a strong security system to prevent such activities.

Woodland bank, made sure that all their bank card are usage online, unlike some banks that, its Credit/Debit card can only be used to transact business online.

There are many banking services that could be delivered online e.g.;

Transfer of fund from one account to another.

Setting-up a direct debit online.

Purchasing insurance policy online.

Checking and orienting account details online.

Opening of some bank account online.

Payment of some bills online using bank as intermediary.

The Following Are Some Tangible Benefit Of Online Banking.

1 .Online bank had increases revenue for the banks, because some customer are not ready to queue-up in the banking hall, therefore involve only in online banking and also give room for virtual system that would logically increase the total numbers of stakeholder or customer that would tend to patronized the bank.

2. It also reduced the cost of expansion in physical building I.e. having more branches with the local area.

3. Reduce the time spent in customers’ service queue, except for those stakeholders that does not trust online services.

4. Online bank has also reduced the cost of administrative on staff comparing to the time of orthodox banking.

5. Online banking had made banking services and product delivered very promptly because of online banking e.g. is not necessary for a stakeholder to be in bank physically to transfer cash to another bank account.

Intangable Benefits

1) Woodland bank Lagos branch receive feedback from stakeholder or customer on their products and services.

2) Improves the management of information both on the bank and the customer.

3) To satisfy the stakeholder expectation to have a web-site.

4) More efficiency and rapid growth in their product and services development online.

5) Online banking would allow the bank to learn for the future occupation.

According to the fact and details from the official I meet, on-line bank had attracted high percentage of fraud in banking industrial since the introduction of the technology and the insurance company had too, that are protecting the bank had suffered from online fraud and lost huge amount of money which was not disclosed.

Another fact, was that the banker cannot identify the account holder online physically but can only identify by their account detail and the 3digit security number, the pin-number given which suppose to be private or known to only the account holder, but if these are known by the “Hacker”, it can be an advantages to them and lost on the part of the bank and account holder and apart from that, account holder need to protect their bank card details, protect the network to be used in carryout banking transaction or any other business transaction.

On-Line Bank Infractruture

Online banking are comprises of architecture infrastructure that would enable Woodland bank Lagos branch to communicate with their customers or stakeholder and also, stakeholder communicating with the banker, also these infrastructure are combinations of hardware, software application, central control base system, that work interactively to perform a specific function in delivery of banking services.

There are also various securities application enforces within this architecture infrastructure to serve online transaction from the third parties or Hacker.

Despite the bank protection, they are still very much concern about security of online banking. Therefore, there online security department are working non-stop and keeping updating securities and countering the effort of the fraudster and Hacker.

Due to these entire problem some customers are not trusting online banking transaction, no matter how secure it is.

Cost Of On-Line Banking In Woodland Bank Lagos Branch

To implement on-line banking is a huge project that would cost the bank a lot of money and the benefit to derived must be greater than the cost of introduce such technology i.e. online banking in Woodland bank is a profit oriented financial institution, there must be high benefit to be derived.

Actually the method used by Woodland bank is central control system I.e. headquarter is controlling all the online activities of their branches and the central office spent huge amount of money to develop their online bank transaction because, many web application serves is needed, transaction by file packet, web server. So the branches does not involve in cost of implementation of the online banking but must remit a certain percentage of their income to the headquarter for keeping online banking in shape.

Types Of Hackers

(1)Wizard internet Hacker:- This is one of the most popular hacker and got bitter skill and knowledge of hacking, they used sophisticated tools to log-in into corporate company e.g. bank illegally and make use of important files financial detail.

(2)Employee Attacker:- Some employee are very bad influence on the organisation i.e. some staff can steal some essential financial detail of customers and give it out to their agent to fraud the stakeholder Credit/Debit card and this types of attacker are very difficult to discovered and stop because insider has big role to play.

(3)Individual criminal: - Raymond R. Panko (2003) business data Network and Telecommunication (Pg. 276) criminal attacker who steal credit card numbers, trade secrets and other important information for profit. They either sell this information or try to extort money from the victim to prevent the expose of information.

Advantages Of Websites On On-Line Bank.

