The Impact Of Information Communication Technology On The Performance Of United Bank For Africa Plc

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The Impact Of Information Communication Technology On The Performance Of United Bank For Africa Plc


As information technology is the modern trend in banking today it is very imperative for bank to access it’s impact operational performance so as to justify if the hunger capital invested on it is justifiable or not, analyse their problems and proffer possible solutions. The objective of this study is to identify how the introduction of information and communication technology has influenced bank performance in terms of effectiveness, efficiency, competitiveness, customers base and globalization of bank.

The main research instrument used one questionnaire and personal interview for staff of the banks. In conclusion, the study revealed that information technology has tremendously improved the growth of the bank and performance of the bank of Guaranty Trust Bank. Information technology has lead to increase customers satisfaction improved operational efficiency, reduce transaction time, gives the banks competitive edge, reduced the running cost and ushered in swift response in services delivery.

The research recommended that government should accurate actions that will create an enabling environment for growth in the banking sector, lower tariff on information technology, tool and equipment should be subsidize and also partner with multinational companies abroad to supply equipment. All banks should utilize information communication technology to render services, the regulatory agencies should upgrade their information technology constantly to align with the rapidly developing private sector banking pace, the government should be to encourage local information technology forms and companies towards meeting up with the 21st canting standard.

Table of Contents

  • Title page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One


  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objectives of the study
  • 1.4 Significance of the study
  • 1.5 Research question
  • 1.6 Scope of the study
  • 1.7 Limitation of the study

Chapter Two

Literature Review

  • 2.1 Introduction
  • 2.2 Concept of Information and Communication Technology
  • 2.3 The Concept of ICT and a Perspective of Nigerian Banks
  • 2.4 ICT and Nigerian Banking Sector
  • 2.5 Information technology and IT innovations in banking sector
  • 2.6 Impacts of ICT in banking industry
  • 2.7 Globalisation, Information Technology and Nigerian Commercial Bank
  • 2.8 Benefits of applying Information Technology
  • 2.9 Challenges facing the application of Information Technology in Nigerian banks

Chapter Three

Research Methodology

  • 3.1 Introduction
  • 3.2 Research deign
  • 3.3 Area of study
  • 3.4 Population of study
  • 3.5 Sample size and sampling technique
  • 3.6 Instrument of data collection
  • 3.7 Validity of instrument
  • 3.8 Reliability of instrument
  • 3.9 Method of data collection
  • 3.10 Method of data analysis

Chapter Four

Data Presentation and Analysis

  • 4.1 Introduction
  • 4.2 Characteristics of respondents
  • 4.3 Data presentation and analysis
  • 4.4 Summary discussion of findings
  • 4.5 Discussion of Findings

Chapter Five

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography
  • Appendix

Chapter One


1.1 Background of the Study

Today’s 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. in contemporary time the banking system has witnessed a lot of innovation and development in the area of introduction Automated Teller Machine (ATM), telephone banking, internet banking, branch networking, interbank fund transfer and the most recent of all which is now a fad in the banking industry which is the Cashless attention which tend to reduce the amount of money in circulation in the economy.

Information and Communication Technology (ICT) is at the forefront of these global changes. the question now arises ”what is information communication technology”, information can be referred to as processed data or output i.e. any development or action that is meant to be worked upon effects decisions .Irechukwu (2010).

Communication can be said to be the means or methods of getting information past from one location to another. i.e. a method through which relationship are established, extended and maintained through a predefined codes. Elizabeth N. et el(2009)

Technology is said to be the process of using state of the art equipment

To perform operations efficiently and effectively Laudon and Laudon, (2009).

Information communication technology (ICT) is acquisition, processing, storing and dissemination of vocal, pictorial, textual and numerical information by microeconomic base combination of computing and telecommunication (Macmillan et al 2010).

Grossman G. and E Helpman 2009, ascert that information communication technology (ICT) stresses the role of unified communication technology and integration of communication (telephone lines and wireless signals) computer middle ware as well as software, storage and visual system which enable users to create ,access ,store, transmit and manipulate information. Laudon and Laudon, (2009).contend that managers cannot ignore Information Systems because they play a vital role in contemporary organization. They point out that the entire cash flow of most fortune 500 companies is linked to Information System.

