CHAPTER ONE INTRODUCTION 1.1 Background Background Of Of The Study Today’s organisations are confronted with rapidly changing market conditions, indicated by
high high merger merger rates rates and strong strong competi competitor tors. s. Under Under these these conditi conditions, ons, tradit tradition ional al managem management ent approaches that focus on financial figures and on centralised, analytical planning methods are considered to be insufficient for effectively steering the organization in a dynamical environment (Hof (Hoffm fmann ann !!" !!".. Th Thee recen recentt mana managem gement ent suppo support rt appro approach aches es like like inte intell llect ectual ual capit capital al or particularly the balanced scorecard aim at providing a broader view of organizational performance. They combine both financial and non#financial aspect and comprise activities not only to monitor but also to plan and influence organisational performance (Hoffman !!". Their success demonstrates the strong demand for this so called comprehensive performance management. The banking sector as transform banking industry to a high performance, by increased demand for information information technology technology ($T" in the banking sector become imminent imminent and unavoidable unavoidable in the world at large and %igerian in particular. $nvariably the future lies in the ($T" information technology driven banking systems and services. &anks have embarked on deployment of ($T" information technology based banking products and services such as automates teller machine ('T", internet banking, mobile banking solutions, )oint )o int of sale terminals, computerized co mputerized financial accounting and reporting, human resources solution among other (*via, !!+". )erformance is defined as valued contribution to reach the goals of an organization. ontribution can be made by individuals or groups of employees as well as by e-ternal groups. $n the past, the measurement of performance was usually restricted to a financial perspective, resulting in various limitation. enith bank )/ is a leading %igerian financial institution and one of the biggest and most capitalized companies on the %igerian stock e-change. 0stablished in ay 122!, zenith bank began operations in 3uly of the same year as a commercial bank. $ts shares were listed on the %igerian stock e-change in *ctober 1, !!4 following a highly successful initial public offering ($)*". The
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bank has a shareholder base of about one million, an indication of the acceptance of the zenith brand. However banks have to provide an e-cellent service to customer who are sophisticated and will not accept less than about average service. Thus, the issue of service marketing in general, and banking sector in particular has become one of the most important and modern directions which have witnessed a substantial e-pansion during the last years in almost all societies. 0#banking offers significant significant benefits benefits for both banks and customers. customers. $t provides provides bank additional additional channels to delivers delivers products and services to customers at a lower cost (/in, Hu, and 5ung !!+". These channels e-pand the geographical area for banks and can help attract and keep further customer (6andaparni, 7arels 7arels,, and /awren /awrence, ce, !!8". !!8". 5uch 5uch bank servic services es like like 0#banki 0#banking, ng, 'utoma 'utomated ted Teller eller achine achine ('T", mobile banking solutions, point of sales terminals and internet banking and not only provides to customers with appropriate and faster transactions but also a lso benefits from higher interest rate resulting from cost saving by the banks (5umra 9 anzoor, !1:". 1. State!ent State!ent Of The The Pro"#e! Pro"#e! *ne of the challenges confronting e#banking in %igeria could be classified into three classed as human constraints, operational constraints and technical constraints. The human, constraints include physical disability poor sight, illiteracy and ageing. The operation constraints standardization of channels. channels. ;urred, ;urred, funds and standardizat standardization ion of channels. channels. The technical technical constraints constraints are cantered on the lack of supporting infra structures such as erratic electricity supply, interdependence and lack of encryption on short message system (55" message ('gbada, !!<". *ther identified problems that can have an impact of information technology on the financial performance in the banking sector, can be grouped broadly as psychological p sychological and behaviour. These include consumer awareness for personalized services among others. 'dditionally, diffusion of smart card innovation needs high investment for the upgrades of 'T5 and 00T=)*5 terminals to be capable of accepting smart cards and presumably a substantial investment in adding smart card technology technology for mobile computer and telephony telephony stand to be another challenge. challenge. The implementati implementation on
2
bank has a shareholder base of about one million, an indication of the acceptance of the zenith brand. However banks have to provide an e-cellent service to customer who are sophisticated and will not accept less than about average service. Thus, the issue of service marketing in general, and banking sector in particular has become one of the most important and modern directions which have witnessed a substantial e-pansion during the last years in almost all societies. 0#banking offers significant significant benefits benefits for both banks and customers. customers. $t provides provides bank additional additional channels to delivers delivers products and services to customers at a lower cost (/in, Hu, and 5ung !!+". These channels e-pand the geographical area for banks and can help attract and keep further customer (6andaparni, 7arels 7arels,, and /awren /awrence, ce, !!8". !!8". 5uch 5uch bank servic services es like like 0#banki 0#banking, ng, 'utoma 'utomated ted Teller eller achine achine ('T", mobile banking solutions, point of sales terminals and internet banking and not only provides to customers with appropriate and faster transactions but also a lso benefits from higher interest rate resulting from cost saving by the banks (5umra 9 anzoor, !1:". 1. State!ent State!ent Of The The Pro"#e! Pro"#e! *ne of the challenges confronting e#banking in %igeria could be classified into three classed as human constraints, operational constraints and technical constraints. The human, constraints include physical disability poor sight, illiteracy and ageing. The operation constraints standardization of channels. channels. ;urred, ;urred, funds and standardizat standardization ion of channels. channels. The technical technical constraints constraints are cantered on the lack of supporting infra structures such as erratic electricity supply, interdependence and lack of encryption on short message system (55" message ('gbada, !!<". *ther identified problems that can have an impact of information technology on the financial performance in the banking sector, can be grouped broadly as psychological p sychological and behaviour. These include consumer awareness for personalized services among others. 'dditionally, diffusion of smart card innovation needs high investment for the upgrades of 'T5 and 00T=)*5 terminals to be capable of accepting smart cards and presumably a substantial investment in adding smart card technology technology for mobile computer and telephony telephony stand to be another challenge. challenge. The implementati implementation on
2
of smart card for the whole 0urope, according to visa figures re>uires eight billion dollars (?< billion" investment. 'lthough this is an affordable amount for many of the potential players, most players would only pay the entire amount if it would give them some proprietary or luck in advantage. 5o far, no player has felt confident enough to take a committed first mover position. This is in developed countries, what more of a developing country like %igeria (*via, !!+". oupled with these problems is a situation where a bank issue an individual debit card that is associated with an account with a line of credit and is also an 'T debit card, the individual can perform a number of different types of transactions with the same card. The line of credit could be accessed fraudulently, where the owner has recourse under consumer credit legislation and under regulation regulation in the fraud involves involves an electronic electronic fund transfer transfer (0;T" where automated automated teller teller machine ('Ts" or electronic point of sales ()*5" terminals are used, his liability is limited under the 00T'. However the fraudulent use of the card directly debits his bank account in a paper#based transaction, the consumer has no recourse under current legislation. This is an e-ample where the same card represents three different instrument, each of which, in the case of fraud, would re>uire different action by the consumer ('gbadga, !!<". $n order to investigate the impact of ($T" on bank performance in addition to problems identified, this study intends to investigate and answer the following >uestion@ To what e-tent does ($T" improve bank performance with reference to the selected commercial banks in %igeria. 1.$ O"%ect&'e( O"%ect&'e( Of The Study Study The main obAective of the research proAect is Bthe impact of information technology on the financial
performance in banking sectorC with reference to enith &ank )/, %igeria. 'nd the specific obAectives are@# 1. To determin determinee the e-tent e-tent to which which inform informati ation on technol technology ogy has increa increased sed the volume volume of deposits in enith &ank )lc
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.
