ANALYSIS OF THE EFFECTIVENESS OF INFORMATION TECHNOLOGY ON BANKING SERVICES DELIVERY

(A CASE STUDY OF UNION BANK)

ABSTRACT

This study looked at the effectiveness of information technology in banking system delivery using Union Bank Enugu as a case study.

          The research therefore is aimed at examining how effective information technology is to the banking industries service delivery. The research work is also aimed at finding out how bank have been pressing to make information technology effective in delivery of it’s services to satisfy her customer’s.

          The instrument used for getting data for the study is structured questionnaire. The simple statistical technique of frequencies and percentages were used in the study. It was tested using chi-square hypothesis. The significance of the study will definitely benefit both the banks and their prestige customers because the findings and recommendation being stated will be used to reshape the banking sector, it will also provide government with adequate information on how best to modify and intensify policies necessary for a healthy banking practice and pre-introduce confidence in customers to the banks.   

PROPOSAL

          Information technology is the collection and gathering, recording, storage processing and communication or micro-electronic-based combination of computer and telecommunication technology. It is however, based on the convergence of data - processing and communication technique the former providing the information while the latter provided the vehicle for disseminating or communicating it.

          Also information technology can be said to a relatively new field that combines the technology of the computer with that of communication, concerned with the gathering, recording, storage processing and dissemination of information and also represent the largest form of man-machine interface such as Internet services.

          In the banking industry today, as observed most banks have been in the bandage of how to manage their information and how to satisfy their customers because of the problems they are currently experiencing most times you go to the bank you hear system failure which helps to hinders the operations of banks services delivery to their customers.

          The aim and purpose of the study are:

1.       To examine how effective information technology is to the      banking industries services delivery.

2.       To examine customer response to the introduction of    some information technology item like (ATM) Automated     Teller Machine.

3.       To examine what good internet has to do to the banking        industry.

4.       To identify the problem associated with information      technology its items.

5.       To suggest and recommend possible solution to the      problems so identifies.

          The objective of the study is to find out how banks have been pressing to make information technology effectiveness in delivery of its services to satisfy her customers.

          The major source of data collection in this study will be both primary and secondary source of data. They include: internet, reading the newspapers, textbooks etc. In the course of the study I will make use of questionnaire and oral interview as my method of data collection.

          The significance of the study will definitely benefit both the banks and their prestige customers. The finding will be used to re-shape the banking sector, it will also provide government with adequate information on how to modify policies necessary for a healthy banking practice and pre-introduce confidence in customers.

          Considering the great competition in banking industry presently, the use of information technology is of great importance to bank that may deem it fit to adopt it.

          Information technology has represented a turn around change in banking cultures and the ways of doing things into new ways.

          It will enable the banks to benefit from different array of produce especially in the provision of services like on-line banking internet banking etc.

          In order to obtain relevant and accurate data or information the use of simple random sampling will be used which will give every unit in the population an equal chance of being drawn into the sample.

          Expected finding and recommendation can be summarized as follows:

·                     Information technology has created room for most Nigeria banking to make timely and efficient delivery of their products and services.

·                     It creates room for cost saving and reduced hands or machine error in banking services.

·                     The introduction of information technology in banking sector help many people in the business organization, instead of stressing themselves in checking of their balance, but by the home banking its easy and simple for them to check it.

          The following recommendations are made from the finding.

1.       There should be (ATM) in banking system which will help banks to be the leaders in banking industry not the        followers.

2.       There should be adequate internal operation, which will  help to develop the best practice and also help to prevent       fraudulent programme.

TABLE OF CONTENT 

CHAPTER ONE

1.0     Introduction                                                                  

1.1        Background of the study                                               

1.2        Statement of problem                                                    

1.3        Objective of the study                                

1.4        The research question                                         

1.5        Formation of hypothesis                                      

1.6        Significance of the study                                               

1.7        Scope and limitation of the study                                 

1.8        Definition of terms                                                        

          References                                                           

CHAPTER TWO

2.0        Review of related literature                                  

2.1     Brief history of banking in Nigeria                                

2.2     Functions of banks                                                                 

2.3     Commercial banks                                                                  

2.4     Information technology                                                 

2.5     The effect of information technology on the growth of the       banking industry in Nigeria                                               

2.6        Information technology and banking in Nigeria            

2.7        The internet                                                                            

2.8        The information super highway                                              

          References                                                           
CHAPTER THREE

Research design and methodology                                          

3.1        Research design                                                            

3.2        Area of study                                                                          

3.3        Population                                                                    

3.4        Sample and sampling techniques                                 

3.5        Instruments of data collection                                       

3.6        Methods of data presentation                                        

3.7        Methods of data analysis                                                        

          References                                                                     

CHAPTER FOUR

4.0        Data Presentation and Analysis                                              

4.2     Hypothesis testing                                                                  

CHAPTER FIVE

5.0        Finding recommendation and conclusion                     

5.1        Summary of findings                                                              

5.2        Recommendation                                                          

5.3        Conclusion                                                                    

Bibliography                                                                

CHAPTER ONE

1.0       INTRODUCTION

Actually the banking industry has gone far into information technology management and others in the delivery of their customer’s services.

Through information technology is subsumed in the concept of information management. Hence, information technology is narrower than information management but also depends heavily on network of systems technology just like information management therefore; it is a tool for information management.

