INFORMATION TECHNOLOGY OPPORTUNITIES AND DIFFICULTIES IN THE NIGERIAN BANKING SECTOR
INFORMATION TECHNOLOGY OPPORTUNITIES AND DIFFICULTIES IN THE NIGERIAN BANKING SECTOR
With relation to GT bank, this study looked into the potential and difficulties of information technology in contemporary banking operations in Nigeria. Its goals were as follows: Analyse how electronic banking has affected the country's financial institutions' day-to-day operations.
Analyse how information technology affects bank customer relationships and point out any obstacles to a financial institution's use of an effective IT system. The research employed the Chi-Square approach and a straightforward percentage.
The results demonstrate that strong customer support is the most important element of success for the banking industry in Nigeria. The customers' needs must be properly met through the right information channels in order to be pleased. On the other side, customers have demonstrated a broad embrace of information technology in the delivery of financial services.
This is obvious because banks typically record a large turnover and greater profit at the conclusion of the fiscal year. There were also the suggestions listed below. Instead of obtaining internet banking technology just because other banks do, banks must be laser-focused on their own needs and use it to achieve goals.
To reduce or eliminate the avoidance costs of implementing e-commerce and internet banking, the government must actively participate in the telecommunications sector.
A regulatory body like the Central Bank of Nigeria (CBN) must set standards that banks must adhere to in order to prevent the Nigerian banking sector from becoming a dumping ground for out-of-date technological infrastructure.
Another significant issue impeding the development of e-commerce in the nation is training and human resource development. Government must implement the proper IT policy by making sure that more computer communication equipment and other IT infrastructure are produced in the nation so that people can learn first-hand about the necessary money laundering,
fraud, and security risks posed by net banking and e-commerce, the necessary legal threat and security posed to net banking and e-commerce, and the necessary legal codes banking the industry must be established. This will enhance the growth of the industry.
1.1 BACKGROUND OF THE STUDY
The potential and difficulties of information technology in the banking sector have been extensively studied, but few studies have focused specifically on the function of information technology in contemporary banking operations.
The 21st century will only be served and conducted well by banks that modernise their operations and methods for delivering payment services. Globalisation, consolidation, privatisation, deregulatory policies, and the quickly evolving technical environment are to blame for this.
Banks employ internet resources to carry out mobile making in order to properly put themselves in advantageous positions for competitions and be one of the businesses to be reckoned with in the new century.
This is created utilising client/server technologies and personal computers to create local area networks (LAN) and wide area networks (WAN) (Davenport, 1993).
To facilitate data and multimedia communications through the internet, intranets, and extranets, several banks have constructed a contemporary computer interconnection backbone.
They also understand that they must develop information literacy, or the capacity to find, evaluate, store, and use information, in addition to management and staff computer literacy.
at order to enable the organisation to make well-informed decisions, all employees and managers at a modern bank must be able to search for and collect data from various sources, analyse it, pick out the pertinent data, and organise it.
Future banks are aware that more electronic manipulations and bit-based money and banking transactions will be necessary in place of paper in banking and other financial transactions. Or, paper-based transactions as opposed to paper-based transactions.
Or, paper-based transactions, such as those made through online banking (Connel and Saleh, 2004). The level of investment a bank makes in information and communication technology (ict) and how creatively it uses it determine whether or not that bank will be successful. For banks operating in the post-consolidation period, this region has been predicted to be a key battleground.
What is the current fad for information technology utilisation in the banking sector in Nigeria?
How much does information technology affect how well an organisation runs?
1.2 STATEMENT OF THE PROBLEM
To succeed in today's high tech and fast paced climate, businesses must constantly develop better and faster ways to adapt to the competitive market place.
Hammer and Champy (1993) claim that learning organisations offer a framework that enables discovering better and quicker ways to adapt in the high-tech and quick-paced world of today by:
a systematic perspective of the whole against the components.
spotting and fixing mistakes.
enhancing knowledge and broadening the range of abilities of their workforce.
Computers and information processing are widely used today.
Computers and information processing have an impact on how work is organised and how employees feel about their jobs. Computers influence what decisions are made, when decisions are made, what and who is available at the point of decision and who is asked to decide (Stephen, 2012).
According to me, the crucial component of managing information provision and this information technology system are expected to have a significant impact on management and business operations.
As a result, the main goal of this research project is to ascertain the extent of this impact, with a particular emphasis on contemporary banking activities in Nigeria.
1.3.1 OBJECTIVES OF THE STUDY
The study broadly aims to explore the opportunities and difficulties of contemporary banking in Nigeria, and more specifically:
Analyse how electronic banking has affected the nation's financial institutions' day-to-day operations.
Analyse how information technology has affected bank customers' relationships.
Identify obstacles to a financial institution's use of an effective information technology system.
Make recommendations for improving the effectiveness of the information technology system in contemporary banking operations based on the findings.
1.4 RESEARCH QUESTIONS
The following research questions will serve as a guide for this investigation:
Does information technology improve bank customer relationships and efficiency in Nigeria?
How much might information technology help banks' financial situation?
Should all banks in Nigeria switch to providing electronic banking services or stick with the current system?
1.5 RESEARCH HYPOTHESIS
The validity of the underlying hypothesis will be examined in accordance with the study's goal:
H0: There is no connection between Nigeria's modern baking operations and the introduction of information technology.
1.6 SCOPE OF THE STUDY
Financial institutions and other businesses must acknowledge the strategic impact that information technology systems have on their operations today.
Through an analysis of the influence and trend of information technology inside the Nigerian financial industry sector, this study endeavour will make a significant addition to this acknowledgment and understanding.
The use of information technology in banking by GT Bank Plc's Nigerian operations will be the main subject of this study. This study will span the time since information technology was first introduced to the Nigerian banking industry up to the present.
The introduction of information technology into the Nigerian economy came with the launch of the electronic payment system in 1996. Throughout the study, all of the many information technology-related programmes that have been launched since this time will be examined.
1.7 SIGNIFICANCE OF THE STUDY
An integrated information technology infrastructure that supports an organization's internal requirements for increased performance as well as compliance with market and industry laws is an essential part of any effort to improve business performance. The following are some important findings from this study:
It would directly impact how effectively and efficiently information systems are used in the various stages of modern banking operations.
It would make it possible for staff members and managers who are involved with their organization's information systems to identify opportunities to use information technology systems more effectively, increasing organisational productivity in the process.
It would also be a useful resource for academic students, organisations, and others who wish to learn more about the importance of information technology in contemporary banking in Nigeria.
The researcher encountered the following restrictions while conducting this investigation.
Time: Because the structure wants to do his task within a certain time frame, time has always been a limiting factor for a research of this nature.
Data collecting was plagued by issues because neither bank officials nor other government agencies were willing to give the confidential information that was needed.
As a result, the researcher had to confine her inquiry to the information that was already available.
Finances: Conducting research has always been expensive because it required the researcher to travel to several locations, copy documents, and collect official information. Since there was a shortage of financing, even though there was a great need for it.