This study examined the Impact of
Information Technology on Bank Performance in Nigeria of Case Study of Wema Bank
Plc). The study
adopted descriptive survey design in collecting data and also analysis data.
From the population of study, it was envisaged that only 150 respondents
randomly selected completed their research questionnaire and thus, was used for
the analysis." However, percentages and chi - square analysis was used for
the research questions and hypothesis formulated. Thus, the results from the
findings and recommendations are; that there is 0a relationship between banks
profitability and application of information communication and technology in
organizations. There is a relationship between banks' efficiency and
application of information communication and technology in organization and there
is a relationship between let and the growth, "Survival and customer
satisfaction in the banking industry, it is thus concluded that banks should
deploy latest and current information and technology hardware and"
software for flexible work systems and organizational performance.
TABLE OF CONTENTS
Background of Wema Bank Plc
of the Study
of the Study
1.7 Research Hypotheses
1.8 Scope and
Limitation of Study
Development of information Technology
computer as a communication Tool
2.3 The concept
2.5 The Technology Adopted by Wema
OF information Technology Management in Nigeria
2.7 The Classical View of
Contemporary Opinion on information Technology.
3.2 Research Design
3.4 Sample Size and Procedure
3.5 Re-Statement of the Research
3.6 Re-Statement of the Research
3.7 Research Instrument
3.9 Method of Data Analysis
3.10 Research limitation
PRESENTATION, ANALYSIS AND
4.2 Analysis of Respondents
4.3 Analysis of Operational
4.4 Descriptive Statistics
4.5 Reliability Test
4.6 Test of Hypotheses
CONCLUSION AND RECOMENDATION
5.2 Summary of Findings
5.4 Suggestions for Further studies
1.1 BACKGROUND OF
Information has always been an
integral part of every organization operation and manager job. Its importance
and the need to manage it continue to grow at a nominal rate.
A powerful force that is driving the
world towards a converging commonality is technology.
From the beginning of the human era,
technology has been one of the most essential and most important factors for
the development of making. During the last two hundred years. Technology
changes have often related to economic growth in the form of new types of goods
Information technology can therefore
be defined as the modern handing of information by electronic means which
involves its access, storage, processing of electronic technology in its
various form in order to improve the operations and profitability of the
business as a whole.
The growing importance of information
technology stem down from the increasing complexity of organization
environments and the ever growing complexity of information created by that
For information to be useful to a
manager, it must be accurate as it should provide valid and reliable reflection
of reality it as to be timely since it has to be available on time for appropriate managerial
Information must also be complete as
it provides the manger with all of the facts and details he/she needs.
Information also has to be relevance as this assures the managers that the
information is useful to them in their particular circumstances for that
particular need. In conclusion, the bank of the future will need to be
technology driven and customer focused in order to thrive and survive. The most
important ingredient for the success of any organization is the people. Vision,
drive and willingness to demand accountability for delivery are also important.
Also, the bank will require discipline, project management, management
sponsorship and commitment, requisite skills and effective change of
BACKGROUND OF WEMA BANK PLC
WEMA bank plc was incorporated in May
1945 and IS headquartered in Lagos, Nigeria as a
private limited liability company and commercial 'business operation as a
commercial bank in the same year.
The bank was converted to a public
limited liability company in April 1987 and was subsequently listed on the
floor of the Nigeria stock exchange in January 1990.
WEMA bank Plc, through its
subsistence, provides commercial banking and financial service. The banks
subsidiaries include Wema registrar limited; Wema trustees limited; Wema homes
limited Wema insurance brokers limited; and Wema venture limited. It offers
capital restructuring, project finance portfolio management, .mergers and
acquisitions, treasury management, trade finance,' lending, cash flow analysis
and fund transfer services. Additionally, the bank provides internet mobile and
telephone banking services. It caters to agricultural manufacturing and
publishing, and oil and gas industry.
The bank has witnessed tremendous
growth and development in branch network, quality, of service delivery and well
financial performance in the last two decades.
On February 5, 2001, the central bank
of Nigeria granted a universal banking license to the bank thus allowing the'
bank to undertaking a 'wide range of financial services to its numerous
customers across the country. It has embarked on a process of corporate
transformation that has resulted in the emergence of a restructured Wema bank
plc, strategically positioned to fully optimized opportunity in the industry.
Wea bank plc is adequately capitalized,
its shareholders’ funds is in excess of N25 billion and its assets base is N165
billion. Presently, Odu's investment company limited holds 10% equity stake in the bank:, while private
individual investment and staff of the bank own the remaining 90% the
authorized share capital of the bank is N7billion Naira divided into N14billion
ordinary share of Sock each.
