Prospect and challenges of information technology in nigeria banking sector

Thesis Overview

<p> </p><p><b>INTRODUCTION</b></p><p><b>1.1 &nbsp; &nbsp; <br></b><b>Background<br>of the study</b></p><p>Although a lot of research works have been done on the<br>prospects and challenges of information technology in the banking industry,<br>these research works were broad based, while a few were actually carried out on<br>the role of information technology in modern banking operations. Modern banks<br>now realize that only those that overhaul their payment service delivery and<br>operations are likely to service and proper in the 21st century. This is<br>due to the presence of globalization, consolidation, privatization,<br>deregulation and rapidly changing technological environment. In order to<br>properly place themselves in favourable positions for competitions and be one<br>of the corporations to be reckoned with in the new century, banks make use of<br>internet facilities to execute mobile making. This is developed by using<br>personal computers (PCS) to form local area networks (LAN) and wide area<br>networks (WAN) through client/server technology (Davenport, 1993).Many banks<br>have installed modern computer interconnectivity backbone that would enable<br>them achieve their communications of data and multimedia over internets,<br>intranets and extranets. They also realize that they have to achieve not only<br>management/staff will computer literacy but what could be called information<br>literary i.e. knowing how to locate,, analyze, store and use information. All<br>staff and managers in a modern bank need to be able to search and gather data<br>from different sources, analyze them, select relevant ones and organize them in<br>such a manner as to allow informed decision making in the organization. Banks<br>of the future realize that the banking and other banking tomorrow requires more<br>of electronic manipulations and shuffling of bits based money and other banking<br>transactions, instead of paper. In other words, paper base of transactions,<br>instead of paper. In other words, paper based transactions, like the internet<br>banking services (Connel and Saleh, 2004). Whether a bank would be successful<br>or not depends on the extent to which it invests on internet and communication<br>technology (ICT) and how she uses it in an innovative manner. This area has<br>been tip to be a major competitive ground for banks that are operating in the<br>post consolidation era. What is the trend in the use of information technology<br>in Nigerian banking industry? To what extent does information technology chance<br>employees and organizations performance?</p><p><b>1.2<br>STATEMENT OF THE PROBLEM</b></p><p>Business need to continuously find better and faster ways to<br>adapt to the competitive market place in order to complete in today’s high<br>technology and fast paced environment. According to Hammer and Champy (1993)<br>learning organizations provide a framework that encourages finding better and<br>faster way to adapt in today’s high technology and fast paced world by:</p><p>1. &nbsp; Looking at the whole versus the<br>parts a systematic perspective.</p><p>2. &nbsp; Detecting and correcting errors.</p><p>3. &nbsp; Improving actins through knowledge<br>and developing the broad skills of their work force.</p><p>These days’ computers and information processing are in<br>common usage. Computers influence what decisions are made, when decisions are<br>made, what and who is available at the point of decision and who is asked to<br>decide computers and information processing affects how work is organized and<br>how employees fell about work (Stephen, 2012).</p><p>From my perspective, the essential element of management of<br>information provision and this information technology system are expected to<br>heavily influence management and business operation and as such the main thrust<br>of this research work is to investigate the extent of this influence with<br>special focus on modern banking operations in Nigeria.</p><p><b>1.3 OBJECTIVE OF THE STUDY</b></p><p>The study generally in kinds to investigate the prospects<br>and challenge of modern banking operations in Nigeria, and to specifically:</p><p>1. &nbsp; Evaluate the impact of electronic<br>banking on the operations of financial institutions in the country.</p><p>2. &nbsp; Examine the effect of information<br>technology on banks customer relationship.</p><p>3. &nbsp; Identify barriers to efficient<br>information technology system within a financial institution.