Information technology & banking services delivery in ...

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conduct of banking business. Key Words. Bank management, Information technology, Service delivery. Watch Word. Banking techno-modernism. Introduction.
Information technology & banking services delivery in Nigeria Henry W. Akani & Clinton C. Uzobor Abstract This study examined the impact of information technology (IT) on the delivery of banking services in Nigeria. To achieve this, primary data were employed. Questionnaire was administered on banks staff in order to find answers to various research questions posed in the study. The data were analyzed through the use of simple percentage and chisquare techniques. The main findings showed that the introduction of IT in the banking industry has brought about positive changes in terms of volume of deposits mobilized and generated, banks financial performance, customer service delivery, management effectiveness/staff productivity, and several product innovations. Based on this, the conclusion was that IT has a positive significant impact on service delivery in the banking industry. It is therefore recommended that the banking industry should continually embrace modern technology and invest in human resource professional development to better improve official performance and general conduct of banking business. Key Words Bank management, Information technology, Service delivery Watch Word Banking techno-modernism

Introduction Infom1ation plays a very significance and unique role in the smooth running of organizations all over the world. It does not only support decision making in organization/institutions like banks, but also goes a long way in enhancing promote corporate performance and profitability. To this end, banks with insufficient and irrelevant

infom1ation will not orr stand the risk of running :... manual process. This ci processing and channeli.u:= performance negati\'e:.'.' corresponding negative e advancement/introductio Industry, it has become .~n----..1 communicate effectivel:: the problems created by •u~ desired organizational goals accepting deposits from demand by the depositor defines a bank as a busine-money at interest and definition may not be enr" money at no interest.

The Banks and Other Fin:i.~~ enacted to create legal and 5'""'""'.....i and allied financial insti~ banking institution as account or other similar ac by or paid in by customers as the Governor of the Ce. published in the gazette ~play a major role in eye _ surplus sector of the ecm deficit sector or into prod with thousands of peopl payment.· Due to the co • technology (IT) becomes '' ~ However, prior to the a~~o.......__.._j usually carried out manu transactions, as the few s.:a with the volume of pape

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e\·e this, primary data e,..ed on banks staff in _ ions posed in the study. - ,e percentage and chi. w t the introduction of sitive changes in terms rated, banks financial .'irnry, management r, . product innovations. 5 a positive significant :?" industry. It is therefore _ - 0 !d continually embrace 1 resource professional rform ance and general

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infonnation will not only suffer in its decision making process, but stand the risk of running at a loss. In the past, it was done through the manual process. This did not only cause delay in the methods of processing and channeling information, it also affected workers performance negatively (problem of monotony) as well as a corresponding negative effect on organizational profits. But since the advancement/introduction of information technology in the Banking Industry, it has become common practice for banks to process and communicate effectively through technological means, thus, avoiding the problems created by manual processing and achieving better and desired organizational goals. The business of banking is the process of accepting deposits from an investor and paying this amount on ·demand by the depositor. The Dictionary of Banking and Finance defines a bank as a business which holds money for its clients; lends money at interest and trades generally in money. However, this definition may not be entirely applicable to Islamic Banks which lend money at no interest. The Banks and Other Financial Institutions Act (BOFIA) 1991, was enacted to create legal and supervisory framework for regulating banks and allied financial institutions in Nigeria. Section 61 defines a banking institution as business of receiving deposits on current account or other similar accounts, paying or collecting cheques, drawn by or paid in by customers, provision of finance or such other business as the Governor of the Central bank of Nigeria may order to be published in the gazette or designated as banking business. Banks play a major role in every economy. They pool resources from the surplus sector of the economy and chmmel these resources to the deficit sector or into productive investment. In the process, they deal with thousands of people and make millions of transactions and payment.· Due to the complex nature of their business, information technology (IT) becomes very necessary in the business of banking . However, prior to the automation in the banking industry, tasks were usually carried out manually. This reduced the speed of banking transactions, as the few staff available in the banks cou1d not cope-up with the volume of paper work heaped on them. This resuttcd in a lot 82

of problems in banks, one of which was the long hours customers had to wait before they were served. With the introduction of IT, banking transactions have been automated and this has resulted in the improvement of service rendered by banks. Crowded banking halls, which were the prevalent sight in most Nigerian banks, are decreasing. Improvement in products and speed in the mode of service delivery to customers accompanies the introduction of IT in the Banking industry. In fact, IT has brought about, a great revolution in the business of banking. In Nigerian, for example, so many IT products have been introduced, such as the Automatic Teller Machine (ATM), Clearing House Automated Payment System (CHAPS). Magnetic Ink Character Recognition Machine (MICR), Automatic Teller Terminal (ATT), Nigeria Automated Clearing System (NACS), Electronic Payment System (EPS), Real-Time Gross Settlement System (RTGS), etc. All these were meant to enhance banking operations as well as increase its profit base and competition in the banking world. More so, various IT products which are reflected with help of computers, fax machines, telegraphic network, business transaction alert, telephone messages that are fully automated, have processed information and business messages through this process. The benefits of IT in the baking industry are by far enormous and banks that apply IT in their operations stand a better chance of making more profit. In the past, information technology system was not recognized as the main factor for achieving sound banking system. This study is conducted to find out the various impact of IT on the overall business and performance of banks in Nigeria. In Nigeria, banking has become extremely competitive and this has been engendered an atmosphere in which banks now realize that customer demand high quality service. In a bid to improve and stay ahead in service delivery IT has become the order to the day. Through the introduction and application of IT various channels through which banks in the country offer products and services to customers have emerged. In fact, IT has changed, and is still changing the way banks communicate, meet and market customers. Although it has to a great extent affected the performance of banks in Nigeria. Therefore, it becomes necessary to embark on a 83

study like this, which system on the overal~ performance of the bankiu =. Recent IT-related deYeW Today, banking in Kige.... this has engendered ~ au..:...~,:,::: increasing discerning service. In a bid to imp .. become the order of operations is taki ng According to (Alades adopted 2 major approach=-s n

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