EFFECTIVE USE OF INFORMATION AND COMMUNICATION TECHNOLOGY AS A TOOL FOR GOOD MANAGEMENT IN FIRST BANK PLC ENUGU MAIN BRANCH
This study examined Effective use of Information and Communication Technology as a Tool for Good Management in First Bank Plc, Enugu Main Branch. The study used survey method where questionnaires were used to elicit information from respondents. Methodology used in collecting data includes only primary and secondary sources of data. The population of the study comprised of from the data collected the researcher analyzed it with simple tables, frequency and percentages. Findings from the study revealed that observed that information and communication technology has made a good impact and has also benefit the banking industry but has not made a desired impact to bank performance today because their still experience fraudulent practices and other problems. From this, it mean that the introduction of information and communication technology in bank today is a developing idea good to the banks also good to their customers but has not made the desired impact. The researcher realized that the use of information technology in Nigeria banking industry has not improved the banking sector to a great extent. In conclusion therefore the researcher sincerely believed that the idea of information technology in the banking industry is a good one despite the negative effects associated with the use hence some of the negative effects and problem are within our control and all efforts should be geared towards having the mentioned recommendations at the back of our minds of all banks in the country are into information technology. Based on the above findings and conclusion drawn, the researcher recommends that the use of smart phones will be recommended in the banking industry with screen built in moderns and programmable microprocessor so that customer will have access to variety of financial services from home. There is need for the use of electronic funds transfer at point of sale in order to ensure adequate utilization and improvement of information and communication technology in the banking industry.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Scope of the Study
1.6 Limitations of the Study
1.7 Research Questions
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Overviews of Information Technology in the Banking Industry
2.3 Banking Industry and Nigeria banking activities
2.4 Electronic Banking and Its Revolution in Nigeria
2.5 Effective Use of Information Technology in
Nigeria Banking Industry
2.6 History of First Bank of Nigeria
2.7 Summary of Literature
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design
3.2 Area of study
3.3 Population of the Study
3.4 Sample and Sampling Technique
3.5 Instrument for Data Collection
3.6 Reliability of Instrument
3.7 Validity of Instrument
3.8 Method of Data collection
3.9 Method of Data Analysis
3.10 Decision Rule
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation
4.2 Summary of Findings
CHAPTER FIVE: DISCUSSION OF FINDINGS CONCLUSION AND RECOMMENDATIONS
5.1 Discussion of Findings
5.4 Suggestions for Further Studies
5.5 Limitations of the Study
LIST OF TABLES
Table 1 Distributions of Questionnaire and Return Rate
Table 2 What is your gender?
Table 3: What is your years of experience?
Table 4: To what extent has the information technology improved
Table 5: What computer skills are used by your workers?
Table 6: Do you agree that information and communication
technology are more accurate and faster computer to
Table 7 What are the areas the staff of first bank of Nigeria plc
needed to be trained ?
Table 8: Do you think that the major setback experienced by
banks in the use of information and communication
technology is a result of fraudulent practices?
Table 9 What is the benefit of information and communication
technology in your bank?
Table 10 Do you agree that installation of information
and communication technology in first bank of Nigeria
plc has lead to increase in profit made?
Table 11 What are challenges in the use of information
and communication technology in your bank?
Table 12 Would you agreed that first bank of Nigeria plc has good
image to outsiders?
Table 13 Which of the following equipment are used often in
Table 14 Can you manipulate those equipments very well?
Table 15 What problems do you associate with the use of
Table 16 What are the reasons for the time spent in your bank?
Table 17 What is your management doing to reduce the time spent
by customers in during transaction?
Table 18 To what extents has information technology in Nigeria
banks gives a desired impact in the banking industry?
Table 19 The adoption of information technology in banking
industry reduces fraudulent practices in first bank?
Table 20 Considering the good impact of information
and communication technology, which statement best
describes how much you like or dislike it?
1.1 Background of the Study
Information technology is the concept of acquisition handling process and distribution of data information using computer hardware and software telecommunication and digital electronic. The information technology organization is structured to support mission operations and general users, while protecting resources for development and development of changes to the technology infrastructure. Addition a strategic planning group performs mid and long form information technology planning collaborating with other groups. In banking industry information technology has opened up new opportunities for the Nigeria banking industry to improve on their services. The role of information technology has grown and changed continuously in the banking industry. This explores the socio economic factors associated with the adoption of information communication technologies (ICTs) by the banking industry. The united nations through it UN development programme activity promotes information communication technologies (ICTs) as a powerful tools for economic and social development around the world. The banking industry has used information technology to enable increase in the volume of transaction. Banks on the others hand has seen the essences of information technology in trying to actually carryout out it functions on the economy and are still bringing more information technologies into various financial services offered to its customers.
