thank god seun

OLUWASEUN AYOKUNLE OTUKOYA

BANKING AND FINANCE STUDENT AT COVENANT UNIVERSITY, OTA, NIGERIA.

EMAIL: [email protected]

May 2014

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Globally, information technology has become a key element in economic development of many

countries in the world. Over the years, many innovations have taken place in the world, the most

striking and most celebrated is the aspect of information technology. Organizations today are

confronted with rapidly changing market condition indicated by high merger rate and strong

competitors. Under these conditions, traditional management approaches that focus on financial

figures and on centralized, analytical planning methods are considered to be insufficient for

effectively steering the organization in dynamic environment.

Irechukwu’ (2000), itemized banking services that have been changed via the use of information

technology as including opening an account, mandate on customers account, and transaction

processing and recording. Information Technology which is synonymous with computer

communication technology in everyday language can be defined as technologies that facilitates

the information cycle, comprising gathering, processing, disseminating and storing of

information and as such information technology encompasses a wide range of technologies such

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as telephone, computer, word processing application, web browser, servers, full text document,

database and main frame computers.

Its devices especially modern computer email facilities and internet has therefore strengthened

early modernizations such as fax and telephone. Other technology devices include data

recognition equipment, telecommuting and teleconferences using real time and services (Adeoti,

2005).

Information Technology has provided self-service facilities from where prospective customers

can easily complete their account opening documents directly online. Information technology in

Nigeria banking system and operation has been acknowledged as the life wire of banks in the

financial sector as it promotes and facilitates the performance of banks in the country. This

therefore calls for as a result, there is a pre-requisite need to embrace information technology. It

is in view of this that this research work attempts to examine the impact of information

technology on the performance of banks in Nigeria today. Information communication

technology has played a prominent role in all areas of human life but the breakthrough of social

progress and the vigorous development in technology has immeasurably increased the role of

information in every facet of human life.

It has also improve the overall processes of commercial banks performance in Nigeria, via the

use of innovation and creativity pertaining to information technology by commercial banks, this

as a result has led to smooth, easy and convenient way of banking with adequate and quality

service to customers, which has also paved way for efficiency and effectiveness to banking in

Nigeria. Banking operation in Nigeria is becoming highly information technology based this is

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because of its inter-sectorial link and as it appears to be reaping from technology revolution, as it

is seen by its application in all areas of its activities (Akinuli, 1999).

According to Laudon and Laudon, (1991), opined that managers of banks cannot ignore

information technology because it plays a significant role in contemporary organization. The

application of information technology concept, techniques, policies and implementation

strategies to commercial banking services has therefore become a subject of fundamental

importance as it concerns all banks and a prerequisite for local and global competitiveness.

1.2 STATEMENT OF RESEARCH PROBLEM

Information Technology is seen as the book-bone of the financial system in the economy and

could also be referred to as the life-line of the economy therefore the success of an economy is

solely based on its financial system which out rightly is reference still being made to the past, to

do with the banking performance in the economy. A broad opening in technology has been

experienced in the world for banks and they are currently taking advantage of these innovations

to provide better improved customer and more efficient services that will enhance productivity

(Akinuli, 1999; Ovia,2005).

This project will therefore find out the role or impact which the adaption of information

technology has had on the vast majority operations of commercial banks in Nigeria. It will

provide a basis or proposed recommendations which can be re-adjust to the threats,

opportunities, features technological competition and contingencies of technological banking on

commercial banks in Nigeria. According to Milgrom and Roberts (1990) they argued that to be

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successful, firms typically need to adopt information technology as part of a “system” or

“cluster” of mutually reinforcing organizational approaches.

Banking has come of age and as such, competition has alerted banks to look for innovations that

will keep their customers and even win more customers. As a result of the need for efficiency

and effectiveness of information technology on commercial banks, the web was introduced and

has been used mostly for commercial purposes through internet banking and information

technology. The adoption of information technology in the banking sector is also attributable

owing to the fact that, linguistic barriers needed to be put to an end to enable easy and cheaper

communication during transaction, to foster customer-bank relationship, increase customer

satisfaction, improve operational efficiency, reduce the running cost, reduce transaction time,

give banks competitive edge, provide security to investors fund and promotion of other financial

services. This cloudy atmosphere therefore provides a fertile ground for the researcher to

examine the role of information technology in the banking sector, especially its impact on

Guaranty Trust Bank Plc, which will be used as a case study for this research so as to realize its

significant impact and also short and long term goals in their operation in order to guarantee their

profitability and growth.

1.3 OBJECTIVE OF THE STUDY

The general purpose of this study is to examine the role of information technology in commercial

banking in Nigeria. Guaranty Trust Bank Plc is used as a case study for this research project. The

study specifically aims to determine the significant role of information technology in commercial

banking in Nigeria. It will examine how information technology has enhanced the growth

of commercial banks in Nigeria. Determine the effect of information technology in the process

and operation of Nigerian banks. It will evaluate the extent to which job satisfaction of the banks

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has been influenced and affected ever since the introduction of modern information technology

on commercial banks. In this regard the main objectives of this study will include:

i. To determine the extent to which information technology has contributed to

customer satisfaction and banks performance.

ii. To determine how skillful and knowledgeable the staff are in the use of information

technology in commercial banks.

iii. To determine whether there is an increase in the level of efficiency and effectiveness

of operations since the introduction of information and electronic technologies in

commercial banking system.

1.4 RESEARCH QUESTIONS

i. To what extent does information technology have any effect on the performance of

commercial banks in Nigeria.

ii. To what extent has information technology devices (computer, office automation) help

bank staffs in the operations of their duties.

1.5 RESEARCH HYPOTHESIS

In other to carry out this research the following hypotheses have been postulated.

1. The Null (H0)Hypothesis

2. The Alternate (H1)Hypothesis

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The null hypothesis states a conjecture in a negative form while the alternate states a conjecture

in a positive form (Izedonmi, 2005). For the purpose of this study, the hypothesis testing shall be

stated thus:

Hypothesis 1:

H0: The use of information technology does not have a significant effect on the operation of

commercial banks.

H1: The use of information technology has a significant effect on the operation of commercial

banks.

Hypothesis Two:

H0: Information technology devices do not help bank staffs effectively in the performance of

their duties.

H1: Information technology device has helped bank staffs effectively in the performance of their

duties.

1.6 SCOPE OF THE STUDY

This research is concerned with the role of information technology on commercial banks in

Nigeria using Guaranty Trust Bank Plc for the case study. These bank was certified worthy for

the research due to the wide spread branch network and high indulgence in I.T practices. The

bank performance is weighted before and after the incorporation of information technology into

the system.

We are also concerned with how the employees and the customers are reacting to this new

innovation. We will also consider if investment made in information technology was worth the

end result achieved. We will also endeavor to expatiate on the new facilities leading to the

assimilation of information technology in the banking industry in Nigeria.

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1.7 SIGNIFICANCE OF THE STUDY

Information technology has a major driving force to the development of technology which has

impacted positively in virtually every sector of the Nigerian economy.

In the banking sector, financial institutions use computers in their day to day operations in order

to provide quality of service to their customers via the use of modern day technology.

Information technology has also improved customers knowledge about the use of computer and

other gadgets through which customers of a bank can access their bank account and make other

payments anywhere in the world.

Information technology has also enhanced government work via reliable infrastructure, skilled

human resources, open government and other essential issues of capacity building and also

developing centres to improve IT capabilities especially at zonal, state and local levels.

1.8 METHODOLOGY OF THE STUDY

1.8.1 In order to access the perception of banking customers in Nigeria with respect to the

banking services rendered, a questionnaire survey is conducted. Some questionnaires will also be

issued to the bank managers, employees and I.T staffs in order to get an appreciation of what

type of I.T systems and electronic application services were available in the chosen banks. The

responses are measured with a five-point rating scale, where (SA)=5 Strongly Agree, (A)=4

Agree, (N)=3 Neutral, (D)=2 Disagree, (SD)=1 Strongly Disagree. The information will then be

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retrieved from the bank after a stipulated period of time. The information will be observed,

analyzed, compared, contrasted and conclusions will be arrived at. These conclusion will be

derived from the questionnaires and most likely to provide answers to questions posed by this

research. This will help to clarify and broaden our sense of direction in this research work.

1.8.2 SOURCES OF DATA

There are two sources of data which includes primary and secondary data. This research work

will make use of primary data.

Primary Data: The use of questionnaires will adopt a structured questionnaire approach which

will be administered to commercial banks.

Secondary Data: This will include text books, journal, newspaper, internet etc.

1.9 DEFINITION OF TERMS

Computer: is an electronic machine that can store, organize and retrieve/locate information,

perform calculations and control other machines.

Intranet: Intranets are computer networks that are privately developed and operated and

operated within an organization.

Extranets: Extranet is a collaborative network that uses internet technology to link with their

suppliers, customers or other business that share common goals.

Information Technology: is the study or the use in electronic processes for gathering and strong

information and making it available using computers.

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World Wide Web: is the system on the internet that allows you to find and use information that

is held on computers all over the world.

Computer Security: has to do with the protection of information from theft, competing or

preservation from availability.

Electronic Banking: is the situation whereby transfer of payment are been done via computers.

Automated Teller Machine: is a machine that enables banks customers to withdraw money

from their checking or savings account by inserting an Automated Teller Machine.

