Thesis Abstract

Abstract
Information technology (IT) has become increasingly essential in the banking sector in Nigeria, offering numerous prospects for innovation and efficiency. This research delves into the various opportunities and challenges that come with the adoption and implementation of information technology in Nigerian banks. The study highlights the positive impacts of IT in enhancing customer service, improving operational efficiency, expanding market reach, and streamlining processes within the banking sector. However, it also sheds light on the challenges faced by banks in Nigeria, such as inadequate infrastructure, cybersecurity threats, regulatory compliance issues, and skills gaps among employees. The research explores how IT has transformed banking operations in Nigeria, enabling banks to offer a wide range of online services, including internet banking, mobile banking, and digital payments. These technological advancements have not only improved customer experience but have also increased financial inclusion by reaching unbanked populations in remote areas. Additionally, IT has facilitated faster and more secure transactions, reducing the time and costs associated with traditional banking methods. Despite the significant benefits of IT in the banking sector, Nigerian banks encounter challenges that hinder the full realization of its potential. Infrastructure limitations, such as unreliable power supply and inadequate internet connectivity, pose obstacles to the seamless operation of IT systems in banks. Furthermore, cybersecurity threats are a growing concern, with cyber attacks targeting sensitive customer data and financial transactions. Banks must invest in robust cybersecurity measures to protect their systems and customers from potential breaches. Regulatory compliance is another challenge faced by Nigerian banks in their IT adoption journey. The regulatory framework in Nigeria is constantly evolving, requiring banks to adhere to strict guidelines to ensure data privacy and security. Non-compliance can result in severe penalties and reputational damage, making it crucial for banks to stay abreast of regulatory changes and invest in compliance measures. Moreover, skills gaps among bank employees present a challenge in leveraging IT effectively. Banks need to invest in training and upskilling their workforce to ensure they have the necessary expertise to manage and optimize IT systems. Overall, while the prospects of information technology in the Nigerian banking sector are promising, addressing these challenges is essential to fully harness the potential benefits of IT and drive sustainable growth in the industry.

Thesis Overview

INTRODUCTION

1.1    
Background
of the study

Although a lot of research works have been done on the
prospects and challenges of information technology in the banking industry,
these research works were broad based, while a few were actually carried out on
the role of information technology in modern banking operations. Modern banks
now realize that only those that overhaul their payment service delivery and
operations are likely to service and proper in the 21st century. This is
due to the presence of globalization, consolidation, privatization,
deregulation and rapidly changing technological environment. In order to
properly place themselves in favourable positions for competitions and be one
of the corporations to be reckoned with in the new century, banks make use of
internet facilities to execute mobile making. This is developed by using
personal computers (PCS) to form local area networks (LAN) and wide area
networks (WAN) through client/server technology (Davenport, 1993).Many banks
have installed modern computer interconnectivity backbone that would enable
them achieve their communications of data and multimedia over internets,
intranets and extranets. They also realize that they have to achieve not only
management/staff will computer literacy but what could be called information
literary i.e. knowing how to locate,, analyze, store and use information. All
staff and managers in a modern bank need to be able to search and gather data
from different sources, analyze them, select relevant ones and organize them in
such a manner as to allow informed decision making in the organization. Banks
of the future realize that the banking and other banking tomorrow requires more
of electronic manipulations and shuffling of bits based money and other banking
transactions, instead of paper. In other words, paper base of transactions,
instead of paper. In other words, paper based transactions, like the internet
banking services (Connel and Saleh, 2004). Whether a bank would be successful
or not depends on the extent to which it invests on internet and communication
technology (ICT) and how she uses it in an innovative manner. This area has
been tip to be a major competitive ground for banks that are operating in the
post consolidation era. What is the trend in the use of information technology
in Nigerian banking industry? To what extent does information technology chance
employees and organizations performance?

1.2
STATEMENT OF THE PROBLEM

Business need to continuously find better and faster ways to
adapt to the competitive market place in order to complete in today’s high
technology and fast paced environment. According to Hammer and Champy (1993)
learning organizations provide a framework that encourages finding better and
faster way to adapt in today’s high technology and fast paced world by:

1.   Looking at the whole versus the
parts a systematic perspective.

2.   Detecting and correcting errors.

3.   Improving actins through knowledge
and developing the broad skills of their work force.

These days’ computers and information processing are in
common usage. Computers influence what decisions are made, when decisions are
made, what and who is available at the point of decision and who is asked to
decide computers and information processing affects how work is organized and
how employees fell about work (Stephen, 2012).

