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Effect of Information Technology on the Operations of Commercial Banks in Nigeria

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Effect of Information Technology on the Operations of Commercial Banks in Nigeria
EJISDC (2002) 10, 2, 1-8
The Effect of Information Technology on the Growth of the Banking Industry in
Nigeria
P. A. Idowu
Dept of Computer Science and Engineering
Obafemi Awolowo
University
Ife-Ife
Nigeria

A.O. Alu
Dept of Management and
Accounting
Obafemi Awolowo
University
Ife-Ife
Nigeria

E.R. Adagunodo
Dept of Computer Science and Engineering
Obafemi Awolowo
University
Ife-Ife
Nigeria

ABSTRACT
The advent of Information Technology (IT) is rapidly changing the banking industry.
In this study, the impact of IT on the banking industry in Nigeria is described. A questionnaire was employed to collect data from customers at five major banks in
Nigeria on the extent to which customers believe that IT exerts an impact on banking services. The results of the study clearly indicate that IT has contributed immensely to the growth of the banking industry in Nigeria.
Keywords: Information Technology, Banking, Nigeria.
1.
INTRODUCTION
A powerful force drives the world towards a converging commonality, and that force is technology (Levitt, 1992). From the beginning of the human era, technology 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 economic 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 200 years ago.
Information Technology (IT) can be defined as the modern handling of information by electronic means, which involves its access, storage, processing, transportation or transfer and delivery (Ige 1995). Research shows that IT affects financial institutions by easing enquiry, saving time, and improving service delivery
(Alu, 2002). IT also provides solutions to the needs of modern societies in health care delivery,


References: Alu, A.O. (2000) Effects of Information Technology on Customer Services in the Banking Industry in Nigeria, M.B.A Coombs, R., Saviotti, P. and Walsh, V. (1987) Economics and Technological Change, Macmillan: London. Ige, O. (1995) Information Technology in a De-regulated Telecommunications Environment, Keynote address, INFOTECH 95 Levitt, T. (1992) The Globalization of Markets, in: Transnational Management: Text, Cases and Readings in Cross-Border Management Smith, Adam (1776): The Wealth of Nations Ugwu, L EJISDC (2002) 10, 2, 1-8 8
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