ABSTRACT
This research work aims on focusing on the importance of
information technology on banking industries and economic development, with
emergence of technology banking industries as tremendously improve in
performance and be able to contribute to the development of the nation economy.
The aims of this study is to examine the importance of information technology
on banking industries and how it has enhanced the performance of banking
sector.
Data were sourced through primary means. The data gathered
were presented on table in percentage and the three hypotheses formulated were
tested with the aid of Chi Square analysis
From the findings it shows that information technology
play a significant role in developing the banking industries and giving an
effective performance to the industries.
In conclusion information technology cannot be overstress
in the banking industries and economy at large.
TABLE OF CONTENT
CHAPTER ONE
1.1 Introduction
1.2 Statement of research problem
1.3 The aims and objectives of study
1.4 The research questions
1.5 The statement of research hypothesis
1.6 Research methodology
1.7 The significance of the study
1.8 The scope and limitation of the study
1.9 Definitions of basic terms
1.10 The plan of the study
CHAPTER
TWO
2.0 Literature review
2.1 Introduction
2.2 Definition and concept of information and
communication technology
2.3 An overview of electronic banking in Nigeria
2.4 The development and operations of information technology in
Nigeria’s banking industry
2.5 Queuing cost of banking
2.6 Causes of banking inefficiency
2.7 operational challenges of information to banking
2.8 Information technology and regulatory authority
CHAPTER THREE: RESEARCH METHDOLOGY
3.0 Introduction
3.1 Research
Design
3.2 Methods
of Data Collection
3.3 Population
of Study
3.4 Sample
Size and Sampling Techniques
3.5 Restatement
of Research Hypotheses
3.6 Method Of Data Analysis
3.7 Limitations of the Research Instrument
CHAPTER FOUR: DATA PRESENTATION AND ANALYSES
4.0
Introduction
4.1
Personal
Characteristics of the Respondent
4.2 Response of Respondents to the Problem
Areas
4.3 Testing and Interpretation of the Hypotheses
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
of Findings
5.2 Conclusion
5.3 Recommendations
References
Appendix
CHAPTER ONE
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
The
background of banking business in Nigeria can be traced to the keeping of
valuables over the years .banking in Nigeria has developed to such level that
the system does not need to hold all the funds in its vaults for the purpose of
meeting the day to day withdrawal needs. The systems hold a small proportion,
otherwise known as factional essence to meet the customer’s withdrawal needs.
The other (bigger) fraction is what the banks do business with.
Today’s
business environment is very dynamic and undergoes rapid changes as a result of
technological innovation, increase in awareness and demand from customers.
Business organizations, especially the banking industry of the 21st
century operates in complex and competitive environment characterized by these
changing conditions and highly unpredictable economic climate.
Banking can
simply be express as the business of keeping, lending exchanging and issuing of
money {Barnhart and Barnhart 2000} it can also be said to be the business of
bankers.
Banking today
is undergoing a rapid and radical transformation .the symptoms are obvious, new
product, new players, new challenges, new channels are appearing daily this
transformation is taking place across all sections of the banking industry.
Information
and communication technology (ICT) or (IT) is at the center of this global
change curve. Laudon and Laudon 1991 contend that managers cannot ignore
information technology system because they play a critical role in a
contemporary organization. The point out that the entire cash flow of most
fortune companies is linked to information system. The application of
information and communication technology concepts, techniques policies and
implementation strategies to banking system services has become of fundamental
importance and concerns to all banks and indeed a prerequisite for local and
global competitiveness IT directly affects how managers decide, how they plan
and what products and services are offered in the banking industry. It has
continued to change the way banks and their corporate relationships are
organized worldwide and the variety of innovative devices available to enhance
the speed and quality of service delivery information technology is one of the
major issues on any chief executives agenda, thrust into prominence by the
massive and increasing magnitude of its costs at a time when competitive
pressure has never been greater, (Carrington et al, 1994) information
system technology can be any organized combination of people, software,
hardware, communication networks and data resources that collect, process and
dissemination information in an
organization [http/www.Jonathandonner.com/dpnner.Teller.m-banking we pdf].banks
urgently need to improve the ability to think strategically about information
technology investments.
Only banks
that use their technology resources effectively have the opportunity to secure
real competitive advantage in this fast changing competitive industry through
real product and service differentiation.
1.2 STATEMENT OF RESEARCH PROBLEM
The Nigeria
financial sector scene was characterized by long queues of people waiting to
transact one business or the other in bank before 1980. During this period
customer could stay a while just to collect trend in banking, bank executive
have resolved to change this ugly situation some of the ways in which this
issue could be addressed as:
v Introduction
of more innovative service delivery in banks, in view of the increasing
competition in the industry. There is need to engage in more research and development
in order to introduce new producer services.
v There is
need to ensure that banks improve their services delivery so that avoidable
queue of customers in the banking hall waiting to transact one business or
other is reduced to the barest minimum and valuable man hours saved for
productive purpose. This will improve the gross product (GDP) of the nation.
v The impact
of information technology should be underplayed. There I need for banks to take
advantage of the current development in information technology so as to ensure
prompt and quality services. There are few pattern questions that this study
intends to bring to light.
