1.1. BACKGROUND OF THE STUDY
The world is a global village. It is due to the global state of the world that bedsore became such an organic economic activity armed at producing goods and services.
In this light of this organic nature of business, it constantly changes with improvement in science and technology. Business men and women have seen the need to also change their mode of carrying out business activities in order to keep abreast with the current practice and to effectively face the constant and new challenges experienced or the business.
This growing expectation challenges prompt the business community into evolving means to smoothen the performance of business. There are number challenges of business. These challenges are characterized by the constant changes in trade of customer as well as the competition in the business circle by other competitors all towards achieving or controlling the patronage of the majority of the customer in the entire industry.
According to Nwukuw (2011) an article written on 29th September, which says that many banks in the past has strive to improve their counter services and reduce to the minimum, the waiting time for such service by employing more staff to cope with increasing number of customers.
But this did not yield much result with the advent of information technology commercial banks has been able to automate some aspect, if not all their operation and this has resulted to lower cost in terms of paid salaries to staff and wasting of customer. With the help of information technology in the Banking system according to information systems, the decision making proves loans and credit evaluations and other banking services to have been very efficient. The Banking sector having realized the existence in the competitive economy depends on the level of information technology adopts it protectively. The range of information technology adopted by all banks in the state must be determined by the peculiarity of its customer.
Thus, to compete favourably and effectively in the work of today’s complex business environment, the business has to keep itself abreast with the dynamic changes and also adopt new methods currently practiced all over the world, i.e. by most success and business. The role of INFORMATION TECHNOLOGY in the banking sector became of interest to this study due to the significant role it plays in the economy by stimulating economic growth through the intermediation of funds to economic agents that need them for productive activities. This function is very vital for any economy that intends to experience meaningful growth because it makes arrangements that bring borrowers and lenders of financial resource together and more efficiently too than if they had to relate directly with one another (Adam, 2011; Ojo, 2007). To this end this research world is set to study and research on “Impact of information technology on banking operations in Nigeria” (Case study of Commercial banks in Dekina L.G.A. Kogi state)
1.2 STATEMENT OF PROBLEM:
Information technology is an entrepreneurial as corporate resources should be managed and it greatly increase the opportunities that are available to the organization.
As a result of the increased demand for customer deposits, Nigerian banks especially the new generalization bank have realized the imperative of good and prompt customer service. Also, due to the fact that the some customers lost their depositioning the erstwhile technically insolvent or distressed banks, customers have now become wiser, more discerning alert and sophisticated with regard to choosing where it is safe to put their money and where they would be served promptly, preferably in a pleasant, courteous and friendly environment. Thus, they have started looking at the level of service and professionalism of the banks before depositing their funds. Proximity to the bank is no longer the issue. Safety and the level of service, with regard to quality, speed and efficiency has become the major imperative.
1.3 AIMS OF THE STUDY
The major purpose of this study is to examine the impact of information technology on banking operations in Nigeria. Other general objectives of the study are:
1. To examine the effect/impact of Information Technology on banking operations in Nigeria.
2. To examine how information technology has affected the customer base of the bank.
3. To examine the roles of Information Technology in effective banking Operations in Nigeria.
4. To examine how information technology has assisted in the enhancement of globalization of Nigerian commercial Banks.
5. To examine the relationship between information Technology and banking operation in Nigeria
6. To suggest ways in which banks in Nigeria can manage information technology.
1.4 RESEARCH QUESTIONS
1. What are the effects of Information Technology on banking operations in Nigeria?
2. What are the ways information technology has affected the customer base of the bank?
3. What are the roles of Information Technology in effective banking Operations in Nigeria?
4. What are the ways information technology can assist in the enhancement of globalization of Nigerian commercial Banks?
5. What is the relationship between information Technology and banking operation in Nigeria?
6. What are the ways in which banks in Nigeria can manage or improve on information technology?
1.5 RESEARCH HYPOTHESES
H0: There is no impact of information technology on banking operations in Nigeria.
H1: There is a significant impact of information technology on banking operations in Nigeria.
H0: There is no significant relationship between information technology and banking operations.
H1: There is a significant relationship between information technology and banking operations.
1.6 SIGNIFICANCE OF THE STUDY
The impact of information technology has contributed immensely to the growth of the banking industry in Nigeria. Some available telecommunication and information technologies which are presently being used in the banking industry are telephone, facsimile, wireless radiophone, very small overturn terminal satellite telegraph and computer system. So, for a bank to be perceived as providing high quality service, that bank has to have an Information Technology (IT), system which it uses to deliver service to customer in a more timely, friendly and considerate manner, at no extra cost to the customers. The use of information technology increase bank productivity in that with the use of information technology, the bank can attend to a lot of customer since IT speeds up cashiers’ work.
The study revealed that information technology has appreciable positive effects on the bank productivity, cashiers service and bank services, banking transaction, bank patronage and customer services. These affect the growth of the banking industry in Nigeria positively because customers can now collect money from any branches of their bank. Also customers do not need to move about with large sums of money and customers are being attended to within a short period of time.
The effect of information technology on an enquiring on a customers’ state of account is highly appreciated by the customers. It also revealed that telephone, computer systems and facsimile services are available in nearly all eh banks making use of information technology. Also the use of ATM (Automatic teller Machine) has helped greatly in money transaction.
1.7 SCOPE OF THE STUDY
The study is based on the impact of information technology on banking operations in Nigeria, case study of commercial banks in Dekina L.G.A Kogi State.
1.8 LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8 DEFINITION OF TERMS
Information: Facts provided or learned about something or someone or it is what is conveyed or represented by a particular arrangement or sequence of things.
Technology: Is the collection of techniques, skills, methods, and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation. Technology can be the knowledge of techniques, processes, and the like, or it can be embedded in machines to allow for operation without detailed knowledge of their workings.
Information Technology: Is the application of computers to store, study, retrieve, transmit, and manipulate data, or information, often in the context of a business or other enterprise
Banking: A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.
OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS