IMPACT OF INFORMATION TECHNOLOGY ON BANK
OPERATIONS IN NIGERIA
(A CASE STUDY OF GUARANTY TRUST BANK PLC)
ABSTRACT
In any organization, there is no doubt that information technologies are the
bedrock behind every operation success in terms of productivity and
efficiency. In this project, the study is divided into five chapters. In chapter
one, we present the introduction of the study, background of the study,
statement of the problem, research questions, purpose of the study and
significance
of
the
study.
Also,
in
the
chapter,
certain
limitations
encountered on the field of study were explained. Chapter two documents
the literature reviewed in the course of the study. This chapter contains such
items like historical background and theoretical framework of information
technology on banks operations towards achieving effectiveness and
efficiency. In chapter three, we documented the methodology adopted in
this study, the research design, study population, sample and sampling
techniques and data collection instrument. The validity and reliability of the
research instrument used were also explained. The chapter four contains the
data analysis and presentation while the chapter five concluded the study.
TABLE OF CONTENTS
Title Page
Approval Page
Dedication
Acknowledgment
Abstract
Table of Contents
CHAPTER ONE
1.0 INTRODUCTION
1.1
Background of the study
1.2
Statement of the problem
1.3
Objectives of the study
1.4
Research questions
1.5
Significance of the study
1.6
Scope of the study
1.7
Limitations of the study
1.8
Definition of terms
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1
Introduction
2.2
Objective of management information system
2.3 Technological environment of Nigeria business
2.4 Strategies used by the government to strengthen
technological base
2.5 Impact of technological on the society
2.6 Impact of technological on business organization
2.7 Barriers to technological advancement in Nigeria
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research design and method use
3.3 Sources / Method of data collection
3.4 Population and sample size
3.5 Sampling techniques
3.6 Validity and reliability of measuring instrument
3.7 Method of data analysis
CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
4.4 Interpretation of data
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendices
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Information is unique and vital to the health of banks in Nigeria,
if properly receive and manage effectively and efficiently through
information management system in an organization. With the end
of colonialism, the newly independent states had expected to
compete in the new world order.
Eliminating colonial dependence was held as the key to banishing
backwardness and speeding up economic growth and development
through banks. These dreams have remained largely unfulfilled.
The economic gap between the industrially developed and the
developing countries of the world continues to widen due to lack
of information technology system in the country. The resulting
frustrations have emerged as unprecedented unrest and acute
technological problems.
In today’s world all aspects of economic development have witnessed
and experienced the touch of information technology rapid changes
are taking place in technological advancement, perhaps more
than in any other field of human activity.
Up till now, developing countries have only paid up services to
information technology as a factor of economic development
through the banking industry. Hence, the running of the main
productive sector of the economy is carried out on the basis of
lack of advanced technological equipments. All these have shown
that information technology have not directly benefited the industrially
advanced nations almost exclusively. The characteristic of nondevelopment of information technology in poor nations has been
the major factor for lack of social and economic progress in the
banking sector of the economy. No matter by what channels
modern technology reaches developing nation like Nigeria, it is
important that it meets the need of economic growth and
development. The process by which the information technology of
industrially developed countries is made to match the requirements
of developing countries has been called adaptive of technology.
The adaptation of technology forms and integral part of its
transfer to developing countries in this wise government as well
as stakeholders in the banking sector have role to play in bringing
Nigeria to the fore of information technological development that
will enhance economic growth in Nigeria.
1.2 STATEMENT OF THE PROBLEMS
Modern technology is to a great extent introduced into Nigeria as
an integral part of foreign investment, it has not met the desired
success. The limits of information technological progress are set
by the quality of human resources, the stage of industrial development
and the prevailing economic policy frame are problem affecting
information technology in Nigeria.
Recently in Nigeria, the banking sector witness unexpected turn
around by the regulatory body (CBN) which almost led to the
closure of some banks in the system due to mismanagement of
shareholders and customers money by some of the directors.
Hence, poor management of investors and customers funds, inability
to keep customers’ information for future use, poor network
services, conversion of investors money to personal money by
some bank executives and poor customers relationship and
orientation were now the order of the day due to lack of
information technology in its operations. It is on this note the
researchers want to examine the impact of information technology
on banks operations in Nigeria using Guaranty Trust Bank Plc as a
case study.
1.3 PURPOSE OF THE STUDY
The following are the purpose of the study:
-
To know the impact of information technology on banks
operations in Nigeria.
-
To know the impact of banks on economic development in
Nigeria.