These are:
a) To
extent has information technology enhanced efficiency and effectiveness in
banking sector?
b) Does
information technology affect performance in banking sector?
c) How
do information technology helps in decision making in the banking sector.
1.3 THE AIMS AND OBJECTIVES OF STUDY
i) To evaluate the effect of information
technology on the efficiency and effectiveness of the banking sector.
ii) To ascertain the effect of information
technology on the performance of banks.
iii) To evaluate the effect of in information
technology on organization decision making.
1.4 THE RESEARCH QUESTIONS
i) To what extent has information
technology enhanced efficiency and effectiveness in the banking sector?
ii) Does information technology in banking
affects performance?
iii) Does information technology enhances
decision making?
1.5 THE STATEMENT OF RESEARCH HYPOTHESIS
Hypothesis
is generally defined as a conjectural statement or tentative statement on a
relationship between two or more variables.
The
following research hypotheses were used to test the effectiveness of
information technology in the banking industry.
i) Null hypothesis (H0)
ii) Alternative hypothesis (H1)
Null
hypothesis states that no differences exists between two or more variables, it
is a hypothesis of no different form.
Thus, it haws the scientific advantage of placing the investigator in a
neutral ground thereby reducing the element of personal bias to the
minimum. It is the null hypothesis that
is usually tested.
An
alternative hypothesis is an hypothesis, which specifies any of the possible
conditions not anticipated in the null hypothesis. It specifies conditions,
which hold of the null hypothesis does not hold.
HYPOTHESIS
ONE
Ho: ICT does
not influence efficiency and effectiveness of First Bank Plc., Banking System
HI: ICT
influence efficiency and effectiveness of First Bank Plc’s Banking System
HYPOTHESIS
TWO
Ho: There is no relationship between ICT and
organisational performance
HI: There is relationship between ICT and
organisational performance
HYPOTHESIS
THREE
Ho: IT does not assist organization in
decision making
HI: IT assist organization in decision making
1.6 RESEARCH METHODOLOGY
In
achieving the stated objectives, the research methodology shall adopt
econometric approach. The econometric tools will be the regression analysis
using the Ordinary Least Square Method (OLS). The regression model will be
simple linear and little of multiple regression analysis will be used.
1.7 THE SIGNIFICANCE OF THE STUDY
Information
technology has brought about changes in the economic and social conditions of
the developed countries. Nigeria, as developing country can realize IT to
increase her traditional economic services to global markets. The study
therefore, was based on assessment of the impact of information technology in a
financial organization.
The
significance of the study will include among others the gains that will accrue
to the research and invariably other interested parties. To the researcher a
vast knowledge of the impact of information technology in banks will be gained.
The result of this study will serve as a guide to decision markers in the
financial sector.
1.8 THE SCOPE AND LIMITATION OF THE STUDY
The scope of
this study shall be information technology in First Bank plc. The study is
supposed to touch on the very sensitive area of the bank’s operation. As such
reliance is placed the willingness of the banks official to divide relevant
information for the purpose of the study. In other to ensure objectivity of
comments and remarks. Reliance was placed on secondary data such as annual
report and statement of account. The reports are usually prepared by
independent professional’s standard and codes of conduct.
But because
of financial and time constraints the researchers decides to limit the research
to First Bank Marina Head Office, Lagos.
The
researcher was faced with limitations of obtaining data from the employees and
customers of the bank.
There was
the problem of paucity of data; this problem is indispensable in research
efforts in modern environment since the study is centered on a sensitive part
aspect of bank practices.
Moreover, the major difficulty the researcher
encounter was the time constrains, the researcher had little time going to
other banks for comparison.
1.9 DEFINATIONS OF BASIC TERMS
BANKS: It is an institution where money /valuables
or documents are kept for safe keeping and creates money by lending to
customers.
INFORMATION TECHNOLOGY: This is the
use of electronic devices (technology) to carry out major activities in an
organization. It is the
E-BANKING: Electronic banking this refers
to the use of electronics to carryout baking transactions.
MOBILE BANKING: This refers
to the use of mobile phones to perform or carryout some banking services or
transactions.
SYSTEMS: This is the connection of
computers within an organization to work together.
INTERNET: This is the global connection of
computers in order for them to be able to share and exchange all kinds of
information.
INTRANET: This is connection of computers
in an organization to share all kinds of information.
A.T.M.: Automated Teller Machine is an
electronic machine that gives out cash to a customer as desired by the customers’
trough the use of a card and pin.
PINS: This is a set of numbers required by an
electronic device before it can perform some certain functions.
1.10 THE PLAN OF THE STUDY
To be
divided into five chapters
Chapter one:
- Introductory Part 1.1 to 1.9.
Chapter two:
- Literature Review.
Chapter
three:-Structural Composition of the Study.
Chapter
four: - Research Methodology, Data Analysis and Interpretation of Results.
Chapter five: - Summary,
Conclusion and Recommendation
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