Project Abstract

Project Overview

<p> <b></b></p><p><b><b>INTRODUCTION</b></b></p><p><b><b></b></b></p><b><b><p><b>1.1 &nbsp; &nbsp; &nbsp; Background to the Study</b></p><p><b></b></p><b><p>Today’s<br>business environment is very dynamic and undergoes rapid changes as a result of<br>technological innovation, increased awareness and demands from customers.<br>Business organisations, especially the banking industry of the 21st century<br>operates in a complex and competitive environment characterized by these<br>changing conditions and highly unpredictable economic climate. Information and<br>Communication Technology (ICT) is at the centre of this global change curve.<br>Laudon and Laudon, (1991) contend that managers cannot ignore information<br>Systems because they play a critical role in contemporary organisation. They<br>point out that the entire cash flow of most fortune 500 companies is linked to<br>Information System.</p><p>The<br>application of information and communication technology concepts, techniques,<br>policies and implementation strategies to banking services has become a subject<br>of fundamental importance and concerns to all banks and indeed a prerequisite<br>for local and global competitiveness. ICT directly affects how managers decide,<br>how they plan and what products and services are offered in the banking<br>industry. It has continued to change the Way bank and their corporate<br>relationships are organized worldwide and the variety of innovative devices<br>available to enhance the speed and quality of service delivery.</p><p>Harold<br>and Jeff (1995) contend that financial service providers should modify their<br>traditional operating practices to remain viable in the 1990s and the decades<br>that follow. They claim that the most significant shortcoming in the banking<br>industry today is a wide spread failure on the part of senior management in<br>bank to grasp the importance of technology and incorporate it into their<br>strategic plans accordingly. Woherem (2000) claimed that only bank that<br>overhaul the whole of their payment and delivery systems and apply ICT to their<br>operations are likely to survive and prosper in the new millennium. He advices<br>bank to re-examine their service and delivery systems in order to properly<br>position them within the framework of the dictates of the dynamism of<br>information and communication technology. The banking industry in Nigeria has<br>witnessed tremendous changes linked with the developments in ICT over the<br>years. The quest for survival, global relevance, maintenance of existing market<br>share and sustainable development has made exploitation of the many advantages<br>of ICT through the use of automated devices imperative in the industry.</p><p>Through<br>Information and Communication Technology (ICT) services available to Jaiz Bank<br>plc in Kaduna State, it can now give its customers a unified access to manage<br>their personal financial information. The adoption of Information and<br>Communication Technology (ICT) by this bank has increased its operational efficiencies,<br>reduced cost through high utilization rates in the ICT environment to ensure<br>compliance with changing time and to gain competitive advantage (Haggani, 2003).<br>Methods of handling financial services has to change from old manual<br>transactions and data processing to a faster, more impactive and highly<br>efficient electronic data processing and Electronic Fund Transfer (EFT) i.e.<br>deposits, withdrawals, bills-pay-in, purchases of draft, value for cheques,<br>third party transactions, fund transfer and inquiries are all done<br>electronically within seconds. The adoption of Information and Communication<br>Technology (ICT) has also helped Jaiz Bank in Kaduna State to keep the pace<br>with the changing customers’ needs and market dynamics and create a competitive<br>differentiation in products and services (Haggani, 2003).The complex nature of<br>the banking system, its products and services have made it necessary for bank<br>to embrace this change as quick as possible since this medium of banking has<br>proven to be very efficient in most countries of the world( for example America)and<br>Nigeria is no exception. Indeed, the impact of ICT has reshaped the banking<br>industry in terms of providing and delivering impactive and efficient services<br>to enhance its operations and general performance and does not need to be<br>overemphasized. This research work is therefore an attempt to determine the<br>impact of Information and Communication Technology (ICT) on Nigerian Bank<br>performance.</p><p><b>1.2 &nbsp; &nbsp; &nbsp; Statement of the Problem</b></p><p><b></b></p><b><p>This<br>study evaluates the response of Nigerian bank to this new trend of ICTs and<br>examines the financial performance of Jaiz bank in their operations and the<br>resultant impacts. Information and Communication Technology has become a<br>potential tool in the hands of bank for sustainable growth it has<br>revolutionized the banking industry and its advent has enormously increased the<br>capabilities of bank as they are now able to offer wider range of services to<br>their customers including internet banking, mobile banking and ATMs and also<br>expand at a great rate. Despite all these innovations in the banking industry,<br>it is highly disheartening to observe that bank are still finding it difficult to<br>meet the expectations of their customers. It is not uncommon to find long queues<br>in bank, delay in attending to customers. It is not common to find long queues<br>in banks, deley in attending to customers, inability to properly sort out<br>Transaction and customer’s general loss of trust in bank. Also, banks have<br>found it increasingly difficult to meet up with its overall objectives and<br>responsibilities and Jaiz Bank in Kaduna State is not an exception. These has<br>therefore led to the interest of the researcher to examine the impact of<br>Information and Communication Technology (ICT) on Nigerian Bank’ performance<br>and also to realize the significant impact ICT has had on their operations so as<br>to guarantee their profitability and growth.</p><p><b>1.3 &nbsp; &nbsp; &nbsp; Objectives of the Study</b></p><p><b></b></p><b><p>The prime objective of the study is to make an assessment of<br>the impact of ICT on financial performance a study of Jaiz Bank plc Kaduna<br>Metropolis. From this main objective, the following specific objectives have<br>been developed:</p><p>1) &nbsp; &nbsp; <br>To<br>assess the impact of ICT investments on profit before tax of Jaiz bank in<br>Kaduna Metropolis.