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 (2008) contend that financial service providers should modify their traditional operating practices to remain viable in the 2000s 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 (2010) 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 future . 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 in Nigeria has witnessed tremendous changes linked with the developments in ICT over the years.

The quest for survival, global relevance, maintenance of existing market share and sustainable development has made exploitation of the many advantages of ICT through the use of automated devices imperative in the industry. This study evaluates the response of Nigerian banks to this new trend and examines the extent to which they have adopted innovative technologies in their operations and the resultant effects.

1.2 Statement of the Problem

The advent of information and communication technology on the performanceof the United Bank For Africa among other sectors has brought about several noticeable developments but at the same time, it brings about its attendant problems. There is the problem of banks unable to strictly comply with the mission statement /corporate mission. With information technology, some bank management does not adequately plan to meet the services quality. For example, the required number of customers to be attended to by a cashier within the daily working hours to guide against long queues is neglected- this causes delay in service delivery time leading to long queues in the banking hall.

Another problem is the high incidence of bank fraud borne information technology. This fraud ranges from ATM card fraud, internet banking fraud, email and text message fraud, fund transfer to untraceable offshore accounts, among others.

1.3 Objectives of the Study

  1. To identify how the introduction of information and communication technology has influenced bank performances.
  2. To find out the reason why banks nowadays have to abandon the former ways of operations to modern banking.
  3. To investigate into the extent of effectiveness and efficiency in banking sectors after the introduction of information technology.
  4. To access how information technology helps in the reduction of cost and benefit in increasing the revenue profit of the bank.
  5. To access how information technology has affected the customer base of the banks.

1.4 Significance of the study

The banking system is required as a catalyst for a rapid macro-economic development of other sectors of the economy; hence, its stability should be the priority of the government most especially during the democratic dispensation. Going by the recent distress in banking industry in Nigeria, the level of public confidence in the sector has dwindled and this has led to the instability syndrome in the sector and as such the public assurance and confidence on efficiency in the private sector in decaying.

The major cause of this syndrome can be attributed to the problems inherited in the banks operational system. The quest for globalization and commercialization has brought about innovations in technology. The digital age and the potential threat posed by non-traditional competition which necessitates innovation has made it inevitable for Nigerian commercial banks to improve upon their operation as they face evolving revolution are being confronted with increasingly sophisticated customer base compelling them to offer today what their customers would be expecting tomorrow. Banks have to deviate from just being a profit making bank to a more conscious customer centered institution.

This research will enable banks to identify ways of remaining competitive in the global and domestic financial industry. It also helps prepare banks repositioning towards meeting the challenges imposed by global banking.

Also, it is expected that the work will contribute to the bank’s future projections on strategies to be used in attracting depositor’s funds, reduce queues in the banking hall, the bank’s management policies.

Finally the research work will also be a contribution to knowledge in academic field and serve as a source of reference to researchers who would carry out research on similar study in the future.

1.5 Research Questions

  1. How the introduction of information technology does has influenced bank performances.
  2. To find out the reason why banks nowadays have to abandon the former ways of operations to modern banking.
  3. To investigate into the extent of effectiveness and efficiency in banking sectors after the introduction of information technology.
  4. To access how information technology helps in the reduction of cost and benefit in increasing the revenue profit of the bank.
  5. To access how information technology has affected the customer base of the banks.

1.6 Scope of the Study.

The research work covers the impact of information and communication technology on the operations of Nigerian banks in Nigeria. Specifically, the information in this research work is limited to happenings in the UBA Plc, Kaduna. The period of the study is to be focused on 2004-2010.

1.7 Limitation of the Study.

The major limitations of this research work are the constraints encountered in the use of questionnaires for generating data information. Bank customers often find the efficiency of the operational system of the bank in different ways or perspectives; hence, it is not possible to determine the exact level of differences between belief and practice in the banking operation.

The bank staffers are not ready to give out information in any form particularly in writing as it may be required in the case of questionnaires due to secrecy. To get information or data from these groups of people, the researcher has to exercise a lot of patience.

