The Use Of Information And Communication Technology To Effective Service Delivery By Banks In Nigeria

Project and Seminar Topics with material for Banking and Finance

The Use Of Information And Communication Technology (ICT) To Effective Service Delivery By Banks In Nigeria


This research was carried out to examine the effect of service delivery by banks in Nigeria through the use of (ICT). There have been series of assumption that the use of information and communication technology has greatly enhanced the output of the banking sector in Nigeria. It is in a bid to confirm these assumptions that the researcher carried out this study. Questionnaire was the instrument used to collect data from respondents with a sample size of one hundred staffs from various banks in Nigeria, information was also sought from textbooks and journals based on the analysis of data, it was revealed that the use of information and communication technology has really enhanced the effective service delivery in the banking sector. It was also revealed that training of bank workers on the usage of information and communication technology increase the prospects of workers. Therefore workers should be trained in the cause of information and communication technology equipment. Finally workers were assured Based on the findings, it was recommended that the banking sector in Nigeria should procure information and communication technology to enhance workers performance and efficient delivery of services.

Chapter One


1.1 Background of the Study

Information and communication technology (ICT) is an instruction technology to enhance the effective service delivery by banks in Nigeria; it is the application of organized or scientific knowledge to practical tasks of using the system.

According to Akinola and Aremu, (2000) instructional technologies incorporate the tools and making present support to reinforce the usage of this system. Technology in this respect involves broad based technology including it methods, management and it applications, that support the creation, storage, manipulation and communication of information on bank employees. An information and communication technology (ICT) tool includes the following.

  1. Computer i.e. keyboard
  2. Audio visual i.e. Television, video, games, telephone, radio cassette.
  3. Internet printed materials i.e. pictures, chats, all these tools plays a vital and control role on information and communication technology (ICT) on bank employees.

Meyer (1997) Sees information and communication technology (ICT) as “the hardware, software, telecommunication technology, human skills and intellectual content that enable the study, design, development, implementation, support, management or use of intellectual expressions. This includes data, knowledge and languages in all digital, print, audio and visual formats.

Conclusively UNESCO (2000) states that information and communication technology (ICT) Can simply be defined as the “Scientific” technology and engineering disciplines and management techniques used in information handling and processing. The emergence of information technology deeply relates with the information and technology (ICT), this technology in banks otherwise known as electronic banking (E-Banking), started in the late sixties when electronic banking stormed the British banking scene. Nigeria stated the long tortuous journey in November 1990 when societal General Bank launched her automated teller machine (ATM). The need for efficiency in productivity increased profit and good banking practices are some of the major factors that led to the emergence of information and communication technology (ICT).

Apart from helping to increase the effectiveness of banking practice in terms of job interest, job challenges and expanding its nature, it has also revolutionized business organization in the areas of data processing and information processing.

Based on the advent of information and communication technology in business organization and in the banking system, the researcher intends to look at the effective service delivery by banks in Nigeria, through the use of information and communication technology (ICT).

1.2 Statement of Problem

There are numerous and enormous benefits attached to information and communication technology (ICT), Such as accurate maintenance of customer’s account, fast accessing of customers account balance fast and accurate computation of bank changes, enhanced communication and above all the elimination of long queues in the banking hail, Banking from home through the use of internets and telephone reduces the storage space, therefore few people uses the bank thereby reducing employees and staff uses the bank thereby reducing employees and staff uses in the bank, unfortunately evidence has shown that the Nigeria E-banking services remain highly inconvenient to customers. Then what is the problem of our computerized banks. Are the personnel congestion often seen at bank counters, where does the problem lies in our computerized banking service? It is in this light that researchers wish to find out the effective service delivery by banks in Nigeria through the use of information and communication technology (ICT)

1.3 Research Questions

Based on the problem stated above the following research questions were formulated.

  1. How does the use of information and communication technology (ICT) affect the workers performance m the banking system?
  2. To what extent does the use of (ICT) affect the job security of workers?
  3. To what extent can the use of (ICT) in the banking sector affect the prospects of workers?
  4. How does adequate training on the use of (ICT) improve workers standard in the office.
  5. What is the relevance of the use of (ICT) in dissemination and retrieval of information organization?