To e-amine the availability of information technology enhance customers satisfaction in enith
&ank :. 0-amine the efficiency of information technology on bank#customer relationshipD 4. 6oes information technology actually find out what problems encounter by the customer while using ($T" products and serviceD 1.) Re(earch *ue(t&on( This research work shall be guided by the following research >uestions@ 1. Has information technology increased the volume of deposits in the enith &ank )lc. . Has the availability of information technology promotes satisfaction oriented result to the customers. :. 6oes information technology contribute to the efficiency on bank#customer relationship. 4. 6oes information technology actually find out what problems encounter by the customer products and service in your bank. 1.+ Re(earch Hy,othe(e( The hypothesis to be tested in the curse of this research work is@ Ho:1 The information technology has not increased the volume of deposits in the enith &ank )lc.
Ho:1 The information technology has increased the volume of deposits in the enith &ank )lc. Ho@ The availability of information technology dos not promotes satisfaction oriented result to their customer. Hi@ The availability of information technology promotes satisfaction oriented result to their customers. Ho@: The information technology does not contribute to the efficiency on bank and bank customers. Ho@: The information technology has contribute to the efficiency on bank and bank customers. Ho@4 The information technology actually has not find out what problems encounter by the customer products and service in your bankE Hi@4 The information technology actually find out what problems encounter by the customer products and service in your bankE 1.- S&gn&f&cant Of The Study $n the light of the stated obAectives which this study is set to achieve, the following are the significance of the study@ 1. $t would Austify the application of information technology increased the volume of deposits in %igerian banking sector.
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. $t would also observe the availability of information technology enhance customer’s satisfaction in enith &ank. :. $t would help to evaluate the adoption of information technology by %igeria bank in terms of its effect on bank’s efficiency and bank customer relationshipD 4. $t would help information technology by identifying the actually problems encounter by the customer products and service in your bankE 1. Sco,e( And /&!&tat&on Of The Study The researcher intend to cover all the banks in enith &ank )lc, both 6amaturu branch Fobe 5tate and 3os branch )lateau 5tate to have a better insight of the problems associated with the impact of information technology ($T" on financial performance. %evertheless, this study will be limited to enith &ank )lc, 6amaturu branch and 3os branch. This study therefore covers the management and staff, customers and their environment besides the subAect itself as it affects its mastery. This study shall cover the period since the introduction of information technology in %igeria banking sector to date. $nformation technology was introduced into %igerian economy upon the commencement of the electronic payment scheme in 1228. 'll the various information technology and banking performance toward development of a country. 1.0 Def&n&t&on Of Ter!( 1. Infor!at&on is data that have been processed into a form which is meaningful to the recipient and
which is of real or perceived value in current or prospective decision and actions. . Techno#ogy refer to the scientific knowledge used in practiced ways in industry such as computer system and so many others $. Infor!at&on Techno#ogy $s the application of computers and telecommunications e>uipment to store, retrieve, transmit and manipulate data, often in the conte-t of a business or other enterprise. ). 2&nanc&a# ,erfor!ance( '5 the level of performance of a business over a specified period of time, e-pressed in terms of overall profits and losses during that time evaluating the financial performance of a business allows decision making to Audge the results of the business strategies and activities in obAective monetary terms. +. AT3 is an 'bbreviation for 'utomated Teller achine. $t is a cash point that can be used to withdraw cash.
5
-. Bank Account is a record of financial transactions between a bank and the customer which is
maintained by the bank. . Po&nt of Sa#e ()*5" this refers to the location at which a payment of a card transaction occurs, usually by way of a device such as a credit card terminal or cash register. 0. 4S3 Bank&ng is an abbreviation for Global 5ystem obile@ This is mode of e#banking makes use of global system for mobile communication (G5" phones as the primary electronic device. 5. Bank 's a place where money and other valuable are kept for safe until when they are needed.
CHAPTER T6O /ITERATURE RE7IE6 .1
Introduct&on
This chapter focuses on review of the e-isting literature the researcher will focus on reviewing the concept of information technology, status of information technology in %igeria, the evolution of the %igerian banking sector, the impact of information technology in the %igerian banking sector, enhancing the performance of banking sector through appropriate information technology, information technology implementation by corporate bodies, the concept of financial performances, . The Conce,t of Infor!at&on Techno#ogy
$nformation technology according to *dunfunwa (!1!" is a body of tools with the convergence of communications and computers. 5imilarly Goldberg (!1" describes information technology as a series of machines that can e-ecute se>uence of instructions. The se>uence of instructions is a programmed made particularly fle-ible and not rigid and can be changed depending on the information being processed. 'nd also $ge (!1!" opined that $nformation technology can be defined as modern handling information via electronic means, which involves its access, storage, processing, transportation or transfer and delivery.
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$nformation technology is the automation of processes, controls, and information production using computers, telecommunications, software and ancillary e>uipment’s such as automated teller machine and debit cards 7halifa (!1" $t is a term that generally covers the harnessing of electronic technology for the information needs for businesses at all levels. 'ccording to *binna (!1" information technology has rightly observe that it is of great importance that the advent of information technology has brought enormous changes and challenges on how businesses are run. Fet, information technology is not breaking new barriers defining new horizons and bringing new dimension to our lifestyle. $nformation technology is a systematic body of tools technologies and in fracture for generating, storing, processing and transmitting data and information.