1) Reduction in cost of advertising: - Online banking made way for another method of show casing or advertising of Woodland bank banking products and services to their customers or stakeholders and the entire public, this type of product and services awareness is online which is globally and would tend to reduce the cost of physical advertising.

2) Selling of bank products and services:- According to fact and figures of Woodland bank, online banking have made real selling of their products and services more than physical advertising within the bank hall where there is limited time to real get deep about the products and services.

Problems And Risik Of On-Line Banking

The advancement of highly power technologies has given birth to major problem of online banking in which it now a professional job for some individual to hack vital information from organisation for their own utilities, which has lead to negative impact on the organisation.

According to “Paul Taylor,, 27th of June, 2007”phishing and skimming surge attack; involving fake e-mail messages that try and fool internet users into revealing their bank account and other private details are growing. The number of phishing-related crime in U.K soared from 1713 in 2005 to 14, 156 in 2008 and another called skimming or card cloning is also in their rise from 3% to £99.6m last year which represent 25% of U.K card losses.

Therefore, the Hacker or online fraud is not an issue that is only association to Woodland bank Lagos branch but a general syndrome in a financial organisation setting. Advertising around the bank, within the borough, the state and in the country which had negative aspect of limited spreading on their products and services.

2) Enhancing the bank product and services:- The very first purpose of website is to display all the old and new products and services of an organisation, for the user to patronised them, the online banking would also be enhanced the original promotion given to the bank product more extensively than any other means of promotion because internet is a global things.

3) Fast and quick way of updating: - Online banking via internet is a means of faster updating the stakeholder of any changes of their product and services and even their operational system, and also introduction of new product and banking services

4) Promotion of co-operate image: - Image managing of any co-operate organisation is very essential to the company in question because is one of the will that drive and promote all their business activities. Where the hackers are well available with style or ways of attacking, using powerful technologies to view personal bank details.

There are some physical means of practicing identity theft e.g. phishing and skimming.

PHISHING: - This method is like disguising or faking account holder or stakeholder by sending an e-mail for request of account details i.e. account number, security number, password, pin-number pretending to carryout business transaction that would benefit both parties.

Hacker can go to an extent of sending a cheque to your home address in order to deceive the account holder to release important information needed.

In this case the bank will not be liable but very hard to known where or how come the account details is let loss but insurance company will suffered, if provided the account is insured.

Skimming: - The inside may be involve in the style or fraud by copying the account details in the card i.e. the magnetic strip illegally by their deceiving method, that is why oath of secrecy need to be adhered to by bank.

The fraudster are now very much organised like a co-operate setting to fraud organisation, getting account details, also spent huge amount of money to acquire technologies to achieved their aim.

Associated Risks Of Online Bank To Woodland Bank Lagos Branch

The major threat of on online banking is the safety and security of stakeholder or customers financial and account details from the “Hacker”, despite all their protection and lot of fund invested into how to make online banking transaction safer, yet there are still some loop-hole that the fraudster took full advantage and utilized to fraud and, which is costing the bank, the insurance, stakeholder and also denting the bank reputation.

The risk is called identity theft: - “Is the illegal use of the details of another person to obtain goods, services or the transfer of fund” by Graham Curtis and David Cobham (2008) 6th edition; Business information system.

Very obvious from the definition that identity theft is an illegal dealings or ways of fraud and this shooting up more since the introduction of modern technologies in early 1990s, it only in situation of law, e.g. Garnish order, there need to keep all their stakeholders account details private, except in case of Garnish order i.e. by law, where the account details could be release to government.

Fraudster are now becoming more sophisticated in ways of attacking financial institutions, mostly through online banking details and this has pose threats to the bank.

Major Risk Of Online Banking

The following are the major online banking;

  • Fraud.
  • Computer failure.

FRAUD: - Fraud is mostly associated with financial institution due to the large some of money involves and it could be an illegal or dubious way of delivering money or financial data that will eventually turn to cash into the Hackers account or their associated partners and both the bank and the stakeholder would definitely surfer from it.

Woodland bank are also using protection of chip and pin to secure their customer account details i.e. minimum of 6 digit number is given to every stakeholder to protect their on online transaction, without this securities number online banking could not be accessed and this numbers needs to be kept private from any other individual except the account holder.

