The Impact Of Information Technology (IT) In Marketing Of Banking Services (A Case Study Of UBA Bank Plc) Enugu

Project and Seminar Material for Marketing

The Impact Of Information Technology (IT) In Marketing Of Banking Services (A Case Study Of UBA Bank Plc) Enugu


Abstract


This research work looked at the impact of information technology in marketing of banking services and used U.B.A Bank as a case study.

Specially, the study addressed the following issues.

The performance of information technology to banking industry.

The extent or influence the present economic situation is having on information technology in banking operation. The overall levels of satisfaction delivered to customers the research instrument used for data collection were mainly questionnaire and oral interviews. The needed data were collected from the respondents which comprised of the personnel and the customer’s of the banks. The data collected from the two zones banks in Enugu metropolis were tabulated into frequencies and percentages.

Chi-square statistic used to test the various hypothesis interpretations and analysis gave the followings findings.

  • That all the respondent acknowledged the impact of information technology in banking services.
  • That the banks used information technology as tools for attracting the customers to their banks.
  • That most of the customers prefer information technology rendered by U.B.A Bank to other banks.
  • That most of the despondence accepted that quality services influence their preference for the banking operation.

Moreover, data that are relevant to this research topic will be analyzed in order to arrive at useful findings. Tables will be used to treat the raw data that is all information got will be analyzed and present in table.

The scope of the study is very wide if it has to be carried out in all U.B.A. banks in Enugu based on the fact that there are no time and materials resources to see to the whole U.B.A. bank in Niger.

From the research study the researcher made the following findings:

  • That banks can only increase their delivery abilities through greater in vestment in information technology.
  • That banks customer’s association poor services delivery of banks to their hot level of information technology.

However, the research made some recommendation based on the above findings.

  • That banks should establish a marketing department that would see to the satisfaction of customer’s needs since the sole aim at marketing is customers satisfaction.
  • That bank should go into contract with info tech firms to hire their information technology or contract this a speck totally to the information technology firms.

Chapter One


Introduction

1.1 Background of the Study

Bank as a financial institution is primarily concerned with the mobilization of savings and the profitable application of funds.

According to Ogbu Andrew C. one of the bank official, in an interview help with him at U.B.A Bank on march 15 2009 He sad that the major object of U.B.A bank is the number of customers and the credibility of U.B.A. bank, is based on its ability to attract a sizeable proportion of the customer found. (Ogbu Andrew C.).

Referring to Uchenna E.O. (1997 p. 1) on research and project methodology, he said that the information technology on marketing of banking services arose to challenge all other previous concepts in the banks, that information technology is the key to achieve organizational goals which consists of determine the needs and wants of target markets and the delivery of the desired satisfaction more effectively an d efficiently than competitors.

Quoting from Nwankwo Eze A. (1998) an article written on 25 September, which says many banks in the past strive to improve their counter services by employing more staff to cope with increasing number customers. This did not yield such result. With the advance of information technology banks have been able to automat some aspect, if not all their operations and thus has resulted in lower cost in terms of paid salaries to staff waiting time of customers. With the help of information technology accounting information system, the decision making processing, loans and credit evaluations and other banking services have been very efficient.

The banking having realizes that existence in the competitive economy depends on the level of information technology adopted protectively. That the range of information technology adopted by the UBA bank must be determined by peculiarities of its customers.

He further said that although development has not only be driven by technology advanced but have also in turn, spawned technological development.

According to Jaret Charles T. (1998 p.9) advantages that information technology provides are:

  • Quick decision because information can be supplied faster.
  • Better decision because the information is complete sufficient and up to date.
  • Better management – because the information system can closely ill the goals of the organization the department and the individual customers inclusive.

For those key players in the industry who have embraced information technology, the impact of this investment to the operation in terms of marketing of banking services is what this study is out to explore.


1.2 Statement of the Problem

Banking is in the services industry. The quality of services rendered by the UBA Banks, have been attracting criticisms from people of all works of life.

According to Jarret (1998 p.35) which says that in the past, a large potential proportion of banking services where handled manually, thus requiring relatively large labour forces to handle a volume of routine transactions.

However, the waiting time for such services had led to frustration and dissatisfaction of quit a number of customers.

He also said that most banks do not put their customers in the prime place as they supposed to be. There is now keen competition and to compete means to apply the marketing of information technology. Are these criticisms justified or are they just a mere rundown of the banking industry, because they are making profit in an area of economic slump?

This study is aimed at researching on effect of automat of the bank on the marketing of banking services.

It is vital to put the potential progress into prospective and recognized the current extensive use of automated system in banking services delivery. That the development of on-lime back- office terminal system liked to large main frame batch-processing computers has enable the bank to cope with rapidly increasing volumes of transactions that could not have been handled manually.

He further said that, the use of information technology is an entrepreneurial activity that information as a corporate resource should be managed and it greatly increase the opportunities that are available.