Manual keeping of information and manual processing of data/account of the customers is extremely slow and cannot cope with the increase sophistication of customers demand and volume of transactions this modern time. It has been said that the horse was replaced by the motor vehicle not because the motor vehicle is that much more convenient but because the horse has become inefficient form the economic point of view. For instance if a manual operation which involves the process if information on three thousand salaries people the cost involves in this type of operation is numerous personnel cost retirement scheduling cost etc. then enters the information technology like computer. The computer would not involve much cost rather it will perform the work more speedily than manual operation. There is no doubt that information technology is having a profound influence on all aspects of life including organizations and management information technology is the live wire and the tonic that every because required to exists and flourish. Information technology has changed the method of transaction and the electronic funds transfer to more strategic innovations like (ATM) automated teller machines and new kind of securities the use of information technology has also some important customers suppliers effects for the customers of service providers.Online transaction processing system play a strategic role in the banking industry banks are using the internet extranets and other network that tie them electronically to their customers for online transaction processing such relative system which capture and process transactions immediately help them provide superior services to their customers. These communication links with the micro-computer offer you assess to a greater quality of information than was possible some years back. The adoption of information technology into the banking industry has considerably improving customers’ services and satisfaction.
Brief Background of First Bank of Nigeria Plc, Enugu Main Branch
The building was open for business on 21st February, 1978. First Bank was the bank that came before all other banks and it was one of the banks in Nigeria that have introduced the use of information technology into its transactions.
First Bank of Nigeria plc main branch at 21 Okpara Avenue is in Enugu East. It occupies a very specious land location that contain a very beautiful structure for it operations.
First Bank of Nigeria plc, 21 Okpara Avenue Enugu is located where it can be easily accessed by customers and staff of the bank. The basic skilled business of First Bank of Nigeria Plc Enugu were as follows;
The Banking services has enhances drastically change since the invention of information communication technology in the banking system. Customers find it very easy to withdraw and deposit money.
Information and Communication technology has helped the banking system to be effective in assessing the balance of a customers and dictating dishonoured cheques. Through the information technology banks notify customers before carrying out any assignments. The banks gives reasonable notice before closing a customer accounts, through generally one month is acceptable, it is held as a inadequate for a business with a complex banking relationship in prosperity V. Lioyds bank (1923).
However, some circumstances may warrants, immediate closure where a case of fraud is established.
1.2 Statement of the Problem
This study is an attempt to study the significance of information technology in the banking industry and particularly its effect on the performance of banks.
Essentially, the problem evident in this research stems from the fact that the use of information technology was expected to reduce the length of time spent by customers before being served in the bank. But the fact is that customers still spend a lot of time in the banking hall despite the use of information technology like computers.
The quality of the banks account records accuracy completeness and validity of information available form the bank and internal control system of most of the banks are in complete disarray.
Summarily banking services seem not to have changed for better despite the use of all information technology system in the banking industry some facilities online system are not practiced at all in most Nigeria banks. Other services practiced on developed countries banks like cash dispensing services automatic tellers video home banking data base online system of computing and micro computers are found in banks at USA Europe, Japan etc. in order to keep with sophistication of their customers.
1.3 Objectives of the Study
It is necessary to state the primary objectives of the research having stated the problems in information technology and communication objectives that they are expected in the banking industry.
They are as follows:
a. To identify effective use of information and communication technology as a tool for a good management.
b. To identify the major work of information communication technology in the banking industry.
c. To identify whether the information communication technology is efficient or not in the achievement of certain objectives of the banking industry in particular.
d. To identify if the non-realization of the information technology objective is due to chosen instrument or inappropriate application of the instrument.
e. To identify solutions based on the findings.
1.4 Significance Of the Study
Since information technologies have been found to play a major role in increasing the efficiency of banking services in the various industries or firms including banking industry, the research into the significance of information technology in the banking industry becomes important. This is necessary because it would give very good understanding of what information technology is all about and their contribution to increases efficiency in our banking system.
