Information and Communication Technology (Ict) and Banking Industry

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ISSN 2039‐2117                 Mediterranean Journal of Social Sciences                  Vol. 2 (4) September 2011                   

Information and Communication Technology (ICT) and Banking Industry Alawode, Ademola John+ Emmanuel Uche Kaka**
*

Department of Computer Science, Federal Polytechnic Ilaro, Ogun State, Nigeria ** First Bank Nigeria PLC, Ahoada Branch, Rivers State, Nigeria.

Abstract Information and Communication Technology, the language of the new age and its grammar which is Science has become an indispensable and veritable tool for enhancing effectiveness and efficiency in all other aspects of life. Banking industry has learnt the grammar and understands the language of the new age and tremendously transforms the Industry from what it used to be to the economic mover of the whole wide world, through the magic hands of Computer Science innovations. The adoption of ICT in banks has improved customer services, facilitated accurate records, provides for Home and Office Banking services, ensures convenient business hour, prompt and fair attention, and enhances faster services. The adoption of ICT improves the banks’ image and leads to a wider, faster and more efficient market. It has also made work easier and more interesting, improves the competitive edge of banks, improves relationship with customers and assists in solving basic operational and planning problems. This paper work analyses the impacts made by the Information and Communication Technology in the Banking Industry, and some of the unexploited areas of the Information and Communication Technology in the industry. Keywords: Information, Communication, Technology, Banking & Industry

Introduction New age business environment is very dynamic and undergoes rapid changes as a result of technological innovation, increased awareness and demands from customers. Business organizations, especially the banking industry of the 21st century operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and Communication Technology (ICT) is at the centre of this global change. Archimedes said, “Give me a lever long enough and a fulcrum on which to place it and I shall move the whole world”. (Archimedes, www.brainyquotes.com). The lever he was taking about then was not understood, until the invention of Information and Communication Technology. The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all banks and indeed a prerequisite for local and global competitiveness. ICT directly affects how managers decide, how they plan and what products and services are offered in the banking industry. It has continued to change the way banks and their corporate relationships are organized worldwide and the variety of innovative devices available to enhance the speed and quality of service delivery. Harold and Jeff (1995) contend that financial service providers should modify their traditional operating practices to remain viable in the 1990s and the decades that follow. They claim that the most significant shortcoming in the banking industry today is a wide spread failure on the part of senior management in banks to grasp the importance of technology and incorporate it into their strategic plans accordingly. Woherem (2000) claimed that only banks that overhaul the whole of their payment and delivery systems and apply ICT to their operations are likely to survive and prosper in the new millennium. He advices banks to re-examine their service and delivery systems in order to properly position them within the framework of the dictates of the dynamism of information and communication technology. The banking industry has witnessed tremendous changes linked with the developments in ICT over the years. The quest for survival, global...
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