Immediately account holder log-in to online banking for any transaction, a request for security number pop-up and without placing the correct security number, online transaction could not be completed.

Hacker may be a very close friend or relative of the account holder that could have access to security number that will give access to online banking or unknown. Hackers that are using sophisticated computer equipment to view account holder transaction and copied it for fraudulent activities on the part of the banker, also need protection to prevent Hackers from having access to their database of all the account number of the bank, where the private account is stored.

Encryption is another good way of protecting financial details and data in case of breach of security, the data would be meaningless to interpret by the hacker.

COMPUTER FAULURE: -Another big risk of online banking is system failure which can jeopardise many stakeholder financial details and let loose easily some financial data and also cost the bank to loose some money.

There are also some possibilities of having traffic or jam account i.e. mixed-up together and interchanging account balance but the threat of this has been reduce to a minimum level due to some software protection and some trusted back-up and many copies of database.

Woodland bank based their securities on three categories,

(1)Physical security

(2) Logical security

(3)Administrative security

(1) PHYSICAL SECURITY –This types of security is all about protection of physical financial asset from theft ,including vandalisation and any form of physical damage that may arise from security point of view i.e. database need to be secured and prevent them of been attack by virus that may deform the information store there-in e.g. account holder detail.

Physical access control is very important to the bank central control system i.e. the central terminal ends where data communication and the stakeholder account is been operated, his bank terminal needs to be protected from external intruder stop any unauthorised individual to gain any authorisation.

All the bank online transaction is been control by the unit and also the online card authorisation is been monitor by automatic control systems from this unit.

The following are the most popular types of control from the central control unit of the bank, according to interview;

Smart cards.

Magnet cards.

Close circuit video monitoring.

(I)SMART CARDS: - The bank control central security unit with smart cards technology by string all their customers account detail into a magnetic microchip which is been control with-in the protected central control system and in corresponded access control from the account holder in which it has been authorised as the genuine stakeholder before the transaction would have been completed.

(ii)MAGNET CARDS: -This is to prevent an unauthorised bank staff or intruder to have access into the security control unit, the magnetic strips with encoded identification number which must be recognised because there are needs to control access into this unit because is like the brain of the bank.

(iii)CLOSE CIRCT VIDEO MONITRING: - This is to monitor the activities around and with-in the central control systems of the bank, in case of any external physical intruder or personal.

(2)LOGICAL SECURITY: - This is another way of protecting information asset from being let-lose into Hackers by using firewall system, password system, access control system and intruder detention system to protect the bank financial data and with their customers.

(3)ADIMINISTRATIVE SECURITY: - Its mostly concern with bank staff, who implement and are included in the policies making about information security and how to get financial details protect from any danger that would jeopardise both the bank and the customers, this bank staff needs to be trained on how to secure banking details .

Method Used By Woodland Bank To Protect Their Online Banking

Woodland bank has adopted many various types of security systems to protect their online banking from intruder and make it safer for their stakeholder in the part but now, they have 2 major types that are trusted. Which are;

(1)Woodland bank online method of Credit/Debit card authorisation. The online-protection and security for online transaction through authorisation of Credit/Debit card when using online banking by logging the user to another website i.e. Woodland bank card authorisation site where some security question would be asked before such an online transaction could be processed, but this method has some disadvantages due to the fact that, customers or stakeholder are still experiencing some fraudulent activities on there online transaction or their online account because ,some Hackers are very much intelligent and has good knowledge of computer which can be man over to view all stakeholders activities during online transactions.

Also this could not be effective if the stakeholder is careless to let out his/her private securities detail out and unfortunate get into fraudster.

Card authorisation is the word used by the bank to approve the credit or debit card transaction before using online transaction because of the high rate of fraud and other means of credit card theft.

The Following Are The Types Of Security Question That Would Be Asked When Using Online Banking Transaction

(1)Account holder name.

(2)16 digit numbers on the bank card.

(3)3 digit security numbers.

(4)Valid and Expiring Date on the card.

(5)Security name on the card e.g. mothers name, fathers name, or something else given by the account holder as the security question and these are stored by the bank, thus very useful in case of online banking; that is why is advice sable to keep all these security question private from any individual except if the account holder want to operate a joint account with some else e.g. wife, husband, children etc.

