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The rapidly unfolding development within the information technology in recent times has led to resurgent calls for monies towards an effective cash management through Electronic banking (i.e. E-Banking). In the last few years, within the banking industry in Nigeria several commercial products have designed by banks to improve the qualities of services provided to customer. These products were also designed to meet the increasingly sophisticated needs of finance managers in a cross section or organizations operating in different sectors of the economy.

In recent years, these have been an evolution from paper transfer system and ordinary procedural cash management to an electronic transfer system and more secured and sophisticated cash management. There has been introduced, an increased sophistication in computer applications to cash management and in electronic funds transfer.

It is the responsibility of the finance manager to ensure proper management of a company’s account receivable and payable amongst other tasks. Improper management of these two important variables could result in losses arising from inability to take interest because of too early payments. Overdraft and loan interest charges could be incurred because of unnecessary working capital borrowings. The task faced with the finance manager is accelerating collections and showing a disbursement which is increasingly being done electronically.

The advert of financial innovations such as electronic transfer in the payment system and more recently, the launching of internet banking have transformed the worlds into a global village linked with electronic impulses. Companies are usually offered discounts if payments for certain goods and services are made within a specified period according to the terms of credit.

Similarly, no discount is been attracted when companies pay outside this period and this discount loss can cost the company substantial income when aggregated over an annual period. Companies also have to collect proceeds of sales quickly within the allowed time frame to provide working capital. Failure to do so can lead to working capital shortages prompting the company to borrow from banks at high interest rates to fill the gap between sales and collection of proceeds.

Between 1989 and 1995, several banks have acquired the means to make payment very quickly and transfer funds very quickly to cities in Nigeria within a few minutes of the request. However, the concept of electronic money was introduced in 1996 when the Federal Government through CBN gave approval to All States Trust Bank Ltd. To offer a financial product known as the ESCA smart card, an electronic purse. Subsequently, others followed. These innovations, which are still at a relatively early stage of development have the potential to challenge the predominant role of cash for making small value payments and makes retail transactions easier and cheaper for finance managers. This is an invaluable tool of it provides an enhanced cash management capability and use of electronic funds transfer has resulted in greater economization of money balances.

In an attempt to elucidate on the use of Electronic Banking in cash management, this write-up traces the history of commercial banks and origin of Electronic Banking, provides an in-depth treatise of conventional banking. It goes further to examine the role of Electronic banking in cash management, the advantages and obvious concerns about security of funds.

Financial management is a key to the growth of any business perspective of the size and geographical spread of the firm. As business conqueror their immediate environment and spread to other towns and cities, it becomes more difficult to exercise control over the finances of the firm. There is the need to deliver funds to locations where it is needed and collect excesses from some other locations across the country. A number of problems abound in the Cash Management Service Department of any organization in Nigeria, such problems include the following:
a. Delay in collecting receivables and effecting disbursement without considering interest and discounts that could be earned.
b. Inefficiency in funds transfer from one town or region to another.
c. Ineffective handling or the increasing volume, complexity, competitiveness, customer sophistication and globalization or financial services.
d. Misrepresentatives, misappropriation, and misunderstanding the significance of an effective cash management through Electronic Banking.
e. How to change the concept that technology remains as imported commodity, which continues to depend on the availability of foreign exchange for its consumption.
f. Why many banks have not been able to automate their operations.
g. How effective is the use of Electronic Banking in cash management?
h. What services does Electronic Banking that makes it applicable to cash management?
i. Task and related misappropriation in organizational management as a result of E-Banking.
Nevertheless, solutions to these numerous problem will to a large extent, explain the roles of Electronic Banking in Cash Management.

The main objectives of this research work are:
1. To highlight the important task of the finance manager.
2. To show the essence of Electronic Banking as an effective mean of cash management and their products.
3. To prevent a review of the conventional banking procedure in cash management and the implication of the source of every fund to the company. Hence the cost benefit.
4. To show the importance of cash management in collection and disbursement as it affects discounts, interest and loan/advance charges and the implication and recommendation computer to the aid of management.
5. To take into cognizance the modus operandi, and limitation of conventional banking procedure, which serve as a launching pad for the introduction of electronic banking.

This work will go a long way to benefit:
a. Researchers who wish to have ideas as to the various measure or strategies that might be employed in effective cash management through Electronic Banking.
b. This research work will also expose some likely problems encountered implementing measures/strategies embarked upon in an effective cash management through Electronic Banking.
c. It will provide a frame work or reference to practitioners either in academics or in the business world as will as to bankers, accountants and investors.
d. It will go further to some as a foundation for researchers who may wish to further their research in this field.

The hypothesis of the study are been formulated and will be based on the objective of the study such as;
1. Ho: If appropriate skills are not developed in Management
Information System (MIS), then there will be poor performance.
HI: If appropriate skills are developed in Management Information System (MIS), there will be excellent performance and employee efficiency.
2. Ho: When banks do not acquire the necessary advanced technology, they will lose customer’s confidence and will not be efficient and effective.
HI: When banks acquire the necessary advanced technology, they will gain customer’s confidence and will be efficient and effective.
3. Ho: When effective control measures are not backed by complementary measures such as; passwords, protocols, encryptions e.t.c. fraudulent activities can not be checked.
HI: When effective control measures are backed by complementary measures such as passwords, protocols and encryptions, fraudulent activities can be checked and controlled.

This topic of study is towards an effective cash management through Electronic banking. Problems and prospects, a Case Study of Zenith International Bank Plc. Therefore the research covers the problems, objective of the effective Cash Management through Electronic banking as well as the significance of it, limitations or possible problems and consequences, solutions and authentic recommendations.

The limitations of this research work are catalogued below:
1. The practice of approving project topics at the end of the first semester by the department does not allow enough time for proper research, and this was a great constraint to the researcher.
2. This study was carried out without the required expert skills by the researcher in computing to venture into a topic of this nature which is very technical.
3. Hesitation on the part of the respondents to divulge valuable information was also a constraining factor.

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