From my perspective, the essential element of management of
information provision and this information technology system are expected to
heavily influence management and business operation and as such the main thrust
of this research work is to investigate the extent of this influence with
special focus on modern banking operations in Nigeria.

1.3 OBJECTIVE OF THE STUDY

The study generally in kinds to investigate the prospects
and challenge of modern banking operations in Nigeria, and to specifically:

1.   Evaluate the impact of electronic
banking on the operations of financial institutions in the country.

2.   Examine the effect of information
technology on banks customer relationship.

3.   Identify barriers to efficient
information technology system within a financial institution.

4.   And from the findings make
suggestions on how to make information technology system more efficient in
modern banking operations

1.4
RESEARCH HYPOTHESES

For
the successful completion of the study, the following research hypotheses were
formulated by the researcher;

H0: there is no impact of electronic
banking on the operations of financial institutions in the country

H1: there is impact of electronic
banking on the operations of financial institutions in the country

H02: there
are no barriers
to efficient information technology system within a financial institution

H2: there
are barriers to efficient
information technology system within a financial institution

1.5
SIGNIFICANCE OF THE STUDY

A vital component of any move towards better business
performance is an integrated information technology infrastructure that
supports organizations internal requirements for greater performance as well as
compliance with market and industry regulations. This study is significant in
the following ways:

1.   It would have a direct effect on the
efficiency and effectiveness of the use of information systems in the various
steps of the modern banking operations.

2.   It would enable employees and
managers who are involved in the information systems of their organization to
see opportunities for improvement in the use of information technology systems
thereby improvement in the use of information technology system thereby
improving the organizational productivity.

1. It would also be an invaluable tool
   for student academic, institutions and individuals that want to know more
   about the relevance of information technology in modern banking in Nigeria.

1.6 SCOPE AND LIMITATION OF THE
STUDY

Nowadays, financial originations and other business
organizations in general need to identify with the fact that information
technology system has a strategic impact on their business. This research work
shall strict contribution to this recognition and understanding by examining
the impact and trend of information technology within the financial business
sector in Nigeria. The focus of this study shall be on the adoption of
information technology in banking operation by Nigeria banking operations of GT
Bank Plc. This study shall cover the period since the introduction of
information technology in Nigerian banking sector to date. Information
technology was introduced into Nigeria economy upon the commencement of the
electronic payment scheme in 1996. All the various information technology
related schemes introduced since this period to date shall be examined in the
course of the study. The following limitations were encountered by the
researcher in the course of carrying out this study.

Time: This
has always been a limiting factor for a research of this kind, because the
structure needs to complete his work within a specified time frame.

Data Collection: The
problems of data collection was a recurring decimal, since bank officials were
not ready to release classified data neither were they to be found through
other official sources.

Therefore, the researcher had to limit herself to the
available data for this study.

Finances: Research
has always been cost intensive, as the researcher had to make various journeys,
photocopy materials and obtain official information. Thus, whereas the need for
finance abounded, it’s supply was limited

1.7 DEFINITION OF TERMS

PROSPECT: The
possibility or likelihood of some future event occurring.

CHALLENGES: A call to someone to participate in a competitive situation
or fight to decide who is superior in terms of ability or strength.

INFORMATION TECHNOLOGY: Information technology (IT)
is the application of computers to store, study, retrieve, transmit, and
manipulate data, or information, often in
the context of a business or other enterprise. IT is considered a subset
of information and communications technology (ICT).

BANKING SECTOR: The banking
sector is the section of the economy devoted to the holding of
financial assets for others, investing those financial assets as leverage to
create more wealth, and the regulation of those activities by government
agencies.

1.8 ORGANIZATION
OF THE STUDY

This research work is
organized in five chapters, for easy understanding, as follows

Chapter
one is concern with the introduction, which consist of the (overview, of the
study), historical background, statement of problem, objectives of the study,
research hypotheses, significance of the study, scope and limitation of the
study, definition of terms and historical background of the study. Chapter two
highlights the theoretical framework on which the study is based, thus the
review of related literature. Chapter three deals on the research design and
methodology adopted in the study. Chapter four concentrate on the data
collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and
recommendations made of the study