TABLE OF CONTENT
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF
1.3 OBJECTIVE OF
1.4 SIGNIFICANCE OF
1.5 STATEMENT OF
1.7 SCOPE AND LIMITATION
1.8 RESEARCH QUESTIONS:
1.9 HISTORICAL BACKGROUND OF FIRST BANK PLC
2.1 HISTORICAL PERSPECTIVES OF INFORMATION TECHNOLOGY IN NIGERIA
2.2 SOME IMPORTANT MILESTONES IN COMPUTER USAGE IN NIGERIA.
2.3 THE COMPUTER SERVICE COMPANIES IN NIGERIA
TECHNOLOGY POLICY IN BANKING INDUSTRY.
2.5 PROBLEMS OF IT
2.6 A HOME COMPUTER
2.7 INFORMATION TECHNOLOGY IN BANKING
2.8 INFORMATION TECHNOLOGY IN
2.9 THE ROLE OF TECHNOLOGY INVESTMENT IN BANKING INDUSTRY
3.1 RESEARCH DESIGN
3.2 DATA COLLECTION
3.3 INSTRUMENTS OF STUDY
3.4 LIMITATION OF
POPULATION AND SAMPLE SIZE
4.0 DATA ANALYSIS/
PRESENTATIONS OF FINDINGS
4.2 ANALYSIS OF
GENERAL INFORMATION RELATINGTO THE STUDY
4.3 HYPOTHESIS TESTING
5.0 SUMMARY OF FINDINGS,
RECOMMENDATIONS AND CONCLUSION
Information technology sophistication is probably the most
significant event in the last century. The information age has virtually
succeeded in turning the whole world, into a global village, the banking
industry is not an exception in Nigeria.
The industry has experienced one of the most drastic improvements and
sophistications in the use of hi‑tech. As we all know, banks and financial
institutions are the backbone of the economy of any country. The implementation
of information technology and communication networking has brought about
revolution in the functioning of the banks and the financial institutions.
For sound implementation of
information technology and communication networking in banks and financial
institutions, necessary legal support is a must. Legal issues relating to
electronic transactions processing in banks are very many and there was a need
to address them by amending some of the existing Acts and introduction of new
ones. The necessary legislative support is essential to protect the interests
of the banks branches in several areas relating to electronic banking and
payment system. This specification is required to establish the credibility of
electronic clearing system and the electronic funds transfer scheme based on
the electronic message transfer.
OF THE STUDY
Technology is one of the fundamentals to the survival of any economy. It is
essential and performs several functions, which cover all sectors of the state.
This study explores all areas that can essentially lead to growth and
development. For the purpose of our study, we dwell more on the impact of
technology in banking industry and how it has enhanced the swift functional
operation and accuracy in the performance of duty.
research is used to find out the various problems that are encountered with
information technology and its impact on the banking industry. It also provides
necessary method that could be used in solving all these problems. The problems
considered in this project are as follows:
1. The problems of the data processing
problem of inadequate staffing or lack of qualified personnel in the country.
3. The problem of infrastructural
4. Electric power supply.
5. Whether government policies and central
banks regulation disturbs.
6. The effectiveness of government policies
on the IT sector.
7. Whether government provides securities
for the IT.
objective of this project is to undertake a study on the impact of information
technology on the banking sector. It is also aimed at increasing knowledge in
understanding the concept, growth and development of the IT on Nigeria banking
industry. Considerable effort is made to explain the possible steps that can be
taken to improve the quality of services being rendered by the IT companies.
This project also examines the historical background of information technology
industry in Nigeria.
OF THE STUDY
project has an overwhelming interest in the position of technology innovation
in the financial services sector. In Nigeria, technology and its impact
have been key areas of focus at the Federal level in recent years. This
technological innovation affects not just banking, financial services and
regulatory policy, but also the direction of the economy and its capacity for
continued growth. I was encouraged by a notable staff of First Bank of Nigeria
Pic to write on this project at this
Despite this, the project intends to educate the numerous customers, government
and corporate organizations on the various services provided by different IT
firms in Nigeria
and how to contact them for their benefits.
It also establishes the claim by the banking sector on their
availability and restriction of the knowledge of IT to upcoming professionals
and administrators in their respective fields.
is an idea put forward to establish an observation. This project tests
hypothesis to establish services rendered to their customer It will test Null
and Alternative hypothesis. The hypothesis will be tested as follows:
1. To see if the services rendered by
computer industry is adequate and sufficient for their customers
2. Whether the computer industries are over
regulated by the activities
of government in rendering their
services or not.