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Statu( of Infor!at&on Techno#ogy &n N&ger&a
oherem (!1!" argues that, in %igeria in the late seventies up to the early eighties, the processing of information in financial institution was based on the centralized architecture with a mainframe computer running a multi#user operating system and various users connected to via terminals. This type of processing changed to a more decentralized approach with /ocal 'rea %etwork within financial institutions branches. 'ccording to 'deyomi (!1!", opined that the prior to the deregulation of the financial institutions in the mid
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advance in information technology from inception. 's a result, there was an increased market pressure to adopt new technology as customer began to demand more sophisticated product and increased convenience in services delivery. 'ccording to 7imberly (!1!", focus of this new technology competition was the implementation of the global banking concept in %igeria and this has affected all aspects of the financial institutions from the very standard retail operations, such as withdrawal and che>ue processing to the creation and delivery of sophisticated corporate products, such as interest rate or foreign e-change swaps. 'ccording to Iahman and Hallady (!11", in addition to the 5ociety for orldwide $nter#bank ;inancial Telecommunication (5$;T", made possible by advances in information technology and to which some of our banks have ac>uired memberships has facilitated interbank transaction across the globe. 'ccording to oco (!1!", ;inancial $nstitutions in %igeria have decided to take advantage of information technology to improve their services and e-pand their operating base. .$
The I!,act of Infor!at&on Techno#ogy &n the N&ger&an Bank&ng Sector
'ccording to 'lu (!11" the impact of information technology in %igerian banking sector cannot be overemphasized. $nformation technology has contributed immensely to the growth and development of %igerian banking sector. 5ome of the vital roles of information technology in the %igerian industry are discussed below. $nformation technology has opened new markets, new products, new services and efficient delivery channels for the %igerian banking sector. *nline electronic banking, mobile banking and internet banking are few e-amples. $nformation technology has provided the %igerian banking sector with the wherewithal to deal with challenges that the new economy poses. $nformation technology has been the cornerstone of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to strengthen the financial sector.
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The information technology revolution has set the stage for unprecedented increase in financial activity in %igerian banks. The progress of technology and the development of worldwide networks has significantly reduced the cost of global fund transfer. $nformation technology enables %igerian banks in meeting with the high e-pectations of customers who are more demanding and more techno#savvy compared to their counterparts in yester#years. ustomers demand instant, anytime and anywhere banking facilities. 'ccording to 6uAi (!1!" $nformation technology has been providing solutions to %igerian banks in terms of taking care of their accounting and back#office re>uirements. This has, however, now given way to large scale usage in services aimed at the customers of banks. 'lso according to Ugwu (!11" $nformation technology has also facilitates the introduction of new delivery channels in the form of automated teller machine ('T", net banking, mobile banking, and the like. ;urther, information technology deployment has assumed such high levels that is no longer possible for banks to manage their information technology implementation on a stand#alone basis. ith information technology revolution, banks are increasing interconnecting their computer system not only across branches in some cities in %igeria, but also to other geo#political locations with high speed network infrastructure and setting up local area and wide area network and connecting them to the internet. 's a result, information technology systems. 'nd networks are now e-posed to a growing number of %igerian banks. 'ccording to 'kinuli, (!1:" in is te-tbook B$nformation Technology in %igeria’s &anking industryC he further say about the following impacts of information technology in %igeria’s banking system. This include the following as follows@ .$.1 4S3 Bank&ng This mode of e#banking makes use of the Global 5ystem for obile
communication (G5" phones as the primary electronic device. G5 has improved the operational efficiency of many banks in the country. The mobile banking services basically allow customers to operate their accounts with the operating banks from mobile phones to a large e-tent as long as
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their phones and network support 55 (short messaging service". The user could be able to check account balance up to his two last transactions. .$.
Auto!ated Te##er 3ach&ne( 8AT39 'Ts are a computer#controlled device that
dispenses cash, and may provide other services to customers who identify themselves with a )ersonal $dentification %umber. 'T dispenses cash at any time of the day and night, unlike the traditional method where customers have to >ueue for a very long time in order to withdraw cash or transfer funds. .$.$
Ado,t&on of the ICT Integrated Pro%ect &anks in %igeria have successfully completed
information and communication technology integration proAect which enables them to communicate easily across as many employees as possible within and outside the country to deliver radically# enhanced customer#centric services. .$.) 2und( Tran(fer ustomers can now electronically transfer funds across the globe without
any problem or delay as compared to the traditional method before the advent of information technology when funds are seriously delayed before they are delivered to the recipients. .$.+ On:/&ne Bank&ng ith the aid of information technology, online banking provides the
opportunity of paying bills and performing transactions of any kind electronically. 0lectronic payments can be credited or debited the same day. ustomers can make payments for goods or services without necessarily coming in contact with physical cash and running the risk of handling a large amount of money. .$.- E#ectron&c 3a&# $nformation technology has given rise to electronic mail which improves
communication between individuals, e-ternal parties and the bank within or across various geographical regions or boundaries. The availability of online information provides bankers and customers with a powerful vehicle for research. .$. Banker( Auto!ated C#ear&ng Ser'&ce( This involves the use of agnetic $nk haracter
Ieader ($I" for che>ue processing. $t is capable of encoding, reading and sorting che>ues. 'lso,
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re>uest for che>ue books or purchase of draft can be made and granted via electronic devices that are web#enabled. .$.0 Po&nt of Sa#e( This refers to the location at which a payment of a card transaction occurs,
usually by way of a device such as a credit card terminal or cash register. .$.5
Internet Bank&ng these has brought about all manageable possibility in the area of cost
reduction creation of new service and personalization of customer relation. (est !1". %oted that internet banking being able to automated most of the routine banking practice of marketing and client relation. $nternet banking is phased into three (:" generation. i.
;irst generation referred to as brochure were state, banks of this level re>uire website, state which
ii.
noting more than information centre about the banks. 5econd generation also known as transactional stage enable banks to do banking business on the
iii.
web. Third generation allow bank to offer customer with a range still far away from the bridge head of brochure were internet banking as a new generation banks that provide himself as information technology driving bank have not seen able to go beyond this advert. .)
