IMPACT OF INFORMATION TECHNOLOGY IN THE DEVELOPMENT OF BANKING INDUSTRY
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IMPACT OF INFORMATION TECHNOLOGY IN THE DEVELOPMENT OF BANKING INDUSTRY
Chapter one
1. INTRODUCTION
In the post-distress banking industry era, most, if not all, banks embraced re-engineering or restructuring projects that included the use of information technology as a key component.
According to Akingbola (2000), the goals of such engineering include increasing the system’s safety and soundness to boost confidence, as well as boosting the industry’s efficiency, responsiveness, delivery, and competitiveness in international banking standards.
One of the defining characteristics of the late twentieth century in the Nigerian banking industry was the widespread use of information technology.
It is now clear that any bank that refuses to join the information technology train in the new millennium will either be forced to close or be fired by sophisticated consumers who have a wide range of options in the highly competitive banking sector.
Nigerian banks must consequently take the information technology challenge extremely seriously, as banking has become a worldwide industry through information technology.
The twenty-first century promises a bright and lucrative future for Nigerian banks as they begin to climb the information ladder.
The globe has become a virtual global village as a result of the various changes taking place on the information superhighway Babajide (2000). Of course, Nigeria is a part of this progress.
The number of merchant and commercial banks increased dramatically thanks to deregulation measures implemented in the 1980s. The situation in Nigeria presented an intriguing scenario, which was exacerbated by fierce competition at home in light of the remarkable increase in the number of bank branches.
There was a need not just to innovate and become modern, but also to gain a competitive advantage in order to stay afloat in the market.
As market pressure to innovate increases, customers demand more complex products and greater convenience in service delivery. The use of automation and electronic financial products.
STATEMENT OF PROBLEM
There are various challenges in adopting and implementing new information technology in the Nigerian banking business; this study seeks to address these issues and suggest possible solutions and recommendations.
The frequent power outages have not provided the necessary basis for long-term computerization.
Inadequate infrastructure is to blame for the current inadequate technological base.
A lack of trust and faith in the new products being packaged to replace cash.
Irregular operation of telecommunication facilities has hampered computer networking.
Prior to 1986, the uncompetitive banking sector provided insufficient incentives for innovation.
Another big environmental issue is our society’s low literacy rate.
1.3 Object of the Study
The aims of this investigation were as follows.
To determine the most effective use of information technology in the development of Nigeria’s banking industry.
To evaluate the impact of information technology on the banking industry.
To demonstrate the connection between the concept of information technology and the banking business.
To determine the significance of this concept for the banking industry.
To propose recommendations for the effective and efficient use of computers in expanding Nigeria’s banking system.
1.4 Scope and Limitations of the Study
The scope of this research was limited to information technology and the development of the Nigerian banking industry, with the banking industry serving as the case study. Furthermore, money were not available for the research to go extensively to several Bank sites for materials.
1.5 Significance of the Study
The impact of information technology on the banking business is a major concern for all Nigerian banks; most have conducted extensive research into the system and produced evidence of its significance.
A study of this sort will assist the banking industry in moving towards automation and electronic banking rather than manual banking in order to save costs.
It will assist the bank in identifying and deploying their best automation resources to develop the sector in Nigeria.
It will greatly drive most banks to take on the issues of strengthening their systems.
It identifies the areas that require the most information technology systems for fundamental concentration.
This study will also provide useful and valid information for future users and scholars.
Definition of Terms
To clarify, the terminologies employed in the study are as follows:
Information technology is the acquisition, processing, storage, and transmission of information in any textual or numerical format by a system that includes human people, processes, and instruments.
Automation is the use of automated technology and machines to do tasks that were previously performed by humans.
Electronics: The operation of many small components, such as microclups, to control and direct electric currents.
Computerization is the process of utilising a computer to control an operation at high speed and accuracy.
Banking Industry: This is a service industry that provides banking services to its consumers.
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