Despite all these security question to protect online bank, Hacker still manipulate their ways into vital financial details of the bank or the customers by cracking the password through exhaustive search, that is why is always advice sable by the bank to use a strong password that will be very difficult for the Hackers to crack by using both figures and alphabets combination in the password.

After all the security question is been answered and completed, there will be another re-directed from the bank site to another web page of the bank where the card authorisation take place with-in 2 to 3 minute by comparing all the questions to the one stored on the database of the bank and if ok, the transaction will be completed, but if otherwise it would negate the transaction.

Lapses Of This Method

(1)If stakeholders account details is known by some else, transaction can take place without the knowledge of the real account holder.

(2)The stakeholder needs to use a secure system to carryout online transaction i.e. using security software to barricade the Hackers from viewing all the financial transaction.

(3)Sometime account holder does forget one of the security question and without completing the security question no transaction to take place. Therefore, taking extra time to setup another security question.

2)Woodland bank Privacy Guard (R) identity theft :- This method of online protection and monitoring of Woodland bank account holder transaction was introduced due to he high alarming rate of online fraud to their stakeholder and got about (5) Five function they carryout but am only concern on 1or 2of their functions that is related to identify theft i.e.

Credit Alerts to tell the stakeholder when people have been checking their credit report and possible fraudulent applications.

Despite the good intentions of the bank, the negative and critique aspect is that the account holder is paying for such protection against identify theft monthly, i.e. sum £6.99 in which some stakeholder believe is too much.

Woodland bank Private Guard (R) – identity theft: - this type of method is good method to an extent, because it’s very safe using this method to protect online banking from the bank on behalf of their stakeholder.

The bank installed system that alert the bank of any fraudulent activities on the account holder details or any illegal transaction, the system installed discovered an Hacker style of ways of their logging-in, to view account details using system of cracking the account holder password, or using know weakness in operating system and application programme e.g. buffer over flow attack by using deleting audit logs and creating a back door account.

Deleting Audit Logs: - This is another method used by the Hacker to cancelled or delete the audit log on a system i.e. Accountholder track using the system in order to hide their presences within and continuing with fraudulent activities.

Back Door Account: - Hacker some time fraudulently creates a back door account after logging-in into account details in case if the password is change from the initial cracked password.

The private identity theft negates all their activities within account domain of a stakeholder and a credit report is sent to the account holder of their past and current state of the account and credit situation.

Benefit Derived By The Bank Using This Method

The following are benefit derive by bank.

(1)Debit Recovery: - By using the information provided and the law enforcement agencies access the details and make use of it.

(2)Managing credit and credit related account.

(3)Checking details on applications for credit.

(4)Checking details on proposals and claims for insurance.

Disadvantages Of The Method

Yet some customer are still experiencing fraud on their online transaction after register with PrivateGuard (R) identity theft due to the failures in the operating system security protection programme.

Cost Of Implementing Protection Against Identity Theft

The cost of implementing security against credit identity theft is very high and the maintenance also can be expensive but the cost implementation does not incur by the branch of this Woodland bank but the parent branch i.e. the headquarter, central control system is been used and each branches has their log-in code and branch sort code to identify a particular branch stakeholder without mix-up.

From the annual yearly report, it was stated that, the bank has spent thousand of pounds for security protection and how to curb credit and online fraud in all their branches.

There must be corresponding benefit in return for speeding such a huge amount of money e.g.

  • Promoting the bank image.
  • Having very low-rate of bad debit.
  • Protecting insurance company from paying too much.
  • Having more customers.

Proffer Solution Method For Protection Of Online Transaction

After many complains of fraud experienced in online banking and there is need for better and lasting solution provided by the researcher, For this reason, the research tend to proffer a better solution to counter the bank initial solution and gives customers rest of mind and absolute protection when using online transaction.

The Following Are The Solution Provided By Researcher

  • Mobile or e-mail Credit/Debit card authorisation before completing the transaction.
  • Use of pin sentry method for starting online banking.

Chapter Three (3)

Resaerch Methodology

A research methodology is the patter or ways of gathering or collecting vital information, raw data, details information through means of , interview and observation of the environment in question, also research methodology is the scientific ways of collecting, gathering, analysing, processing, interpreting, raw data or information into logical conclusion that make sense.