1.10 LIMITATION OF THE STUDY

This research work will be based on the importance and role of information technology in

commercial banking in Nigeria using Guaranty Trust Bank Plc. Head Office as a case study. The

respondent will comprise of bank staff and customers numbering 1-100. It will examine the

extent to which banks have embraced information technology (office automation, computers) as

well as determine the role information technology has had on the customer (i.e. if they prefer the

old ways of banking operations or if they prefer the new and modern ways of banking

operations. This study may be limited due to slow response of some banks in giving out

information and low co-operation on the part of the members of the public.

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CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

Information Technology (IT) is the bedrock for national development in a rapidly changing

global environment, and this challenges us to devise bold and courageous initiatives to address a

host of vital socio-economic issues such as reliable infrastructure, skilled human resources, and

other essential issues of capacity building. In addition, many banks have installed up-to date

modern computers that will enable them achieve communication and multimedia connection on

the Extranet, Intranet and internet. As Gates (1995) put it, ‘The personal computer has already

had a huge effect on business. But its greatest impact won’t be felt until the PC’s inside and

outside a company are intimately interconnected’.

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The study here reveals that to achieve a successful and an effective communication commercial

banks need to connect their computers to the internet via the use of networks such as Local Area

Networks (LANs) or Wide Area Networks (WANs), with this network put in place, bank staffs

can work simultaneously on the same document either by sending or receiving emails internally,

externally and from the rest of the world. Aig-Imoukhuede, (2003), mentioned that to bring

banking services closer to a customer and to guarantee the opportunity to use them anytime a

customer wants, the on-line-real-time phenomenon which has been the single most important

change to banking operations over the last ten years. He opined that online banking services

should be made available to customers at any time so as to bring a customer closer and familiar

with banking services.

In my own view, as regard to Aig-Imoukhuede (2003) statements, banks have installed modern

computers connectivity that would enable them achieve better communication of data,

information and documents in providing modern day banking services to the customers, this as a

result has brought more customers to patronize the banks. Managers and other staffs of banks

need to be able to search and gather data from several different types of sources, analyses them,

select the relevant ones and organize them in such a manner to allow them to make decisions

based on the organized data.

Ovia, (2000), also noted that commercial banks have improved basically on the deployment of

information technology in their banking operations, and that information technology budget for

banking is larger than that of other industries in Nigeria. For this reason he conducted a research

that on-line system has facilitated internet banking with banks. He found out that banks now

offer smooth and flexible way of operating accounts in any branch irrespective of where the bank

or the account is domiciled. However, he said banking for tomorrow requires more of electronic

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manipulation and shuffling of bits-based money and other banking transactions, instead of paper.

However, paper based transactions are now being replaced by electronic-based transactions.

In addition to the statement above Woherem, (2000), opined that Nigerian banks since 1980s have

performed better in their investment profile and use of information communication technology systems,

than the rest of industrial sector of the economy. The two study above provides a basis to which

information technology, (IT) has changed the processes and operation of commercial banks in

Nigeria.

2.1 CONCEPTUAL FRAMEWORK

2.1.1 DEFINITION AND MEANING OF INFORMATION TECHNOLOGY

Information technology simply refers to as the gathering, storing, manipulating and transferring

information. It is the automation of process, controls and information production using

computers, telecommunication, software and ancillary equipment such Automated Teller

Machine and Debit Cards. It is a term that generally covers the harnessing of electronic

technology for the information needs of a business at all levels. Laudon D. and Laudon J. (2001),

assert that Information and Communication Technology deals with the physical devices and

software that link various computer hardware components and transfer data from one physical

location to another.

Harold and Jeff (1995), contend that financial service providers should modify their traditional

operating practices to remain viable in the 1990s and decades that follow. They claimed that

most significant shortcomings in the banking industry today is a wide spread failure on the part

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of senior management in banks to grasp the improvement of technology and incorporate it into

their strategic plans.

2.1.2 OVERVIEW OF INFORMATION COMMUNICATION TECHNOLOGY (ICT)

Wirsiy and Shafack (2002) defined information communication technology as a broad-based

term that encompasses the gathering, acquiring, organization, packaging, storage and retrieval,

dissemination of above multi-media, using a combination of computers and telecommunications.

Advancement in information technology has brought about tremendous progress in banking

sector across the globe. This is because information communication technology has brought

about dramatic and dynamic changes in the global system of banking. Igwe, (2005), noted that

the advent of the electronic mail and personal computers on every desk, the internet and its

application to banking have produced amazing results.

The basic existence of computer and information technology in financial institution has

improved dramatically. Some estimates indicates that, in 1980’s, about 50 percent of all new

capital investment in organizations has been in information technology (Westland and Clark

2000). Information technology to business today is widely acknowledged, while large business

have been using computers for some time now due to improvement in information technology.

Information technology strategy has been emphasized in different area both empirical and

prescriptive research studies. In a statement by Womboh and Abba, (2008), they believed that

information communication technology (ICT) and information technology (IT) are similar

concepts that can be used interchangeably.

2.1.3 THE EVOLUTION OF INFORMATION TECHNOLOGY

Information technology has brought enormous changes, challenging how organizations are

structured and how businesses are run. Information technology is continually evolving, breaking

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new barriers, defining new horizons, and bringing new dimensions to our lifestyle. Information

technology can simply be defined as a systematized body of tools, techniques and infrastructure

for generating, collecting, storing, processing and transmitting information and data. During the

late 1950s and throughout the 1960s, business data was processed through punched card

equipment, electronic accounting machines, and massive mainframe computers with far lower

capabilities than today’s microcomputers. The data processing function, then, was the

responsibility of the electronic data processing (EDP) department. In 1970s the advent of

primitive multi-user networks as terminals got connected to the massive mainframes.

It was also the beginning of database management systems that came as a response to the

challenges posed by large volume of business data. This was the foundation era of information

system (IS), Management Information Systems (MIS), and Decision Support Systems (DSS). All

processes were centrally handled using applications software that were developed with the third

generation of programming languages. The next decades witnessed the fusion of

telecommunications and networking technologies for business deployment. This ushered in

distributed data processing, office information systems (OIS), and personal computers (PCs).

Prominent among the goals of business enterprises at this time was improvement in the quality of

products and services, hence, investments in total quality management (TQM) characterized the

strategy of the leading organizations of the 1980s.

In the 1990s, advances in technology made possible many innovations in programming

languages that even the most optimistic of technology enthusiasts would have thought impossible

only a few years earlier. Perhaps the greatest IT innovation of today is the ‘Information

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Superhighway’. With the full integration of telecommunications and computer technology have

come now new but distinct technologies such as the Internet, GroupWare and multimedia.

Today, as we move into the new millennium, the new competitive weapon is networks and the

velocity of data throughput in intranets and extranets, and around the world, through the internet.

The total breakthrough in information technology emerged in the mid-1990s. This period was the

era of information super highway which organizations use to expand business frontiers by using

the new technologies to exploit opportunities. Today’s business environment is very dynamic

and it undergoes rapid changes as a result of technological innovation, increased awareness and

demands from customers. Business organizations, especially the banking industry of the 21 st

century operates in a complex and competitive environment characterized by these changing

conditions and highly unpredictable economic climate. Information technology is at the center of

this global change curve. Laudon and Laudon, (1991), contend that managers cannot ignore

information systems because they play a crucial role in contemporary organization. He pointed

out that the entire cash flow of most fortune five hundred companies is linked to information

system. Therefore, this study provides the basis that application of information technology

concepts, techniques, policies and implementation strategies to banking services will become a

subject of fundamental importance and concerns to all banks and indeed a perquisite for local

and global competitiveness. Information technology affects how managers decide, how they plan

and what product and services are offered in the banking industry. It has continued to change the

way banks and their corporate relationship are organized worldwide and the variety of innovative

contend that financial services providers should modify their traditional operating practices to

remain, viable in the 1990s and the decades that follow.

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Woherem (2000), claimed that only banks that overhaul the whole of their payment and delivery

systems and apply information technology to their operations are likely to survive and prosper in

the new millennium. In his statement, he advises banks to re-examine their service and delivery

system in order to position them within the framework of the dictates of the dynamism of

information technology. The banking industry in Nigeria has witnessed tremendous changes

linked with the developments in information technology over the years. The quest for survival,

global relevance, maintaince of existing market share and sustainable development has made

exploit action of the many advantages of information technology through the use of automated

devices imperative in the industry. This study therefore evaluates the response of Nigerian banks

to this new trend and examines the extent to which they have adopted innovative technologies in

their operators and the result effect.

2.1.4 INFORMATION TECHNOLOGY IN FINANCIAL SERVICE DELIVERY

The year 1980’s witnessed the advent of telecommunication and networking, banks began to

display information technology systems as a local metropolitan and wide area network. While

many of the large banks stuck to centralized system because of heavy investment in technology

equipment, the smaller banks began to imbibe the distribution approach which was beginning to

emerge and which was more affordable especially as it allows organizations with the flexibility

of scalable infrastructure.

2.1.5 THE CHALLENGES AND SOLUTIONS OF INFORMATION TECHNOLOGY

APPLICATION ON COMMERCIAL BANKS

Nigeria’s poor infrastructures have been identified as the first major challenge in banks. Reports

have it that in Nigeria, there are only one computer and four main telephone lines per thousand

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people. Also, electricity supply is sporadic and inefficient. Most importantly, Nigeria has very

low internet access with less than one internet service provider per thousand people. The cause

for such low internet access is the ineffective implementation of information technology. The

challenges being faced by Nigerian banks in their attempt to ensure a smooth exchange of

electronic data and information are:

i. The need to build a better infrastructure that will serve as backbone for communication

within the banks.

ii. The need to collaborate in sourcing for new technological equipment that will provide

common standard.

iii. The need to get better at information technology system development and operation by

bank management.

iv. The need to impress by improving the present telecommunications infrastructure.