-
To know the policies put in place to develop information
technology in Nigeria.
-
To know the need for information technology on the banking
industry.
-
To know why the industry is lacking in the area of information
technology.
1.4 RESEARCH QUESTIONS
The stated below are the relevant research questions formulated
for the study.
1. Do you think information technology system will increase
banks efficiency in Nigeria?
2. Do you think the banking industry is lacking in the area of
information technology?
3. Do you think bank management in Nigeria is doing enough to
improve information technology in the industry?
4. Do you think we need foreign investors to develop information
technology in Nigeria?
5. Do you think information technology have any impact on
banks operations in Nigeria?
1.5 SIGNIFICANCE OF THE STUDY
The research is significant for the following reasons:
a. It would give the researchers the knowledge of banks
operations in Nigeria.
b. It would also give the researchers the knowledge of the
formulated policies to improve information technology in
Nigeria.
c.
It would be useful to lectures of higher institutions of learning
i.e. university and polytechnics.
d. Students of Business Administration, Banking and Finance
and others studying related courses can also benefit from a
work of this nature.
e. Information technology would give the researchers the
knowledge of how information is been managed in the banking
industry.
f.
It would generate information useful to financial institutions
and investors in the field.
1.6 SCOPE OF THE STUDY
This research project is limited to the impact of information
technology on bank operator in Nigeria using Guaranty Trust
Bank as a case study since information must be received and
processed
into
meaningful
use
for
economic
growth
and
development especially in the banking industry.
1.7 LIMITATIONS OF THE STUDY
Embarking on the work of this nature is a daunting task. The
following are the factors which impeded the carrying out of the
research as schedule:
a. Finance: Insufficient capital to carry out the research work
slow the efficiency of the project writing.
b. Time: The researchers did not really have enough time to
gather facts about the research topic.
c.
Materials: The non-availability of the needed materials for
the work also affects the project writing negatively.
d. Facts: Poor responses to facts disclose by the banks
operators and stakeholders in the field also affect the project
completion.
1.8 DEFINITION OF TERMS
Information Technology: The study or use of systems (especially
computers and telecommunication) for storing, retrieving, and
sending information.
Bank: A financial intermediary that creates credit by lending
money to a borrower. It’s also a place where money is being
deposited for future references.
Mismanagement: The process of not handling something
competently.
Shareholder: This is one who legally owns a share of stock in a
public or private corporation.
Investment: This is the time, energy or matte spent in the hope
of future benefits actualized within a specified date or time frame.
Operation: This is a method or practice by which actions are
taken.
Economic Development: This is the quantitative and qualitative
changes in the economy.
1.9 BRIEF HISTORY OF GUARANTY TRUST BANK
Guaranty Trust Bank Plc was incorporated as a limited liability
company licensed to provide commercial and other banking services
to the Nigerian public in 1990 and commenced operations in
February 1991.
In September 1996, GT Bank Plc became a publicly quoted company
and won the Nigeria Stock Exchange presidents merit award. In
February 2002, the bank was granted a universal banking license
and later appointed a settlement bank by the Central Bank of
Nigeria (CBN) in 2003.
Guaranty Trust Bank undertook its second share offering in 2004
and raised over eleven billion naira from Nigeria investors to
expand its operations.
On 26th July 2007, GT Bank became the very first sub-saharam
bank and First Nigeria Joint Stock Company to be listed on London
Stock Exchange and Deutsche Borse.
In the same year, they successfully placed Nigeria’s first private
Eurobond issue on the international capital markets.
The GT Bank USA 500,000,000 Eurobond was the first ever
benchmark Eurobond issued by a Nigerian corporate and second
Eurobond programme by GT Bank in the last five years.
The long term debts of Guaranty Trust Bank Plc are rated BB, by
standard and poor and AA by Fitch Ratings which are the highest
rating for a Nigeria bank.
They introduced online banking and SMS banking in Nigeria and a
naira denominated MasterCard as well as the platinum and world
signal cards and with GT Bank on wheels, mobile branches.
On 12th March 2008, GT Bank was given a banking license for the
United Kingdom by the financial services authority.
GT Bank is a partner of Eko Atlantic City a new made Island
(820ha) in the Atlantic Ocean adjacent to Victoria Island Lagos. It
will be the home of the new financial district. The building of Eko
Atlantic City started in 2009 and is expected to be finished on
2016. To commemorate the banks 20th anniversary, the Nigeria
postal service issued a set of GT Bank Anniversary Postage
Stamps. This was the first time in Nigeria that a corporate
organization was honoured in such a way. In 2011, the bank
became the biggest bank in Nigeria by market capitalization.