The Pro"#e!( and Cha##enge( of Infor!at&on Techno#ogy &n N&ger&an Bank&ng Sector
The adoption of omputerization by %igerian banks brought with it new challenges for bank management and regulatory and supervisory authorities. This stem from the reliance on information technology to provide banking services with the necessary security 'moroso (1224". 5ome of these challenges and problems includeD .).1
Regu#atory R&(k
&ecause the internet allows service to be provided from anywhere in the world, there is a danger that banking %igeria will try to avoid regulation and supervision. hat can regu#at&on doE They can re>uire even banks that provide their services from a remote location through the internet to be licensed. /icensing would be particularly appropriate where supervision is weak and corporation between a virtual bank and the home supervision is not ade>uate.
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/icensing is the norm, for e-ample, in the United 5tates and most of the countries in the 0uropean Union. ' virtual bank licensed outside their Aurisdiction that wishes to offer electronic banking services and take deposits must first establish a
licensed branch.
6etermining when a banks electronic services trigger, the need for a license may be difficult, but indicators showing where banking services originate and where they are provided can help. .). /ega# R&(k
0lectronic banking carries heightened legal risks for %igerian banks. %igerian banks can potentially e-pand the geographical scope of their services faster through electronic banking than through traditional banking. $n some cases, however, they might not be fully vast in a Aurisdiction local laws and regulations before they begin to offer services there, either with a license or without a license is not re>uired. 5ome of the banks that lack contact with the supervisory authorities may find it difficult to abreast of regulatory changes. 's a conse>uence, some banks would unknowingly violate customer protection laws, including on data collection and privacy, and regulations on soliciting. $n doing so, they e-pose themselves to losses through lawsuits or crime that te not prosecuted because of Aurisdictional disputes. .).$ O,erat&ona# R&(k
The reliance on new technology to provide services makes security and system availability the control operational risk in electronic banking. 5ecurity threats can come from inside or outside the system, so banking regulations and supervisors in %igeria must ensure that banks have appropriate practices in place to guarantee the confidentiality of data as well as the integrity of the system and the data. &ank security practice should be regularly tested and an reviewed by outside e-perts to analyze the network vulnerabilities and recovery preparedness. apacity
planning
to
address
increasing
transaction volumes
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and
new
technological
developments should take account of the budgetary impact of new investments, the ability to attract staff with the necessary e-pertise, and potential dependence on e-ternal service providers. anaging heightening operational risks need to be integral part of %igerian banks overall management of risk, and supervisory need to include operational risk in their safety and soundness evaluations. .).) Re,utat&ona# R&(k
&reaches of security and disruptions to the systems availability can damage %igerian banks reputation. The more %igerian banks depends on electronic delivery channels, the greater the potential for reputational risks. $f one electronic bank encounters problems that cause customers to lose confidence in electronic delivery channels as a whole or to view bank failure as system supervisory deficiencies, these problems can potentially affect other providers of electronic banking services. Ieputational risk also stem from misuse of security precautions or ignorance about the need for such precautions. 5ecurity risk can be amplified and may result in a loss of confidence in electronic delivery channel. .+.
Infor!at&on Techno#ogy I!,#e!entat&on "y Cor,orate Bod&e(
'ustin (!11" noted that it is appreciated that the rate of information technology by corporation has gathered momentum in recent years, to the e-tent that one can confidently assert that the use of information technology in business operations has come to stay. However, the use of information technology by businesses is a function of the level of development of public infrastructures such as power supply and telecommunication in the companies’ locations. He maintained that the acceptance of the computer world has a vital tool for corporate management is on the rise and rise as a result of the increasing difficulties of coping with the effective incorporation of management information system ($5" into banking operations. $t is evident today that the adoption of information technology by business has facilitated easy flow and safe storage of information. $t has also been successful employed to improve customer services, enhance decision
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making processes, reduce the strains on management and make operations more efficient and less cumbersome. &esides, it is appreciated that there are areas of banking which are particularly amendable to the application of information technology. &elow are the seven areas which include customer services, transactions processing and recording, risk management, corporate planning, financial controls, auditing and controls, and human resources management. A. Cu(to!er Ser'&ce( *via, (!1" has noted that service is at the heart of the business of
banking information technology that played, it playing and it will continue to play a maAor role in the delivery of >uality services in the banking sector. ;inancial institutions have used information technology aggressively and innovations to crate the re>uisite competitive advantage and to dramatically improve the >uality of service delivered to their customers some of such baking services which have been revolution through the use of information technology. 1. O,en&ng an Account 5taff service ('utomated ustomer 5ervice achines" facilities now e-ist.
;rom these machines, prospective customer wishing to open an account can (after being screened and found eligible" complete their account opening documents direct online, have their data validated, account numbers assigned and advised when or how their che>ue book, debit card etc will be deliver to them. . Se#f:Ser'&ce Te##er( 5uch as touch screens for en>uires online, automated teller machines ('T" for cash withdrawals and statement of account is now common place. These are used to make the delivery of banking service more participatory for customers and more efficient and less monotonous for banks staff who are opportune to their engage in more challenging tasks. These self#service work stations are being used by customers for lending their electronic wallets (small cards" setting up standing order payment, and for amending e-isting order. $. E#ectron&c Bank&ng $t is appreciated that the rapid advantage in technology has made the provision of home banking services a pleasant reality to the public. Under the scheme, customers for a reasonable fee, can receive an increasing range of banking services such as utility bill
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payments, setting#up standing orders, transferring funds from their accounts to that of another customer of some bank or to another customer of another bank, confirmation of account balances and indeed, online statement of account. ). Cu(to!er Account 3andate 3a&ntenance The document uncaging capabilities of many banking application software in the market today now make it possible for detailed information on a customerJKs mandate cards to be scanned in the system and tied to such information. This functionality has improved the security of customers mandate maintenance and efficiency of mandate verification. +. Sto,,ed Che;ue any applications software now came with che>ue number validation functionality, with these functions, banks can effortlessly and accurately flag a stopped instrument and successfully avoid instruments in error. -. Re'er(a# of Erroneou( Entr&e( &ank reconciliation is a long#standing and effective management control over bans balances. The wider idea is not Aust to reconcile the bank balance as reported in books of a customer with that on the bank statement, but to ensure that all outstanding items on both the bank statement and the customersJK banks are genuine reconciling items. . O,,ortun&ty 3anage!ent ;or any given situation, people will develop a repertoire of responsive actions. $nformation technology is playing a key role in customerJKs service through positive re# enforcement of the relationship between banks and their customers. &anks which are not correctly employing this ine-pensive tool could take this limit. This idea of opportunity management is that of seizing every opportunity to reassure the customer card=concern or his=her plight. 0. 2u## On#&ne< Rea#:T&!e Ca,a"&#&t&e( This is one capability employed by banks today in their drive to provide more and >uality services to customers. ' bank with this capability can deliver some >uality of services to its customer irrespective of the branch where a customerJKs account is maintained. This service has been successfully used to positively reinforce the relationship between banks and their customers who are no longer treated as belonging to a particular branch, but belonging to the bank as a whole. B. Tran(act&ng Proce((&ng And Record&ng *binna (!1" further observed that the most important and in daily applied advantage of information technology rest in its ability to automate