However, when we come to the issue of the effectiveness of information Technology in banking system “delivery”. It is at great effect, in the sense that information technology has powered the banking industry.

Service/system delivery are made easy, no more time wanting wasting for just a simple banking transaction, information technology is and will continue to be of positive effectiveness to both banker and their customers. Well, it have some short comings in both the area of the bankers, the customers and the Nigeria economy of large.

1.1       BACKGROUND OF THE STUDY

          When we talk about the background we are to dance down to the meaning of information technology and what is all about, since it is the center of thought.

          However According to Akuwudike and Ugwu (2002), Information technology is the collection and gathering, recording, storage, processing and communication a macro – electronic based combination of computer and telecommunication technology. It is however, based on the convergence of data processing and communication techniques, the former providing the information while the latter provide the vehicle for disseminating or communicating it, hence a relatively new filled that combines the technology of the computer with that of telecommunications and therefore represent the latest form of man-machine interface.

          Moreover, it has played a vital role in the newer field of experts systems and artificial intelligence.

          Also information technology can be said to be a relatively new field that combines the technology of the computer with that of communication concerned with the gathering, recording, storage, processing, and dissemination of information and represents the largest form of man – machine interface such as internet services: (Armstrong 1993).

1.2    STATEMENT OF PROBLEM

          In recent time, most banks have been in the bandage of how to manage their information, and how to satisfy their esteems customers.

          Also, the rate of competition in the banking industry today is also a big problem on the banking industry and happens to be union Bank Plc.

          However, the Union Bank Plc also have the problem it’s ability to meet with it’s raising population of customers for instance, if you visit the Union Bank Okpara Avenue branch or some other branches  is not well disposed information technology, such as the issue if online, not adequately  effective. Hence contribute to the valuable time customers spend in the bank to meet of their needed transaction.

          The problem of network is another problem which is currently experienced in the banking industry (Union Bank Plc). Most times you go to the bank you here system failure which helps in hindering the operations of banks services delivery to their customers.

1.3    OBJECTIVE OF THE STUDY

The purpose of the study is to find out how banks have been pressing to make information technology effectiveness in delivery of its service to satisfy her customer. However, this study is out to identify and examine the following.

a.            To examine how effective information technology is to the banking industries service delivery.

b.           To examine customer response to the introduction of some information technology items like (ATM).

c.            To examine what good Internet has done to banking industry.

d.           To identify the problems associated with information technology its items.

e.            To suggest and recommend possible solution to problems so identified.

1.4    THE RESEARCH QUESTION

The research question includes the following.

1.           Is information technology of any effect to the banking service delivery?

2.           Does customers response positively to the information technology items like (ATM)?

3.           Is Internet needed in service delivery of the banking industry?

4.           Does banking industries experience any problems in adopting the information technology as a mode of operative in customer service delivery?

1.5       FORMATION OF HYPOTHESIS

          To analyze the effectiveness of information technology in banking services delivery the following hypothesis are being formulated.

HYPOTHESIS ONE

A.      Ho:    Information technology is not of any importance to       the effective banking services delivery.

          Hi:     Information technology is of great importance to the     effective banking services delivery.

HYPOTHESIS TWO

B       Ho:    Customer does not respond positively to the        information technology items like ATM.

          Hi:     Customer responds positively to the information technology items like ATM.

HYPOTHESIS THREE

C       Ho:    Internet is not really needed for effective service   delivery in the banking industry.

          Hi:     Internet is really needed for effective service delivery      in the banking industry.

HYPOTHESIS FOUR

D       Ho:    The banking industry does not experience any    problems in adopting information technology as a     mode of operation in customer service delivery.

          Hi:     The banking industry experience problems in      adopting information technology as a mode of         operation in customer service delivery.

1.6       SIGNIFICANCE OF THE STUDY

Considering the great competition in Banking Industry presently, the use of information technology is of great importance to bank that may deem it fit to adopt it.

Information technology has represented a turn around change in banking culture and the way of doing things into new ways.

It has also enabled the banks to benefits from its array of produce is especially in the provision of service like on line banking, internet banking etc. through the acquisition of programmes and websites. These features enhanced communication and transaction across the world into a global village. Information technology as has been highlighted earlier on is an essential basis for planning, organization, managing administering and controlling the key operations and activities within the banking industry and other organization.

          Finally, information technology provided a capacity to generate process and manipulate masses of continuous information quickly and economically and to ensure that it can be accessed rapidly.

1.8    DEFINITION OF TERMS

1.      ARTIFICIAL INTELLIGENCE: The use of computer to simulate the reasoning process of an expert human being in solving complex problems in a special area of expertise       (demain).

2.      COMPUTER:        A machine used in modern time in   organizations and home to manipulate data.

3.      DATA- PROCESSING: The transformation of data inputs      into information output.

4.      GLOBAL VILLAGE:       The world refers to as a small and     simple communication place.

5.      INTERNET: It is global computer network that is linked         together through telecommunication (i.e. telephone     network).

6.      SUPER HIGH WAY: This is a number of changes in the         way   Americans can communication with each other and          people around the world.

7.      TECHNOLOGY: The study of mechanical arts and        applied sciences.  

8.      MANIPULATE:     To handle or mange in a skillful or   cunning way.