In 2013, the bank issued a USA 400,000,000 Eurobond at a
coupon rate of 6%, the least obtained by a Nigeria company in
the international capital market. The Eurobond was issued under
the USA 2,000,000 global medium term note programme, which
is registered under both regulation in the United State of
American and Rule 144A in the United Kingdom and sold investors
across Africa, America, Asia and Europe. The bank has over 10,000
employees.
CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
This is the main chapter of the project writing, it entails the
various scholars about the subject matter. “The impact of
information technology on banks operations in Nigeria”. Change
in technology play a significant role in determining what product
and services will be produced and how. For example, the
information of computers and automated teller machines has led
to cheques being processed by computers at banks thereby
introducing efficiency in banking operations but rendering man
clerks redundant while the computer has made many unskilled
jobs obsolete, it has created the lots of skilled programmers,
system analysts and computer technicians.
Technological breakthrough can also lead to new competitive
positions in different industries bring a new competitive dimension
to the field (B.O. Karimu, 2000).
In general, management information refers to the knowledge
acquired to achieve specific purpose. It is produced as output of
data processing operations. Just as raw materials are transformed
into finished products by a manufacturing process, so also are
raw data (facts or un-evaluated messages) transformed into
information by the data processing operation. For this information
to be meaningful and useful to managers, it must be accurate,
timely, complete, concise and processed at a reasonable cost.
Information technology could be said as the networks of data
processing procedures developed in an organization and integrated
to provide managers with time and effective information. The
concepts may be characterized as being quicker in responding
and brother in scope (B.O. Karimu, 2000).
Information is an analyzed data that are now more meaningful
and decision can be based on it (Alashiri, O.A., 2003).
2.2 OBJECTIVE OF MANAGEMENT INFORMATION SYSTEM
(MIS)
The objectives are stated below:
1. To make information available when needed where needed
and in the format needed.
2. To supply accurate information.
3. To use the most efficiency methods for processing data.
4. To provide requested information at a reasonable cost.
5. To provide necessary security for important and or confidential
information.
6. To keep the information function up to date when properly
develop
and
organization
implemented,
increase
its
the
system
profitability
will
because
help
of
the
better
managerial decision making.
It advantages are also stated below:
1. It
provides
database:
management
information
system
concepts result in the development of a database that contains
data generated by each of the functional areas of the
organization.
2. It results in greater efficiency: Resources are properly utilized
since the system frees people to perform those functions that
machines cannot perform.
3. It brings about greater effectiveness: Management information
system concepts enable organizations to improve operations
that are already being performed well.
4. It results in a reduction of operating costs: For instance, by
providing more accurate information.
5. It also result son better
control: Since
an integrated
management information system is composed of the various
functions areas in all organization better control can be
extended over its works process.
The input data used to produce information originate from both
internal sources consist of individuals and departments with an
organization that furnish facts on both regular and planned basis
and on an information basis through causal contacts and discussion.
External sources consist of data furnished from outside an
organization customer’s suppliers, competitors’ business publications
etc.
Alashiri, O.A. 2003 stated the following as the qualities of good
information technology.
a. It should be relevant for its purpose.
b. It should be completed for its purpose.
c.
It should sufficiency, accurate for its purpose.
d. It should be clear to the users.
e. The users should have confidence in it.
f.
It should not be excessive; its volume should be manageable.
g. Information technology should be communicated to the right
person.
h. It should be timely.
i.
It should be communicated by an appropriate channel of
communication.
2.3 TECHNOLOGICAL ENVIRONMENT OF NIGERIA BUSINESS
Technology is one of the most pervasive factors in the business
environment. It is science, which provides the knowledge.
Technology is the sum total of knowledge we have of ways to do
things. It includes inventions, techniques and vast store of
organized knowledge about everything from aerodynamic to
zoology. The main influence of technology is on ways of doing
things, or how we design, produce, distribute and sell goods as
well as service. The effect of technology is seen in new products,
new machines, new tools, new materials and new services. Some
of the benefits of technology include greater production, higher
living standards, more leisure time and a greater variety of
products.
Some of problems that technological development create include
traffic jams polluted air and water, shortage of energy and the
loss of privacy through computer technology applications, etc.
The need for technological advancement in countries in Africa,
Nigeria inclusive and general in the developing countries became
imperative because:
1. Developing countries are buyers of technologies or more
assembling plants and seldom manufacturers of technology.