To combat these challenges, the following were proffered:

i. There should be government and public awareness to attract long term investments in the

telecommunication industry.

ii. Emphasis should be set on the importance of maintaining existing infrastructure and

equipment (Oyedokun and Oladejo,).

Morufu and Taibat, (2012) researched on banker’s perception on information technology in

Nigeria purposely to find out how bankers perceive the benefits and threats associated with

information technology by investigating banks employees’ perception on electronic banking and

its implications on bank service delivery. The study therefore concluded that ‘government access

to data’ appears as the most important benefit and risk respectively while reduced. HR charge

high costs for services that are least important for benefits and risk associated with electronic

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banking. In my own study a lot of research work has to be done in order to combat the challenges

of information technology faced by commercial banks and other financial institutions in Nigeria,

there is need for banks and the government to educate the public in the use of online banking

products, to invest more into information communication technology infrastructure and for the

government to reduce tax of information communication technology gadgets.

Internet banking and online banking is not yet developed in Nigeria, (Amaoko, 2012). Singh

(2002) opined that technology has introduced new ways of delivering banking services and

products to customers, such as ATMs, and internet banking (IB). Hence banks have found

themselves at the forefront of technology adoption for the past three decades. These changes and

developments in the banking industry have impact on service quality, future of the banking

activities, and consequently its continually competitive ability in the world markets since going

along with technology is one of the most important factors of economic organizations success in

general and banks in particular (Nyangosi, 2009).

2.1.6 INTERNAL NETWORK AND COMMUNICATION IN

COMMERCIAL BANKS

The application of networks is a vital part of an effective information communication technology

enabled system, which is especially true in the case of banks with a branch network. Local Area

Network (LAN) may also be seen as a basic indicator of the minimum infrastructure required to

enable companies to conduct electronic banking at a substantial level. Examples of the use of

internal network and communication in banking operation include:

Automated Tell Machine: This is a type of retail banking technology. It provides major roles by

offering convenience, speedy and round the clock service. Automated teller machine has the

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capacity to make available enquiries on balances, interest and exchange rates, withdrawals,

deposits and account transfers 24/7.

Wireless Communication: Wireless communications networks are networks that require no

guided media like cables and fibre optics but unguided media. They are called unguided because

they need no physical device to link the nodes together but radiate or broadcast information in

many directions. Basically wireless communications employ the use of microwaves, satellites,

radio and infrared transmissions to transport packets of data from one location to another.

Data Processing: It is basically used to analyze, summarize, and convert data into useful

information. It may be automated and it runs on a computer. Data processing can be said as the

process of recording, analyzing, sorting, summarizing, disseminating and storing data.

Teletex and View Data: Teletext and view data are new information systems utilizing the

domestic television receiver for display purposes. These systems have been evolved over the last

six or seven years and receivers are now becoming available for the public. It was recognized

when the first proposals were made that it would be essential to produce decoders that could be

designed into receivers with minimal additional cost and large-scale integrated circuits have

enabled this to be achieved, Mother sole, (1979).

Telecommunication: Telecommunication is the electronic movement of information from one

location to another. This involves setting up a computer network within the office (intranet) or

outside the office (extranet) to facilitate electronic dissemination of information,

teleconferencing and among stakeholders.

Voicemails: It allowed users and subscribers to exchange voice messages; that are used to select

and deliver voice information; and to provide transactions relating to individuals, organizations,

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products and services, using telephone. It is used more broadly to denote any system of

conveying a stored telecommunications voice messages, including using an answering machine.

Computer Network: Computer network is a group of two or more computer systems linked

together. It is also said as the interconnection of two or more computer systems using data

communication system or devices. The interconnection of stand-alone of computers using

networking media and devices. There are many types of computer networks, including:

Local-area networks: The computers are geographically close together that is, in the

same building.

Wireless area networks: The computers are farther apart and are connected by

telephone lines or radio waves.

Campus-area networks: The computers are within a limited geographic area, such as a

campus or military base.

Metropolitan-area networks: A data network designed for a town or city.

Home-area networks: A network contained within a user's home that connects a

person's digital devices.

Value Added Network Service (VANS): It is a hosted service offering that acts as an

intermediary between business partners sharing standards based data via shared Business

Processes. It is also a private network used by a company primarily for routing, storing and

delivering electronic data interchange (EDI) messages. Value added networks operated by large

companies for efficient supply chain management with their suppliers, industry consortiums and

telecom providers.

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Tele-Conferencing and Video: It is a set of telecommunication technologies where two or more

locations communicate by simultaneous two-way video and audio transmissions. It is also known

as visual collaboration.

Facsimile Transmission (FAX): Fax is the telephonic transmission of scanned printed material

both text and images, normally to a telephone number connected to a printer or other output

device. The original document is scanned with a fax machine or a telecopier, which processes the

contents text or images as a single fixed graphic image, converting it into a bitmap, and then

transmitting it through the telephone system Rouse, Margaret (2006).

Electronic Data Interchange: It is simply said as computer-to-computer exchange of business

documents in a standard electronic format among business partners. Therefore by moving from a

paper-based exchange of business document to one that is electronic, businesses enjoy major

benefits such as reduced cost, increased processing speed, reduced errors and improved

relationships with business partners.

Electronic Fund Transfer: It enables bank to transfer funds from one bank to another within

and outside the bank. You can use electronic fund transfer to:

i. Have your paycheck deposited directly into your bank or credit union checking

account.

ii. Withdraw money from your checking account from an ATM machine with a

personal identification number (PIN), at your convenience, day or night.

iii. Instruct your bank or credit union to automatically pay certain monthly bills from

your account, such as your auto loan or your mortgage payment.

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iv. To purchase groceries, gasoline and other purchases at the point-of-sale, using a

check card rather than cash.

Internet Security: It is provided to existing and potential customers of a commercial bank to

protect privacy and security of customer or clients while visiting and transacting business with

the bank on the internet.

Electronic Banking: Banking and customers’ access to financial services has transcended

traditional retail banking with local branches to branch networks,, internet banking, home

banking, mobile banking, to mention a few. The emerging electronic and wireless technologies

have enabled the banks to carve a niche for themselves among Ayo (2009). Electronic Banking

services include the following:

Electronic Mail: is an electronic means of sending and receiving mails. Its application is popular

within a network environment or through the internet. Therefore with a network of systems, a

note, letter, report, and chart can be sent from office to another within the company.

Credit Card: is the payment system that involves no account debit at the end of each

transaction.

Electronic and Mobile Payment System: Electronic payment system that works in conjunction

with electronic commerce, while Mobile payment system is used by mobile commerce.

Personal Computer Banking (PC): allows the bank’s customers to access information. The

increasing awareness of the importance of computer literacy has resulted in increasing the use of

personal computers. This certainly supports the growth of PC banking which virtually establishes

a branch in the customers’ home or office, and offers 24-hour service, seven days a week. It also

has the benefits of Telephone Banking and ATMs.

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Internet Banking: is a form of banking transaction carried out on the internet. There must be

internet access and transaction is through a personal computer.

Online Banking: is a synonym to internet banking but predominantly used to reference banking

automation as against manual operations.

Mobile Banking: has brought about ease, convenience, privacy and security of online banking

through mobile devices that neatly fit into one’s purse or pocket based on SMS facility.

2.2 THEORETICAL FRAMEWORK

2.2.1 TECHNOLOGICAL REVOLUTIONS, INFORMATION AND GROWTH

Although tremendous technological advances took place over the past 100 years in several

sectors, such as transport, communications, electrification and medicine, recent ones are much

more comprehensive and powerful. Their salient characteristics involve convergence and

interaction of many strands of technological change, with social consequences far more profound

and far more difficult to foresee. They fall into three basic categories or strings of technical

changes: in materials, in biotechnology and in information (Hallberg and Bond, 2000).

Research has discovered many new, innovative materials. Transport enjoys lighter materials for

fuel efficiency; health care takes advantage of dynamic images and intelligent prosthetics; and

the energy sector benefits from many new materials as well. The banking business is becoming

highly information technology based due to its inter-sectoral link; as it appears to be reaping

from most of the benefits of revolution in technology, as it is seen by its application to almost all

areas of its activities (Akinuli, 1999). Technology has broadened banking and as a result of this it

has changed the nature of banking in competitive environment in which they operate or

domiciled. A wide opening has therefore been experienced around the world for banks and they

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are currently taking due advantage of these innovations to provide improved customer services in

the face of competition and faster services that enhance productivity (Akinuli, 1999; Ovia,2005).

Technological advancement facilitates payments and creates convenient alternatives to cash and

cheque for making transactions. Such new practices have led to the development of a truly

global, seamless and Internet enabled 24-hour business of banking.

Technological advance in payments are important due to the fact that it will be feasible to

outsource quite a number of the banks role in the payments system. Also banks regulation can be

more technologically dependent and better focused rather than focusing on conceptual

guidelines. ICT revolution both in terms of innovation rate, speedy operation, and cost per unit

(portraying reduction in average total and marginal costs) has made a good number of banks

embrace the use of ICT infrastructure in their operations (Akinuli, 1999).