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information. $ntensive (and particularly paper intensive" transactions and services. 5uch information constitutes the core component of business process integration. Today’s technology makes it possible to build an electronic highway linking related business processes through shared information on a common information technology plat form. 5ome specific banking transactions whose processing a recording have been remarkably improve by information technology are@ cash, che>ue, clearing, fund transfer, value dating and rate charges. C. R&(k 3anage!ent @ 'ccording to 7otaz (!1" the management need to critically review and understand the risks associated with information technology. The risks are in general, it should be willing to take risk to ensure more realization of the bank obAectives. $n some case, banks offer new products and services via the internet. $t is important that management understand the risk and ramifications of these decisions. 5ufficient levels of technology and management information system ($5" are necessary to support a business ventures. &elow are some risk management briefly described. Cor,orate R&(k Po#&cy and Procedure corporation are known to maintain their corporate policies and procedures manuals on compact disk#read only memory (6#I*" which is networked to all personnel computer ()s" in the organization for easy reference. Cred&t R&(k D&("ur(e!ent This is a very important function in a bank’s credit risk service chain. $t will abuse if not properly controlled. $t should be done only when a loan customer has met all the conditions precedent for drawing down the approved facility. $t is becoming increasingly centralized due to the availability of information technology functionality. O,erat&on( R&(k &ecause of the reliance on technology or all facet of electronics banking, operational risk is one of the more significant risks. To limit operational risk through the availability of information, banking organizations have considered implementing an integrated enterprise#wide architecture and technology infrastructure that can facilitate. $nteroperability ensures the security, integrity and availability of data and support the management of relationships with third#party service providers.
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/&!&t( 3on&tor&ng ith the power of information technology, risk management officers in banks
are now more able than ever before to monitor the ban e-posure to customers. The linking of related accounts has facilitates the monitoring not of individual accounts, but also of a group of accounts, thereby ensuring belonging to a group are will within individual limits. The limits monitoring facility is also known to be playing a maAor role in budgetary control. D. Cor,orate ,#ann&ng 0nyinna (!1!" is of the view that corporate planning is the think#tank of every organization. $t is the driving force strategy formulation and decision making aimed at creating competitive advantage for the organization conse>uently, the decision on the degree of automating the processes of an organization, the adoption of the manual and auto inter faces, and the type comprehensive information technology solution to be implemented to achieve all of this is influenced to a large e-tent by corporate planning. He further e-plain in broad terms, that the corporate planning unit is usually responsible for providing advice on the structure of the firm, its management and control, and its system procedures and process. This has already been profitably adopted by banks world over. any of these corporate planning units have reportedly relied heavily on information technology facilities to successfully performance of their corporate responsibilities thus@ a" Effect&'e Pre(entat&on $t is appreciated that for an organization to have a fulfilled corporate planning there must be an effective presentation. Therefore, it is the starting point of every strategy assignment to properly articulate the concepts and idea through analysis, before recommending, from a cost=benefit point of view, the best alternative course of action for the organization. b" Ser'&ce *ua#&ty Luality control is important for the healthy growth of banks. There is need for clearly defined sets of standards to be achieved, especially concerning service delivery to customers. orporate planning using special information technology packages for work study, economic, operations research, liner programming and similar mathematic models, are able to cope with the present day challenges of bench marking the >uality of their service, comparing
17
performance with those of competitors and recommending re>uisite process implements or re# engineering schemes to upgrade and sustain services >uality at the desired levels. c" Re(ource A##ocat&on *ne of the information technology aided management techni>ues which has been successfully employed in the financial services industry to a great advantage is the >ueuing theoryJK which has been applied to problems related to waiting periods at the countries. ' study of the arrival pattern of customer for counter services, their waiting periods, the number of service point etc, over a period of time and the variation at different times of the day, different das of the week, seasonal variations etc have been used to solve resource allocation problems. $n respect of staff money space, office e>uipment and other bank assets allocation. E. 2&nanc&a# Contro#( 'ustin (!11" lamented that the financial controller of bank should be
>ualified chartered accountant. His responsibility includes ensuring that proper books of account are kept, and that accounting policies of the bank are appropriate and consistency applies. He also has the responsibility of managing the bank’s balance sheet for li>uidity, long term stability, sustainable profitability and compliance with relevant=appropriate statues. The managing of the bank’s profit making process through realistic and time#conscious budgeting and period performance review of actual performance against budget. 2. Aud&t&ng Contro#( /izzy (!11" has rightly observed that it is understood that there have been
detected errors irregularities and fraud which have continued to dominate the conduct of audits in the early days. Then the auditor was seen as a blood hound and not a watchdog. $ncreasing however, there have been the recognition of the need to provides financial accounting information for the benefits of investors and other interested to their formation contained in the company’s balance sheet, so the rule of the auditor was increase seen as being to lend credibility to this information, rather than re>uesting him to merely certify it as being free form errors, irregularities and fraud. The rapid development of the 12:!s and 124!s really saw the birth of auditing as we know and understood it today. 6uring this period, company management, particularly in large
18
enterprises confirmed the acceptance of their responsibility to detect error and fraud. They did this by establishing system of financial control and reporting which were designed to minimize, if not totally eliminate the risk of errors, irregularities and fraud. 4. Hu!an Re(ource( 3anage!ent
according to Godschal (!1" human resource
management@ is a compensation monitoring payroll systems are known to have been integrated into the core banking package, there by facilitating payroll administration and employee compensation management. 0ach month, only payroll changes are addressed. 5ome of the changes addressed monthly would then be those due to Aoiners, leavers, increase in certain compensation components, promotion, salary increment, leaved holiday payments etc.M .- The Conce,t of 2&nanc&a# Perfor!ance(
;arle- financial 6ictionary (!1" define performance as word which means Bto beC carry out or to render. 'ccording to ;arle- financial 6ictionary (!1" financial performance refer to any of many different mathematical measures to make a profit common e-ample of financial performance include operating income earnings before interest and ta-es and net asset value. $t’s important to note that no one measure of financial performance should be taken on its own. Iather, through assessment of a company’s performance should take into account many different measures. 'ccording to business dictionary define financial performance is the level of performance of a business over a specified period of time e-pressed in terms of overall profit and losses during that time evaluation the financial performance of a business allows decision makers to Audge the results of the business strategies and activities in obAectives monetary terms. ('yo, *. 6. !11"
19
CHAPTER THREE RESEARCH 3ETHODO/O4= Introduct&on
This chapter e-plains the research instruments used in the course of the study. $.1
Re(earch De(&gn
The study employs the survey research design. This is because it gives the opportunity for research to see the reality more closely. $nference are not base on theory or principle but it is based on first# hand information. $.
