The Role of Informationtechnology on the Nigerian Banking System
Information Technology and Banking
Automation
It is becoming increasingly difficult, if not impossible, for banks employing traditional methods (manual methods) to compete favorably in the industry. According to Gandy, (1995, p.18), the potential of the new information era to deliver financial services directly into people’s home is causing trepidation among the big retail banks.
IMF conference of 1989 confirmed that
Information Technology has had more impact on more fundamentals, more quickly, than virtually any other external change in the history of the banking industry. It is transforming every aspect of a bank’s business, from its management information to the nature of the products and services it offers. It fundamentally affects many of the key drivers of both cost and revenue, which will increasingly determine a bank’s overall profitability and competitive positions’
With Information Technology, electronic funds and information transfer systems have been variously designed to deliver services to customers in a ‘better’ and ‘faster’ ways. Today, investment in technology has become an important component of an overall strategy in banks. Writing on new technologies and performance enhancement in the banking industry, (Ovia, 1997, p.2) stated that the new technologies have created unparalleled wired economy. The transfer of money from point ‘A’ to point ‘B’ has resulted in turning the actual money into bits and bytes through satellite transponders, fibre optic cables or regular telephone lines.
Banks utilize computer based systems as well as telecommunication technologies for storage, processing and communication (Adetayo et al.,
1997, p.692). Computer technology has provoked several inventions and automated devices. The advent of computer and its various application areas has really brought succour to the agitating mind of many bank executives. Computer, an electronic device that accepts inputs, processes
them,
Automation
It is becoming increasingly difficult, if not impossible, for banks employing traditional methods (manual methods) to compete favorably in the industry. According to Gandy, (1995, p.18), the potential of the new information era to deliver financial services directly into people’s home is causing trepidation among the big retail banks.
IMF conference of 1989 confirmed that
Information Technology has had more impact on more fundamentals, more quickly, than virtually any other external change in the history of the banking industry. It is transforming every aspect of a bank’s business, from its management information to the nature of the products and services it offers. It fundamentally affects many of the key drivers of both cost and revenue, which will increasingly determine a bank’s overall profitability and competitive positions’
With Information Technology, electronic funds and information transfer systems have been variously designed to deliver services to customers in a ‘better’ and ‘faster’ ways. Today, investment in technology has become an important component of an overall strategy in banks. Writing on new technologies and performance enhancement in the banking industry, (Ovia, 1997, p.2) stated that the new technologies have created unparalleled wired economy. The transfer of money from point ‘A’ to point ‘B’ has resulted in turning the actual money into bits and bytes through satellite transponders, fibre optic cables or regular telephone lines.
Banks utilize computer based systems as well as telecommunication technologies for storage, processing and communication (Adetayo et al.,
1997, p.692). Computer technology has provoked several inventions and automated devices. The advent of computer and its various application areas has really brought succour to the agitating mind of many bank executives. Computer, an electronic device that accepts inputs, processes
them,