The purpose of this research work is to investigate the impact of Information Technology (IT) on the performance of
banks of Nigeria using United Bank of Africa Plc. as a study.
The objectives of this study include the following: to investigate the beneficial aspects of IT use; to investigate the problems of IT use; to determine the level of information technology
acquisition to the bank. The
research methodology involved using survey method. This had to the following findings that there is drastic reduction in cost for distribution and
customers service, and adoption of e-commerce technology makes the bank to be able to reach customers and create more intimate relationship with all customers.
Based on the findings we recommend that the bank must be able to allocate enough funds to the IT department so as to be able to meet up the continuous changes in the IT world.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.2 Statement of
1.3 Purpose of
1.7 Scope and
Limitation of the Study
of the Study
1.9 History of
United Bank of Africa Plc
CONCEPTUAL FRAMEWORK AND LITERATURE REVIEW
2.1 Statement of the Problem
2.2 Information Technology Age
2.3 The Nature of Information Technology
2.4 The Concept of Technology
2.5 Historical of Information Technology
2.6 Management Effectiveness
2.7 Product Innovation and Delivery
2.8 Historical Development of Information
2.9 Evaluation of
Information Technology as It Relate To Baking
3.5 Data Analysis
of the Research
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
Characteristics and Analysis
4.2 Analysis of
Data According To Research Questions
5.0 Summary, Conclusion and Recommendations
Achumba (2000). Posited that Information Technology
(IT) could be described as an information system mean t to provide information
so as to aid planning and organization. It includes the internet, e-mail and
its variant, the Electronic commerce. On the other hand, information technology
has been defined as the acquisition, production and transformation, storage and
transfer of data (information) by electronic means in forms such as Vocal,
Pictorial, Textual and Numeric, 'So as to facilitate interaction between people
and machine. It includes the applications and implications (social, economic
and cultural) of these processes.
The impact of Information Technology
(IT) in today's successful banks cannot be under-estimated. It plays a major
role in the operation of banks in today's highly competitive banking
environment by providing easy and fast means of collecting, storing,
retrieving, processing, transmitting and distributing information.
Diffusion of IT has had significant
effects on business activity. Computers integrated manufacturing for example,
enable automated model changes on the production line as well as fully model
changes on the production line as well as fully integrated design and
manufacture. Resulting shortened cycle times and' the declining significance of
economies of scale have led to a competitive environment that focuses on
quality, customization and timelines of delivery. The IT based integration of
producer supplier and wholesaler-retailer networks enables responsiveness to
daily changes in customer demand and fundamental revolution in inventory
management. Advanced telecommunication technologies have integrated
international capital markets and literally created a global financial
In short, it has moved economic markets and business behaviour for closer to
"real time" mode than has ever existed in the past.
1.1 STATEMENT OF THE PROBLEM
(a) The challenges facing commercial banks in the
provision of quality and efficient service to their customers are quite
(b) The fact that some of these customers are also
IT resources increase the pressure on banks to take advantage of technology which will give them the competitive advantage over their
(c) It is no longer the norm for banks to depend
on their' goodwill and the size of their organization as a criteria to earn the
loyalty of their customers. Efforts are therefore being continually made
through the process of reengineering and re-organization to improve services
to both existing and potential customers.
Meanwhile, banks are the forefront of
information Technology acquisition. Application of computers in all areas of
human endeavour is no longer an issue or a possibility. What has become an
issue today is how well it is driving an individual or more appropriately in an
organization. The primary reasons behind this innovation in the banking
industry are high speed of processing, accuracy and information integrity, on
line (real-time) capability and large storage capacity. While these factors are
still important, focus has shifted to the provision of quality service to the
1.2 PURPOSE OF THE
The overall objective of this study
is to assess the impact of Information Technology (IT) on the performance of
banks, in Nigeria. The following specific objectives will help in fulfilling
this overall objective.
investigate the beneficial aspects of IT use, and IT role in the operations of
investigate the problems of IT use and their relationship with the performances
impact of IT in banks.
identify the types of IT products or Applications used in United Bank of Africa
investigate the impact of various IT measures on bank performance
(v) To determine the following:
The level of information technology
acquisition in the bank
The impact of information technology
on the profitability of the bank
The impact of information technology
on service delivery
The impact of Information Technology
on the business processes
To suggest appropriate machinery for
the acquisition of appropriate IT for United Bank of Africa PIc.
Data will be gathered through the
personal interviews and this will be analyzed manually. The under listed
hypothesis will be tested and the summary of the findings will be done.
Hi: There is a significant relationship
between information technology acquisition and profitability of Bank.
Ho: There is no significant
relationship between information Technology acquisition and profitability of
Hi: That there is necessity for
information technology in banking system.
Ho: There is no necessity for information
technology in banking system.
Hi: That the policies and objectives
of the bank as regards information technology is effective.
Ho: That the policies and objectives
of the bank as regards information technology is not effective.
1.4 RESEARCH QUESTIONS
(i) Has the
significant relationship between levels of information technology acquisition
the bank's profitability? '",
(ii) Has the significant relationship
between information technology and market share, image and competition? Personal interview of some of the staff from the bank will be carried out
to hear their views on the issues raised in work. The results will be subjected
to statistical analysis and the necessary conclusion will be arrived back based
on the result obtained.
OF UNITED BANK OF AFRICA PLC
United Bank was incorporated on March
26, 1990 as a private Limited Liability Company with 100% equity ownership by
Nigerian Citizens, and licensed on April 10, 1990 to carry on commercial
The bank commenced business on June
12, 1990 at the Waterfront Plaza, Plot 270, Olumba Mbadiwe Avenue, Victoria
Island, Lagos. It was listed on the Nigerian Stock Exchange on June 25, 2004.
At present, its authorized capital is NIO billion as ay September 30, 2004.
United Bank Africa Plc, therefore, is
a Nineteen years old commercial bank with business office located in several
parts of Nigeria.
The bank is one of the largest in
Nigeria. Her financial year runs from October 1 to September 30 of the
subsequent year. Oceanic Bank's impressive performance over the years accounts
for the' quality of its customer portfolio which includes corporate
organizations, high Net-worth individuals, the Federal Government and some
state governments. To enhance response time, relationship management units have
been structured as follows:
Corporate Bank Group (CBG)
Treasury and financial institution
Retail Banking Group (RBG)
Public Sector Group (PSG)
1.8 DEFINITION OF TERMS
Information Technology (IT): Can be defined as the study or use of electronic equipment, especially
computers, for storing and analyzing information.
Corporate Bank Groups (CBG): It can be defined as an organization or a group of organization that is
recognized by law as a single unit.
Treasure and Financial Institute
Group (TFIG): It can be defined as a group that controls all the
public activity e.g. a place where valuable things are stored.
Retail Banking Group (RBG): These are groups that tell the public about information technology or about
the business activity of the banks.
Public Sector Group (PSG): These is an economy group of an organization that is owned and controlled
by the government.
Management Information System (MIS): There is the act of running and con trolling the organizational facts or
detail about information technology.
Training: can be defined as an organizational efforts designed to help the employee
in the acquisition of basic skills required for carrying out specific job.
Development: This is the activity undertaken to explore an employee to perform
additional duties and assume higher responsibilities in the organizational
9. Performances: This is an
introduction or achievement considered in relation to know how successful.