1.4 Objective of the Study

The research on the use of information and communication technology (ICT) have witnessed a lot of problems, to address these problem, some relevant question that must be answered are raised below;

  1. What has the establishment of the use of information and communication technology (ICT) in the banking system done to Nigerian development?
  2. What are the problems of using information and communication technology (ICT) in the banking sector?
  3. What are the contributions of using information and communication technology (ICT) in the creation of employment opportunities?
  4. What are the importances of using information and communication technology (ICT) in the delivery of service in the banking sector?
  5. What is the productivity derived using information and communication technology (ICT) in the banking sector?
  6. What are the solutions to the problem?

1.5 Statement of Hypotheses

The purpose of this study therefore is to present some relevant answers and solutions to these problems/questions that have long been neglected. Some of the answers to these questions are summarized below:

  1. The contribution of information and communication technology (ICT) has helped greatly in the creation of employment opportunities in Nigeria, especially in the area telecommunication and information dissemination.
  2. The use of information and communication technology (ICT) to the delivery of services by banks has helped increased the development of banking system.
  3. The productivity of using information and communication technology in delivery services by banks in the banking sector is very high.
  4. Using information and communication technology in banks is very important in the banking system.

In essence the aim of carrying out this research is to go deep into how the uses of information and communication act as instrument for economic development. The important of using (ICT) in the banking sector as well as technicality in their delivery of services and financial problems with a view to suggest ways by which government render supportive measures to their operations.

This work is also to service as a reference to other student of accounting and other fields and discipline tertiary institutions of higher learning, who may have course to know how the effective service delivery
by banks through the use of (ICT) helps a lot in the banking sectors.

1.6 Significance of the Study

The significance of this research is to find a solution to the banking system, which is characterized by anomalies such as dissatisfaction, poor output and performance, breakdown of system, lost of signals from data control, lost of resources to crime and error.

These problems are to be determined and relevant solutions are to be suggested in other to minimize profit and minimize cost in the banking industries.

1.7 Scope of the Study

This study is strictly on the effective delivery of service by bank, through the use of (ICT) with particular reference to some of its functions like home banking, internet banking, telecommunication, electronic cards, electronic fund transfer and automated teller machine (ATM).

1.8 Limitations of the Study

Considering the fact that the project is a group work makes it difficult for the work to move smoothly because there may be times we need the attention of everybody, you will find that is only some persons are present apart from that, money or financial aspect is also a factor in our research.

Owning to the geographical vastness of banks in Nigeria, time and financial limitation, it was impossible to have data collection from all parts of Nigeria. There were also constraints such as the uncompressing attitude of many respondents; some of them frowned at some questions which they felt contained details that appear to probe their private financials and
business affairs.

Some of the interview achieved that the exercise was m connection with tax purpose.

1.9 Definition of Terms


The bankers and other financial institution degree 1991 describes a bank as that company operating a banking business, itmust hold a valid license and this


Banking ordinance (1952) defined banking as the business of receiving from the public on current and savings account, money which is to be repayable on demand by cheque and passbook and of making advance to customers.


A computer is electronic device that is capable of receiving data, process those data through the processing unit (CPU) to give useful information to the ends user through the output units.


This is a set of numbers, figures and raw materials used as input into the system for extraction of output (information).


The computer hardware is the set of physical components of the computer system; such as the mouse, monitor, keyboard, central processing unit (CPU).


This is a collection of instruction (programs), which are designed to solve specific users’ purpose or to control and enhance the operations and use of the computer.

Management Information System (MIS):

Management information system converts data into information in an appropriate form to managers for making effective and timely decisions to plan direct, staff control and organize the activities of the organization.


This is the interconnectivity between independent and semi-independent computers in order to share resources like printer, database, and files etc.

Chapter Five

Summary Of Findings, Conclusion, Recommendations

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 the banking sector. 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 benefits 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.

5.2 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.

5.3 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.

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