ABSTRACT
As information technology is the modern trend on banking today, it’s very imperative for banks to access its impact operational performance so as to justify if the capital invested on it is justifiable or not, analyze their problem and profit possible solutions. The objective of this study is to examine how the adoption of information technology affects the operations commercial banks and the effects information technology on banks, customer relationship The main research instruments used Are questionnaire fro staffs and customers of the bank. The simple frequency percentage was adopted as the statistical measure and hypothesis testing was analyzed using chi-square. In conclusion, the study reward that information technology has tremendously improved growth and performance of the Nigeria commercial banks. Information technology has lead to increase to increase customer satisfaction, improved operational efficiency, reduced transaction time, gives the bank a competitive edge. The research recommended that government should support and loan money to local firm to foster importation, lower tariff on importation of information technology related equipment and their agencies and regulatory bodies should upgrade their equipment as well and the banks should continuously implement customer centred IT products and services of international standard.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The low productivity, profitability and efficiency of many Nigeria banks necessitate the introduction of information technology to find solution to the challenges of the present day banking system.
This paper has tried to assess the impact of information communication technology on the efficiency of thirteen commercial banks in Nigeria. Madueme Ifeoma Stella (2010).
The banking industry is one of the critical sectors of the economy whose contribute to the pace of development and economic growth cannot be fully quantified changes in today’s modern world reveals that the important of natural factors cannot equip the banking sector fully to grapple with the exigencies of global completion. Madueme Ifeoma Stella (2010)
According to Hanna (1994) information flexibility and fast response are the key new factors for coping with global competitoion information communication technology plays a critical role in these areas for the purpose of quality enhancement.
According to Hanna, information technology transforms the way people do things, increasing the amount of information available to economic agents, information intensity of processes, occupations, institution, product and economics. It enhances working of markets reduces transactions and co-ordination cost within an across enterprises and institutions.
Information technology has radically change how banking is doing all over the world, the volume and speed of banking transaction has improved tremendously as a result of quantuim growth in information technology which has created business opportunities for banks.
The positive impact of information communication technology on the global criteria, especially improved revenue corroborates with findings of Laudon and Laudon 2008 that studies the entire cash flow of most fortune 500 companies and linked their success to information system. They concluded that information technology directly affects how managers decide, how they plan and what products and services are produced.
The banking industry in Nigeria has witness tremendous changes linked with the development in information technology over the year. In Nigeria information technology gave birth to electronic baking. This represents benefit such as anywhere banking, anytime banking and elongated banking hours to customers. These benefits provide comfort, convenience and ease of use for banks transactions. Before the advent of electronic banking customers could only make transactions in the banking hall.
Electronic banking has facilitated the integration of the functions of some large banks that have several branches around the country on centralized network so that transaction can be carried out at any branch on the network without the customer being physically present in the branch Woherem (2005)
1.2 Statement of the Problem
Despite the fact that the introduction of information technology in the operation of the banks in Nigeria among others sectors has brought about noticeable development but at the same time, its brings about its attendant problems, because banks still find it difficult to strictly comply with the mission statement or corporate mission
High, incidence of bank fraud bone information technology. This fraud ranges from ATM card fraud, internet banking fraud, email and text message fraud.
1.3 Research Questions
This research work shall be guided by the following research question
- What impact does information technology have on the banking operations?
- To what extent does information have effect on banks customer relationship?
1.4 Statement of Hypothesis
The hypothesis to be tested in the course of this research work is
Null hypothesis - (Ho) There is no relationship between the adoption of information technology and modern banking operation.
(Hi) There is relationship between the adoption of information technology and modern banking operations
.