Empirical examination of the implementation of electronic payment systems in service delivery of insurance companies in Nigeria

Abstract

(ProQuest: ... denotes formulae omitted.)IntroductionTechnology readiness to backing payment system in the Nigerian insurance market is, indeed, a Herculean task due to its peculiar nature which is further encapsulated by the vagaries of Nigeria's business and market forces. The recent study of Asikhia [2010] had opined that until companies are able to deliver their services in an efficient manner, with technology as key determinant, financial institutions may not be able to retain their customers. The decisions concerning where, when and how to deliver such service have a significant role on the nature of customers' service experiences [Lovelock & Wright 1999].However, technology is being employed to capture information on customers, which in turn is used to monitor the customers' buying behaviour and thus communicate with them via personalised offers [Egan 2004]. Oghojafor, Aduloju, & Olowokudejo [2011] had emphasised that, in the world of business, electronic commerce serves as the cornerstone which evolves relationship within strategic-oriented business environment and thus, strategised for modern competitive edge. The work of Idris, Olumoko, & Ajemunigbohun [2013] opined that enormous effort should be put together at integrating information technology, customer service and firm performance; and thus stipulated that technology is to the advantage of customer and should lead to customer loyalty, as organisation can communicate with customers using up-to-date techniques on a real basis which will remove uncertainty and lead to the creation of trust.Electronic payment system is being noted as vital part of e-commerce. Imperatively, the wider patronage of e-commerce is being said to hinge upon the availability of a guaranteed and trusted e-payment system [Sumanjeet 2009; Baddeley 2004]. Some previous studies [such as Oladele & Akanbi 2012; Ayo & Ukpere 2010; Zulu 2006] had noted problems militating against e-payment to include: integrity, non-reputation, confidentiality, reliability, authentication, authorisation, connectivity failure in telephone lines, devoid of proper legal and regulatory framework, and low level of credit access.While much studies are yet to be recorded on electronic payment implementation in the service delivery of insurance companies in Nigeria; some notable studies, many of which are recent, seem to suggest that, apart from differences in the methodology and variables adopted, electronic payments systems implementation had been feasible in the customer service delivery in the banking sector of the financial system [Moses-Ashike 2012; Auta 2010; Fenuga & Oladejo 2010]. For example, the study of Kaleem & Ahmad [2008] noted that increased availability and accessibility of more self-service distribution channels assists bank administration in reducing the expensive branch network and its associate staff overheads. Some other earlier studies [such as Howcroft, Hamilton & Hewer 2002; Kiang, Raghu & Hueu-Min 2000] established that the most important factors encouraging consumers to use electronic banking and lower fees followed by reducing paper work and human error, which invariably curtail disputes. More so, a decrease in the proportion of customers visiting banks with an increase in alternative channels of distribution had been said to reduce the queues in the branches [Thornton & White 2001].This article, therefore, attempts to provide answers to the following research questions: Has there been improvement in the implementation of electronic payment systems in the service delivery of insurance companies in Nigeria? or Has electronic payment system been fully accepted in the Nigerian insurance market environment? The remainder of the paper is organized as follows: the review of existing literature on electronic payment in relation to service delivery including the theoretical underpins. The methodology section takes note of the empirical analysis including the sample and data collection procedure, the measurement of the variables of interest, and the results. …