In today’s business, competition, deregulation and globalization have compelled Banks to offer

service 24 hours around the globe, whereas the significance drawback, on the other hand, lies in

its inconvenience and security factors. However, both these factors have a significant and

profound impact on banks performance and customer service deliver. The relationship that

revolves between ICT expenditures, banks performance delivery is conditional upon the extent

of network effects. If the networks are low, ICT is likely to:

i. Reduce payroll expenses.

ii. Increase market share.

iii. Increase revenue and profit.

Furthermore, in a broader perspective, ICT, deregulation and globalization in the banking

industry could reduce the income streams of banks and thus the strategic responses of the banks,

particularly the trend towards internal cost cutting, mergers and accusations are likely to change

24

the dynamics of the banking industry. This chapter seeks to determine if banks have earned

higher income and delivered a high quality service than in traditional way. The main issues that

can prevent consumers positively include the convenience aspect of the service, ease of use and

its compatibility with their lifestyle.

2.2.2 CONTIGENCY THEORY

Contingency theory suggests that an information system should be designed in a flexible manner

so as to consider the environment and organizational structure confronting an organization.

Information systems also need to be adapting to the specific decisions being considered. In other

words, information systems need to be designed within an adaptive framework. Review of

accounting information system literature also indicate that most AIS studies have incorporated

contingency factors such as organizational structure, business strategy, and environmental

condition in their research model but have neglected the influence of IT on AIS design.

Furthermore, the few studies that have examined the relationship between AIS design and IT

have defined IT in a narrow perspective (Ismail, 2004). Similar to IT researches, these studies

viewed IT from the technological perspective only but failed to incorporate other perspectives of

IT sophistication such as informational, functional and managerial. Hunton and Flowers (1997)

suggested that a more comprehensive AIS study is needed to explain the relationship between IT

and accounting and its subsequent impact on organization in general and accounting/accountants

in particular. Furthermore, most of previous IT/AIS studies were conducted in developed

countries (Ismail and King, 2005). Very few of such studies have been carried out in developing

countries especially in the Middle East. Due to the continuous flow of considerable amount of

empirical studies which investigate the contingency factors and accounting and/or IS and

indicates the importance and vitality of this theory, this study is theoretically and empirically

25

constituted upon contingency theory which has long been applied in both accounting and

information system disciplines. The contingency theory suggests that an organization's structure

is based on contextual factors such as environmental conditions, business strategy, organizational

structure, production technology, and management style (Ismail and King, 2005).

2.2.3 BUSINESS MODELS, COMMERCE AND MARKET STRUCTURE

The major way in which information technology is affecting work in today’s organization is by

reducing the importance of distance. In industries, the geographic distribution of work duty is

changing significantly. Therefore for instance, some software firms have found out that they can

actually overcome the tight local market for software engineers in sending projects to India or

other nations of the world where the wages are reduced. Furthermore, this type of arrangements

can take advantage of the time differences so that critical projects can be worked on. Firms today

can outsource their manufacturing to other nations of the world and rely mostly on

telecommunications to keep marketing and distribution teams in close contact with the

manufacturing company.

Information technology can enable a finer division in terms of labour among countries, which in

turn affects the demand for various skills in each nation. Technology enables various types of

work and employment to be decoupled with one another. Firms have more freedom to locate

their economic activities, labour, capital, creating greater competition among regions in

infrastructure, and other resource markets. It also opens opportunity for regulatory arbitrage:

firms can increasingly choose which tax authority and other regulations they want or intend to

adopt. An infrastructure of computing and communication technology, providing 24-hour access

at low cost to almost any kind of price and product information desired by buyers, will reduce

the informational barriers to efficient market operation.

26

2.2.4 THE ERA OF MODERN BANKING IN NIGERIA

Nigerian banks especially the new generation banks, have realized the imperative of good and

prompt services. Some customers lost their deposits in the erstwhile

technically-insolvent/distressed banks, customers have now become wiser, more discerning, alert

and sophisticated with regards to choosing where it is safe to put their money, and also where

they will be served promptly. Thus, they have started looking at the level of service and

professionalism of the banks before depositing their funds. Proximity to the bank is no longer the

issue: safety and the level of service, with regard to the quality, efficiency and speed have

become the major imperative. The banks have realized that the way they can provide quality

service is through the use of modern technology.

Hence, there is a growing need for adoption of new technologies in the Nigerian banking

operations. The new generation banks make use of technology to provide efficient, online and

real-time services. This therefore means that their customers can, for the first time in the history

of banking in the country will go to any part of the country where there is a branch of their bank

and make withdrawals or conduct an increasing range of other banking business. Before the new

era of banking in Nigeria, the banking industry was characterized by inefficiency and truly

frustrating service.

But today, most banks in Nigeria compete mainly via the use of technology on the amount of

time it takes to services their customers. Services in the new generation banks now take up to 2-5

minutes to complete, as opposed to hours of queuing in an unfriendly and uncontrolling

environments. As a result of this banking operation in Nigeria has become computer based

delivery systems; the new generation banks have become very profitable. They have introduced

27

integrated banking systems, using WANs. Thus their customers do not need to carry cash for

long distances.

2.3 EMPIRICAL FRAMEWORK

2.3.1 THE GROWING NEED FOR INFORMATION TECHNOLOGY

According to Thong (1999), attempted to consolidate the myriad of information technology

adoption research by developing an integrated model of information systems adoption. In the last

decade, the force of information technology (IT) has transformed the business environment. We

are in the midst of a paradigm shift from the industrial paradigm of wealth creation to the

information paradigm of wealth creation; and technology is the driving force behind these

changes (Elliot, 1992). During this same time period, the field of accounting has undergone an

extraordinary transformation relative to its use of Information Technology in commercial

banking operation. Information Technology has increased our ability to capture, store, analyze,

and process tremendous amounts of data, increased our ability to change business processes, and

has significantly impacted the control process.

The American Institute of Certified Public Accountants (AICPA) has recognized the growing

importance of Information Technology. The AICPA created the top 10 technologies process and

the Information Technology member section in the late 1980s and early 1990s. Furthermore, the

AICPA created the Certified Information Technology Professional (CITP) designation, which is

a CPA who is credentialed as a technology professional and recognized for his or her unique

ability to bridge the gaps between business and technology. The Institute of Management

Accountants (IMA) also recognized the growing importance of information technology. In 1990,

the IMA warned that accountants in banks who stay on the traditional accounting turf risk being

overtaken by computer experts (Seigel and Sorensen, 1999).

28

According to Ahamadkaleem, (2008), opined that bankers in Pakistan perceive electronic

banking as a tool for minimizing inconvenience, reducing transaction costs and saving time.

Similarly, they believe that electronic banking increases the chances of government access to

public data, increases the chances of fraud and that there is lack of information security.

Madueme (2010), researched on evaluating banking productivity and ICT using Translog

production function in Nigeria, the results showed that bank output such as loans and other assets

increased significantly to charges in expenditure on Information communication technology.

IT labor expenses impacted more on bank output more than capital expenditure on ICT gadgets.

The study recommended on the need to increase investments in information technology in order

to increase productivity of banks. Advancements in information technology (IT) have enabled

companies to use computers to carry out activities that were previously performed manually.

Accounting systems that were previously performed manually can now be performed with the

help of computers. Therefore, improvements in the information technology have facilitated the

use of management banking procedures. Also advancement in technology has brought about

many changes and competition among banks and non-bank financial institutions which raises

concern as to why some people adopt one distributional channel and others do not. New services

are difficult to evaluate where quality of trustworthiness dominates (Patricio, 2003).

It is important to study the impact of technology based on bankers’ perceptions and behavior

(Lymperopoulos and Chaniotakis, 2004).IT-based distribution channels reduce personal contact

between the service providers and the customers, which inevitably leads to a complete

transformation of traditional bank customers relationships (Barnes and Horwlett, 1998).

BRIEF HISTORY OF CASE STUDY

29

Guaranty Trust Bank plc was incorporated as a limited liability company licensed to provide

commercial and other banking services to the Nigerian public in 1990 and commenced

operations in February 1991, and has since then grown to become one of the most respected and

service focused banks in Nigeria. In September 1996, Guaranty Trust Bank plc became a

publicly quoted company and won the Nigerian Stock Exchange President's Merit award that

same year and subsequently in the years 2000, 2003, 2005, 2006, 2007, 2008 and 2009. In

February 2002, the Bank was granted a universal banking license and later appointed a

settlement bank by the Central Bank of Nigeria (CBN) in 2003. Guaranty Trust Bank undertook

its second share offering in 2004 and successfully raised over N11 billion from Nigerian

Investors to expand its operations and favorably compete with other global financial institutions.

This development ensured the Bank was satisfactorily poised to meet the N25 billion minimum

capital base for banks introduced by the Central Bank of Nigeria in 2005, as part of the

regulating body's efforts to sanitize and strengthen Nigerian banks. Post-consolidation, Guaranty

Trust Bank plc made a strategic decision to actively pursue retail banking. A major rebranding

exercise followed in June 2005, which saw the Bank emerge with improved service offerings, an

aggressive expansion strategy and its vibrant orange identity. In 2007, the Bank entered the

history books as the first Nigerian financial Institution to undertake a US$350 million regulation

S Eurobond issue and a US$750 million Global Depositary Receipts (GDR) Offer. The listing of

the GDRs on the London Stock Exchange in July that year made the Bank the first Nigerian

Company and African Bank to be listed on the main market of the London Stock Exchange.