Po,u#at&on of the Study
The population of the study consists of all staff (senior, middle cadre and Aunior" of enith &ank )lc, 6amaturu branch, Fobe 5tate and 3os branch, plateau state as at !18. The researcher decided to use this financial institution because it is well established with a big workface who would be a key tool in responding to the >uestionnaires and oral interview of the subAect matter. The whole populations of enith &ank $nt’l )lc, 6amaturu branch staff are si-ty (8!". $.$
Sa!,#&ng Techn&;ue(
This study adopts the simple random sampling techni>ue. Thus, respondents were selected randomly from all the entire staff of enith &ank )lc both 6amaturu branch, Fobe 5tate and 3os branch, )lateau 5tate. This will enable true representative of the entire population and guarantee ade>uate and accurate data information. $.)
3ethod of Data Co##ect&on
The procedure for the data collection involves the use of both primary source (i.e >uestionnaire" and secondary sources.
20
$.).1
Pr&!ary Source
$n this research work, our primary source has been on >uestionnaire and oral interview which was carried out at both enith &ank )lc, 6amaturu branch, Fobe 5tate and 3os branch, plateau state with their staff and customers. $.).
Secondary Source
This process of research work is based on the information gathered from te-t books, Aournals, magazine and previous written literatures, seminar paper and other documentary evidence that are relevant to the study. ;or the purpose of this study, the researcher employed the use of available literature pertaining to the subAect matter of the study. The useful sources are te-tbook, Aournals, and internet. $.+
3ethod of Data Ana#y(&(
6ata analysis is maAor step in any research work for easy analysis, data will be tabulate for each variable, the tabulation of data gives the researcher a trends on the variable tested. These include the use of tables, percentages and using chi#s>uare test to analyse the data used
21
CHAPTER 2OUR DATA ANA/=SIS AND DISCUSSION O2 RESU/TS ).1
Data Pre(entat&on
This chapter deals with the presentation of the analysis of the respondents’ response obtained through the >uestionnaire administer. $n the course of this research work, the total of si-ty (8!" copies of the >uestionnaires administered randomly to staff, of enith &ank )/ %igeria, out of which si-ty (8!" on the population used for the research proAect out of which forty (4!" were returned duly completed. $t is on these retuned copies the outcome of this research study is based. $n this chapter, each >uestion in the >uestionnaire has a range of two options, thus@ favourable for NFes’ response, unfavourable for N%o’ response. The e-perimental variables e-amined in this study. B$mpact of information technology on the financial performance in banking sectorC. The breakdown of the >uestionnaires administered is shown in the table below@ Ta"#e 1 The Tota# *ue(t&onna&re( Ad!&n&(tered. *ue(t&onna&re
Re(,ondent
Percentage
Ieturned
4!
8OP
%o Ieturned
!
::P
Tota#
->
1>>?
5ources ;ield 5urvey !18. ).
Data Ana#y(&(
The data analysed here were gathered from the staff of enith &ank )lc, 6amaturu branch and 3os branch and its customers. *n this note, it is appreciated that for effective interpretation of the data, the need to e-haustively elucidate the techni>ue and formula used is re>uired. 0ach >uestion contains two or more option raging from NFes’, N%o’ and also placed on percentage (P" base.
22
Therefore, the simple percentage (P" obtain used in order to enable the researcher obtain accurate figures representing the values of the options thus@
Ta"#e)1
6oes information technology contribute to the efficiency and &ank#customer relationship in your bankE
Re(,on(e
Re(,ondent
Percentage
Fes
:<
2+P
%o
+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 This >uestion tries to know whether or not the information technology contribute to the efficiency and bank Q customer relationship in your bank. 'll the :< respondent and represents 2+P agreed that information technology contribute to the efficiency and bank#customer relationship in your bank. hile respondent and represents +P disagreed on that. Ta"#e )
6oes information technology increased the volume of deposits in the zenith bank. Re(,on(e
Re(,ondent
Percentage
Fes
:+
%o
+
1.+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 This >uestion tries to know whether information technology increased the volume of deposits in the zenith bank or not. 'll the :+ respondent and represents <+.+P agreed while +respondent and represent 1.+P disagreed. Ta"#e )$
23
6oes information technology actually enhance the financial performance of zenith bank plc %igeriaE Re(,on(e
Re(,ondent
Percentage
Fes
:<
2+P
%o
+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 The table above indicate that :< respondent represent 2+P agreed that information has actually enhanced zenith bank plc performance while respondent represent +P disagree. Ta"#e ))
$f yes in what ways. Re(,on(e
Re(,ondent
Percentage
'utomated Teller achine
:O
2.+P
)ont of sales terminals
+P
$nternet Terminals
1
.+P
*ther specific
#
#
)>
1>>?
Tota#
5ources@ ;ield 5urvey !18 This >uestion is meant to find out if information technology actually enhance the financial performance transaction of zenith bank )lc %igeria :O respondents represent 2.+P responded that like the transaction may with automated teller machine 'T while, respondents represent +P also like the transaction make on point of sales terminals while, 1 respondents represent .+P agree that internet terminals is other transaction that you can make use your computer or phone. Ta"#e )+
6oes information technology on financial performance be used as a tool for assessing the zenith bank plc performanceE Re(,on(e
Re(,ondent
Percentage
Fes
:2
2O.+P
24
%o
1
.+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 The above table agree that :2 respondents which represent 2O.+P show that information technology on financial performance be used as a tool for assessing zeith bank plc performance. hile 1 respondents which represent +P disagree that information technology cannot tool for assessing zenith bank plc financial performance. Ta"#e )-
6o you enAoy the 1st century technology provided by your bankE Re(,on(e
Re(,ondent
Percentage
Fes
4!
