Page 1 of 20

Effect of Information Technology on the Operations of Commercial ...

Continues for 19 more pages »
Read full document

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

  • By
  • November 22, 2012
  • 3619 Words
  • 329 Views
Page 1 of 20
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, library services,...