In December 2009, Guaranty Trust Bank successfully completed the first tranche of its $200

million corporate bond targeted at increasing the depth of its operations in West Africa and

Europe in the next couple of years. Guaranty Trust Bank Plc was incorporated as a limited

30

liability company licensed to provide commercial and other banking services to the Nigerian

public in 1990 and started operations in February 1991, since then it has grown to become one of

the most respected and service focused banks in Nigeria. In September 1996, Guaranty Trust

Bank plc became a publicly quoted company and won the Nigerian Stock Exchange President's

Merit award that same year and subsequently in year 2000, 2003, 2005, 2006, 2007, 2008 and

2009 respectively. In February 2002, the Bank was granted a universal banking license and later

appointed a settlement bank by the Central Bank of Nigeria (CBN) in 2003.

Guaranty Trust Bank Plc started its second share offering in 2004 and successfully raised over

N11 billion from investors in Nigeria in order to enable expand its operations and favorably

compete with other global financial institutions. Due to innovation and creativity of Guaranty

Trust Bank Plc, they offer varieties of product and services to their customers; this has led to the

achievement of awards by the bank for their outstanding innovation in information technology in

their banking operations. Some of their products includes: Domiciliary Account, Account

Aggregation Services, Guaranty Trust Bank Automated Payment System, Guaranty Trust Bank

Electronic Notification System, Non Resident Nigerian Service, ATM (Automatic Teller

Machine), Electronic Branches, Mobile Money, Airline Ticket Payment. Guaranty Trust Bank

Plc is a leading commercial bank in Nigeria that has keyed into the new Central Bank of Nigeria

cash-less Lagos initiative.

CHAPTER THREE

RESEARCH METHOD

3.0 INTRODUCTION

31

Research method is a systematic process of collecting, presenting, analysing and interpreting

data for the purpose of arriving at dependable Solutions to human problems. Methodology is

therefore concerned with the study of the resarch methods in a research of this nature, it is

necessary to define the research design, area of the study, population of the study, sample size

and sample size determination instrument for data collection, validation of instrument, reliability

of research instrument.

3.1 RE-STATEMENT OF HYPOTHESIS

To achieve the objectives stated in this study, the following hypothesis were formulated.

Hypothesis 1:


commercial banks.


banks.

Hypothesis Two:


their duties.


duties.

3.2 RESEARCH DESIGN

According to (Asika, 1991), Research design means the structuring of investigation aimed at

identifying variables and their relationships to one another. A research design is very useful as it

32

helps the researcher to develop a mental image of the structure for gathering the data and the

analysis that will follow. The research study set out to assess the impact of information

technology on commercial banks in Nigeria and to provide vital information in order to extract

the sincere perception of the bank customers and staffs in Nigeria with regards to the position

and role of information technology in commercial banks in Nigeria.

The purpose of this research is a random sampling technique of a bank that has been selected, the

population and sample size of this project is based on one bank in Nigeria, that is Guaranty Trust

Bank Plc which will be adopted for the questionnaire both to the employer (bankers) and

customers of the selected banks. This research work will examine the impact of information

technology in commercial banks in Nigeria. The method employed to examine the impact of

information technology on commercial banks in Nigeria shall be the survey method. Data

collected from the questionnaire shall be presented using with the aid of manual and electronic

application such as the Statistical Packages for Social Sciences (SPSS), while the hypotheses

would be tested using the T-test statistical method and linear regression method.

3.3 POPULATION OF THE STUDY AND SAMPLING SIZE

Population refers to the total number of cases in the focus of interest. The population of this

research work will focus mainly on Guaranty Trust Bank Plc in Nigeria. The sample size used

for this research work consists of one bank, which is Guaranty Trust Bank Plc. This bank was

selected based on its oriented technology driven state, profitability, large capital base and reliable

network of branches both (branch and e-branch) in Lagos, Nigeria. A total of hundred (100)

questionnaires were issued to both customers and staffs of Guaranty Trust Bank Plc.

3.4 OPERATIONALIZATION OF THE RESEARCH TOPIC

33

Operationalization of the research topic is to identify the variables involved in this project that is

the dependent variables and the independent variables. Therefore, these variables are classified

into two namely: The dependent and the independent variable. Y is the dependent variable which

has to do with the (effect), while X is the independent variable which has to do with (cause). In

other words, X is the cause variable while Y is the effect variable. Therefore, to relate

operationalization to the research topic. Commercial bank is the cause, while impact of

information technology is the effect of operationalization in this research.

3.5 SAMPLING TECHNIQUE

Data for this project will be collected, using a non-probability sampling method. Here the

sampling selection is based on the subjective choice of the researcher as to which elements best

provide desired basis and probability of good outcome.

3.6 DATA GATHERING METHOD

3.6.1 SOURCES OF DATA

The sources of data for a research work is grouped into two, namely;

Primary sources

Secondary sources

But for this research project, the primary data shall be the basis of this research wok. The data

shall be generated by means of a structured questionnaire instrument.

The questionnaire shall be divided into two sections; the first section shall collect the personal

data of the respondents while the second section shall focus on the subject matter of the study.

34

The questionnaire to be used shall be self-administered and a total of one hundred (100) to bank

staffs for the purpose of this study. The sampling shall be done randomly such that the

respondents shall cut across various departments and levels.

3.6.2 INSTRUMENTS OF DATA COLLECTION

The research instruments being the questionnaires will be administered by the researcher and a

face to face approach will be adopted in the process of administering the questionnaires. This

instrument was drafted by the researcher; howbeit the supervisor of this study reviewed and

acknowledged it before implementation exercise to ensure that the questionnaire was structured

in order to be appropriate for the study.

3.6.3 DESCRIPTION OF QUESTIONNAIRE

The data collection instrument to be used shall be a well-structured questionnaire and it would be

administered by the respondent. The questionnaire shall contain twenty (22) items divided into

two sections.

The first sections shall focus on questions on the personal information of the respondents while

the second section shall be devoted to the questions that relate to the subject matter based on the

research questions that were stated earlier.

The questionnaire would be as simple as possible so that the respondents could supply the

appropriate answer to each question.

3.6.4 VALIDITY AND RELIABILITY OF INSTRUMENTS

Validity refers to the degree with which a research instrument measures what it purports to

measure as well as the population it is intended for. It refers to the truthfulness of the instrument

35

and population of study. It implies that it should measure the characteristics it is intended to

measure. The validity test used in this research is content (face) validity. Content validity is the

extent to which the instrument measures the overall appearance and subject matter in line with

the set of objectives of the study. In other words, the items set or statements made should reflect

the purpose of the envisaged problem of the research study (objectives). In carrying out the test,

expert opinion was obtained from my project Supervisor in evaluating the relevance of the items

to the characteristics being measured.

Reliability on the other hand is the degree of stability of the measure of variables or research

instruments. A test is said to be reliable if it measures the same variable at different times to the

same set of respondents and results which are consistently similar. The test retest method

involves measuring the reliability of the test twice to the same individual sample at different

times. Thus the two scores obtained from the test are gathered together and correlated so as to

determine the relationship that exist between the first test score and the retest score.

How be it in ensuring that the validity of the research instrument is established, the content

validity and construct validity were implemented such that the statement and questions were

hypothetical in nature so that it measure exactly what it intends to measures. In establishing the

reliability, the following was implemented: the questionnaire item were placed on a scale of (SA)

strongly agree, (A) agree, (N) neutral, (D) disagree, (SD) strongly disagree.

3.7 ACTUAL FIELD WORK

The questionnaires were administered by the researcher in person. A face-to-face approach was

adopted by the researcher in disseminating the questionnaires. This approach was adopted in

36

order to monitor the data collection and to ensure that data supplied or response are of high

quality.

3.8 METHOD OF DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Data presentation gives a good description into the entire research work. It focuses on the

statistical instruments used, since variables are involved in this research work, the data collected

will be converted into normal or ordinal figures by the application of predetermined weighting

on them. This is because data that are collected are presented in forms that would enable them to

be easily analyzed in terms of interpretation. The method of presentation addresses how the data

collected are disclosed to the public and presented to aid analysis

The researcher presented the data obtained via the questionnaire with the use of descriptive

statistics comprising the sample percentage and tables, and pie chart presentation for adequate

understanding of the data. The adoption of data presentation that will be used for this research

work is the T-test method, because we want to know how information technology has been able

to impact more on the services operation provided by commercial banks in Nigeria.

The data collected were sorted out into different categories of rows and columns, displaying facts

and figures. For proper analysis however, only the data in direct relation with the hypothesis

formulated were considered. Statistical Package for Social Sciences (SPSS) version 15.0 will be

used in analyzing the data collected. This package was used to aid the analysis of the collected

data for the study.

In other to analyze and interpret appropriately the responses from the respondent, the parametric

and non-parametric tools were used. It shall be tested using the t-test statistical method and linear

regression.

37

3.9 INSTRUMENT OF DATA ANALYSIS

The responses to the questions on the questionnaire shall be analyzed using the T-test and linear

regression method of analyzing data with the aid of manual and electronic application such as the

Statistical Packages for Social Sciences (SPSS). SPSS is an integrated system of computer

programs specifically conceived and designed for the analysis of social and behavioral science

research data and information.