1.3 STATEMENT OF PROBLEM
Therefore, the problem statement of
this research can be put in question broad form:
What impact is information technology on bank performance?
How effective does information technology contributes to the bank and
similar financial institutions?
Before the advent of information
technology, the banking sector has not been able to store their data properly.
Henceforth to retrieve data, the
management find it very difficult
to locate it within the short period, due to the fact that most of the data
must have been kept decades ago. But, with the, inception of information
technology system, to retrieve any information does not pose any problem.
However, organizations need to break
the rigid hierarchical barriers, and work with everyone involved i.e.
The customer, supply, employee,
government etc. in order for them to accomplish quick decisions.
Also in the corporate world today,
most of the section has been computerized and networked. This means that the
managers in charge of the function must of the function must have at least
working knowledge of the system he is responsible for or is using. If he is not
and if he is not willing to learn he may end up in making wrong decisions,
simply because he does not fully understand the system and this could lead to
job dissatisfaction and performance and it can equally result into work
becoming meaningless and the employee powerless on their jobs.
However, the need for organization to
be more productive and efficient in the competitive and global world
necessitated the adoption of means such as IT in the work processes.
1.4 OBJECTIVE OF THE STUDY
To ascertain the effect of
information technology on the profitability level of banking industry.
To evaluate the .extent to which corporate reputation of the
banking industry is being improved by information technology
To determine the effect of information
technology on the creation of competitive advantages.
To find out how effect and efficient
information technology infrastructure is in the banking industry.
OF THE STUDY
The various importance of the study
are outline below:
This study examines the appropriate
factors that contribute to organizational response to competition through
effective management of information technology innovations.
It showcases the extent to which
information technology has improved service provision in the banking industry.
It explores into the impact of
effective information technology infrastructure on staff, customers, etc.
It identifies new information
technology discoveries i.e. Ecommerce', E-business, which is the cutting edge
for business today.
The fundamental research questions
include the following:
To what extent has information
technology improved the profitability level in the banking industry?
What effect does information
technology have on the corporate reputation of the banking industry?
What are the significances of
information technology In creation of competitive advantages in the banking
The research hypothesis includes the
technology does not improve the profitability level of the banking industry.
technology improves the profitability level of the banking industry.
technology does not Improve the corporate reputation of the banking industry.
technology Improves the corporate reputation' of the banking industry.
technology does not create competitive advantages in the banking industry.
HI: Information technology creates competitive advantages in the banking
AND LIMITATION OF STUDY
This research work will be limited in
depth and coverage to the bank in view, Wema Bank PIc operating in Lagos area.
The business environment in this case shall include the employees, customers or
clients, competitors and vendors while such other variable like economic,
social and political environment will not be considered in the study area regarded
The research work shall Endeavour to
make both the descriptive and empirical analysis of the efficient and effective
technology in the banking industry with special emphasis being placed of Wema
The limitation of the study shall be
time constraint, inability of customers to provide relevance information.
1.9 DEFINITION OF TERMS
This part of the chapter will be
focused on bringing out a better understanding of the term which has been used
in the process of the writer up of these chapters.
The terms are listed and defined
E-COMMERCE:- This is a modern business methodology
that addresses the needs of organization, merchants and consumers to cut cost
while improving the quality of goods and services and increasing the speed of
TECHNOLOGY: - It could be considered as the modern
handing of information by electronic man's which involves its access, storage,
processing, transfer and deliver and also the harnessing of its various firms in order to improve the operation and
the profitability of the business is a whole.
INTERNET:- This is' a collection of the various computer networks t8hat are
interconnected to each other. It represents a large pool of information which
provides solution to various Issues.
MISSION:- This can be explained as set goal/objective.
RESEARCH WORKS: - It can be
summarized as an act of analysis a finding which could be anything like
information technology with the view of bringing out a proper understanding of
SOFTWARE:- It is an application which uses set of instrument or a written computer
program in accomplishing certain definite tasks.
WORLD WIDE WEB (WWW):- These are platforms available on the
internet through which several detailed materials can be reached to educated as
well as enlighten the user on its field of study.
GLOBAL BANKING:- This term is being used to explain
the change information technology has brought to the banking industry terms of
improved global service.
Richard (2010) "Philosophical Impact on Information Technology" Hunt & Broadhurst Ltd Chapter 1(2/3)
(1997) Future of Banking in Nigeria Apex Printing Ltd, Annual Edition, Pg 23
Kent (2008): "Information Revolutionary Change" World Bank. V 1.1,
118. Atlantic Media Publication, Ohio
J.W. Mauchy (1980): "Historical Development of Information Technology in the
Early 20th Century" Moore School Of Engineering, University Of
PLC (2010) www.wemabank.plc.