  • Research Design: - A research design in this project context is the overall or general plan stating the type of method and procedure to be adopted in collecting and collating raw data and the needed information for this research is from both primary and secondary data would be applicable.
  • Research Techniques: - There are 3 different type of research techniques, a researcher can use any one depending on the nature of the project, these approaches are;

(1) Quantitative method.

(2) Qualitative method.

(3) Mixed method i.e. the combination of both quantitative and qualitative approach.

Creswell (1998) said quantitative method is based on valid experiment using the factual data and the statistic analysis while Creswell (2003) said that qualitative method is the fact that depends on various opinion, real life situation, interaction between individual about the researching area.

This would gives an easy interpretation for decision area covered in order to get the real fact and vital detail related to the research topic which could be very difficult to get in a formal ways.

For the purpose of this research work qualitative method would be used due to the nature of the research work.

Primary data: - This is raw information that is needed to be refinery into a logical conclusion but for the purpose of this research primary observation form of collection of data shall be used. Delibridge and Kirkpatrick (1994) primary observation are those where you would note what happened or what was said at a particular time keeping a diary is a good way of doing this.

However Robson (2002:320) suggest that data collection may group into (2), descriptive observation and narrative account.

Descriptive observation: - This method focuses on the physical setting, the participant and their activities while narrative account could be what the research observed from the conversation with the people in question.

Advantages Of Participant Observation

(1)Most essential data are collected and very useful.

(2)It gives a closer look into a particular area for better explanation by the researcher.

(3)The researcher experience a real life situation i.e. more of practical.

(4)It gives an in-depth look into researching area.

Disadvantages Of Participant Observation

(1)It require a lot of time i.e. time consuming to achieved all the need information

(2)It can go against the ethic of research and prove very difficult.

(3)To have complete access to a company may prove very stressful and difficult.

(4)It can be bias, sometimes due to the proximity of the researcher to what is been observed.

Structure Observation

The observation and the internet needs to be structure and tailor because a good interview and observation would give a good research design and it needed to systematically organised because is just one part of the method of collecting data which are most concern on how frequent an issue occur rather than why its happen while the interview would complete the second part.


For the purpose of this research and the nature of the case study, data collection shall be from interviewing and observation , . (Kahn and Cannell, 1957) An interview is a purposeful discussion between two or more people which can help to collect a validated and reliable data that is useful for the research.

Types Of Interview

Group interview are structure into different categories depending on the author view and opinion.

The following are the categories;

(1)Healey, 1991, Healey and Rawlinson, 1993, 1994)

Standardised interview.

Non-standardised interview.

(2)Structure interview.

Semi-structure interview.

Unstructured interview.

(3)Respondent interviews

} By Robson (2002)

Informant interviews

For the purpose of this research both structure and unstructured form of interview would be applied because of the topic and would be very much appreciated.

Secondary Data

Secondary data: - There is a relationship between the primary data and the secondary data, because some information needed from primary sources and refinery into secondary data in order to give a logical conclusion, therefore secondary data is the collection of useful and purposeful Textbook, Journals, Articles, Annual year book of the organisation, some public publications etc. in order to validate and prove the primary data collected.

For the purpose of this research topic, the use of the Greenwich Library was appreciated and useful textbook and the primary data from the researching area.

Structure Interview

This is the standard identical question set-out for the interviewee to answer and very much related to the research area and there is always a kind of social relationship between the interviewer and interviewee while Unstructured interview are non-formal of deriving research data and information needed that give real direction of in depth and the vital information need for the researcher, thus there are no predetermined questions to be asked unlike structure interview. Unstructured interview sometime may be bias due to the nature of information needed i.e. researcher can manipulate his/her way and lure the interviewee to release some essential information without noticing.

Primary Data

Primary data is the collection of raw information that are not refinery from the population size of the researching organisation which are very useful in deciding some vital detail of information in the research .For the purpose of this research, the use of primary data would be used.

Therefore the use of qualitative method would be applied in this research because of the nature of the topic.

Population Size

For the purpose of this research population size is very important and essential in order to have a data collection in an area covered i.e. using a case study of related topic.

