IMPACT OF ICT TOOLS ON THE NIGERIAN FINANCIAL SECTOR
ABSTRACT
    The advent of information and Communications Technology (ICT) is rapidly changing the financial industry.
    In this study, the impact of ICT on the financial industry is described. A questionnaire was employed to collect data from members of staffs and managements of eight major banks, three insurance companies and one stock broking firm in Nigeria.
    The results of the study clearly indicate that the advantages of the use of ICT tools outweigh is disadvantages. ICT has contributed immensely to the growth of the financial sector. It has made them quicker and more competent. Using ICT and its many layers of options and devices, the financial industry can now accomplish more with greatly improved levels of productivity and better performance, consistently achieving higher levels of customer satisfaction with massive improvements in accuracy and efficiency. They can communicate with anyone, anywhere in the world, and it makes their workers to be more productive and responsible whether they are working at the desk from home, on the move, at meetings or in front of the customer, the workers feel better about it once they have mastered ICT tools.    
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1    background of the study                     
1.2    Objectives of the Study                        
1.3    Significance of the Study                    
1.4    Scope of the Study                        
1.5    Limitations of the study                    
1.6    Methodology                            
CHAPTER TWO: LITERATURE REVIEW
2.1    Definition of ICT                            
2.2    ICT and Related Terms                     
2.3    Trends in the Development of the Financial Industry         
2.4    Current status of the Telecommunication Industry in Nigeria     
2.5    The Impact of ICT on the Financial Services Sector     
2.6    Limitations of ICT on Financial Operations         
2.7    Implementing Effective systems in the Financial Sector     
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1    Data Collection Procedure                     
3.2    Research Sites and Participants                 
3.3    Questionnaire Design                         
3.4    Questionnaire Administration                 
3.5    Questionnaire Assumption                     
CHAPTER FOUR: RESULTS AND DISCUSSION
4.1    Results                                 
4.2    Discussion of Findings                         
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1    Summary                                 
5.2    Recommendations                         
5.3    Conclusion                                 
    Bibliography                             
    Appendix                                  
 CHAPTER ONE
INTRODUCTION
    A powerful force drives the world towards a converging commonality, and that force is technology (Levity, 1992). From the beginning of the human era, information and Communication Technology (ICT) has been one of the most essential and most important factors for the development of mankind (Coombs et al, 1987). During the last two hundred years, technological changes have often been related to technological growth in the form of new types of goods and services. Smith (1776) first wrote about technical changes in the form of new machines as one of the three important causes of increasing incomes more than two hundred years ago.
    Today most nations regardless of their stage of economic development or their orderly different political philosophies are recounting the importance of ICT especially in the areas of finance. The growth of the financial sector in developing nation depend on a great extent upon their ability to develop effective ICT system, this is because, aggressive ICT have been highly employed in the financial sector of most developed nations of the world.
1.1    BACKGROUND OF THE STUDY
    As a result of the increased demand for customer’s deposit, Nigeria financial sector (Banking industry, insurance and budgeting and finance stock market) especially the banking industry have realized the imperative of good and prompt customer’s service. Also, due to the fact that some customers place their deposit in the former technically-insolvent or distressed, banks customers have now become wiser more discerning alert and sophisticated with regards to EJISDC (2002) choosing where it is safe to put their money and where they would be serve promptly, preferably in a pleasant courteous and friendly environment. Thus, they have started looking at the level of service and professionalism of the financial institution is no longer the issue. Safety and the level of service, with regard to quality, speed and efficiency has become the major deciding factors on the part of the financial institutions, they have realized that one way in which they can provide quality service is the use of technology. Hence, there is a growing rate of adopting new technologies in Nigeria financial operations. Moreover there is growing evidence that customers have started associating quality of service in a bank and other financial houses with their possession of an on-line real time system. In fact, possession of such a system is deemed necessary, which it uses to deliver services to customers in a more timely, friendly and considered manner, at no extra cost to the customers.
