Impacts of Information and Communication Technology on Business Organisation Performance (Case Study of First Bank of Nigeria Plc: Iganmu Branch)
OBJECTIVES OF THE STUDY
The focus of this study is to determine the impact of information and communication technology on banking service in Nigeria. The four objectives, which are to be achieved, are to:
- Determine what constitutes information and communication technology.
- Examine the factors responsible for the use of information and communication technology in the banking sector.
- Examine the effect of information and communication technology on banking service.
- Examining the effects of information and communication technology on recruitment and training staff.
Various empirical studies have been conducted on the impact of information and communication technology on the efficiency of economic sectors. Various scholars such as Wilson (1993), Frei and Harler (1997), Radeck Wenninger and Oriow (1997), Mark (1999), O’Sullivan (1998, 2000) and others have been engaged in unending discourse on the gains emanating from the utilization of information technology in various enterprises. Such academic debates have resulted in the origin of the term information technology productivity paradox which is concerned with appraising the impact of information technology on both operational efficiency and productivity of organizations. Frischak (1992) looked at the impact of information and communication technology on Brazilian Commercial Banks. The results obtained showed that Brazilian Commercial Banks have benefited from the use of computer systems. Some other researchers with respect to the banking and financial sector are those of Frei and Harker (1997), Radeck, Wenninger and Orlow (1997), O’Sullivian (1998, 2000), Couch and Parker (2000) and Azarchs (2000). Bamodu (2003) in his own study worked on how to enhance customer confidence in e-money products compared with the use of credit and debit cards as a means of payment for e-commerce transactions. Other researchers focused on how information and communication technology can improve efficiency of libraries. Ward (2000) tried to design commercial and academic web sites for data assimilation. Peterson (2002) worked on a guide simplifying web sites management with three techniques for implementation in libraries. Murdock, Schenell and Clark (2002) in their work introduced readers to open source software for libraries while Gibbons, Peters and Robin (2003) conducted an in-depth review of surveys and studies on user preferences for e book functionality and a classified arrangement for electronic book functionalities.
In Nigeria, some studies have advocated for the use of ICT in sectors. Works done by Alwenhmobor (1991) and Ekechi (1990), etc have centered mostly on the need of ICT for the enhancement of internal efficiency and relationships between sectors and organizations. In spite of these studies Hanna, Boyson and Gunaratne (1996) noted that impact audits of computerization backed by empirical data in developing countries have been painfully absent. Systematic efforts aimed at quantifying and measuring ICT impacts have been very few and far between. Despite this deficiency she continued, many articles have been written with strong and blanket claims that computerization efforts have either been consistent failures or have had bad sweeping benefits. These are broad statements, which are not backed by empirical measurements. According to her, ‘until a sufficiently large body of impact audits has been accumulated, most claims will continue to be largely based on conjecture and not on real interpretation of facts.’ In line with the foregoing paper tried to assess empirically the impact of information and communication technology on the efficiency of the banking sector in Nigeria.
The theoretical frameworks for the assessment of impact of information and communication technology on banking efficiency are the CAMEL and the transcendental logarithmic production function also called the Tran slog. The bank rating system referred to as CAMEL rating according to the central bank of Nigeria (CBN, 2003) is designed to be used by bank supervisors in evaluating the performance of banks. It serves as an “early warning device” to detect emerging problems of banks. The rating system provides a more scientific basis for supervisory actions such as preliminary management discussions and priority.
This chapter deals with the technique employed by the researcher in the collection and analysis of data to achieve some stated objectives.
RESTATEMENT OF RESEARCH HYPOTHESIS
As stated in chapter one, this study has formulated a set of research hypotheses, which is acting as a guide to the research.
The research hypotheses are as follows.
There is no impact of information and communication technology on business organization performance.
There is impact of information and communication technology on business organization performance.
RESEARCH METHOD AND DESIGN
In course of the study, the research design that will adopt is survey design, using structured questionnaire self administer and interview to generate the data.
The research also relied on the extensive use of secondary sources such as journals, textbooks and First Bank of Nigeria Plc website.
DATA PRESENTATION AND ANALYSIS
This chapter deals with the data presentation, statistical analysis and interpretation of the resulting of the analysis. An attempt was made to classify responses according to Sex, Age, Marital status, Qualifications, Working Experience, e.t.c. The method used for analyzing the data for this research is the percentage approach. The total number of respondent and its make up are shown under response column while the total percentage and its makeup are shown under % column. The options to each question are shown under option column.
A total number of 200 copies of questionnaire were distributed and all were returned.
The results of the responses served as a measurement for assessing the behaviour of respondents towards information and communication technology.
Table: List of technological innovations being used by the First Bank of Nigeria Plc.
SUMMARY, FINDINGS AND RECOMMENDATION
SUMMARY OF FINDINGS
This research projects has examined the effects of information and communication technology on banking services in First Bank of Nigeria Plc. The study revealed that information and communication technology has brought a lot of changes in delivering quality banking services and the range of products available to customers.
The First Bank of Nigeria Plc uses information and communication technology. Findings revealed that the following technological services are available in the bank-computer systems. Such as Automated Teller Machine, Electronic Data Interchange, On-line Banking, Internet Banking, Fax Machines, Debit and Credit Card, Local Area Network, Magnetic Ink Character Reader (MICR) Electronic Data Transfer, Wide Area Network.
Information and communication technology was discovered to be the main driving force of competition in the banking industry. It also led to Accurate Records, Convenient Business Hour, Prompt and Fair Attention, Make International Market Accessible, Faster Service and generally, procurement of customer services is imperative to First Bank of Nigeria.
The use of Electronic Fund Transfer has gained a commanding height in Nigeria especially Money Gram Monet Transfer of First Bank of Nigeria Plc which control about 90% of the transfer market in Nigeria and have a reputation for Safe, Fast and Reliable Platforms for this service. A lot of people now use this device to send money abroad. This method is very fast and avoids being duped by sending money through unscrupulous people traveling abroad.
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