</p><p>2) &nbsp; &nbsp; <br>To<br>assess the impact of ICT Investments on deposits and efficiency of Jaiz Bank in<br>Kaduna Metropolis.</p><p>3) &nbsp; &nbsp; <br>To<br>assess the relationship between ICT investment and Returns on capital employed<br>among Jaiz Bank in Kaduna Metropolis.</p><p>4) &nbsp; &nbsp; <br>To<br>assess the relationship between ICT investment and Returns on assets among Jaiz<br>bank in Kaduna Metropolis.</p><p><b>1.4 &nbsp; &nbsp; &nbsp; Research<br>Questions</b></p><p><b></b></p><b><p>To<br>provide answers to the research objectives, the researchers outline the<br>following questions:</p><p>1) &nbsp; &nbsp; <br>What<br>impact does ICT investments have on profit before tax of Jaiz bank in Kaduna<br>metropolis?</p><p>2) &nbsp; &nbsp; <br>What<br>impact does ICT investments have on deposits and efficiency of Jaiz bank in Kaduna<br>Metropolis?</p><p>3) &nbsp; &nbsp; <br>What<br>is the relationship between ICT investments and Returns on capital employed<br>among Jaiz bank in Kaduna Metropolis?</p><p>4) &nbsp; &nbsp; <br>What<br>is the relationship between ICT investments and Returns on assets among Jaiz<br>bank in Kaduna Metropolis?</p><p><b>1.4 &nbsp; &nbsp; &nbsp; Significance of the Study</b></p><p><b></b></p><b><p>This project will bring a new dimension to the existing pool<br>of knowledge and literature on the debate of the relationship between ICT and<br>financial performance among Jaiz bank in Kaduna Metropolis. Various researchers<br>in many areas of the globe have study on this area, as such many materials<br>exist. However, here in Nigeria, research in the area of ICT and financial<br>performance of Jaiz bank has not been indulged much.</p><p>This research will also help<br>financial institutions in Nigeria especially Jaiz bank in Kaduna metropolis to<br>know if the expenditures they have been incurring on ICT has any bearing on<br>their profit before tax and returns on assets or not, and whether there is the<br>need for them to continue to invest substantial amounts of money into this<br>area.</p><p>This research will also enable Jaiz bank in Kaduna<br>metropolis to know whether to continue to increase investment in ICT or not as<br>it seeks to find out if there is any relationship between ICT and the financial<br>performance of Jaiz bank in terms of the impact it will have on their return on<br>capital employed, deposits and efficiency of cost management.</p><p><b>1.5 &nbsp; &nbsp; &nbsp; Scope<br>of the Study</b></p><p><b></b></p><b><p>The population to be used for this study consisted of all Jaiz<br>bank in Kaduna metropolis. For the purpose of achieving the research<br>objectives; attention has been focused on all Jaiz bank. However, due to time<br>factor and resources constraints, this study will focus on only 20 selected<br>banks.</p><p><b>1.6 &nbsp; &nbsp; &nbsp; Limitations<br>of the Study</b></p><p><b></b></p><b><p>According to best and Khan (1989) limitations<br>are those conditions beyond the control of the researcher that will place<br>restrictions on the conclusions of the study and their application to other<br>situations. This study is, therefore, constraint by the wide area the study is<br>supposed to have captured, shorter period for the completion of the study,<br>inadequate funds for this study and bureaucratic rules in the study settings.</p><p>The study as a matter of fact should have captured all Jaiz bank<br>in Nigeria if not Africa. This is, however, impractically impossible due to<br>many factors such as a huge research team and so on.</p><p>The researcher per the rule of the university is supposed to<br>complete this study within one semester. This is a rule ought to be complied<br>with strongly. This condition was beyond the control of the researcher as he<br>was expected to present the report of this study within a relative shorter<br>period.</p><p>One major limitation of this study<br>was the lack of fund. The researcher as an individual student had to manage his<br>meager income in undertaking this study. It is a known fact that there is lack<br>of financial support for research in Africa of which Nigeria is of no<br>exception. With the necessary research sponsorship the study could have<br>captured a wide spectrum rather than the one selected bank. This may affect the<br>findings of this particular study especially in making general conclusions and<br>comparing this study to similar ones with the requisite financial support.</p><p><b>1.7 &nbsp; &nbsp; &nbsp; Research<br>Methodology</b></p><p><b></b></p><b><p>The population of the study is all<br>the Jaiz bank operating in Nigeria. Due to time and resources constraints, this<br>research will focus on only the selected Jaiz bank above. This study will use<br>mainly secondary data. Data has been obtained mainly from the annual reports of selected Jaiz bank. The data will cover the period<br>from 2015 to 2018. The study used descriptive as well as inferential statistics<br>in analysing the data. Analysis was carried out by making use of Statistical<br>Package for social scientists (SPSS). The Pearson correlation coefficient<br>together with regression analysis was employed to test the relationship between<br>the variables.<b></b></p><b><p><b></b></p><b><p><b>1.8 &nbsp; &nbsp; &nbsp; Organisation<br>of the Study</b></p><p><b></b></p><b><p>The study was divided into five chapters. Chapter One was<br>concerned with the background to the study, statement of the problem, research<br>question, objectives of the study, significance of the study, the organisation<br>of the study, scope, limitation of the study and lastly how the whole study is<br>organised. Chapter Two dealt with the literature review. The chapter examined<br>the views of other theorists and authors about the issues under discussion as<br>well as review of previous studies on electronic banking and customer service<br>delivery. Chapter Three outlined the research methods the researcher employed<br>in carrying out the study. The chapter also dealt with the study area, sample<br>size and the sample selection as well as methods of data collection, management<br>among others. Chapter Four presented the analysis and presentation of data in<br>this study. Chapter Five being the final chapter of this study presented the<br>summary, conclusion and the necessary recommendations of the study.</p></b></b></b></b></b></b></b></b></b></b></b></b></b><br> <br><p></p>