The Effect of Information Technology on the Operation of Commercial Banks in Nigeria

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CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE PROBLEM:
The effect of information technology on the operation of deposit money banks in Nigeria cannot be overemphasized. New and better information technology entails that banks can add the service ‘differentiator’ to their products in a way. However, enabling tools which developed information technology can provide will make a significant effect on the operations of deposit money banks in Nigeria . The key to efficient banking lies in maximizing the use of information technology. The brave new path of tomorrow’s banking will be on the electronic highway where customer are not limited to dealing with just one deposit money bank. In Nigeria today, the challenges of information technology coupled with the present competitive environment has made deposit money bank to computerise their operations at an alarming rate .Empirical evidence suggests that even though information technology has significantly enhanced the speed with which deposit money banks provide services ,generally its effectiveness is still limited by human factors such as lack of maintenance of the system to put them (the computers) on the high speed and inadequate training of deposit money banks personnel‘s on the proper use of information technology. These constraints makes them not to be fast on the use of information technology and rendering of efficient and effective bank services to their customers. Similarly, incidence of deposit money bank frauds has not significantly reduced with information technology. This is because the level of control particularly organisational control of the computer system is still grossly inadequate. The effect of information technology on the operations of deposit money banks will be a replacement of manual labour operation and time wastage of customer, at the end customers are satisfied. The strategic and operational effect of information technology has been accepted by most people in banks, businesses and in the other areas of human activities. Managing information technology is now crucial .as managers are increasingly concerned with ensuring that banks benefit fully from the opportunity offered by information technology. Information technology has enabled banks to effectively control their day to day operational activities and thus support decision –making and planning by managers. However, for us to fully appreciate the effects of information technology on the operation of deposit money banks in Nigeria . we need to review fundamental roles of information technology on the structure and operation of deposit money banks at different period of time. The experiences of successful deposit money banks indicate that extensive and systematic management and user involvement are required in making information technology effect the operations of financial services( banks) positively towards meeting their expectations(Samuel ,2004) In terms of structure , the effect of information technology on deposit money banks will depend on what structure or generation the particular deposit money belongs to (james,2006). This indicate that some deposit money banks structure may conform to the industrial age banking structure , while some may conform to the information age banking structure.

Finally , information technology has brought more sophisticated technological products as banks seek to advance. Electronic Banking, Computerization, Bank Automatic Teller Machine, Internet Service Delivery System and a whole lot of others which are all end products of information technology effecting positively on the operation of deposit banks (west,2005).

1.2 STATEMENT OF THE PROBLEM:
Deposit money banks that have adopted information technology are adopting their strategies to affect the new...
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