CHAPTER FOUR

DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.0 INTRODUCTION

38

This research work is primarily interested in ascertaining the role of information technology on

commercial banks in Nigeria. This chapter covers the presentation, analysis and interpretation of

data collected from primary sources. The data here are the replies collated from questions laid

out in the questionnaires distributed to the respondents. In other to present the data analyze the

data collated through questionnaires; all questions in the questionnaire were analyzed including

the ones with close relationship with the research questions, objectives as well as hypothesis,

through the Software Package for Social Science (SPSS) after which the results were interpreted.

The hypothesis testing was conducted using the T-test, appropriate interpretation discussion were

made there on according to the result of the testing.

4.1 PRESENTATION AND ANALYSIS OF DATA COLLECTED

Out of 100 questionnaires, 94 were returned from the respondents. This gives a response of 94%.

This was a good result as a result of follow up and the non-retrievable questionnaires were as a

result of the negligence of bank staffs and customers to fill their received questionnaire.

4.2 DATA PRESENTATION-PRELIMINARY

Table 4.1.1 Rate of Response by Respondents

Questionnaire Respondents Valid Percentage (%)

Returned 94 94

39

Not Returned 6 6

Total 100 100

Source: Field Survey (2014)

Table 4.1.1 A total number of 100 questionnaires were distributed and 94 of these questionnaires

were returned, showing average return rate 94% questionnaires. The amount retrieved thus

represents about 94% of total questionnaire administered, and is a reasonable level upon which

research can be based and valid conclusions drawn from the research.

SECTION A – Personal Bio-data

Table 4.1.2 Sex of Respondent

Gender

Frequency Percent Valid PercentCumulative

PercentValid MALE 58 61.7 61.7 61.7

FEMALE 36 38.3 38.3 100.0Total 94 100.0 100.0

Source: Field Survey, (2014)

Table 4.1.2, shows that 58 out of the total of 94 respondents were males, representing

approximately 61.7% of the entire sample size, while 36 were females, representing

approximately 38.3% of the sample size.

Table 4.1.3 Age group of Respondent

Age Group


PercentValid 21-30 YEARS 68 72.3 72.3 72.3

31-40 YEARS 12 12.8 12.8 85.141-50 YEARS 10 10.6 10.6 95.751-60 YEARS 4 4.3 4.3 100.0

40

Total 94 100.0 100.0


Table 4.1.3, it can be deduced that out of the 94 respondents, 68 were between 21-30 years

representing (72.3%), 12 were between the ages of 31-40 years representing (12.8%), 10 were

between the ages of 41-50 years representing (10.6%), and 4 were between the ages of 51-60

years representing (4.3%).

Table 4.1.4 Marital status of Respondent

Marital status


PercentValid SINGLE 66 70.2 70.2 70.2

MARRIED 24 25.5 25.5 95.7DIVORCED 4 4.3 4.3 100.0Total 94 100.0 100.0


Table 4.2.3, it can be deduced that 66 respondent are single representing (70.2%), 24 respondents

are married representing (25.5%), 4 were married representing (4.3%).

Table 4.1.5 Academic Qualification of Respondents

Education


PercentValid SSCE/GCE/O LEVEL 22 23.4 23.4 23.4

OND/NCE 26 27.7 27.7 51.1HND/B.SC 40 42.6 42.6 93.6MBA/MSC 2 2.1 2.1 95.7

41

PHD4 4.3 4.3 100.0

Total 94 100.0 100.0


Table 4.1.5, it can be deduced that out of the 94 respondents, 22 of the respondents have only

SSCE/GCE/O LEVEL representing (23.4%) of the total respondents’ population, 26 of the

respondents have only OND/NCE representing (27.7%), 40 of the respondents have only

HND/BSC representing (42.6%), 2 of the respondents have only MBA/MSC representing

(2.1%), 4 of the respondents have only PHD representing (4.3%).

SECTION B- Hypothetical Questions

Table 4.1.6

Information technology and computer have really helped impacted banks operation

positively.

Frequency Percent Valid Percent

Cumulative

Percent

Valid STRONGLY AGREE 76 80.9 80.9 80.9

AGREE 14 14.9 14.9 95.7

NEUTRAL 2 2.1 2.1 97.9

DISAGREE 2 2.1 2.1 100.0

Total 94 100.0 100.0


Table 4.1.6, it can be deduced that out of the 94 respondents, 90 of the respondents agreed that

information technology and computer have really impacted banks positively representing

(95.8%), 2 of the respondent were neutral representing (2.1%), and 2 of the respondents disagree

representing (2.1%).

Table 4.1.7

42

I do not think information technology has impacted banks performance in any aspect.


Cumulative

Percent


AGREE 6 6.4 6.4 10.6

NEUTRAL 4 4.3 4.3 14.9

DISAGREE 44 46.8 46.8 61.7

STRONGLY DISAGREE 36 38.3 38.3 100.0

Total 94 100.0 100.0



information technology do not impact banks operation in any aspect representing (10.7%), 4 of

the respondents were neutral representing (4.3%), and 80 of the respondents disagree


Table 4.1.8

I enjoy prompt and efficient service delivery in banks.


Cumulative

Percent


AGREE 56 59.6 59.6 93.6

NEUTRAL 2 2.1 2.1 95.7

DISAGREE 4 4.3 4.3 100.0

Total 94 100.0 100.0



they enjoyed prompt and efficient service delivery by banks representing (93.6%), 2 of the

respondents were neutral representing (2.1%), and 4 of the respondent disagree representing

(4.3%).

43

Table 4.1.9

We should encourage workers and customers to patronize banks.


Cumulative

Percent


AGREE 50 53.2 53.2 91.5

NEUTRAL 8 8.5 8.5 100.0

Total 94 100.0 100.0

Source: Field Survey, (2014)Table 4.2.9, it can be deduced that out of the 94 respondents, 86 of the respondents agreed that

we should encourage our colleagues to patronize banks representing (91.5%), and 8 of the

respondent were neutral representing (8.5%).

Table 4.1.10

I effectively receive the details of my transaction through my E-mail.


Cumulative

Percent


AGREE 36 38.3 38.3 66.0

NEUTRAL 20 21.3 21.3 87.2

DISAGREE 6 6.4 6.4 93.6


Total 94 100.0 100.0



they receive the details of their transaction through e-mail representing (66%), 20 of the

respondents were neutral representing (21.3%), and 12 of the respondents disagree representing

(12.8%).

Table 4.1.11

44

Savings and withdrawing money is time consuming with the bank.


Cumulative

Percent


AGREE 44 46.8 46.8 55.3

NEUTRAL 24 25.5 25.5 80.9

DISAGREE 12 12.8 12.8 93.6


Total 94 100.0 100.0



saving and withdrawing money is time consuming with the bank representing (55.3%), 24 of the


(19.2%).

Table 4.1.12

45

I enjoy prompt and efficient service delivery from the bank's ATM services.


Cumulative

Percent


AGREE 26 27.7 27.7 72.3

NEUTRAL 16 17.0 17.0 89.4

DISAGREE 6 6.4 6.4 95.7


Total 94 100.0 100.0


Table 4.1.12, it can be deduced that out of the 94 respondents, 68of the respondents agreed that

they enjoy prompt and efficient service delivery from bank’s ATM representing (72.4%), 16 of

the respondents were neutral representing (17.0%), and 10 of the respondents disagree


Table 4.1.13

Information technology does not increase prompt and efficient service delivery of the bank.


Cumulative

Percent


AGREE 12 12.8 12.8 27.7

NEUTRAL 4 4.3 4.3 31.9

DISAGREE 32 34.0 34.0 66.0


Total 94 100.0 100.0



information technology does not increase prompt and efficient service delivery of the bank

46

representing ( 27.7%), 4 of the respondents were neutral representing (4.3%), and 64 of the

respondents disagree representing (68.0%).

Table 4.1.14

I spend less minutes/hours in carrying out transactions in the bank with the use of I.T


Cumulative

Percent


AGREE 48 51.1 51.1 80.9

NEUTRAL 6 6.4 6.4 87.2

DISAGREE 6 6.4 6.4 93.6


Total 94 100.0 100.0



they spend less minutes/hours in carrying out transactions in the bank with the use of information

technology representing (80.9%), 6 of the respondents were neutral representing (6.4%), and 12

of the respondents disagree representing (12.8%).

Table 4.1.15

The introduction of I.T has helped bank staffs to work better in a team than before the

introduction of I.T.


Cumulative

Percent


AGREE 42 44.7 44.7 91.5

NEUTRAL 6 6.4 6.4 97.9

DISAGREE 2 2.1 2.1 100.0

Total 94 100.0 100.0


47


the introduction of information technology has helped bank staffs to work better in a team than

before the introduction representing (91.5%), 6 of the respondents were neutral representing

(6.4%), and 2 of the respondents disagree representing (2.1%).

Table 4.1.16

Banks have provided a better and wider range of banking services since the



Cumulative

Percent


AGREE 46 48.9 48.9 87.2

NEUTRAL 10 10.6 10.6 97.9

DISAGREE 2 2.1 2.1 100.0

Total 94 100.0 100.0



since the introduction of information technology banks have provided a better and wider range of

banking services representing (87.2%), 10 of the respondents were neutral representing (10.6%),

and 2 of the respondents disagree representing (2.1%).

Table 4.1.17

The introduction of I.T in this bank has since attracted more customers to the bank.


Cumulative

Percent


AGREE 48 51.1 51.1 89.4

NEUTRAL 8 8.5 8.5 97.9


Total 94 100.0 100.0

48



the introduction of information technology in banks has attracted more customers to the bank

representing (89.4%), 8 of the respondents were neutral representing (8.5%), and 2 of the

respondents disagree representing (2.1%).

