IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE OPERATIONS OF AN ORGANIZATION
ABSTRACT
As information technology is the modern trend in banking today it
is very imperative for bank to access it’s impact operational
performance so as to justify if the hunger capital invested on it is
justifiable or not, analyse their problems and proffer possible
solutions. The objective of this study is to identify how the
introduction of information and communication technology has influenced
bank performance in terms of effectiveness, efficiency, competitiveness,
customers base and globalization of bank. The main research instrument
used one questionnaire and personal interview for staff of the banks. In
conclusion, the study revealed that information technology has
tremendously improved the growth of the bank and performance of the bank
of Guaranty Trust Bank. Information technology has lead to increase
customers satisfaction improved operational efficiency, reduce
transaction time, gives the banks competitive edge, reduced the running
cost and ushered in swift response in services delivery. The research
recommended that government should accurate actions that will create an
enabling environment for growth in the banking sector, lower tariff on
information technology, tool and equipment should be subsidize and also
partner with multinational companies abroad to supply equipment. All
banks should utilize information communication technology to render
services, the regulatory agencies should upgrade their information
technology constantly to align with the rapidly developing private
sector banking pace, the government should be to encourage local
information technology forms and companies towards meeting up with the
21st canting standard.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Significance of the study
1.5 Research question
1.6 Scope of the study
1.7 Limitation of the study
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2 Concept of Information and Communication Technology
2.3 The Concept of ICT and a Perspective of Nigerian Banks
2.4 ICT and Nigerian Banking Sector
2.5 Information technology and IT innovations in banking sector
2.6 Impacts of ICT in banking industry
2.7 Globalisation, Information Technology and Nigerian Commercial Bank
2.8 Benefits of applying Information Technology
2.9 Challenges facing the application of Information Technology in Nigerian banks
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research deign
3.3 Area of study
3.4 Population of study
3.5 Sample size and sampling technique
3.6 Instrument of data collection
3.7 Validity of instrument
3.8 Reliability of instrument
3.9 Method of data collection
3.10 Method of data analysis
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Characteristics of respondents
4.3 Data presentation and analysis
4.4 Summary discussion of findings
4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Today’s business environment is very dynamic and undergoes rapid
changes as a result of technological innovation, increased awareness and
demands from customers. Business organizations, especially the banking
industry of the 21st century operates in a complex and competitive
environment characterized by these changing conditions and highly
unpredictable economic climate. in contemporary time the banking system
has witnessed a lot of innovation and development in the area of
introduction Automated Teller Machine (ATM), telephone banking, internet
banking, branch networking, interbank fund transfer and the most recent
of all which is now a fad in the banking industry which is the Cashless
attention which tend to reduce the amount of money in circulation in
the economy.
Information and Communication Technology (ICT) is at the forefront of
these global changes. the question now arises ”what is information
communication technology”, information can be referred to as processed
data or output i.e. any development or action that is meant to be worked
upon effects decisions .Irechukwu (2010).
Communication can be said to be the means or methods of getting
information past from one location to another. i.e. a method through
which relationship are established, extended and maintained through a
predefined codes. Elizabeth N. et el(2009)
Technology is said to be the process of using state of the art equipment
To perform operations efficiently and effectively Laudon and Laudon, (2009).
Information communication technology (ICT) is acquisition,
processing, storing and dissemination of vocal, pictorial, textual and
numerical information by microeconomic base combination of computing and
telecommunication (Macmillan et al 2010).
Grossman G. and E Helpman 2009, ascert that information communication
technology (ICT) stresses the role of unified communication technology
and integration of communication (telephone lines and wireless signals)
computer middle ware as well as software, storage and visual system
which enable users to create ,access ,store, transmit and manipulate
information. Laudon and Laudon, (2009).contend that managers cannot
ignore Information Systems because they play a vital role in
contemporary organization. They point out that the entire cash flow of
most fortune 500 companies is linked to Information System.
The application of information and communication technology concepts,
techniques, policies and implementation strategies to banking services
has become a subject of fundamental importance and concerns to all banks
and indeed a prerequisite for local and global competitiveness. ICT
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.