This notion is caused by lack of technical and managerial skill
and the low innovative spirit in Nigerians in particular and
developing nations in general.
2. Programmes of industrialization embarked upon by these
developing countries through their various industrial policies
imply a need for new product. Improved method of production
and skill for technological innovation and adaption.
3. Technology development is not isolated also from the current
globalization train that has overwhelmed virtually all economic
activities, indeed all aspect of human endeavour, nationally
and internationally.
As part from the globalization trend, the most current strategies
of African regional government namely: New Partnership for
African Development (NEPAD) and in collaboration with other
third world countries (Developing Nations) for examples G.15
group of nations which are natural resources (especially mineral)
based economies is to develop home grown initiatives and input
to facilitate the upgrading of data /confirmation of their natural
endowment especially geological information in the case of
mineral resources. These partners in development are also
determined to add value to their resource. Items through
beneficiation and processing and ensure that they produce high
value manufactured products through cooperation and exchange
of relevant information, expertise and manpower development
through capacity building, by extension of this imperative, the
development of local technology for achieving this regional and
Nigeria objective is recognized as very critical in this grand
design.
Man has devised means of making himself comfortable and deriving
maximum satisfaction from his environment within the available
resources since time immemorial. This stated from making of
tools to invention of machines and sophisticated techniques.
2.4 STRATEGIES USED BY THE GOVERNMENT TO STRENGTHEN
TECHNOLOGICAL BASE
1. Educational System: The educational system of a society
has considerable impact on provision on human resources for
the growing businesses, improving the level of awareness and
providing a logical foundation for technological advancement.
The
rapid
industrialization
depends
on
technology
and
technology depends on education. Japan offers proof to this
fact. A nation that fails to meet the minimum level of literacy
cannot attain high degree of industrialization. The introduction
of the 6-3-3-4 system of education, adoption of mass literacy
campaign by the year 2000AD and the shifting of emphasis of
Nigeria education policy to technological based science subjects
are some of measures taken by the federal government to
improve the educational level in this country.
2. Establishment
of
Research
Institution:
The
federal
government also established various institutions charge with
the responsibility of conducting research and development in
industrial utilization of local raw materials upgrading local
technologies, design and fabrication of prototypes of simple
processing equipments rendering consultancy services to
industry, government and small scale industrialists examples
of such institutions are technical schools and colleges,
universities of technology, research institutions such as Federal
Institute of Industrial Research, Oshodi (FIIRO), Institute of
Agricultural Research, Samaru, Leather Research Institute
Zaria, Nigeria Institute of Social and Economic Research,
Ibadan, Nigeria Building and Road Research, Ikoyi, Lagos.
3. Supporting Research Activities: Apart from the research
and development efforts of government owned agencies
strategies are also used to encourage investment of private
organizations in research basic is concerned with the search
for understanding phenomena with little expectations of a
direct pay-off. Basic research explores the situation or
phenomenal in order to learn about it and answer question
relatively to it. Applied research attempts to explain or
explore situation in order to enable the researcher understand
it better. Development is the application of science and
technology to take a successfully applied research project to a
commercial scale. It is worthy to note that technological
advancement is based on well articulated and effective research
and development programmes. Little wonder for the various
efforts made by the government to improve research and
development.
4. Technology Transfer: Another major strategy used by the
government to advance technologically is by means of
technology import. Transfer of technology can be defined as
the acquisition of foreign technical-know-how from developed
countries.
2.5 IMPACT OF TECHNOLOGY ON THE SOCIETY
The impact of technology has been pervasive in both developed
and developing countries both have been enjoying the products of
technology. On the other hand, technology developments also
have some environmental problems. The impact of technology
can be addressed from the following areas: society, business
organization information and environmental impact.
On the positive side, technology has improved the standard of
living of the society through the following ways:
1. Improved methods of work through application of scientific
and technological breakthroughs.
2. It has enable individuals to purchase luxury items as well as
basic necessities at reasonable prices.
3. Good quality goods and services are made available for the
growing population.
4. Availability of more time for leisure and rest thereby reducing
the possibility of being stressful.
5. Exploration of Nigerian products abroad is facilitated by
technological advancement.
6. Improved communication that linked countries together by
land, sea etc.
7. Growing population of business activities is a product of
technology.
Societal
problem
experienced
as
a
result
of
technological
advancement include:
1. Over investment in research and development
2. Developing countries like Nigeria are at the receiving end of
obsolete technologies from abroad.