1.3 Research Objective

The objectives of the research were to:

  1. Determine the extent to which commercial banks in Nigeria are using ICT in servicedelivery?
  2. Determine the benefits of using ICT on service delivery in commercial banks in Nigeria?
  3. Establish the challenges of using ICT to deliver service in commercial banks in Nigeria?

1.4 Research Questions

  1. What is the extent to which commercial banks in Nigeria are using ICT in service delivery?
  2. What the benefits of using ICT on service delivery in commercial banks in Nigeria?
  3. What are the challenges of using ICT to deliver service in commercial banks in Nigeria?

1.5 Scope Of The Study

The scope of the study is very wide if it has to be carried out in all UBA bank in Enugu metropolis.

The study is limited based on the fact that there is no time and material resources to see to the whole nation.

The study is limited to (Enugu state) and the findings may not reflect the situation in the whole country. These findings may not be valid for the whole U.B.A. banks in Nigeria, but by and large, what happens in UBA bank in Enugu state, can be said to apply to other U.B.A banks.

Although, U.B.A banks are chosen because they represent a greater part of the industry involved in over the counter cash transaction.


1.6 Limitation of Study

The study was limited to UBA banks’ staff views on ICT and customer service in Enugu state. This was largely due to resource constraints such as time and money. Furthermore, customers were not interviewed and with them as the ultimate recipient of the services offered their responses would have provided deeper insights for the study. The study was also restricted to 12 UBA bank branches in Enugu state therefore the results cannot be subjected to generalization for other banks.


1.7 Definition of Terms

The following terms used in this should be taken to mean the following:

Marketing

Marketing is the human activities, which direct the flow of goods and services, from the manufacturers to the customers through exchange process which satisfied human want needs directly or indirectly.

Banking

Banking is defined in the 1969 act as the business of receiving monies from outside sources as deposits, or respective of the payment of interest and acceptance of credits or purchases of bill and cheques, or the purchases and sales of securities claims respect of loan prior to their transactions for other or the effected of transferring and clearings, and such other transaction as the commission may, on recommendation of the central bank, by order published in the federal gazette designated as banking business.

Information Technology

Information technology is the study or the use of electronic equipments especially computers for storing, analyzing and distributing in formation of all kinds, including words numbers and pictures.

Automate Banking

Automate banking is the device which permits customers to deposit, withdraw or transfer fund during hours when the bank is closed.

Services

There are separately identifiable intangible activities, which provides want satisfaction when marketed to customers and or industry users and which are not necessary tied to the scale of a product or another services.


1.7 Organization of the Study

The study comprises of five chapters.

  • Chapter one consists of the background to the study, statement of the problem, purpose of the study, objectives, research questions, significance, limitation of the study, delimitation of the study, basic assumptions, definitions of key terms and organization of the study.
  • Chapter two comprises of literature review theoretical and conceptual frameworks.
  • Chapter three deals with research methodology, covering research sampling, procedures, research instruments and their validity and reliability, procedures for data collection and data analysis.
  • Chapter four comprises of findings and discussions which were generated by the study.
  • Chapter five presents summary, conclusions and recommendations.

Chapter Five


Summary of Findings, Conclusion, Recommendations, Limitations and Further Work

5.1 Summary of Findings

From the findings, an assessment of age distribution, qualification and experience indicated that most of the respondents were aged between 26-35 and 36-45, the majority (60.65%) had at least 1st degree as qualification and 18.03% had post graduate degree qualification, a greater percentage of the employees (36.06%) had at least 6 years of experiences in UBA bank. These findings imply that the respondents were well placed to assess the level of ICT usage in delivery of customer service. The age group indicated that majority of the respondents were seasoned persons with a clear understanding of customer expectation as far as service delivery is concerned. Furthermore, 29.5 % of the employees had a working experience of between 1 to 5 years. The few years worked yet fast integration into the banking industry processes signal potential benefits associated with ICT in service delivery. Respondents’ qualification, age and work experience indicate that they constantly interact with customers in their day to day activities and are therefore well placed to assess the objectives of the research. Their qualification and experience in the banking industry best position them to understand the effects of ICT on delivery of services.

The research assessed the extent to which commercial banks use ICT in service delivery. The respondents were instructed to respond on a 5 point Likert scale and indicate the extent they agree or disagree with the statements. The findings indicated that mobile banking and ATM are widely used across the banking sector in the country with a mean of 4.29 and 4.67 respectively. Similarly, respondents with a mean of 4.31 agreed that internet banking is widespread in the banking industry. Internet banking is extensively used for information provision and dissemination of vital information pertaining to the banks, thus highly effective.

In general, the use of ICT in the provision of banking services is widespread across the banking sector. Mobile banking was seen to be extensively used in the banking industry to offer services to customers. The respondents (32.8%) strongly agreed and 63.9% agreed indicating a very strong belief in the technology in delivery of banking services. The respondents (68.9%) also believed ATMs were widely used to deliver banking services. The use of internet banking in the banking industry in delivery of services was also seen to be widespread, 37.7% of the respondents strongly agreed that the banking industry benefits in the use of fully electronic transactional systems.