Table 4.1.18

I do think customers are satisfied with the bank services.


Cumulative

Percent


AGREE 56 59.6 59.6 74.5

NEUTRAL 20 21.3 21.3 95.7

DISAGREE 2 2.1 2.1 97.9


Total 94 100.0 100.0



customers are satisfied with the bank services representing (74.5%), 20 of the respondents were

neutral representing (21.3%), and 4 of the respondents disagree representing (4.2%).

49

Table 4.1.19

Internet banking has reduced banking cost.


Cumulative

Percent


AGREE 42 44.7 44.7 70.2

NEUTRAL 12 12.8 12.8 83.0

DISAGREE 14 14.9 14.9 97.9


Total 94 100.0 100.0



internet banking has reduced banking cost representing (70.2%), 12 of the respondents were

neutral representing (12.8%), and 16 of the respondents disagree representing (17%).

Table 4.1.20

Since the introduction of I.T, this bank has become more profitable.


Cumulative

Percent


AGREE 40 42.6 42.6 80.9

NEUTRAL 12 12.8 12.8 93.6


Total 94 100.0 100.0



since the introduction of information technology banks has become more profitable representing

(80.9%), 12 of the respondents were neutral representing (12.8%), and 6 of the respondents

disagree representing (6.4%).

50

Table 4.1.21

Internet service is adequately reliable in this bank.


Cumulative

Percent


AGREE 42 44.7 44.7 61.7

NEUTRAL 26 27.7 27.7 89.4

DISAGREE 10 10.6 10.6 100.0

Total 94 100.0 100.0



internet server is adequately reliable in this bank therefore representing (61.7%), 26 of the


(10.6%).

Table 4.1.22

How frequently have you been delayed in the bank because of computer breakdown


Cumulative

Percent

Valid ONCE 34 36.2 36.2 36.2

TWICE 20 21.3 21.3 57.4

WEEKLY 10 10.6 10.6 68.1

MONTHLY 8 8.5 8.5 76.6

PLEASE SPECIFY 22 23.4 23.4 100.0

Total 94 100.0 100.0


Table 4.1.22, it can be deduced that out of the 94 respondents, 34 of the respondents have been

delayed once in the bank because of computer breakdown representing (36.2%), 20 of the

respondents have been delayed twice in the bank representing (21.3%), 10 of the respondents

51

have been delayed weekly in the bank representing (10.6%), 8 of the respondents have been

delayed monthly in the bank representing (8.5%), and 22 of the respondent specified the reason

for their delay in the bank representing (23.4%).

52

4.2 DESCRIPTIVE STATISTICS OF BANK OFFICIALS AND CUSTOMERS USING MEAN AND STANDARD DEVIATION

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Information technology and

computer have really helped

impacted banks positively.

94 1.00 4.00 1.2553 .60351

I do not think information

technology has impacted

banks operation in any

aspect.

94 1.00 5.00 4.0851 1.03342

I enjoy prompt and efficient

service delivery by banks.94 1.00 4.00 1.7660 .69446

We should encourage our

colleagues to patronize

banks.

94 1.00 3.00 1.7021 .61922

I effectively receive the

details of my transaction

through my E-mail.

94 1.00 5.00 2.2553 1.12581

Savings and withdrawing

money is time consuming

with the bank. Savings

operation and money

withdrawals from banks are

time-consuming activities.

94 1.00 5.00 2.6170 1.02764

I enjoy prompt and efficient

service delivery from the

bank's ATM services.

94 1.00 5.00 1.9787 1.12621

Information technology does

not increase prompt and

efficient service delivery of

the bank.

94 1.00 5.00 3.5957 1.44668

I spend less minutes/hours in

carrying out transactions in

the bank my with the use of

I.T

94 1.00 5.00 2.0851 1.09407

Valid N (list wise) 94

53

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

The introduction of I.T has

helped bank staffs to work

better in a team than before

the introduction of I.T.

94 1.00 4.00 1.6383 .70101

This bank has since provided

a better and wider range of

banking services since the


94 1.00 4.00 1.7660 .72476

The introduction of I.T in this

bank has since attracted

more customers to the bank.

94 1.00 5.00 1.7660 .78186

I do think customers are

satisfied with the bank

services.

94 1.00 5.00 2.1702 .78478

Internet banking has reduced

banking cost.94 1.00 5.00 2.2340 1.06181

Since the introduction of I.T,

this bank has become more

profitable.

94 1.00 5.00 1.9362 1.04530

Internet service is

adequately reliable in this

bank.

94 1.00 4.00 2.3191 .88248

How frequently have you

been delayed in the bank

because of computer

breakdown

94 1.00 5.00 2.6170 1.60045

Valid N (list wise) 94

54

4.3 HYPOTESIS TESTING

In testing Hypothesis 1, The One-Sample T Test compares the mean score of a sample to a

known value. Usually, the known value is a population mean.

NULL HYPOTHESIS: The use of information technology does not have a significant effect on

the operation of commercial banks.

ALTERNATIVE HYPOTHESIS: The use of information technology has a significant effect

on the operation of commercial banks.

Table 4.3.1 One Sample T-Statistics

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean



impacted banks operation

positively.

94 1.2553 .60351 .06225


Table 4.3.1 One Sample test

One-Sample Test

Test Value = 0

t df Sig. (2-tailed) Mean Difference

95% Confidence Interval of the

Difference

Lower Upper




positively.

20.167 93 .000 1.25532 1.1317 1.3789


55

Interpretation

The above question has a calculated value (t-value) of 20.167 and a critical value of

approximately 2.000 at 5% level of significance and degree of freedom of 93.

Decision

From the above analysis, the calculated value is above the tabulated value, therefore the null

hypothesis (H0) should be rejected in favor of the alternative hypothesis (H1) accepted. Also, the

two tail significance level which is 0.00 is less than 0.05 which is the level of significance;

therefore the null hypothesis should be rejected. Hence, the use of information technology has a

significant effect on the operation of commercial banks in Nigeria.

In testing Hypothesis 2, The One-Sample T Test compares the mean score of a sample to a

known value. Usually, the known value is a population mean.

NULL HYPOTHESIS: Information technology devices do not help bank staffs effectively on

the performance of their duties.

ALTERNATIVE HYPOTHESIS: Information technology device has helped bank staffs

effectively on the performance of their duties.

Table 4.3.2 One Sample T-Statistics

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean



banks performance in any

aspect.

94 4.0851 1.03342 .10659


56

Table 4.4.2 One Sample test

One-Sample Test

Test Value = 0

T Df Sig. (2-tailed) Mean Difference

95% Confidence Interval of the

Difference

Lower Upper



banks performance in any

aspect.

38.326 93 .000 4.08511 3.8734 4.2968


Interpretation

The above question has a calculated value (t-value) of 38.326 and a critical value of

approximately 2.000 at 5% level of significance and degree of freedom of 93.

Decision: From the above analysis, the calculated value is above the tabulated value, therefore

the null hypothesis (H0) should be rejected in favor of the alternative hypothesis (H1) accepted.

Also, the two tail significance level which is 0.00 is less than 0.05 which is the level of

significance; therefore the null hypothesis should be rejected. Hence, information technology

device has helped bank staffs effectively on the performance of their duties.

Table 4.3.3

Using Anova

Hypothesis 1:


commercial banks.


banks.

57

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .342a .117 .107 1.00318

a. Predictors: (Constant), Information technology and computer have

really helped impacted banks operation positively.

ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 12.266 1 12.266 12.188 .001a

Residual 92.585 92 1.006

Total 104.851 93

a. Predictors: (Constant), Information technology and computer have really helped impacted

banks operation positively.

b. Dependent Variable: Internet banking has reduced banking cost.

Interpretation of Results

The results from the model summary table above revealed that the extent to which the variance

in operation of commercial banks can be explained by the model that is 11.7% i.e (R square =

0.117). The ANOVA table shows the F-calculated value to be 12.188 at 0.001 significance level.

The implication is that the use of information technology has a significant effect on the operation

of commercial banks.

58

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.479 .240 6.165 .000




positively.

.602 .172 .342 3.491 .001

a. Dependent Variable: Internet banking has reduced banking cost.

The coefficient table above shows the simple model that expresses the extent to which

information technology affects the operation of commercial banks. The model is shown

mathematically as follows; Y = a+bx where y is the operation of commercial banks and x is

information technology, ‘a’ is a constant factor and b is the value of coefficient. From this table

therefore, COP = 1.479 +0.602 Information technology. This means that for every 100% change

in operations of commercial banks, information technology is responsible for 60.2% of the

change.

DecisionThe significance level is 0.000 and is less than 0.05, thus we accept the alternative hypothesis

and reject the null hypothesis. This implies that information technology has a significant effect

on the operation of commercial banks.

Table: 4.3.4

Using Anova

Hypothesis Two:


their duties.

59


duties.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .416a .173 .164 .95570

a. Predictors: (Constant), I effectively receive the details of my

transaction through my E-mail.

ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 17.588 1 17.588 19.257 .000a

Residual 84.029 92 .913

Total 101.617 93

a. Predictors: (Constant), I effectively receive the details of my transaction through my E-mail.

b. Dependent Variable: Since the introduction of I.T, this bank has become more profitable.