2.6 IMPACT OF TECHNOLOGY ON BUSINESS ORGANIZATION
Technologies
also
have
considerable
impact
on
business
organization. The positive impacts include:
1. Mechanization
and
automation
of
industrial
operation:
Mechanization is the use of machines as substitutes to human
labour
and
automation
encompasses
all
facets
of
accomplishing the industrial tasks with little or no human
effort. The need for mechanization and automation arise from
high cost of labour and the desire to satisfy the complexity
imposed by modern production system. The mechanization of
agriculture, computerization of organizational activities is
examples of application of mechanization and automation in
Nigeria business.
2. Technology also improves the method of planning scheduling
and control of production system in organizations. In addition,
it offers business organizations improved inputs and required
information for achieving productivity in the contemporary
competitive business world.
3. Technology has also created new occupations in industries for
example, the use of computer a branch in automation has led
to the creation of position like system analysis computer
operators programmers, to mention just a few.
On the negative size, technology has the following effects:
1. Business
organizations are presented
with problems
of
planning for meeting the dynamic nature of technological
environment.
2. It
imposes
additional
responsibility
on
the
business
organization to train and retrain the available labour force.
3. It requires frequent changes in the organizational structure of
cope with change in technology
4. It may bring about un-cordial relationship between the labour
unions and the business organization.
2.7 ENVIRONMENTAL IMPACT OF TECHNOLOGY
Technological advances are also associated with some benefits
and problems of environmental and occupational health on the
workers. The environmental occupational benefits associated with
technology include:
1.
Effective
and
efficient
use
of
available
resources
for
producing marketable goods and services for the growing
population.
2.
Providing alternative sources of energy, such as solar,
natural gas, hydropower, petroleum etc.
On the negative side, environmental problems associated with
technological advancement include:
1. Social problems, such as urbanization and unemployment
2. Occupation health problems caused by industrial accidents.
3. Industrial pollutions.
2.8 BARRIERS TO TECHNOLOGICAL ADVANCEMENT IN
NIGERIA
The technological advancements of Nigeria have lagged behind
her population growth. This can be attributed to the following
factors.
1. Lack of well defined technological development policy. Policy
measures towards bringing about Nigerian technological
advancement have not been encouraging.
2. Management of technological effort has not been properly
handled. For example experience has shown that the funds
are not available and where available not properly utilized.
3. Lack of required human resources to cope with the growing
technological requirements.
4. Political instability has not fostered the required environmental
for technological growth.
5. The so-called transfer of technology is faced with a number of
constants such as:
a. Social constraints that make individual to resists technology
import.
b. Bargaining constraints emanating from the transfer
c.
Physical constraints particularly lack of infrastructural facilities.
d. Training constraints may frustrate the diffusion of current
technology.
2.9 SUMMARY OF LITERATURE REVIEW
In general, management information refers to the knowledge
acquired to achieve specific purpose and it is produced as output
of data processing operation just as raw materials are transformed
into information by the data processing operation. For this
information to be meaningful and useful to managers, it must be
accurate, timely, complete, concise and processed at a reasonable
cost. Information technology could be said to the networks of
data processing procedures developed in an organization and
integrated to provide managers with time and effective information.
Information is an analyzed data that are now more meaningful
and decision can be based on it.
A
Management Information
System
(MIS)
focuses
on
the
management of information systems to provided efficiency and
effectiveness of strategies decision making. The concept may
include systems termed transaction processing system, decision
support systems, expert system and executive information
systems. The term MIS is often used in the business schools,
some of MIS contents are overlapping with other areas such as
information
system,
information
technology,
informatics,
e-
commerce and computer science. Therefore the MIS term
sometimes can be interchangeable used in above areas.
Technology is one of the most pervasive factors in the business
environment. It is a science, which provides the knowledge. It is
the sum total of knowledge we have to ways to do things. It
includes inventions, techniques and vast store of organized
knowledge about everything from aerodynamic to zoology. The
main influence of technology is on ways of doing things, or how
we design, produce, distribute, and sell goods as well as services.
The effect of technology is seen in new services. Some of the
benefits of technology include greater production, higher living
standards, more leisure time and a greater variety of products.
The impact of technology has been pervasive in both developed
and developing countries both have been enjoying the products of
technology. On the other hand, technology development also has
some environmental problems. The impact of technology can be
addressed from the following areas: society, business organization
information and environmental impact. Technology improved
methods of work through application of scientific and technological
breakthrough. It also has enable individuals to purchase luxury
items as well as basic necessities at reasonable prices.