Therefore, population size is the total number of element relating together in a given environment e.g. individual, group of people, organisation or company in which vital information; data can be collected for the purpose of giving concrete business decision by gathering, analysing, interpreting those information.

For the purpose of this research, woodland bank is chosen in Lagos branch in which there is good accessible.

Research Instrument

Interview and observation was mainly used for the primary means of collection of data then information given is actually the most accurate and current and most relevant information given and administer by analysing, interpreting those details collected from the people, the bank, group of people etc. Create a logical decision.

The use of observations and interview was used because is one of the suitable way or method of collecting information because of the nature of the topic and cost effective.

Research Instrument Realibility And Validity

Sekaran, (2003) said that reliability is the degree of consistent outcome of measuring the instrument when it is repeated and also validity is the ability of research instrument to measure what is the design to measured.

Robson (2002) assert that there may be four (4) threats to reliability.

Subject or participant error:- These are the error in collecting researching primary data e.g. observation and interview i.e. there may be error of contradicting information at different times of observation and interview, mostly from employee, employers, individual, group of people, organisation.

Subject or participant bias: - This is mostly concern with interview that may be bias in the sense that, there may be acting on instruction and only say what the management directed them to say and hold back the vital information.

Observer error: - This is another type of error committed in research method of collecting data by observer i.e. assuming having a wrong opinion about a particular situation under observation.

Observer bias: - There are different ways of interpreting observation under a particular situation but sometime researcher may want to observe a situation to suit what he/she is researching on, instead of being natural.

Ethical Consideration

Ethic consideration of the financial sector, talking about the banking sector not to release the most sensitive details of their operation to the public and protect the interest of their stakeholder account details, i.e. the oath of secrecy; that is why the use of interview and observation was used in collecting primary data because there was a problem initially in getting needed material and information from researching area but with more explanation, stating the purpose of the needed information with polite communication, it was given.

Chapter 4

Implimentation And Data Analysis

Quanlitative Analysis

This chapter would be focused on the data analysis collected and in-depth discussion and interpreting of the major finding from the interview and observation carried out by the researcher with a link by addressing the aim and objective of the study. This is all about the implementation of the proffer solution by the researcher in order to stop the ongoing problems of identity theft in woodland bank, Lagos branch.

Thirteen (13) interview questions was design and each of the interview question would be interpreted and analysed, thus the interview question were both structure and unstructured one .15 interviewee were selected in order to arrive at the accurate analysis but 10 were successfully interviewed.

The pie chart will show the success rate of the interviewed conducted in percentage (%).

Figure 1

Total interviewee selected


Total conducted of structured


Total non conducted


Success rate %


Calculation = Total conducted x 100% . Total interview

Interview Response Pie Chart

The pie chart represent the success rate of the research survey i.e. 66% of accuracy was achieved.


The pie chart showed the success rate in percentage i.e. 66% of success was able to obtain because of the nature of the researching topic and area due to the fact that the sample chosen is not too high.

Interpretation Of The Interview Questions


Do you use online banking.
















7/10 x 100 = 70%

3/10 x 100 = 30%


Out of 10 interviewers, 7 of the came from the stakeholders and said YES to the interviewed questions i.e. 7 of the stakeholders spoken to, are using online banking while 3 bankers spoken to, are also using online banking.

Therefore from the data analysis, 70% of interviewed is from the bank customers i.e. stakeholders in other to know the rate of customer that are using online banking, which has very high rate of 70 percentage.

Question 2

How often do you use online banking?
















STAKEHOLDER -> OFTEN 4/10 X 100 = 40/1 = 40%

NON-OFTEN 3/10 X 100 = 30/1 = 30%


BANKER 30/10 X 100 = 30%


This means that out of the 7 stakeholder interviewed, 4 of them uses online banking regularly, while 3 of them does not use online banking regularly; but using it once in a while and on the other hand, the 3 bankers interviewed uses online banking regularly, therefore from the interviewed conducted 40% from the stakeholder use online banking regularly while 30% does not use it regularly and from the bankers aspect 30% of them do use online banking often. The percentage is small due to the numbers of interviewed, because of the nature of the research.

Question 3

Has online banking improved your banking transaction?