3. Whether IT industry contributed to the
growth and development of the banking sector through its numerous services.
In order to
carry out this project some working hypothesis were developed.
hypotheses are ideas, beliefs etc put forward by the researcher for the
helping and guiding towards achieving a reasonable conclusion.
project, the working hypotheses are: ‑
Alternative Hypothesis (Ha)
industry contributes to the economic development of the nation.
technology improves banking services to bank customers.
Null Hypothesis (Ho)
industry does not contribute to the economic development of the nation.
(2). Information technology does not improve
banking services to bank
1.7 SCOPE AND LIMITATION
of this project is to analyze the impact of information technology on the
banking sector, using First Bank Plc as a case study. It also appraises the
numerous functions performed by the IT industry, this revolves around the head
of office of First Bank Plc.
day‑to‑day operations of First Bank Nig Plc form the core of this paper
while an appraisal of the effectiveness of its operations on the Nigerian
economy is examined.
projects, financial and time constraints constitute the main limitations of
this paper. Nevertheless, the objectives of the project is not compromised.
1. Has there been any significant
improvement in the perception of the
general public on information
2. How effective has the information
technology in the banking sector
affected the growth and development of
3. Is there a wide understanding of the
basic knowledge of information
technology of the banking sector in Nigeria?
4. Are there control measures in the
information technology system?
Are they justified? Are they
5. Are there enough financial products in
the banking sector to satisfy all types of Customers while all the same time
meeting the banking
BACKGROUND OF FIRST BANK PLC
of Nigeria Plc, for over a century, has distinguished itself as a leading
banking institution and a major contributor to the economic advancement and
development of Nigeria.
1894 by a shipping magnate from Liverpool, Sir
Alfred Jones, the Bank commenced small operation in the office of Elder
Dempster & Company in Lagos.
It was incorporated as a
limited liability company on March
31, 1894, with head office in Liverpool.
It started business under the corporate name of the Bank for British West
Africa (BBWA) with a paid‑up capital of 12,000 pounds sterling, after absorbing
its predecessor, the African Banking Corporation, which was established earlier
in 1892. This signalled the pre‑eminent position, which the bank was to enjoy
in the banking industry in West Africa. In the
early years of operation, the bank recorded an impressive growth and worked
closely with the colonial Government in performing the traditional functions of
a Central Bank, such as issue of specie in the West African sub‑region.
To justify its West Africa
coverage, a branch was opened in Accra,
Gold Coast (now Ghana)
in 1896 and another in Freetown,
Sierra Leone in
1898. These marked the genesis of the bank's international banking operations.
The second branch of the bank in Nigeria was opened in calabar in
1900 and two years later, services were extended to Northern
Nigeria. With 364 branches as at 2005 spread throughout the
Federation, the Bank maintains the largest branch network in the industry in Nigeria operations.
The second branch of the bank in Nigeria was opened in Calabar in
1900 and two years later. services were extended to Northern
Nigeria. With 364 branches as at 2005 spread throughout the
Federation, the Bank maintains the largest branch network in the industry in Nigeria.
the needs of his customers, First bank has diversified into a wide range of
banking activities and services. These include Corporate and Retail Banking,
Registrarship, Trusteeship and Insurance
Brokerage. In addition, as part of its strategy of progressive
internationalization, in November 2002, the bank became the first financial
institution in Nigeria
to establish a subsidiary bank in the UK.
years, the bank has experienced phenomenal growth. With a share capital of
#55.6 million in 1980, the Banks share capital as grown up to #813 million as
at 2001. The bank's total asset base was #212.0 billion while its deposit base
stood at #148.3 billion as at march 2001. Also, the banks market capitalization
stood at #41.55 billion i.e. #22.5k/
share as at 31st
reposition and to take advantage of opportunities in the changing environment,
the Bank embarked on several restructuring initiatives. In 1957, it changed its
name from Bank of British West Africa to Bank of project to revolutionize its
operations in line with the dynamics of the environment.
listed on the Nigeria Stock Exchange
(NSE) in March 1971 and has won the NSE President's Merit Award nine
times for the best financial report in the banking sector.
has continued to be a leader in financing long‑term development of the economy,
which was demonstrated in 1947 when the first long‑term loan was advanced to
the then colonial government to demonstrate its commitment to its customers and
the development of the Nigerian economy, the Bank has since broadened its loan
and the credit portfolios to various sectors of the economy.
has improved tremendously judging from a number of parameters including number
of branches, growth in deposit base, size of loans and advances.