Technological advances are also associated with some benefits
and problems of environmental and occupational health on the
workers and they include effective and efficient use of available
resources for producing marketable goods and services for the
growing population and providing alternative sources of energy,
such as solar, natural gas, hydropower, and petroleum.
In conclusion, the technological advancements of Nigeria have
lagged behind her population growth and it can be attributed to
the following factors.
1. Political instability has not fostered the required environment
for technological growth.
2. Lack of required human resources to cope with the growing
technological requirements.
3. Management of technological effort has not been properly
handled, for example experience has shown that the funds
are not available and where available not properly utilized.
REFERENCES
Akanji, S.O. (2003). Nigerian Business Environment and Ethics,
BORJ Venture, Ikeja, Lagos.
Alashiri, O.A. (2003). Information is an analyzed data that are
nor more meaningful and decision can be based on it.
Bisira, H.O. et al (2002). Descriptive Statistics (Revised Edition
Lagos) LASPOTECH Press Ikorodu.
David, Akala (2008). Business Information Trend, View Press,
Festac, Lgaos.
Karimu, B.O. (2000). Business Management (An Introduction).
Ade-Ola Printing Press, Ogun State.
Lawal, A.A. (1993). Management in focus, Abdul Industrial
Enterprise, Ikeja, Lagos.
Oloruntoba, S.A. et al (2008). New Approach to Information
Technology, Abiodun Kinson Nigeria enterprise Yaba, Lagos.
Vincent, O.M. et al (2008). Fundamentals of Business Research
(Revised Edition), Olas Ventures, Lagos.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
This chapter deals with the survey method adopted in this study,
the study population, the sample size and sampling techniques
used in the selection of the respondents involved and the
instrument used for data collection. Also explain in this chapter
are the procedures adopted for data collection and the method of
data analysis.
3.2 RESEARCH DESIGN
The survey research design was adopted in this study. Under this
method, the personal efforts were put into the gathering of
primary and secondary data. In the primary data, the researchers
personally distributed copies of the questionnaire designed for the
study. The collection of all the dully completed copies of the
questionnaires was done through personal visit to the respondent.
In addition, limited observations were made to gather those data
that were difficult to gather through the use of a structured
questionnaire. For the secondary data, textbooks, journals and
the relevant materials from the internet resources were used.
While the report of primary data were analyzed and presented in
chapter four, the review of the secondary data were documented
in chapter tow of this study.
3.3 POPULATION OF THE STUDY
The population study of this research project consisted of the
employees and customers of the Guaranty Trust Bank Plc, I Lagos
Metropolis. Both male and female were the targeted population.
3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES
The sample selection of the research was taken from the stated
population of the study. The sample population given to the
questionnaire consists of one hundred and fifty (150) respondents.
The strategy used for sampling is the random techniques. It was
used because each element has equal chance irrespective of sex,
age, marital status, qualification / level of education.
3.5 RESEARCH INSTRUMENT
The instrument used in this research work is primary and
secondary data methods. In the primary data method, copies of a
questionnaire were administered to the customers and staff of the
organization of fill according to their own opinions. The secondary
data methods of collecting data were also used and they include,
textbook, internet source, pamphlets and journals as they relates
to the topic of discussion.
The questionnaires used for collecting primary data were framed
in such a way that the respondents should be able to answer yes
or no as the options. Finally, the instruments required each
respondent to tick the options that best describes his/her opinion.
3.6 VALIDITY AND RELIABILITY OF MEASURING INSTRUMENT
One of the aims of the research instrument is to establish whether
the instrument used in the collection of the primary data was
reason enough to ensure that relevant and adequate responses
were gathered from the respondents. Thus, the validity of the
questionnaire designed to gather primary data was established
after going through reasonable copies of the questionnaire. In
other words, the validity was based on what are reasonable and
sensible from the returned copies of the questionnaire.
The reliability of the same instrument was confirmed by the
project supervisor. This was confirmed when the project supervisor
approved the use of the questionnaire designed for this study.
3.7 RESEARCH PROCEDURES
The procedure followed in this research work involved a number
of visit to the various departments mentioned above and a direct
interview with the officer involved in the schedules. For the study,
the researcher personally distributed two hundred (200) copies of
questionnaire. This method was adopted in order to ensure that
the distributed copies of the questionnaire reach the right
respondents out of the number of copies distributed, one hundred
and fifty (150) copies were returned.
