This research work focuses on the Effect of Information Communication
Technology (ICT) on deposit mobilization and profitability of banks in
Nigeria. It also revealed how computer technology is being used in
taking strategic decisions in an organization, with the usage of
computer technology. It helps to discover how efficiently and
effectively the bank(s) are performing as regards deposit mobilization
and trend(s) in profitability. Some research instrument(s) were used in
this continuous writing were: Interview, Questionnaire and Observations
which were illustrated with charts and (Chi-square). It starts with
background of the study up to final recommendation to the higher
1.1 BACKGROUND OF THE STUDY
The effect of information communication technology (ICT) in banks
deposit mobilization and profitability in Nigeria cannot be underrated,
the technology advancement has brought the introduction of computer
system into the recent banking operations.
The introduction of computer and communication technology in the
banking industry has been greatly facilitated by the level of awareness
on the part of both management and staff in the industry. Banks have
geared up human and financial technology to ensure that information
communication technology is used to improve their performance, cater for
new customers segments and developed the market.
The basic objective of the application of information communication
technology, in any organization is the achievement of a radical
improvement or quantum leap in its business operations. This will
involve redesigning the existing resources with the expected outcomes of
the organizational process. To achieve these objectives, an effective
and efficient information processing technology (computer) and
information transmission technology (communication) as a strategic
The American heritage Dictionary of the English Language defined a
computer as “a device or electronic machine that performs high spread
mathematical or logical calculation or that assembles, stores, collect
or otherwise process and print information device from coded data in
accordance with a predetermined program.
Furthermore, a computer is a highly complex electronic device that
handle enormous masses of data at unimaginable speed and perform in
second’s calculation that trained mathematical would take years to
complete. It can be seem as electrical device that accept DATA from an
input device, performs arithmetical and logical operation in accordance
with pure-defined instruction and translate the processing or in final
printing from such as business documents, schedules and management
There are two types of computer, namely, the digital and analog
computer and uses computer language such a (FORTRAN, COBOL BASIC, ALGOL)
into a machine language modules or object programs.
The highly complex electronic device has major parts.
A. HARDWARE: Subsystem, which equally has two parts;
THE CENTRAL PROCESSING UNIT (CPU) made up of
a. (A. L. U) where all calculation and comparison are made
b. Central and Memory / Storage: all data must be read into memory before the computer can process them.
c. Control Unit: This unit directs and control the
activities of all other sub-computer components of the entire computer
B. THE PERIPHERALS: Which includes.
a. The input device card recorders, paper, tape, reader, VOU and TT.
b. The secondary storage device, which include cards, magnetic tape and magnetic disc.
C. SOFTWARE SUBSYSTEM: This subsystem is grouped into two areas:
1. System programe, which consist of
a. Operating system or supervisor program, as the name implies
b. Computer or language translator as another type of system program, which
translate or control application programs into machine language.
2. Application Program: Computer do not
understand the human language at the moment anyway, therefore language
called programming language. There is a group of computer which is
called. “NETWARE NETWORK” that are linked together so they can
communicate and show resources.
1.2 PROPOSE OF THE STUDY
The purpose of this project is to evaluate and analyze the effect of
Information Communication Technology (ICT) in United Bank for Africa.
This research work will serve as a guide to determine whether the
computer has been able to enhance operational effectiveness management
control time accuracy well as increased in deposit mobilization and
profitability of the United Bank for Africa and banks generally.
1.3 STATEMENT OF THE PROBLEM
As far bank 1990, United Bank for Africa has employed a system
manager. This underlines the necessary of ICT in such a large bank. Most
branches except rural branches have been computerized.
However, the banking operation Information Communication Technology
(ICT), information system contained to be strictly before the
introduction and installation of computer, the banks were unable to meet
their goals and objectives.
1.4 SIGNIFICANCE OF THE STUDY
This study is excepted to provide the government, share holder and
management with the impact of computerization of banking information
technology will enhance banking services in Nigeria, through the
provision of different services like online banking, electronic transfer
of fund (ETF), E-banking, Automatic Teller Machine (ATM) telephone
banking instead of the manual banking formerly practiced.
1.5 RESEARCH INSTRUMENT
1. Ho: Information Communication Technology has no effect on banks deposit mobilization and profitability in Nigeria.
2. Hi: Information Communication Technology has effect on bank’s deposit mobilization and profitability in Nigeria.
1.6 THE SCOPE OF THE STUDY
The scope of the study is limited to a Universal Bank (UBA) due to
the time frame and financial constraints and it involves round the
activities and operations of UBA plc.
1.7 LIMITATION OF THE STUDY
Despite my interest in this research work, the real objective cannot
be attained due to some limitation over which I have no control, among
there are: data collection, time frame work, distance and financial
1.8 ORGANIZATION OF THE STUDY
The study on the Effect of Information Communication Technology on
banks deposit mobilization and profitability in Nigeria bank having the
United Bank for Africa Plc as its case study in undertaken to highlights
the need for computerization of banking operation.
This study consider many things as it started with chapter one as an
introduction to the study. Background of the study, purpose of the
study, statement of the problem, significant of the study, organization
of the study, limitation of the study and definition of terms and brief
profile of the case study.
Chapter two gives a broad meaning of information communication
technology which are the Literature review introduction of the study.
Automated delivery channels, Interactive television, Telephone banking,
Effect of information technology on bank customer, Effect of information
on deposit mobilization and profitability, U.B.A plc profile, U. B. A
Plc information technology, limitation of computerization and United
Bank for Africa Computer outfit.
The empirical analysis for this study contained in chapter three
which are Research methodology introduction of the chapter, population
of the study, sample and sampling procedure, sources of data, research
instrument method of data collection and problems of data collection.
The chapter four of this project work also due with Data Analysis and
Presentation, Introduction of the chapter, Data interpretation, testing
of Hypothesis and General comment(s). The chapter five consist the last
chapter of this project work with the summary, conclusion and
Recommendation Appendix and references.
1.9 DEFINITION OF TERMS
It is pertinent to append a glossary of terms that are likely to be ambiguous in this study.
APPLICATION CONTROL: control designed to aid the completeness, accuracy and validity of processing in a particular application.
COMPUTER PROGRAM: A program which examine the contents of clients computer files or perform operation e.g. calculators.
TECHNOLOGY (ICT): Simple mean made of handling of
information by electronic means which involves access to storage of
processing, transportation or transfer and delivery.
QUESTIONNAIRE: Is a form containing a list of
question s to be answered or filled by the respondent. It is used for
collecting the needed data or information from the respondent.
RESEARCH: Is a systematic investigation which
include the process of gathering, analyzing, rewarding and reporting of
information of all fact necessary for the determination to prefer
solution to the related problem.
HYPOTHESIS: Are testable statement, required facts
and their interpretation to determine their validity as a tentative
solution to reasonable problem, having Ho as the alternative hypothesis
NETWORK: simply mean a collective of computer and
devices connected by communication channel that allow users to shares
data, information, hardware, and software with other users.
KEYBOARD: A typewriter like device through which data can be input to computer.
INTEGRITY: the state of being correct, complete, uncorrupted or with moral fortitude.
: storage device for computing data or files, in commercial system, Disks are used for data storage.