In the past few years, banking activities in Nigeria have increasingly depended on the development of Information and Communication Technology (ICT). This is speedily becoming a reality in the industrially and economically advanced parts of the world, with people who are far away being able to engage in formal and informal relationship, which would have required them to engage in travels that may take hours or days. Rising numbers of financial institutions are introducing and expanding their offerings of electronic banking products (Sciglimpaglia and Ely, 2002).

In service organization like banks, information flows more than physical items. In the commercial world, especially in most advanced societies today, money is rather carried in information storage medium such as cheques, credit cards and electronic means than in its pure cash form. Banks have augmented their distribution networks with transactional websites, which allow customers to open accounts, apply for loans, check balances, transfer funds and make and receive payment over the Internet. With this practice, it is believed that the less the pure cash that is used for transactions within a society, the more viable it is to conduct business and banking activities electronically.

Electronic Business is the use of Internet facilities to connect, facilitate and empower business process activities and effective flow of communication and collaboration within an organization and organization with its customers, suppliers, other business stakeholders and the outside world electronically. E-business as a tool has transformed the traditional business practice and virtually every organization at present is an active user. The advent of the Internet has empowered consumers. Consumers can access a virtually unlimited selection of products, brands and sellers.

Customers insatiable appetite for efficient service had compelled financial institution to move fast to a more radical transformation of their business systems and models by embracing Internet banking (Ovia, 2001). The huge investment in Information Technology (IT) is justifiable, as bank managers have become IT savvy. According to Rose (2000) in a recent study by McKinsey consultants in the US estimated that roughly 9 million customers had signed up for online banking. Due to this fact many banks in Nigeria have been busy creating interfaces and building portals and it has become more of a competition and egoism rather than offering customers value added service thus making transaction very easy for them.

During the 1990’s, the Banking sector had vast amounts of New Information Technologies (NIT). Up-growing banks expended huge sums on websites, sophisticated software packages, teleconferencing equipments, broadband networks, mobile communications and other digital technologies (Mbam, 1999). Such investments helped them keep abreast of competitors that were making similar expenditures. Today, many banks are strapped for resources and they need to be extremely selective about the technologies they fund, deploying New Information Technologies (NIT) in ways that are most relevant to their business and strategic objectives including their service marketing efforts.