    Despite that, many of the new generation banks in the banking industry based their marketing strategy on the possession of supposedly on-line, real time systems, they find that their systems links are down for about 50 percent of the time. Many customer feel cheated by this reality and complain about the incessant “downtimes”. They were promised an online real time system, only to find out that the financial institutions systems are down at least half the time, and that national  carrier, NITEL (Nigeria Telecommunication), is to be blame. Whilst the responsibility of NITEL cannot be denied, many customers, still feel that it is the responsibility of the affected institutions to take care of the problems and that they should be given the nationwide online real time banking services they were promised. Faced with this dilemma, many banks and other financial solutions by using the Very Small Aperture Terminal (VSAT)  satellite systems, for long distance electronic communication. For short distances the MDS (Metropolitan Digital Services) system of often used. The problems here is that all the financial institutions are trying to produce appropriate VSATs independent of one another. In other words, there is no collaboration between the financial institutions in sourcing this very expensive technology and thereby providing a cost affective solution to the problem. It would also be fair to say that Nigeria banks are generally imbued with an orderly competitive mind-set, which tends to close the benefits of synergy or collaboration in solving most of their common problems. Having analysed this scenario, it  becomes imperative to study the contribution of this ‘highly desired” ICT technology to the growth of the Nigeria Economic Sector.

1.2    OBJECTIVES OF THE STUDY
    The main objective of this project is to study the contribution of information and communication technology on the financial sector in Nigeria.
    The objectives of this study include:
1.    Finding areas in the financial sector (Banking industry, insurance budgeting and finance, stock broking firm) where ICT are used and deployed.
2.    Comparing ICT with the manual method of operation in the Nigeria financial sector.
3.    Figure out any apparent shortcomings faced by the financial sector in implementing ICT and suggesting some solutions.  
1.3    SIGNIFINANCE OF THE STUDY
    The project is aimed at analysing and examining the role-played by ICT in the development of the financial sector most especially at this period of technological innovations.
    On the completion of this research project, it will be of benefits to the Banking industry, Insurance companies, Budgeting and finance departments and to all other financial institutions.
    It will enable management in the above financial sector to known that production efficiency alone is not a criteria to business success. And that the role of ICT in the development of the banking industry and other financial institutions is very important.
    Lastly, it will serve as a secondary data for future researchers and the general populace who have interest in the research area.
1.4.    SCOPE OF THE STUDY
    This research work is expected to cover the impact of information and communications technology on the financial services sector in Nigeria. So this study will give a detailed description of ICT and its development.
    The research work will go deep into the functions of ICT and the problems being faced by the financial sector in implementing ICT.
    Moreover useful suggestion on how best the ICT could be effectively managed and the emphasis that should be placed on ICT concepts would be advanced.
    The geographical spread of the research will be limited to some major financial institutions in Benin City, Edo state in Nigeria. They include First Bank Plc located at 65 Mission Road, Co-operative Developmental Bank located at Mission Road, UBA Mission Branch, Wema Bank at Akpakpava Stree, National Bank located at Akpakpava Street, Zenith Bank Mission road, Access Bank at Akpakpava, Union Bank Plc locate at Mission road, Nigeria Stock Exchange Market situated at Sapele road, Niger Insurance Company situated at Airport road, Linkage Insurance Company located at km 8 Sapele, road and Nico Insurance Company located at 62 Sapele road in Benin City.
1.5    LIMITATIONS OF THE STUDY
    Every project has limitations; the data collection exercise for this project was limited by a number of factors, these ranges from the well known non-co-operative attitudes of members of the institutions management when it comes to offering information pertaining to their institutions. The cost involved is one of the limiting factors, this can be viewed from two dimensions namely money and time.
1.6    METHODOLOGY
    In order to assess the perceptions of customers with respect to quality of banking and other financial services, a detailed questionnaire was designed and administered to some financial institutions, which were selected for the sampling on the basis that have branches in almost all the state in Nigeria and they make use of computers in almost all their branches.