1!!P
%o
#
#
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 ;rom the above observation, all the respondents represented by 1!!P take a lead in the >uestion by agree totally enAoy the 1st century technology provided by your bank. Ta"#e ) $f your answer to >uestion 5i- is NFes’, has this technology increase your performance. Re(,on(e
Re(,ondent
Percentage
Fes
4!
1!!P
%o
#
#
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 This >uestion tries to know whether has this technology increase your performance. 'll the 4! respondent and represents 1!!P agreed has this technology increase your performance of the 1st century technology provided by the bank. Ta"#e )0
6o you feel satisfy with the use of information technology ($T" provided by your *rganization.
25
Re(,on(e
Re(,ondent
Percentage
Fes
4!
1!!P
%o
#
#
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18. ;rom the above observation, all the respondents represented by 1!!P take a lead in the >uestion by agree totally that the feel satisfy with the use of information technology ($T" provided by the *rganization (zenith bank". Ta"#e ) 5
$f your answer is yes in what way this has helped you. Re(,on(e
Re(,ondent
Percentage
Ieduce turnaround time
!
!P
$mprove good performance
!
!P
$ncrease customer’s relationship
!
!P
)rovide good service
!
!P
'll of the above
4!
1!!P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18. ;rom the above table show that 4! respondents representing 1!!P agree that all the responses say yes that the feel satisfy with the use of information technology ($T" provided by the *rganization (zenith bank". Ta"#e )1>
$nformation technologies facilitate the activities of auditing in modern banking practices. Re(,on(e
Re(,ondent
Percentage
Fes
:1
OO.+P
%o
2
.+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18.
26
$n the above table show that :1 of the respondents representing OO.+P out of forty (4!" staff represents agreed that information technology facilitate the activities of auditing in modern banking practices while, nine (2" of the respondents representing .+P disagree. Therefore, the table shows clearly that OOP agreed that information technology facilitate the activities of auditing in modern banking practices. Ta"#e )11
$nformation technologies enhance the management services in banking operations. Re(,on(e
Re(,ondent
Percentage
Fes
:!
O+P
%o
1!
+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18. $n the table above >uestion, :! respondent represented by O+P of the total responded agreed that information technologies enhance the management services in banking operations. 1! respondent represented by +P of the total respondent disagreed saying that information technology does not enhance the management service in banking operations. Therefore, the response received from the staff shows that information technologies ($T" enhance the management service in banking operations. Ta"#e )1
6oes information technology actually find out what problems encounter by the customer products and service in your bankE Re(,on(e
Re(,ondent
Percentage
Fes
:!
O+P
%o
1!
+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18
27
$n the above, shows that :! of the respondents representing O+P agree that the information technology actually use to find out what problems encounter by the customer products and service in your bank. hile 1! of the respondents representing +P disagree for that >uestion. Ta"#e )1$
$mprovement of information technology in productivity of modern banking operationE Re(,on(e
Re(,ondent
Percentage
Fes
4!
1!!P
%o
!
!P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 ;rom the above observation of the table show that all the respondents represented by 1!!P agree that the $mprovement of information technology in productivity of modern banking operation. Ta"#e )1)
Has the adoption of information technology on financial performance improve the services render by the bankE Re(,on(e
Re(,ondent
Percentage
Fes
:2
2O.+P
%o
1
.+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 This >uestion tries to know whether the adoption of information technology on financial performance improve the services render by the bank. 'll the respondents have all the 4! respondents 1!!P agreed that the adoption of information technology on financial performance improve the services render by the bank. Ta"#e )1+
$f yes how does information technology on financial performance improve the service offer by the bankE Re(,on(e
Re(,ondent
28
Percentage
)roduce more customer
:O
2.+P
Ieduce customer
1
.+P
'll of the above
+P
)>
1>>?
Tota#
5ources@ ;ield 5urvey !18 This >uestion is meant to find out if yes how information technology on financial performance improves the service offer by the bank. :O respondents represent 2.+P responded agree that information technology produce more customer on financial performance on the service offer by bank while, respondents represent +P also disagree while, 1 respondents represent .+P agree all of the above. Ta"#e )1-
Has the adoption of information technology on financial performance by the zenith bank plc increased it customer portfolioE Re(,on(e
Re(,ondent
Percentage
Fes
:2
2O.+P
%o
1
.+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 The above table show that :2 people representing 2O.+P admit that the portfolio has increase while. 1 person disagree which is representing 1!P. Ta"#e )1
$f yes in what ways Re(,on(e
Re(,ondent
Percentage
*pening of account
:4
<+P
$ncrease in loan
+
1.+P
*ther
1
.+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18
29
;rom the above observation of the table show that :4 people admit that opening of accounting representing <+P agree, while + person agree says increase in loan which representing by 1.+P, while the other 1 did not admit representing .+P.
Ta"#e)10
Has the availability of information technology promotes satisfaction oriented result to the customers. Re(,on(e
Re(,ondent
Percentage
Fes
:4
<+P
%o
8
1+P
Tota#
)>
1>>?
5ources@ ;ield 5urvey !18 The table above information gathered shows that thirty four (:4" respondents representing <+P completely agreed that information technology promote satisfactory oriented result to their customers while si- (8" respondents represented by 1+P disagreed for the >uestion. Therefore, the response received shows that information technologies promote satisfactory oriented result to their customers. ).$ Te(t of Hy,othe(e(
Going by this research, selective >uestions are >uestion@ 1,,1 and 1< respectively could be used to test the hypotheses. 'll the test are carried out at !.!+ or +P level of significance as shown in appendi- $$$. Su!!ary of Ch&:S;uare Ta"#e Re(u#t( O
E
O:E
8O:E9
:< :+ :! :4
:4.+ :4.+ :4.+ :4.+ +.O+
:.O+ !.O+ #4.+ #!.+ #:.O+
14.!8+ !.+8+ 1<.!8+ !.!8+ 14.!8+
30
O:E E !.41!+<4 !.!184: !.+O:O !.!!1<+ .44+8+
+ 1! 8 Tota#
+.O+ +.O+ +.O+
#!.O+ 4.+ !.+
!.+8+ 1<.!8+ !.!8+ Co!,ute
!.!2O<8 :.141:!4 !.!1!