</p><p>4. &nbsp; And from the findings make<br>suggestions on how to make information technology system more efficient in<br>modern banking operations</p><p><b>1.4<br>RESEARCH HYPOTHESES</b></p><p>For<br>the successful completion of the study, the following research hypotheses were<br>formulated by the researcher;</p><p><b>H0: </b>there is no impact of electronic<br>banking on the operations of financial institutions in the country</p><p><b>H1: </b>there is impact of electronic<br>banking on the operations of financial institutions in the country</p><p><b>H02: </b>there<br>are no barriers<br>to efficient information technology system within a financial institution</p><p><b>H2: </b>there<br>are barriers to efficient<br>information technology system within a financial institution</p><p><b>1.5<br>SIGNIFICANCE OF THE STUDY</b></p><p>A vital component of any move towards better business<br>performance is an integrated information technology infrastructure that<br>supports organizations internal requirements for greater performance as well as<br>compliance with market and industry regulations. This study is significant in<br>the following ways:</p><p>1. &nbsp; It would have a direct effect on the<br>efficiency and effectiveness of the use of information systems in the various<br>steps of the modern banking operations.</p><p>2. &nbsp; It would enable employees and<br>managers who are involved in the information systems of their organization to<br>see opportunities for improvement in the use of information technology systems<br>thereby improvement in the use of information technology system thereby<br>improving the organizational productivity.</p><ol><li>It would also be an invaluable tool<br>for student academic, institutions and individuals that want to know more<br>about the relevance of information technology in modern banking in Nigeria.</li></ol><p><b>1.6 SCOPE AND LIMITATION OF THE<br>STUDY</b></p><p>Nowadays, financial originations and other business<br>organizations in general need to identify with the fact that information<br>technology system has a strategic impact on their business. This research work<br>shall strict contribution to this recognition and understanding by examining<br>the impact and trend of information technology within the financial business<br>sector in Nigeria. The focus of this study shall be on the adoption of<br>information technology in banking operation by Nigeria banking operations of GT<br>Bank Plc. This study shall cover the period since the introduction of<br>information technology in Nigerian banking sector to date. Information<br>technology was introduced into Nigeria economy upon the commencement of the<br>electronic payment scheme in 1996. All the various information technology<br>related schemes introduced since this period to date shall be examined in the<br>course of the study. The following limitations were encountered by the<br>researcher in the course of carrying out this study.</p><p><strong>Time: </strong>This<br>has always been a limiting factor for a research of this kind, because the<br>structure needs to complete his work within a specified time frame.</p><p><strong>Data Collection: </strong>The<br>problems of data collection was a recurring decimal, since bank officials were<br>not ready to release classified data neither were they to be found through<br>other official sources.</p><p>Therefore, the researcher had to limit herself to the<br>available data for this study.</p><p><strong>Finances: </strong>Research<br>has always been cost intensive, as the researcher had to make various journeys,<br>photocopy materials and obtain official information. Thus, whereas the need for<br>finance abounded, it’s supply was limited</p><p><b>1.7 DEFINITION OF TERMS</b></p><p><b>PROSPECT: </b>The<br>possibility or likelihood of some future event occurring.</p><p><b>CHALLENGES: </b>A call to someone to participate in a competitive situation<br>or fight to decide who is superior in terms of ability or strength.</p><p><b>INFORMATION TECHNOLOGY</b>: <em>Information technology</em>&nbsp;(IT)<br>is the application of computers to store, study, retrieve, transmit, and<br>manipulate data, or <em>information</em>, often in<br>the context of a business or other enterprise. IT is considered a subset<br>of <em>information</em>&nbsp;and communications <em>technology</em>&nbsp;(ICT).</p><p><b>BANKING SECTOR: </b>The banking<br>sector is the section of the economy devoted to the holding of<br>financial assets for others, investing those financial assets as leverage to<br>create more wealth, and the regulation of those activities by government<br>agencies.</p><p><b>1.8 ORGANIZATION<br>OF THE STUDY</b></p><p>This research work is<br>organized in five chapters, for easy understanding, as follows</p><p>Chapter<br>one is concern with the introduction, which consist of the (overview, of the<br>study), historical background, statement of problem, objectives of the study,<br>research hypotheses, significance of the study, scope and limitation of the<br>study, definition of terms and historical background of the study. Chapter two<br>highlights the theoretical framework on which the study is based, thus the<br>review of related literature. Chapter three deals on the research design and<br>methodology adopted in the study. Chapter four concentrate on the data<br>collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and<br>recommendations made of the study</p><br> <br><p></p>