The research also assessed the benefits of using ICT on service delivery in commercial banks in Nigeria. The findings indicated that 57.4% of the respondents strongly agreed that the use of mobile banking has made service delivery more efficient, A large percentage (78.7%) of the respondents strongly believed that the use of ATMs has brought convenience to the customer by bringing services closer, 68.9% of the respondents strongly agreed that the use internet banking (Information only system) has enabled easy access to banking information when needed, 60.7% agreed that use of internet banking (Electronic information transfer system) has enabled fast access to account information and 80.4% strongly believed that the use of internet banking (Fully electronic transactional system) has made banking easy by bringing services closer to the customer. Consequently, it can be concluded that the use of mobile banking, ATMs and Internet banking in service delivery has a positive influence on service delivery in the banking sector. The respondents’ strong belief in ICTs in the banking industry is also in line with the Delone and Mclean IS Success Model where technical success, semantic success and effectiveness access of the ICTs are evident.
Information technology present the banking industry with a myriad benefit that enables them to effectively deliver services. This has a high effect on customer satisfaction. The research assessed some of the benefits of ICT to the banking industry. The majority of the respondents strongly agreed to the benefits; 98.4% that ICTs have enabled faster processing of customer requests, 93.4% that customers are now able to easily access banking information using internet banking, 82.0% that customers are able to access mobile and internet banking from anywhere as long as they have an enabled device, 80.3% that ICTs have helped reduce processing errors, which impact service delivery, 77.1% that ICT has provided a mechanism of alerting customers of transactions happening in their accounts and 72.1% that customers can now obtain timely service when needed. These benefits serve to fulfil Johnstone and Clark (2005) argument that the purpose of ICT is to have processes that consistently deliver high quality services and drive customer satisfaction. They indicate a great improvement on customer service experience as a result of ICT enables service which serves to show the importance of investing in ICT in commercial banks.

However, there are a number of challenges faced by the banking industry in the use and implementation of ICT in customer service. A majority of respondents reported that lack of thorough knowledge of technology by customers was a hindrance to the use of ICT in the banking industry (44.3% strongly agreed) and 36.1% strongly believed that security concerns by customers had slowed down the uptake of ICT enabled services. Other hindrances indicated include lack of personal contact in ICT enabled service setup making it hard to build customer relationships, huge costs associated with acquiring ICT equipment, fast changes in customer preferences, inability to accept hard currency by online systems which forces the customers to visit the banking hall or ATM to make deposits and poor information system user interface. The findings are in line with Otieno (2008) findings where security and user related challenges were highlighted as major challenges in implementing mobile banking systems. There were however no highlighted challenges occasioned by the legislations in place in Nigeria.


5.3 Conclusion

Developments in information and communication technologies have revolutionized service delivery in today’s business world. Information systems borne from new and sophisticated technologies have presented creative ways to offer a variety of services. With technology new services and efficient delivery channels have been established. A lot of information has also been availed to the customer enabling them to make more informed decisions. Mobile banking, ATMs and internet banking have in particular provided the banking industry with the wherewithal to deal with the global challenges the industry poses in the delivery of banking services. Commercial banks are using information technology to create value based services for their customers in order to remain competitive.


5.4 Recommendations

ICT has in particular brought a complete paradigm shift on performance and customer service delivery in the banking industry. In order to catch up with global development, improve the quality of customer service delivery and improve efficiency banks need to invest heavily in ICT and widely adopt business networks in order to deliver a wide range of value added products and services. ICT development has a significant effect on development of more flexible and customer friendly banking services. There is also need to adopt an ICT strategy by bank managers, placing emphasis on customer education and ICT awareness. This is because a large percentage of customers in Nigeria are not ICT literate which affects the uptake of ICT enabled services, negating the gain such an investment should earn. Furthermore, ICTs need to be managed to support the business strategies, business processes, and organizational structures. This is because if not well managed the ICTs may fail to support the overall organization goals. Since ICTs combine the best of technology and people, commercial banks should tap into ICT capabilities as a strategic resource for competitive advantage in service delivery and operations.


Get Complete Project Material

5,000 5000

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…


Step One Purchase

Make Payment (Through Transfer) of ₦5,000 to the Account Below

Zenith BankAcc No: 1225513212
Samphina Academy
Current Account

Or CLICK HERE To Pay With Debit Card


FOR STUDENTS OUTSIDE NIGERIA
CLICK HERE To Purchase Material ($15)

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: The Impact Of Information Technology (IT) In Marketing Of Banking Services (A Case Study Of UBA Bank Plc) Enugu

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply


  Contact Our Help Desk


Need a Different Topic? Perform a Quick Search



List of Related Works

Click on Any Topic to Preview the Content

samphina.academy

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.