THE CONTRIBUTIONS OF information technology IN THE OPERATIONS OF BANKS IN NIGERIA
THE CONTRIBUTIONS OF INFORMATION TECHNOLOGY IN THE OPERATIONS OF BANKS IN NIGERIA
1.1 BACKGROUND TO THE STUDY
Information technology has already become the global banking nervous system. Banks throughout the world realised that only those who rebuild their whole payment and service delivery systems and operations stand a chance of surviving and prospering in this global world of technology.
Because of the pressures of globalisation, consideration, deregulation, and fast changing technology, this is the case. Banks are utilising information technology (IT) to appropriately put themselves in favourable situations to be reckoned with in the new country.
They realised that instead of paper, the banking business required more electronic manipulation and shuffling of bits-based money and other banking transactions. To put it another way, paper-based transactions.
The total amount invested in IT and the innovative use of IT determines whether a bank is successful or not. The rationale for this is that in the future, banking transactions will take place in cyberspace.
1.2 STATEMENT OF THE PROBLEM
In general, the banking business in Nigeria has grown at an unparalleled rate over the last decade. Banks have rapidly extended their branch networks,
and there are now significantly more personnel, larger customer and employee databases, more powerful computer systems, and an overall high level of automation and computerization. In light of the expansions, the researcher enumerates the following as bank-related problems: –
a. In Nigerian banks, there is a lack of an integrated computer data base.
b. Failure of banks to exchange ideas about new breakthroughs in the IT field; instead, they use it to gain a competitive edge.
c. Constant downtimes encountered by the majority of banks
d. Over-reliance on external consultants for system and operations maintenance
1.3 OBJECTIVES OF THE STUDY
The purpose of this paper is to examine THE CONTRIBUTIONS OF INFORMATION TECHNOLOGY IN THE OPERATIONS OF BANKS IN NIGERIA in order to compete well with peers throughout the world.
The research would serve as a frontier of knowledge for bank employees, customers, investors, and management regarding the future of banks in relation to new information techniques that facilitate the application of bank products and services.
1.4 THE SCOPE OF THE STUDY
This study focuses on the issues and potential of information technology in the banking sector of the economy. In particular, the First Bank of Nigeria Plc.
1.5 THE SIGNIFICANCE OF THE STUDY
The banking business is one that touches everyone's life, if not as an employee, then as someone who benefits from its services. IT, on the other hand, refers to new information gathering, storing, manipulating, and transferring technology.
This research will be useful to the following people: –
It would provide bank management with information about the many IT options available to improve the efficiency of online real-time banking activities.
Similarly, the research will be useful to bank employees because it will expand their knowledge and expertise about the possibility of implementing new IT to boost efficiency.
It will also be important to existing and prospective shareholders since it will allow them to know how well the bank is doing before investing their money in it.
Finally, the research will serve as a starting point for future research on industry re-engineering using and IT.
1.6 HYPOTHESISÂ STATEMENT
H1: IT application is accountable for FBN Plc's increased efficiency.
Ho: IT application is not to blame for FBN Plc's increased productivity.
Hypothesis No. 2
H1: The use of information technology influences the bank's profitability.
Ho: The use of IT has no effect on the bank's profits.
H1: Information Technology applications boost the bank's client happiness.
Ho: The use of information technology does not boost the bank's client satisfaction.
1.7 PLAN OF THE STUDY
This project effort is broken down into five chapters.
The first chapter discusses the study's history, an explanation of the difficulties, the study's purpose, the significance of the study, the scope of the study, and the definition of words.
The second chapter is devoted to a review of the literature. It discusses bank regulation, the history of banking in Nigeria, IT problems in Nigerian banks, and the future of IT in Nigerian banks.
The third chapter examines research methodology, including data sources, data collection methods, research methods, data analysis tools, and rationale for method use.
The fourth chapter delves into the history of the First Bank of Nigeria Plc. The chapter goes on to present, evaluate, and interpret data gathered for the study.
Chapter five discusses the study's summary, conclusion, recommendations, limitations, and suggestions for further research.
1.8 DEFINITION OF TERMS
– Information technology: The study or application of electronic processes for storing and making information available.
– Information: data that has been retrieved, processed, interpreted, and comprehended by the end user.
– Internet: A computer network that allows millions of computer users all over the world to exchange information.
– Automated teller machines (ATMs): These are electronic terminals that allow banking practically everywhere, including withdrawing cash, making deposits, or transferring cash/funds between accounts, paying utility bills, and purchasing recharge cards.
– Smart of Cards: little pieces of plastic (85.6m x 53.98 x 0.76mm) with embedded integrated circuits that are employed as payment instruments for a variety of financial systems.
– E-banking: This term refers to trading electronically over an electronic network.
– Networking: Communication between individual computer systems that otherwise retain some autonomy.
– Online banking: This provides access to the bank's site, transfers from one account to another, and access to the status of customers' accounts from their doorstep.