THE IMPACT OF INFORMATION TECHNOLOGY ON THE BANKING INDUSTRY IN NIGERIA

CHAPTER ONE

1.0       INTTRODUCTION

1.1    BACKGROUND OF THE STUDY

        The world is a global village. It is due to the global state of the world that bedsore becomes such an organic economic activity aimed at producing goods and services.  In this light of this organic nature of business, it constantly changes with improvement in science and technology. Business man and women have seen the need to also change their mode of carrying out business activities. In order to keep  abrest with the current practice and to effectively face the constant and new challenges experienced in the business.

        The growing expectation challenges, prompt the busies community into evolving means to smoothen the performance of business. There are number of challenges in business. These challenges are characterized by the constant changes in trade of customer as well as the competitors all towards achieving or controlling the patronage of the majority of the customer in the entire industry.

        According to Nwukwu, 1998 on article written on 29^th September, 1998 which says that many baulas in the past has strive to improve their counter services and reduce to the minimum, the waiting time of such services by employing more staff to cope with the increasing number of customers.

        But this did not yield much result, with the advent of information technology in banks, like all banks have 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 waiting of customer. With the help of information technology all banks according to information systems, the decision making proves loans and credit evaluation and other banking services have been very efficient. To all banks and offices having realized the existence in the competitive economy depends on the level of information technology adopt it protectively that the range of information technology adopted by all banks must be determined by the peculiarity of its customers.

        Thus to compete favourable 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 successful  business. To this end, this research work is set to study and research on “using management information system (MIS) to improve customer services and growth in the banking industry”.

1.2    STATEMENT OF PROLEM                

        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 generation or generalization of banks have realized the imperative of goods and prompt customer services. Also due to the fact that some customers have now become wiser more discerning alert and sophisticated with regard to closing where it is safe to put their money and where they would be saved promptly, preferably in a pleasant, courteous looking at the level of service and professionalism of the banks before depositing their funds. Proximity to the banks is no longer the issue. Safety and the level of service with regard to quality, speed and efficiency has become the major imperative.

        On the part of the banks, they can provide quality service through the use of technology. Hence, there is a growing rate of adopting new technologies in Nigeria banking operations. Moreover, there is a growing evidence that the customers have started associating quality of service in bank with the bank’s possession of online real time system. In fact, possession of such system is now judged to be the sine quanon of a high quality banking services in Nigeria.

1.3    OBJECTIVE OF THE STUDY        

Among the objectives of the study are:

(a)        To explore the relationship between information technology and service delivery ability of banks.

(b)        To investigate the effect of information technology investment on profitability of the banks on customer loyalty.

(c)         To investigate the effect of information technology.

(d)        To relate the advent of information technology to the effect of service delivery on all banks.

(e)        To suggest how banks executive can direct and manage the investment information technology and maximize profit.

1.4    RESEARCH QUESTIONS

1.     What are the opinions of customers regarding the information and technology in efficient operation of bank service.      

2.     Through which means do customers know the existence of bank services.

3.     What are the customers rating on the banking services rendered by banks.

4.     Do customers believe that good information technology increases the competitive position of banks.

5.     What are the opinions of customers to the current information technology in banks.

6.     Opinion on company’s customers relationship.

7.     Is there any staff relationship with management of the company.

8.     Staff opinion regarding information dissemination channel.

9.     What are the staff level with information technology on ground.

1.5    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 presently used in the banking industry are telephone, wireless radiophone, computer system, automated teller machine (ATM), very small opportune terminal satellite (VSAT), telegraph, etc. so for a bank to be perceived as providing high quality services to customer in a more timely, friendly and considerable manner at no cost to the customers. The use of information technologies increase the bank productivity in most banks, banks can now attend to a lot of customers since information technology speeds up cashiers’ work. The study revealed that information technology has appreciable positive effects on the banks productivity, cashiers service and bank service, 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 branch of their bank and the stress and risk of travelling or carrying a huge sum of amount is avoided due to the introduction of ATM cards.

        Information technology also plays a role in the enquiry of a customer state of account, this has been made easy with the invent of information technology because with the  introduction of mobile banking one can get access to his bank detail using the (GSM) global system mobile or using the internet.

1.6    SCOPE OF THE STUDY

          The study covers all commercial banks in Nigeria but the research work focuses on some selected banks in Enugu metropolis.

1.7    DEFINITION OF TERMS    

1.     Management information system

This is the formal method of making available to management the accurate, timely information necessary to facilitate the decision making process and enable them i.e the organization planning functions be carried out effectively.

2.     Electronic data processing

This is where data processing takes place for a few organization function usually use accounting  and billing this concept of computer base.

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