7a#ue Source ,er(ona# ta"#e Co!,utat&on of Ch&:S;uare
6egree of freedom (6*;" R (I#1" (#1" here@# I R Iow R olumn 1 R onstant IR
R<
hi#s>uare level of significant R !.!+ 6egree of freedom (I #1" ( #1" (#1" (<#1" 1SO R O The level of significance is +P or !.!+ and the confidence interval is 2:P now the 6*; is !.!+ going through chi#s>uare table under O with !.!+ confidence interval is 14.!8O Therefore critical value as obtained from chi#s>uare table is 14.!8O while the computed test is 8.8+O1<. Re%ect&onAcce,tance Dec&(&on or Cr&ter&a and Conc#u(&on
The cut-of point in chi-square (X2 ta!"e is 14#067 an$ the co%pute$ &a"ue is 8.8+O1< is "ess than the critica" &a"ue (14#067 'ro% the ta!"e e re)ect the nu""
h*pothesis+ H,:1 The information technology has not increased the volume of deposits in the enith &ank )lcDH:1 The information technology has increased the volume of deposits in the enith &ank )lcDH,:2 The a&ai"a!i"it* o' in'or%ation techno"o.* $os not pro%otes
satis'action oriente$ resu"t to their custo%er+ H'@ The availability of information
31
technology promotes satisfaction oriented result to their customersD H*@: The information technology does not contribute to the efficiency on bank and bank customersD H'@: The information technology has contribute to the efficiency on bank and bank customersD H*@4 The information technology actually has not find out what problems encounter by the customer products and service in your bankD H'@4 The information technology actually find out what problems encounter by the customer products and service in your bank. Conc#u(&on
/ince the co%pute$ &a"ue is "ess than the critica" test &a"ue (6#657218 14#067 e there'ore conc"u$e that the enith !an shou"$ accepte$ re)ect the nu"" (H0 h*pothesis an$ accept the a"ternati&e (H h*pothesis# ).) D&(cu((&on of Re(u#t(
The above material of this proAect is to e-amine the B$mpact of $nformation Technology on the ;inancial )erformance in &anking 5ectorC a case study of zenith banking plc %igeria. 6uring the process of study, a given number of research >uestion were formulated in chapter one. ;rom the analysis of finding, it was discovered that the four research >uestion were accepted. 1. ;rom the data analysis of the result, it was observed that information technology has increased the volume of deposits in the enith &ank )lc. in order to meet the high e-pectation of customers demand. 'ccording to 'lu (!11" say that the information technology enables %igerian banks in meeting with the high e-pectations of customers who are more demanding and more techno#savvy compared to their counterparts in yester#years. ustomers demand instant, anytime and anywhere banking facilities. . ;rom the data analysis result, based on our finding it was observed that the availability of information technology promotes satisfaction oriented result to the customers through the introduction new system has automated information intensive and particularly paper intensive
32
transactions and services. This constitute core component that integrate a successful cash ch>ues clearing and fund transfer etc. :. $n another result finding it was observed that $nformation technology has a great impact in bank# customer relationship though the introduction of new banking operation that is put in place like automated teller machine ('T", point of sales terminals, internet banking and so many others. 'ccording to Ugwu (!11" $nformation technology has also facilitates the introduction of new delivery channels in the form of automated teller machine ('T", )oint of sales terminals, internet banking, net banking, and mobile banking etc. ;urther, information technology deployment has assumed such high levels that is no longer possible for banks to manage their information technology implementation on a stand#alone basis. ith information technology revolution, banks are increasing interconnecting their computer system not only across branches in some cities in %igeria, but also to other geo#political locations with high speed network infrastructure and setting up local area and wide area network and connecting them to the internet. 's a result, information technology systems. 'nd networks are now e-posed to a growing number of %igerian banks such as zenith bank plc. 4. 'lso in another finding of the result it was observed that the information technology actually find out what problems encounter by the customer products and service in your bank. 5ome of the problem that being observed terms of e# banking in the zenith bank plc. ould be classified into three classed as human, operational and technical constraints. *ther problems that can have an impact of information technology on the financial performance in the banking sector, can be grouped broadly as psychological and behaviour. These include consumer awareness for personalized services among others.
33
CHAPTER 2I7E SU33AR=< CONC/USION AND RECO33ENDATIONS +.1 Su!!ary
$n this chapter, a summary of the work and the conclusions arrived at will dealt with. 'lso, recommendations based on the findings of the study will be given and the areas for further study is to e-amine the B$mpact of information technology on the financial performance in banking sectorC with a reference to zenith bank plc %igeria and the specific obAective deals with the research >uestion, significance and scope of the study are also highlighted. The study covers a period of four year (!11 # !1+". hapter two contain literature review of various relevant literatures which deal with the views of different authors on the subAect matter of the study. 6uring the review, it was found out that the effective use information technology goes a long way in determine the efficiency of such establishment and that no organization can achieve its set obAectives without the support of information technology ($T". To effectively achieve the aims of this study, three research >uestions were drawn a later developed to eighteen (1<" >uestions which made up the >uestionnaire for this proAect. The >uestionnaires were administered to the respondents in order to ample their opinion towards the subAect matter of this proAect. hapter four shows the analysis of the responses given by the respondents towards the >uestions asked in the >uestionnaire. The results were than presented in a tabular form. $t is worthy to note
34
that information technology ($T" should be viewed so that appropriate ones could be used to match very situation. The study also revealed various ways in which worker can increase the financial performance in the bank sector through the use of information technology. To ensure that the opportunities and advantages are realized, it will be important as it is in every other walk of life to ensure that banking research and development is sustained so that banks at large can learn from within and that e-periences and activities in different institution and sectors can inform and guide other without the continual need for re#invention of the wheel. *nce again $t’s serve to provide the means from much of this activities to realize the potential it holds +.
Conc#u(&on
'doption of information technology has influenced the content and >uality of banking operations. ;rom all indications, information technology ($T" presents great potential for business reengineering of %igeria &anks. $nvestment in information technology should form an important component in the overall strategy of banking operations to ensure effective performance. $t is imperative for bank management to investment in information technology products to facilitate speed, convenience, and accurate services, or otherwise lose out to their competitors. The banking sector in %igeria presents information technology ($T" provides with great opportunity to market their innovations. 5uccess in this area however depends on how they can customize their services to appeal to the ready minds of various stake holders in the industry. +.$
Reco!!endat&on
&ased on these findings, it had been established that information technology ($T" plays a crucial impact in %igeria &anking 5ector. $nformation technology is therefore an effective device that can be used in any sector in order to speed up its services, particularly in the banking sector. This are the following recommendation were pass@ 1. Through the banking sector information technology should be give more space in the banking operation=activities.
35
