CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The financial services sector is becoming more technology-driven. Even in other sectors of the economy, technology is impacting on the way things must be done.
Before the advent of electronic age, banks used to be defined by their physical presence (Accad, 2001). Now, Information technology, particularly the internet has redefined the business of banking all over the world and with particular reference to Nigeria. Information technologies (IT) have also become the digital nervous system of banking operation. This is because the business of banking is no longer perceived as merely the generation of deposit liabilities and the creation of liquid assets, but rather the generations, storage, manipulation communication and application of financial information (Woherem, 2000). It is perceived as an instrument for engendering competitive advantage in enterprises as it promotes greater efficiency and effectiveness in financial transactions. This is the reason why Holloway (1995) assorts that, an increasingly important component of banks’ technological focus is the personal computer. From risk management to commercial and consumer lending and from employment training to product development and delivery, personal computer are being used as a tool to re-engineer the bank. In many instances Local Area Networks (LANs) and Wide Area Networks (WANs) are facilitating the process, enabling the bank employees to access and use information in a more timely and efficient fashion. The First Direct Bank in the U.K. provides comprehensive banking services to about 900.000 customers with just staff strength of less than two dozen. This feat is achieved through the use of IT.
It shows that banks today can operate in a more effective and efficient manner, with a lean number of staff, through the aid of technology.
According to frenzied (1996:104) IT is now used to automate most of the processes in the banking industry of the more developed parts of the world; to drive delivery processes; and to encapsulate many banking products. Technology in baking has proven to be one of the major success stories of this century, as technologies such as Automated Teller machine (ATM), LANs and WANs, Credit cards, Electronic point of sale systems, smart cards, Debit card, charge cards, Electronic Document interchange (EDI) systems, Image systems, Integrated Banking system (IBS), and client information filing (CIF)systems are now being routinely used by many banks to ensure a more efficient and effective operation and delivery of their products and service to customers. From all Indications, the applications of IT in all banking operations will intensify and spread in this 21st century.
Globally, the financial services sector has been quick to embrace the information technology particularly internet an alternative delivery channel. In developed parts of the world, retail and corporate customers can review and transact on their accounts, get information about shares and execute trades, receive and pay bills, buy various forms of insurance and obtain credit cards, mortgages and other loan facilities, all through the internet.
Information technology has already become the nervous system of banks the world over. In this study, the researcher will concentrate on information technology in contemporary banking with particular emphasis on Nigeria banking sector. Nigeria banks will become uncompetitive if they do not have the means to deliver their banking services online and in real-time across all their branches within the country and abroad, if they do not have the backbone telecommunications infrastructure in the form of broadband local and wide area networks, if they were not able to communicate and trade globally with the rest of the world through cyberspace, and if they do not invest comprehensively in IT and training of their IT personnel. According to Woherem (1997:88), Nigeria banks since the 1980s have generally performed very well in their investment profile and use of IT systems compared to the rest of the industrial sector of the country. However a lot still needs to be done in the sector to catch be relevant in the globalized banking playing field of the 21st century.
| Project details | Contents |
|---|---|
| Number of Pages | 86 pages |
| Chapter one | Introduction |
| Chapter two | Literature review |
| Chapter three | methodology |
| Chapter four | Data analysis |
| Chapter five | Summary,discussion & recommendations |
| Reference | Reference |
| Questionnaire | Questionnaire |
| Appendix | Appendix |
| Chapter summary | 1 to 5 chapters |
| Available document | PDF and MS-word format |
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