Due to time and financial capability, the researcher was not able to cover all the products of the bank that has been made possible through information technology.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary

Most financial institution in Nigeria are revolutionizing their operations through the use of computers since they have come to realize the fact that computerized banks enjoy faster, more accurate accounting devices, more organized data handling, facilities utilization among others. In light of the above, this study was set up to identify the impact of information technology on the banking operations at Guaranty Trust Bank and know how the computerization exercise has affected the bank customers. This was done through two sets of questionnaires administered to the staff and customers of the bank. In addition, very personal interviews were also granted to some management staff and customers to elicit further information. Among other things, the major finding of the study showed the computerization has advantage on reducing service deliver and customer’s queue and thereby increasing customer’s satisfaction, the base of customer’s satisfaction could therefore be traced to reduced waiting time, innovative new products and services, internationalization of the banks, speedier and more efficient services among others are the benefits accrued to computer application in the banking action of GT Bank..

Apart from the customer’s satisfaction, staff satisfaction through ease of their job and early closing has been ensured through application of the information technologies. Computer has been of immense benefit to staff and customers of GT Bank… It increased the satisfaction of both the customers and staff alike and this benefits the organization at large.

5.2 Conclusion

The study has shown that information technology is extremely important in the present and in the future banking operations. Though, it can be extremely dangerous when confidential datas creeps in to the wrong hands, but the fact still remains that the pay offs in adopting information technology obviously surpass the shortcomings. We have accepted the unpleasant truth that Nigerians are still far behind the advanced countries of the world in the employment of computer technology to solve management and operational problems in the banking system, but given the attitude of the Nigerian bank management to computerization it may not be too long before we narrow the gap. However, we should attempt to move faster than the present pace and make full use of available technology to solve our numerous operational problems in the banks so that in the end, the management of the bank and the customers will be pleased with the premium received in the form of customer satisfaction and on the other prospective contributions to the profitability of the banking industry in Nigeria.

It therefore become important that technology changes such as the introduction of computer in organization should carefully be evaluated so that the gains in technical efficiency are not made at the expense of the well being integration of the employees. Tremendous opportunities exist for Nigerian financial market to embrace the current digital revolution in order to create and grow new products and services through business solutions. The development of information and communication technology has altered the landscape of Nigerian financial market and has become the strategic resource for achieving competitive advantage in 21st century digital economy. Information technology is designed for the orderly and systematic procurement, transfer, storage and conversions of data which will reduce time, effort, cost and increase the utility of information for decision makers. This information reduces the cost of decision making because relevant information is not lacking. Information technology has increased ability to make sound decisions involving complex combinations of factors and doing so rapidly. It makes available reliable, concise and routine information in an organization which in turn leads to such benefits as good decision and confidence of the decision maker. It also assures good judgment since the judgments are based on hard facts and figures.

It is pertinent that information technology has affected and will continue to have impact on decision making in every field of human endeavour most especially with the increase in use and development of various information technology architectural components.

In summary, this study has been able to identify a good prospect for information technology in Nigeria financial sector. Some to the impact of information technology has on the operations of commercial banks has identified by this study includes:

  1. Information technology has increased the customer’s satisfaction going by the product and facilities available to regain customer’s loyalty.
  2. Information technology has increased the operational efficiency of commercial banks as less time is required to carry out more transaction.
  3. The application of information technology has impacted positively on the customer base of the bank and by so doing gives the bank a competitive edge over its competitors.
  4. It has drastically reduced the running cost and expenses incurred by the banks. This leads to a resultant increase in the banks revenue.
  5. It ushered in a swift response in service delivery.
  6. It eases and provides various sources of acquiring information in the bank.

5.3 Recommendations

In view of the findings from the research, the following recommendations were made:

  1. The government should accelerate actions that will create an enabling environment in order to stimulate growth in the banking sector.
  2. Government should lower the tariff on information technology aided tools and equipments imported should be subsidized by government. Even better, government should partner with multinational companies abroad to supply equipments to Nigerian bank directly at discounted rate.
  3. All banks should utilize information technologies to render services that meet the genuine needs of the customers and if there’s change in the customer lifestyle, the banks should change along rapidly.
  4. Given that information technology facilities depend largely on electric power supply, without a good power source, it becomes very difficult to maintain computer and other information technology equipments used by the banks. Hence the government and other private sector investors should focus on improve and provide different sources of energy that would complement the current power supply.
  5. The regulatory agencies should upgrade their information technologies constantly so as to align with the rapidly developing private sector banking innovation pace.
  6. The Nigerian government should strive harder by encouraging local Information technology firms and companies towards meeting up the need of the 21st century state of the earth information technology requirement of the country.

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