Interpretation of Results

The results from the model summary table above revealed that the extent to which the variance

in performance of bank staffs in carrying out their duties can be explained by the model that is

17.3% i.e (R square = 0.173). The ANOVA table shows the F-calculated value to be 19.257 at

0.000 significance level. The implication is that information technology device has helped bank

staffs effectively in the performance of their duties.

60

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.065 .222 4.805 .000

I effectively receive the

details of my transaction

through my E-mail.

.386 .088 .416 4.388 .000

a. Dependent Variable: Since the introduction of I.T, this bank has become more profitable.

The coefficient table above shows the simple model that expresses the extent to which

information technology has helped bank staffs effectively in the performance of their duties. The

model is shown mathematically as follows; Y = a+bx where y is the performance of bank staffs

and x is information technology, ‘a’ is a constant factor and b is the value of coefficient. From

this table therefore, COP = 1.065+0.386 Information technology. This means that for every

100% change in the performance of bank staffs, information technology is responsible for 38.6%

of the change.

Decision

The significance level is 0.000 and is less than 0.05, thus we accept the alternative hypothesis

and reject the null hypothesis. This implies that information technology device has helped bank

staffs effectively in the performance of their duties.

61

CHAPTER FIVE

SUMMARY, RECOMMENDATIONS AND CONCLUSION

5.0 INTRODUCTION

This study examined ‘‘impact of information technology on commercial banks performance in

Nigeria’’ a case study of selected banks. In the previous chapters of this study, different

assumptions, statements and generalizations have been made to examine this impact.

5.1 SUMMARY OF WORK

Chapter one serves as introduction of the whole study, it shows the purpose of the work, the

scope, research question, hypothesis and limitation of the study. The study equally showed a

review of literature that had been done by scholars and researchers in the area of inquiry in

chapter two. The research methodology employed in this study is seen in chapter three. It

explained the research design and sampling technique, method of data collection, research

instrument, method of data presentation and analysis, validity and reliability of instruments.

The chapter four of this study entails the data analysis of the data collated through primary

sources only during the field work. Guaranty Trust Bank Plc was selected to form the case study

of this research work. The questionnaires were served to both bank officials and customers of the

bank. In this chapter therefore, the researcher aimed at giving a summary of the finding of both

62

the literature and after which analysis carried out in chapter four, using the questionnaires

distributed. Conclusions are made and some useful recommendations given.

5.2 RESEARCH FINDINGS

Going through the administered questionnaire thoroughly, we find out that information

technology has introduced better infrastructure and techniques that satisfies both the employees

and the customers. The employees no longer have to deal with bulky paper which is very

exhausting and the customers can now make enquires on the account and make withdrawals

without direct over the counter contact via the use of the automated teller machine (ATM).

5.2.1 EMPIRICAL FINDINGS

The majority of the bank customers enjoy efficient and prompt service delivery by banks,

because they can perform many transactions without having to visit the bank physically, and this

is done via the use of information technology (IT) into banking operations. With the use of

technology internet banking and other components of I.T has therefore brought about ease and

convience to effectively make financial transactions by customers (See Table 4.2.8).

Even with the intervention of information technology on banking services in Nigeria, the

customer service of the bank haven’t been found to be as effective without visiting the bank

physically. I guess this is one of the reasons why customers still visit the banks today physically

to be properly attended to (See Table 4.2.17).

63

The adoption of information technology by banks in Nigeria has brought about enormous change

in the bank with a better and wider range of banking services since the introduction of

information technology. (See Table 4.2.16).

Since the introduction of information technology by banks in Nigeria, banks have reduced their

banking cost and they have become more profitable. (See Table 4.2.20).

Bank customers have been delayed in the bank, because of computer break down or as a result of

slow internet during banking operations, therefore most customers of the bank has been delayed

once at the bank (See Table 4.2.22).

Finally, from the hypothesis tested, it can be concluded that;

i. Information technology enhances banks performance and operational efficiency.

ii. Information technology has reduced banking cost.

iii. Adoption of information technology by banks has made customers enjoy ease, smooth

and convenient way of banking.

iv. The use of information technology by banks has brought about profitability to the bank.

5.3 CONCLUSION

From our research we can say information technology has a positive impact on the image,

goodwill and growth of commercial banks in Nigeria. Customer satisfaction is of a paramount

importance to the achievement of organizational goals. It has geometrically increased the rate of

patronage as a result of the supply of redefined products and services to meet the needs and

demand of the public. Information technology has also helped to reduce the rate of fraud in the

banking system. Present day banking activities are computerized and not manual, making it

64

difficult to make any alterations; such actions can easily be traced and corrective measure taken.

Information technology has also provided better and well-grounded infrastructure to speed up

transaction, increase consistency and enhance banks operation.

Banks have been able to derive benefits from information technology, electronic banking and

service delivery in the area of improved efficiency and effectiveness of their operations so that

more transactions can be processed faster and most conveniently, which will undoubtly impact

significantly on the overall performance of the banks. The customer on the other hand, stand to

enjoy the benefit of quick service delivery, reduced frequency of going to the banks physically

and reduced cash handling, which will give rise to higher volume of turnover.

5.4 RECOMMENDATIONS

The impact of information technology on commercial banks performance has been broadly

discussed in the previous chapters. However, it is only appropriate to make certain

recommendations that may be useful to the enhancement of this purpose.

i. Information technology should be fully funded and receive unconditional support from

the management. Financial constraints are part of the problems that limit the

effectiveness of information technology in the banking industry.

ii. Proper enlightment programs and mediums should be put in place to enhance

communication between the institution and their customer. This will ease the flow of

information hereby keeping customers current and updated.

65

iii. Committee should be setup to monitor the implementation of information technology in

the banking industry. These should be periodic reviewer of the planning techniques to

ensure they suit the objectives of the organization.

iv. Priotize the customer before the technology. It is important to first and foremost identify

the needs of the customer before introducing technology. The technique chosen must be

relevant to the total corporate objective so as to avoid stagnation or loss.

v. Generators in banks should be run on stand-by to avoid disruption in the flow of

electricity which can slow down the rate of operations. This is because most information

technology innovations need electricity to function.

5.4.1 SUGGESTIONS FOR FUTURE STUDIES

Area suggested for further research include the following.

i. The impact of information technology on banking operations.

ii. The effect of information technology on bank profitability.

iii. The level on increase in the performance of commercial banks via the use of information

technology.

66

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Dear respondents,

RESEARCH QUESTIONNAIRE

I, Oluwaseun Ayokunle Otukoya a 400 level student of Banking and Finance in the School of

Business at Covenant University Ota, i am conducting a research on ‘The Impact of

Information Technology (IT) on Commercial banks in Nigeria’ in fulfillment of the

requirement for the award of Bsc. in Banking and Finance. You are required to fill the

questionnaire attached to this letter. Strict confidentiality is guaranteed in respect of the

information that will be provided by you. The research work is strictly an academic exercise and

is not intended to undermine your operations. I hereby solicit your honest answers to the

questions as I promise to treat your responses with utmost confidentiality.

Thanks for your cooperation and response.

Yours faithfully

Oluwaseun Ayokunle Otukoya

74

Section A: Personal Data

Please select accordingly in the boxes provided by ticking (\/)in the boxes

1. Gender Status: Male ( ) Female ( )

2. Age Group: 21-30 ( ), 31-40 ( ), 41 -50 ( ), 51-60 ( ), Above 60 ( )

3. Marital Status: Single ( ), Married ( ), Divorced ( ), Separated ( ), Widowed ( )

4. Academic Qualification:

SSCE/GCE/O LEVEL ( )

OND/NCE ( )

HND/B.SC ( )

MBA/MSC ( )

PHD ( )

Others (specify) ..................................

5. Length of time in business: Less than 1 year ( )

1-3 Years ( )

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4-9 Years ( )

10yrs and Above ( )

SECTION B: IMPACT OF INFORMATION TECHNOLOGY ON CUSTOMER BANKS

AND STAFFS.

INSTRUCTION: please tick () as appropriate. SA=strongly agree, A=agree, N=neutral,

D=disagree, SD=strongly disagree

S/N ITEMS SA A N D SD

6 Information technology and computer

have really helped impacted banks

operation positively.

7 I do not think information technology

has impacted banks performance in any

aspect.

8 I enjoy prompt and efficient service

delivery by banks.

9 We should encourage our colleagues to

patronize banks.

10 I effectively receive the details of my

transaction through my E-mail.

11 Savings and withdrawing money is

time consuming with the bank.

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12 I enjoy prompt and efficient service

delivery from the bank’s ATM

services.

13 Information technology does not

increase prompt and efficient service

delivery of the bank.

S/N ITEMS SA A N D SD

14 I spend less minutes/hours in carrying

out transactions in the bank my with

the use of I.T

15 The introduction of I.T has helped bank

staffs to work better in a team than

before the introduction of I.T.

16 This bank has since provided a better

and wider range of banking services

since the introduction of I.T.

17 The introduction of I.T in this bank has

since attracted more customers to the

bank.

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18 I do think customers are satisfied with

the bank services.

19 Internet banking has reduced banking

cost.

20 Since the introduction of I.T, this bank

has become more profitable.

21

Internet service is adequately reliable

in this bank.

Section C

For this section below, please you can select accordingly in the boxes provided by ticking (\/)in

the boxes, number of times where you have experienced delay in banks as a result of computer

break down.

S/N Once Twice Weekly Monthly Please specify if other time

22 How frequently have you been delayed in the bank because of computer breakdown?

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