TABLE OF CONTENT
Title
– — – – – – – – — – – i
Certification
— — – – – — – – – ii
Approval
Page – – – – – – – – – iii
Dedication
— – — – – — – – – – iv
Acknowledgements
– – – – — – – – – v
Abstract
– – – – – — – – – – vi
CHAPTER
ONE
Introduction– – – – – – – – – 1
1.1 Background of the study- – – – – – 1
1.2 Statement of the problem — – – – – – 3
1.3 Objectives of the study – – – – 4
1.4 Research
question- – – – – – – – 4
1.5 Research
hypothesis- – – – – – – 5
1.6 Scope
of the study- – – – – – – – 5
1.7 Significance of the study- – – – – – 5
1.8 Limitations of the study – — – – – 6
References— – – – – – – – – – 7
CHAPTER
TWO
Literature
review– – – – – – – – – 9
2.1 Introduction- – – – – – – – – 9
- Information Technology concept.- – – — – 13
2.2.1 Information:- – – — – – – – – 13
- Information technology:- – – – – – – 13Data:- – – – – – – – – 15Communication:- – — — — — – – 15Online:- – — – — – – – – 15Disk storage:- – – – – – – – 15Internet:- – — – – – – – – 16Electronic mail (email).- – – – – – – 16Voice mail- – – – – – – – – 17Bibliographic service- – – – – – – 18Teleconference. – – – – – – – 18Video conference:- – – – – – – – 18Video conference – – – – — – 18
2.3 Past researches on information technology – — – 19
2.4 Evolution of information technology. — – – 21
2.5 Development of information technology in banking industry 24
2.6 Computer technology in banking industry. —- – – 25
2.7 Information technology in growing Nigerian financial market 28
2.8 Globalization,
information technology and Nigerian Commercial bank. – – – – – – – 29
2.9 Benefits of applying information technology. – – 30
2.10 Challenges facing the application of information technology in Nigerian banks.- — – – – – – – 33
Reference
– – – – – – — – – 37
CHAPTER
THREE
Research method — – – – – – – 40
3.0 Introduction- – — – – – – – – 40
3.1 Research design- – — – — – – – 40
3.3 Sample size and sampling technique- — – – 40
3.4 Instrument for data collection – – – – 42
3.5 validation of the instrument- – – – – 42
3.6 Method of data collection – — – – – 42
3.7 Method
of data analysis- – – – – – – 43
3.7.1 Chi-Square test of hypothesis– — – – – -44
References– – – – – – – – – – 45
CHAPTER
FOUR
Data presentation and analysis.- — – – – – 46
4.1 Introduction.- – – – – – – – 46
4.2 Analysis of individual questions using simple percentages 46
4.2.1 Analysis of staff question responses using simple percentages. 51
4.2.2 Analysis of customers question responses
using simple percentages. 55
4.3 Hypothesis testing. – – – – – 57
4.4 Discussion of findings – – – – – 60
CHAPTER FIVE
Summary, conclusion and recommendations – – – 61
5.1 Summary – – – — – – – – 61
5.2 Conclusion- — – – – — – – – 62
5.3 Recommendations. – – – – – – 64
5.4 Recommendation for further studies- – – – 65
Bibliography – – – – – – – 66
Questionnaires 71
LIST OF TABLES
Table 3.1: shows the distribution of staff and customers in the three First bank branches 41
Table 4.1 Respondents distribution by Age 47
Table 4.2. Respondent distribution by Sex 48
Table 4.3. Staff distribution by educational qualification 48
Table 4.4. Type of account operated by customer. 49
Table 4.5. Customer’s occupation. 50
Table 4.6. Improvement in banking services. 51
Table 4.7. Information technology and banking efficiency. 52
Table 4.8. Level of customer satisfaction with service delivery. 53
Table 4.9. Increase in profitability and growth of the bank. 54
Table 4.10. Competitive edge over other banks. 55
Table 4.11. Level of customer satisfaction in relation to IT. 56
Table 4.12.Rate of information technology services rendered by the bank. 57
Table
4.13 Observed Table. 58
Table
4.14 Expected Table 58
DEFINITION OF
TERM
ATM- Automated Teller
Machines
BPR- Business
Processing Re-engineering
CBN- Central Bank of
Nigeria
CD-Rom- Compact Disk
Read Only Memory
CISC- Complex
Instruction Set Computing
EDP- Electronic Data
Processing
E-MAIL- Electronic
Message
E-PAYMENT- Electronic
Payment
FISC- Fast Instruction
Set Computing
IEEE- Institute of
Electrical and Electronics Engineers
IBM- International
Business machines
ICU- Internal Control
Unit
IP- Internet Protocol
IT- Information
Technology
LAN- Local Area
Network.