Information technology in banking industry has made possible for the use of electronic funds transfer at point of sales with pay-now-buy-later and credit cards had “buy-now-pay-later. Electronic funds transfer at point of sale (EFPOS) Signify “buy-now-pay-now” and even without cash transaction if the user present her automated tellers machine card when she buyers goods and electronic funds transfer at point of sale system will immediately debts her bank account. Through the use of smart card the processor type smart cards with inbuilt integrated circuit or micro-chips offers a wide range of transaction opportunities in the banking industry with the help of information technology.
1.5 Scope of the Study
The researcher study is limited to the effective use of information and communication technology as a tool for good management using Okpara Avenue branch were actually information technology of some banking services has been introduced.
The research would be carried out through the study which will be more realistic than a survey. A survey was however found out to encompass the whole banking industry in Nigeria but a case study would be more realistic one for the purpose of the work.
1.6 Limitations of the Study
Conducting a survey research is not an easy task, even for a competent or experienced researcher. This research on communication as a tool for effective management in an organization is not an exception to the usual constraints and other problems associated with similar researches in our society.
There are external factors that limited the study which are also personal constraints such as limited time, resources, finance and inadequate data were all encountered.
Financial Constraint: Lack of sufficient fund posed as a major threat in the execution of the study due to the current situation of the economy which makes prices of things very high viz- the cost of transportation to obtain relevant materials for this research work was very expensive.
Time Constraint: Due to inadequate time to carry out this study, the issue of the researcher combining this study with other academic activities could not allow her give full concentration to the work
Attitude of Respondents: Most of the respondents were not totally helpful in the process of collecting data, because of their refusal to give vital information that would have facilitated easy execution of this study.
Insufficient Research Materials: There were no sufficient research materials to effectively carryout this research project. Despite the foregoing limitations, the researcher made conscious effort to ensure that these imitating factors did not hinder the expected result of the study.
1.7 Research Questions
The following questioned were raised to guide the study.
a. To what extent can effective use of information and communication technology be identified as a tool for good management?
b. To what extent are the use of information technology in the Nigerian banking industry improved the banking sector?
c. To what extent the adoption of the information technology in the banking industry reducing the fraudulent practices?
d. To what extent banking services changed for the better as a result of information technology system in banking industry?
e. To what extent has information technology improved the poor inadequate transactions in the banking industry?
Definition of Terms
The following terms were defined for clarification purposes.
- Effective: The means producing the result that is wanted or intended. Achieving a specific goal within the stated period of time given.
- Information Technology: This is an application of computers and telecommunications equipment to store, refine, transmit, and manipulate data in the context of a business or other enterprises.
- Communication: This means transferring of information or massage from one part to another to that it can be understood and acted upon.
- Information-This is the data that have been shaped into a form that is meaningful and useful to human beings.
- Information system can be defined technically as a set of interrelated components that collect (or retrieve) process store and distribute information to support decision making coordination and control.
- Banking-Banking in its operational meaning is the business of accepting of deposits from outside sources irrespective of the payment of interest also means of granting of money loans and acceptance of credits or the purchase of bills and cheques or purchase and sell of securities for the account acquire claims in respect of loans.
- Bank: A bank is a financial intermediary and money that creates money by lending money to borrower, thereby creating corresponding despite on the bank’s balance sheet.
- Electronic data interchange (EDI) data representing a variety of business transaction document (such as purchase order invoices requests for quotation and shipping notices) are automatically exchanged between computers using standard document message formats.
- E-commerce –this support the complete seller-to-buyer relationship. Electronic commerce model includes promoting and communicating company and product information to a global user base accepting order and payment for goods and services online delivery software and information products online collaboration for new product development.
- Automated Teller Machine (ATM) is the self-service banking it gives vending machine convenience to consumers for deposits and withdrawals of cash transactions. It is a control device that dispenses cash, and may provide other services to customers who identify them with a personal identification number. It dispenses cash at any time of the day and right, unlike the traditional method where customers have to queue for a very long time in other to withdraw cash or transfer funds.
- Credit cards-is a small plastic card that allows its holder to buy goods and services on credit and to pay at fixed interval.
- Secretary: Is a personal assistance or administrative person whose work consists of supporting management including executives, using variety of project management, communication or organization skills.
- Management: This is the employment and application of both human and material resource to achieve the objectives of an organization effective and efficient.