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION
This chapter deals with analysis and interpretations of the data
collection in the course of this research. In doing so, the data
collected err analyzed based on the simple percentage, while the
chi-square (X2) statistical tool were used to test the level of
significant relationship between the variables formulated as
hypotheses for the study. However out of 150 copies of the
questionnaires administered, one hundred (100) copies were
completed and returned. This generates a response rate of 67%.
This percentage response rate was considered a favourable one,
due to the fact that it was above average.
4.1 DATA PRESENTATION
The following tables were used to present and analyze the data
for the study.
Table 1: Distribution of respondents by sex
Variable
No. of Respondents
% of Respondent
Male
90
60
Female
60
40
Total
150
100
Table 2: Distribution of respondents by age
Variable
No. of Respondents
% of Respondent
18-25yrs
40
40
26-35yrs
35
35
35yrs and above
25
25
Total
100
100
Table 3: Distribution of marital status
Variable
No. of Respondents
% of Respondent
Single
70
70
Married
30
30
Total
150
100
Table 4: Distribution by educational background
Variable
No. of Respondents
% of Respondent
ND
60
60
HND/Degree
30
30
MBA/MSC
10
10
Total
100
100
4.2 DATA ANALYSIS
Five (5) research questions were stated for this study. Those
questions were sought to elicit facts about the impact of
information technology on banks operations in Nigeria. Responses
to the question are presented below:
Table 5
Research Question 1: Do you think information technology
system will increase banks efficiency in Nigeria?
Responses
No. of Respondents
% of Respondent
Yes
80
80
No
20
20
Total
100
100
Table 6
Research Question 2: Do you think bank management in Nigeria
in doing enough to improve information technology in the industry?
Responses
No. of Respondents
% of Respondent
Yes
85
85
No
15
15
Total
100
100
Table 7
Research Question 3: Do you think the banking industry is
lacking in the area of information technology?
Responses
No. of Respondents
% of Respondent
Yes
89
89
No
11
11
Total
100
100
Table 8
Research Question 4: Do you think we need foreign investors
to develop information technology in Nigeria?
Responses
No. of Respondents
% of Respondent
Yes
80
80
No
20
20
Total
100
100
Table 9
Research Question 5: Do you think information technology
have any impact on banks operations in Nigeria?
Responses
No. of Respondents
% of Respondent
Yes
90
90
No
10
10
Total
100
100
4.3 TEST OF HYPOTHESIS
In evaluating the relationship between variables generated, the
chi-squared tested were used. Hence, observed frequencies that
is, number of responses and the expected frequencies calculated
by multiplying the column total by the row total and divided by
the grand total were used to test the significant relationship
existing between the variable generated in the questionnaire
been hypothesized.
Formula for chi-square
X2 = (Oi – Ei)2
Ei
Where
X2 = Summation
Oi = Observed frequencies
Ei = Expected frequencies
Decision Rule
The test statistics that is the calculated value (X2t) and the critical
value (X2c) shall be compared. If the test statistics is greater than
the critical value, the null hypothesis will be rejected and the
alternative hypothesis will be accepted at 0.05 level of significance
but if (X2c) is less than the (X2t) the null hypothesis will be
accepted while the alternative hypothesis will be rejected at the
same significance level.
Total Frequency Table
Responses T1
T2
T3
T4
T5
Total
Yes
80
85
89
80
90
424
No
20
15
11
20
10
76
Total
100
100
100
100
100
500
The figures in the above table were the observed frequencies
from the number of respondents that gave their responses based
on the option. Expected frequencies derived calculated below:
X2 = RT x CT
GT
Where
RT = Row total of each
CT = Column total of each
GT = Grand total of all observed frequencies
Yes =
424 x 100
400
No =
= 83.5
76 x 100
400
= 16.5
Chi-Square Distribution Table
Yes
O
E
(O-E)
(O-E)2
(O-E)2/E
80
83.5
-3.5
12.25
0.1467
85
83.5
1.5
2.25
0.0269
89
83.5
5.5
30.25
0.3623
80
83.5
-3.5
12.25
0.1467
16.5
3.5
12.25
0.2121
No
20
15
16.5
1.5
2.25
0.1364
11
16.5
5.5
30.25
1.8333
20
16.5
3.5
12.15
0.7424
10
16.5
-6.5
42.25
2.5606
6.6746
X2t = 6.6746
Degree of freedom = (r-1) (c-1) = (2-1) (4-1) = 4
X2 0.05,4
Level of significant used is 0.05
X2c = 7.8147
From the above statistics, it could be discovered that the
calculated value of 6.6746 is less than the critical value of 7.8147
at 0.05 level of significance. Thus, the Hi is rejected while the Ho
is accepted which says information technology has significant
impact on banks operation in Nigeria.