MAN- Metropolitan Area
Network
NC- Networking
Computing
NIBBS- Nigeria
Inter-bank Settlement Scheme
ODBC- Open Data Base
Connectivity
OOP- Object Oriented
Programming
RAM- Random Access
Memory
RISC- Reduced
Instruction Set Computing
SNA- Systems Network
Architecture
TCP- Transmission
Control Protocol
TQM- Total Quality Management
UPS- Uninterruptible
Power Supply
URL- Uniform Resource
Location
VSAT- Very Small
Aperture Terminal
WAN- Wide Area Network
WWW- World Wide Web
ABSTRACT
The objective of this study was to examine how
Information Technology impacted on the performance of commercial banks in terms
of profitability, effectiveness, efficiency, competitiveness, and customer
satisfaction. The main research instruments used were questionnaire and
personal interview for staff and customers of the bank. The simple frequency
percentage was adopted as the statistical measure and hypothesis testing was
analyzed using chi-square. Population of the study comprised of the entire
first Bank in Enugu, Enugu State. Data was collected using research
questionnaire. It was recommended that Government should improve the
electricity supply in the country, they should support and loan money to local
IT firms to foster importation, lower tariff on importation of Information
technology related equipments and their agencies and regulatory bodies should
upgrade their equipments as well. The private sectors should invest into
improving electricity and the banks should continuously implement customer centered
IT products and services of international standard.
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The
financial services sector is becoming more technology-driven. Even in other
sectors of the economy, technology is impacting on the way things must be done.
Before
the advent of electronic age, banks used to be defined by their physical
presence (Accad, 2001). Now, Information technology, particularly the internet
has redefined the business of banking all over the world and with particular
reference to Nigeria. Information technologies (IT) have also become the
digital nervous system of banking operation. This is because the business of
banking is no longer perceived as merely the generation of deposit liabilities
and the creation of liquid assets, but rather the generations, storage,
manipulation communication and application of financial information (Woherem,
2000). It is perceived as an instrument for engendering competitive advantage
in enterprises as it promotes greater efficiency and effectiveness in financial
transactions. This is the reason why Holloway (1995) assorts that, an
increasingly important component of banks’ technological focus is the personal
computer. From risk management to commercial and consumer lending and from employment
training to product development and delivery, personal computer are being used
as a tool to re-engineer the bank. In many instances Local Area Networks (LANs)
and Wide Area Networks (WANs) are facilitating the process, enabling the bank
employees to access and use information in a more timely and efficient fashion.
The First Direct Bank in the U.K. provides comprehensive banking services to
about 900.000 customers with just staff strength of less than two dozen. This
feat is achieved through the use of IT.
It
shows that banks today can operate in a more effective and efficient manner,
with a lean number of staff, through the aid of technology.
According
to frenzied (1996:104) IT is now used to automate most of the processes in the
banking industry of the more developed parts of the world; to drive delivery
processes; and to encapsulate many banking products. Technology in baking has
proven to be one of the major success stories of this century, as technologies
such as Automated Teller machine (ATM), LANs and WANs, Credit cards, Electronic
point of sale systems, smart cards, Debit card, charge cards, Electronic
Document interchange (EDI) systems, Image systems, Integrated Banking system
(IBS), and client information filing (CIF)systems are now being routinely used
by many banks to ensure a more efficient and effective operation and delivery
of their products and service to customers. From all Indications, the
applications of IT in all banking operations will intensify and spread in this
21st century.
Globally, the financial services sector has
been quick to embrace the information technology particularly internet an
alternative delivery channel. In developed parts of the world, retail and
corporate customers can review and transact on their accounts, get information
about shares and execute trades, receive and pay bills, buy various forms of
insurance and obtain credit cards, mortgages and other loan facilities, all
through the internet.
Information technology has already become the nervous system of banks the world over. In this study, the researcher will concentrate on information technology in contemporary banking with particular emphasis on Nigeria banking sector. Nigeria banks will become uncompetitive if they do not have the means to deliver their banking services online and in real-time across all their branches within the country and abroad, if they do not have the backbone telecommunications infrastructure in the form of broadband local and wide area networks, if they were not able to communicate and trade globally with the rest of the world through cyberspace, and if they do not invest comprehensively in IT and training of their IT personnel. According to Woherem (1997:88), Nigeria banks since the 1980s have generally performed very well in their investment profile and use of IT systems compared to the rest of the industrial sector of the country. However a lot still needs to be done in the sector to catch be relevant in the globalized banking playing field of the 21st century.
THE IMPACT OF TECHNOLOGICAL ADVANCEMENT IN THE DEVELOPMENT AND GROWTH OF BANKING INDUSTRY IN NIGERIA