50% / 20%









STAKEHOLDER -> IMPROVED (%) 5/10 X 100 = 50%.

“ ->NON-IMPROVED (%) 2/10 X 100 =20%.

BANKER 3/10 X 100 = 30%.


The above analysis shows that 50% from the stake holder sample taken i.e. interviewed believed that online banking had improve their banking transactions, while 20% disagree with the interviewed question; but on the part of bank staff, 30% agree with the fact that online banking had improved their banking transactions.

Conclusively, high percentage of interviewed done believe that online banking had improve their banking transaction.

Transaction i.e., majority of interviewee supported the question.

Question 4

Have you ever experience fraud on your bank account online?







60% /10%





20% /10%




STAKEHOLDER -> Experience fraud (%) 6/10 x 100 =60%.

Not experience fraud (%) 1/10 x 100 =10%

BANKER -> Experience fraud (%) 2/10 x 100 =20%.

Not experience fraud (%) 1/10 x 100 =10%.


Out of the 7 stakeholder interviewed, 60% of them had experienced fraud in their online banking transaction, while 10% of the stakeholder had not experienced fraud on their online banking transaction. This interpretation means that the majority of Woodland bank customers had experience fraud in one way or the other on their online transaction before, while 20% 0f the banker had also experience fraud on their online transaction, while 10% of the bank staff had not experience any fraud at all.

Question 5

Do you trust online banking with the security provided?










STAKEHOLDER 7/10 X 100 =70%

BANKER 3/10 X 100 =30%


This implies that high percentage was achieved in the research for the number of people that trust online banking with the security provided i.e. out of the sample taken for interview, 7 customers trust online banking with the security provided; while 3 bankers also trusted the security of online banking.

Question 6

Do you have personal protection and security on your system against credit identity theft?







40% /30%









STAKEHOLDER -> Personal security = 4:- 4/10 X 100 = 40%

No personal security = 3:- 3/10 X 100 = 30%

BANKER 3/10 X 100 = 30%


This analysis implies that out of 7 interviewee from stakeholder sample, 4 interviewee has personal protection and security against credit identity theft i.e. 40%; while 3 interviewee dose not use personal security. And 30% of the banker uses personal protection and security against online fraud.

Question 7

Do you insure your online banking?










STAKEHOLDER -> 7/10 X 100 = 70%

BANKER -> 3/10 X 100 =30%


The stakeholder interviewed believe that despite the protection and security, there is still need to insure the online banking in case of any fraud or credit identity theft. Therefore, it seems like a general scendrome to insure online banking in other to be on a safer side. Therefore 70% of the stakeholder insures there online banking transaction and 30% of the banker also insure their online banking.

Question 8

Does your bank offer you a cheep protection and security in online banking?







20% /50%









STAKEHOLDER -> Offer cheep 2/10 X 100 = 20%

Does not offer cheep 5/10 X 100 = 50%

BANKER -> 3/10 X 100 = 30%


20% of the stakeholder believe that the bank offer a cheap security for £6.99 every month; While 50% of the customers object to, that its expensive to pay such amount of money for security and protection every month because they believe that it is the responsibility of the bank to protect their customers account.

The 3 banker interviewed supported the question that the Woodland bank offer cheap security and protection to their customers.

Question 9

If you had been fraud online ,does the bank or the insurance company refund you back?







60% / 10%









STAKEHOLDER -> Refunded 6/10 x 100 = 60%

Not refunded 1/10 x 100 = 10%

BANKER -> Refunded 2/10 X 100 = 20%

Not refunded 1/10 x 100 = 10%


This implies that 60% of the total stakeholder interviewed had been fraud in their online transaction and refunded back by the bank or the insurance company, while the other 10% out of the stake holder had not experience any fraud or credit identity theft nor been refund back of any money; while 20% of the banker had experienced fraud and the bank had refunded them and the remaining 10% had not experience any fraud.

This also implies that the Woodland bank had meet all their financial obligation to their stakeholder after thorough investigation on fraud situation and the situation is well ascertain.

Question 10

Does the method of bank authorisation provided by Woodland bank effective?