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 INTRODUCTION
This chapter considered the summary of the whole study, the
summary of the findings, conclusion and recommendations. I
ended the chapter with suggestions for further studies.
5.2 SUMMARY OF FINDINGS
From the above analysis in chapter four, the following are the list
of finding:
-
Any bank that engages in the use of proper information
technologies makes adequate profit.
-
Effective information technology could reduce the working
capital of the business.
-
Other management functions depend on information technology
to achieve organizational goals.
-
Information technology is the bedrock of success in any bank
operations.
-
Information
technology,
if
well
strategize
can
capture
customers in the banking operations environment.
-
Lack of adequate information technology usually leads to
banks operational failure.
5.3 CONCLUSION
In conclusion, from the analysis above, it shows that the value of
information technology on banks operations and efficiency cannot
be over-emphasized in the sector. It helps to determine and
capture the relevant information into data base for effective and
efficient operations. The researchers also conclude that information
technology should be a going concern in the banking sector of the
economy and should be considered in the planning process. Also,
adapting to the information technology is necessary for successful
implementation of its objectives. Finally, the researchers concluded
that government should put in place modalities and policies that
will encourage optimal development of information technology in
the banking sector for magnificent operations.
5.4 RECOMMENDATIONS
A critical look at the subject matter, which is the impact of
information technology on banks operations in Nigeria. It is highly
recommended that, it is necessary for banks to embark on
continuous surveillance as well as periodic review to ascertain the
level of information technology development in the sector. Since
the impact of information technology cannot be over-emphasized
in the achievement of effective banks operations in Nigeria,
government and stakeholders in the sector should come together
and deliberate on how to improve information technology in the
general system of the economy. Also, top management staff
should undertake special studies on informational technological
advancement, so as to eliminate inefficiency that may arise
during operations.
5.5 SUGGESTIONS FOR FURTHER STUDIES
This research project focused on the impact of information
technology on banks operations in Nigeria. As a result, other
research can extend on searchlight on the role of government in
the development of information technology in Nigeria. There is
also the need for further studies to determine other informational
technological tools that enhanced high and dependable banks
operations in Nigeria.
Finally, it is hope that variables uncovered in this research work
will pave way as a foundation for further studies by other
researchers in the field.
BIBLIOGRAPHY
Akanji, S.O. (2003). Nigerian Business Environment and Ethics,
BORJ Venture, Ikeja, Lagos.
Alashiri, O.A. (2003). Information is an analyzed data that are
nor more meaningful and decision can be based on it.
Bisira, H.O. et al (2002). Descriptive Statistics (Revised Edition
Lagos) LASPOTECH Press Ikorodu.
David, Akala (2008). Business Information Trend, View Press,
Festac, Lgaos.
Karimu, B.O. (2000). Business Management (An Introduction).
Ade-Ola Printing Press, Ogun State.
Lawal, A.A. (1993). Management in focus, Abdul Industrial
Enterprise, Ikeja, Lagos.
Oloruntoba, S.A. et al (2008). New Approach to Information
Technology, Abiodun Kinson Nigeria enterprise Yaba, Lagos.
Vincent, O.M. et al (2008). Fundamentals of Business Research
(Revised Edition), Olas Ventures, Lagos.
QUESTIONNAIRE
PART A: (Respondents Data)
Please tick () where appropriate
1.
Sex
a. Male
2.
b. Female
Marital status
a. Married
3.
b. Single
Age
a. 20-25yrs
b. 26-30yrs
c. 31-35yrs
d. 36yrs and above
4.
Qualification
a. ND
b. HND/BSC
d. Others
PART B: (Research Questions)
c. MBA/MSC
1.
Do you think information technology system will increase
banks efficiency in Nigeria?
a. Yes
2.
b. No
Do you think the banking industry is lacking in the area of
information technology?
a. Yes
3.
b. No
Do you think banks management in Nigeria is doing enough
to improve information technology in the industry?
a. Yes
4.
Do
you
b. No
think
we
need
foreign
investors
to
develop
information technology in Nigeria?
a. Yes
5.
b. No
Do you think information theology have any impact on banks
operations in Nigeria?
a. Yes
b. No