Harold and Jeff (2008) contend that financial service providers
should modify their traditional operating practices to remain viable in
the 2000s and the decades that follow. They claim that the most
significant shortcoming in the banking industry today is a wide spread
failure on the part of senior management in banks to grasp the
importance of technology and incorporate it into their strategic plans
accordingly. Woherem (2010) claimed that only banks that overhaul the
whole of their payment and delivery systems and apply ICT to their
operations are likely to survive and prosper in the future . He advices
banks to re-examine their service and delivery systems in order to
properly position them within the framework of the dictates of the
dynamism of information and communication technology. The banking
industry in Nigeria has witnessed tremendous changes linked with the
developments in ICT over the years.
The quest for survival, global relevance, maintenance of existing
market share and sustainable development has made exploitation of the
many advantages of ICT through the use of automated devices imperative
in the industry. This study evaluates the response of Nigerian banks to
this new trend and examines the extent to which they have adopted
innovative technologies in their operations and the resultant effects.
1.2 Statement of the Problem
The advent of information and communication technology on the
performanceof the United Bank For Africa among other sectors has brought
about several noticeable developments but at the same time, it brings
about its attendant problems. There is the problem of banks unable to
strictly comply with the mission statement /corporate mission. With
information technology, some bank management does not adequately plan to
meet the services quality. For example, the required number of
customers to be attended to by a cashier within the daily working
hours to guide against long queues is neglected- this causes delay in
service delivery time leading to long queues in the banking hall.
Another problem is the high incidence of bank fraud borne information
technology. This fraud ranges from ATM card fraud, internet banking
fraud, email and text message fraud, fund transfer to untraceable
offshore accounts, among others.
1.3 Objectives of the Study
- To identify how the introduction of information and communication technology has influenced bank performances.
- To find out the reason why banks nowadays have to abandon the former ways of operations to modern banking.
- To investigate into the extent of effectiveness and efficiency in
banking sectors after the introduction of information technology.
- To access how information technology helps in the reduction of cost and benefit in increasing the revenue profit of the bank.
- To access how information technology has affected the customer base of the banks.
1.4 Significance of the study
The banking system is required as a catalyst for a rapid
macro-economic development of other sectors of the economy; hence, its
stability should be the priority of the government most especially
during the democratic dispensation. Going by the recent distress in
banking industry in Nigeria, the level of public confidence in the
sector has dwindled and this has led to the instability syndrome in the
sector and as such the public assurance and confidence on efficiency in
the private sector in decaying.
The major cause of this syndrome can be attributed to the problems
inherited in the banks operational system. The quest for globalization
and commercialization has brought about innovations in technology. The
digital age and the potential threat posed by non-traditional
competition which necessitates innovation has made it inevitable for
Nigerian commercial banks to improve upon their operation as they face
evolving revolution are being confronted with increasingly sophisticated
customer base compelling them to offer today what their customers
would be expecting tomorrow. Banks have to deviate from just being a
profit making bank to a more conscious customer centered institution.
This research will enable banks to identify ways of remaining
competitive in the global and domestic financial industry. It also helps
prepare banks repositioning towards meeting the challenges imposed by
global banking.
Also, it is expected that the work will contribute to the bank’s
future projections on strategies to be used in attracting depositor’s
funds, reduce queues in the banking hall, the bank’s management
policies.
Finally the research work will also be a contribution to knowledge in
academic field and serve as a source of reference to researchers who
would carry out research on similar study in the future.
1.5 Research Questions
- How the introduction of information technology does has influenced bank performances.
- To find out the reason why banks nowadays have to abandon the former ways of operations to modern banking.
- To investigate into the extent of effectiveness and efficiency in
banking sectors after the introduction of information technology.
- To access how information technology helps in the reduction of cost and benefit in increasing the revenue profit of the bank.
- To access how information technology has affected the customer base of the banks.
1.6 Scope of the study.
The research work covers the impact of information and communication
technology on the operations of Nigerian banks in Nigeria. Specifically,
the information in this research work is limited to happenings in the
UBA Plc, Kaduna. The period of the study is to be focused on 2004-2010.
1.7 Limitation of the study.
The major limitations of this research work are the constraints
encountered in the use of questionnaires for generating data
information. Bank customers often find the efficiency of the operational
system of the bank in different ways or perspectives; hence, it is not
possible to determine the exact level of differences between belief and
practice in the banking operation.
The bank staffers are not ready to give out information in any form
particularly in writing as it may be required in the case of
questionnaires due to secrecy. To get information or data from these
groups of people, the researcher has to exercise a lot of patience.
Due to time and financial capability, the researcher was not able to
cover all the products of the bank that has been made possible through
information technology.