Furthermore, its track
record of profitability and reliability in sound banking has continually placed
the Bank in its leadership position. In line with its mission statement to
"remain true to our name by providing the best financial services
possible" the Bank will consistently transform itself as it forges ahead
in its second century of qualitative banking to the nation.
Plc is conscious of shareholders rights to full disclosure of information on developments
in the Bank. It therefore, during the year they Furthermore, its track record
of profitability and reliability in sound banking has continually placed the
Bank in its leadership position.
with its mission statement to "remain true to our name by providing the
best financial services possible" the Bank will consistently transform
itself as it forges ahead in its second century of qualitative banking to the
Plc is conscious of shareholders rights to full disclosure of information on
developments in the Bank. It therefore, during the year they made conscientious
efforts to inform all shareholders of major developments as they occurred. In
addition to the mandatory statements sent through the Nigerian Stock Exchange
on a quarterly, half yearly and yearly basis through financials, the Bank,
during the year made extra efforts at increasing process transparency through
organizing stakeholders' forum and press release. It also maintains an
interactive website: www.firstbanknigeria.com, for access by stakeholders and
the public. All these are efforts to share with the public, the broad direction
and strategies of the Bank as well as to afford them opportunities of making
inputs to the running of the organization.
with its associates and subsidiaries has an overwhelming presence in the
financial market of the economy. Apart from traditional banking operations, the
group covers other aspects of the financial sector like investment banking,
registrarship, insurance trusteeship, mortgages, etc.
towering status of the Bank and its subsidiaries and associates make it the
undisputed leader in the Nigerian financial services industry.
Bank subsidiaries are:
Registrars Nigeria Limited
FBN Bank (UK) Limited
Trustees Nigeria Limited
(Merchant Bankers) Limited
Trustees Nigeria Limited
Insurance Brokers Limited
The Bank has an associate company (Kakawa Discount House)
and four affiliate companies as at March 31, 2005. The affiliates are: Banque Internationale
du Benin, ValuCard, Afrexim. Bank and Nigerian Interbank Settlement System.
Most of the companies are performing remarkably well and making expected
contribution to the Banks bottomline. Banque Internationale du Benin is being
recapitalised and repositioned to ensure improved performance.
1.9 DEFINITION OF TERMS:
Technology: Information technology is hardware, software and
communication required for information systems development and operations.
System: This refers to a system of information or more, which is
needed by an organization in order to fulfill its functions and attain its end.
Data: The raw
information we send into the computer for processing. Data is made up of
letters, numbers and symbol.
This refers to data that has been processed into a form that is
meaningful to the recipient and is of real or perceived value in current or
prospective actions of decisions.
processing: It is a process of converting data into information.
fund transfer: This is described, as a payment system in which the
processing and communication necessary to effect exchange, processing and
communication necessary for the production and distribution of services
incidental or related to economic exchange, are dependent wholly or in larger
part on the use of electronics.
applications: These are widely used by accountants due to ease of use,
powerful computational facilities and the wide range of applications to which
they can be applied. Below are some of the financial uses that spreadsheet
could be put to use in: cash flows, budgetary planning, investment appraisal,
cost/ volume/profit analysis, budgetary control, financial statement analysis,
consolidations, foreign currency conversion, tax planning.
system: This refers to computer hardware, software and procedure
that are reasonable for securing unauthorized access and misuse; it also
provides reasonable level of reliability and correct operation suited to
perform intended functions.
commerce: This involves the use of alternatives to paper base methods
of communication and storage of information, to facilitate electronic filling
of documents with the government agencies.
database: This means a representation of information, knowledge, facts,
concepts or instructions in text, image, audio, video that are being prepared
in a formalized manner or have been produced by a computer system or computer
Contaminant: Refers to any set of computer instructions that are designed
to modify, destroy, record, and transmit a data or program residing within a
computer system or computer network.
Virus: This means any computer instructions, information, data or
programme that destroys, damages, degrades or adversely affects the performance
of a computer resource or attaches itself to another the performance of a
computer resource or attaches itself to another computer resource and operates
when a programme, data or instructions is executed or some other event takes
place in that computer resource.
Design and Development: It refers to the designing and implementation of the
new system to be carried out by the system analyst