10% / 60%









STAKEHOLDER -> Effective 1/10 x 100= 10%

Not effective 6/10 X 100 = 60%

BANKER -> 3/10 X 100 = 30%


10% of the stakeholder is of the opinion that the method of authorisation provided by Woodland bank is effective and 60% of the customers are of the opinion that the method of authorisation for protection against credit identity theft is not effective because majority of the stakeholder are still experiencing fraud, while 30% of the bankers believe in the method provided by the bank, that is effective despite the fact one (1) of the banker interviewed had experience fraud on online transaction.

Question 11

Which of the alternative system of protection of online banking do you prefer e.g.? Authorisation through mobile phone or pin sentry system of protection.







20% / 50%









STAKEHOLDER -> Through mobile phone 2/10 X 100 = 20%

Through pin sentry 5/10 X 10O = 50%

BANKER-> Through pin sentry 3/10 X 100 = 30%


The two recommended solution provided by the researcher are been supported by the stakeholder interviewed,20% support the use of mobile phone to authorised online transaction while 50% of the stakeholder support the use of pin sentry system because they believe that is the safest and has advantage over the use of mobile phone i.e. what of in case of network failure from the network provider, there would be problem to get-back authorisation from the bank.

30% of the banker interviewed believes that the use of pin-sentry system is the best, because it can only be control by the bank network system.

The Following Are The Unstructure Interviewee Question And Observation Which Was Directly To The Banker

Question 12

What Extent Does The Credit Identity Theft Affect Your Bank I.E. Woodland Bank And The Banker General Opinion?

The first banker I interviewed was the opinion that, it was not only Woodland bank facing the problem of credit identity theft but a general problem to many financial institution and every bank are looking for a way out in other to maintain financial obligation without any lapses to their stakeholder.

The banker finally agreed with the researcher that the credit identity theft is a big problem to the financial institution since the new era of computer age and the so called woodland bank are trying very well to curb the activities of the attackers with many securities measures.

The second banker I interviewed believe that credit identity theft had affected the bank financial circumstances because a lot of money is been spent to protect both the bank and the stakeholder from online fraud and to financial details of stakeholder but it is of good effect that the money spent to curb fraud is less than the benefit derived from effective protection of online banking because more stakeholder will promote and patronise the Woodland bank and their image both internal and external.

The third Banker I interviewed said with the new security measures the degree of damage had been reduced unlike before but some time due to carelessness of the stakeholder i.e. Not protecting or not securing their financial details may be affected by fraud, therefore both bank and stakeholder needs to work together to stop credit identity theft.

Conclusively, the insurance company suffered the effect indirectly as the bank financial insurer.

The researcher observed that, the third banker interviewed are protecting the bank image unlike the stakeholder that expressed the fact and the actual situation of the credit identity theft and how they were affected by the fraud but the banker interviewed expressed the situation has not serious.

Question 13

In Your Own Opinion What Solution Would You Prefer Between The Two Provided I.E. Using Mobile Phone To Authorised Or Pin Sentry System.

The third bankers I interviewed ,expressed a similar opinion on what method to be adopted or more preferable and the bank staff were all considering the bank financial circumstances on what type of solution to be welcomed i.e. the one that less expensive and meet-up with the purpose to protect and secure stakeholder online transaction.

Therefore, the third banker choose authorisation through mobile phone because is going to cost the bank less than using pin sentry method that will cost the bank more money to produce pin sentry machine for each customers or stakeholder using online banking and in this case the cost will be more than the benefit which is not advisable for a profits making organisation.

The Following Are The Proffer Solution That Will Be Implimented By The Bank

  • Mobil or e-mail Credit/Debit card authorisation before completing the transaction.
  • Use of pins entry method for starting online banking.

Mobile Or E Mail Credit/Debit Card Authorisation

This method has been under research quite a while now, and under testing in order to see any side effect or negative side of it before launching it in woodland bank and stakeholder must be aware of the new method of protection when using online banking.

There is implementation committee that would be solely involve in the implementation process i.e. firstly, make it known to the woodland bank Lagos branch, customers that there is new method of online banking protection and to carry customer along with the changes, it must be well communication to them and stating the differences between the old and the new method, that made it the best of absolute guarantee method of protection, that both the bank and the stakeholder can be trusted.

The bank make awareness through their customer service sector that brief the customers e