The Impact of Information Technology on the Bank Performance (Nigeria in Perspectives)

Topics: Bank, Computer, Cheque Pages: 6 (1947 words) Published: February 11, 2009



Some of the topical issues posing serious challenges to both the public and private sectors are advances in technology. The sector that has been most radically affected by these developments is the financial sectors. The information technology has become a critical business resource because its absence could result in poor decisions and ultimately business failure. In this regards, the writers intend to find out the impact of the information technology on the Bank performance. INTRODUCTION

Today, many banks in Nigeria has failed and liquidated as fraud and related financial crimes happens daily in our banks and financial institutions, because we still depend on ledger card and branch local network banking transactions while banking transaction is now a do it yourself affairs in the advanced countries through net work and on-line service provider. According to Odunfunwa, B. (2002) information technology is a body of tools, with the convergence of communication and computers. Goldberg (2002) describes information technology as series of machines, which can execute sequences of instructions. The sequence of instructions is a programmed made particularly flexible and not rigid and can be charged depending on the information being processed. The common wealth secretariat (1991) explains that the phrase “information technologies” used to encompass a range of new technologies and their applications, including all aspects of the use of computers, micro-electronic devices, satellite and communication technology. The above definition shows that communications technology is an aspect of information technology. Ehidiamen (2008) describe information technology as a complete apparatus for handling all aspect of information, which is technically oriented through data creation, conversion, storage and telecommunication. Fapohunda (1999) information technology is a scientific device for processing information through the use of computer and telecommunication equipment. According to Adeboye. B. (2000) information technology is generally used to describe the knowledge, skill, techniques and technologies used in management and movement of information. Internet: (net) Schware and Kimberly (1995) simply put it as a global family of telecommunications networks that connects computers from all over the world. It was initially designed for academics, researchers and defense establishment to get instant access to information from one continent to another, based on each others computers. Banks and other financial institutions were among the first commercial users of Automatic data processing equipment. They started with adding machines, and then moved to accounting machines. As volume of their transactions increased, notably checking and related documents, these machines became inadequate. The situation was further escalated by introduction and promotion of personal checking accounts. These problems led banks to be among the first business establishment to recognize the potential of the modern computers and adopt it to their needs. THE IMPACT OF INFORMATION TECHNOLOGY

The application of modern technology has affected all aspects of banking industry. The writers are concerned with several positive impacts which banks can realize from the adoption of the improved technology. The impacts are as follows-: 1. To day, banks are developing computer systems to handle domestic and international accounting systems. Computers are being used extensively for personal record keeping, budgeting, commercial loans, money markets, foreign exchanges and fund transfer with very satisfactory results. 2. To the bank customers and management the application of information technology means provision of efficient and higher...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • How will technology impact Bank Essay
  • Impact of Information Technology on the Bank Performance Essay
  • The Role of Information Technology in the Marketing of Bank Services in Nigeria. Essay
  • The Effect of Information Technology on the Operation of Commercial Banks in Nigeria Essay
  • Essay on Information Technology
  • Effect of Information Technology on the Operations of Commercial Banks in Nigeria Essay
  • Essay on The Impact of Information and Communication Technology (Ict) on Profitability in the Nigeria Banking Industry: Focus on Some...
  • The Impact of Technology on Marketing in Nigeria Essay

Become a StudyMode Member

Sign Up - It's Free