Computer Application And Performance Of Deposit Money Banks In Nigeria (A Study Of Gtb And Uba Plc)

ABSTRACT

The study focused on computer application and the performance of deposit money banks in Nigeria. The objective was to ascertain whether the application of computers has enhanced the performance of deposit money banks in Nigeria. Primary data was obtained through the use of structured questionnaires. The hypotheses were tested using analysis of variance (ANOVA) statistical techniques. The result obtained from the analysis revealed that application of computers have a significant positive impact on the performance of deposit money banks. Based on the findings, it was concluded that Nigerian banking industry has been positively and significantly affected by the adoption of new technology (computer). Thus, it was recommended that the bank management should embrace the computer applications in their daily activities as this would assist in improving customer’s satisfaction, networking, service delivery and profitability.

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Computer is probably being introduced and the basic of its purpose is the processing of facts/data into information.

The universal banking was introduced in Nigeria in the early 1990s and the rest of the world as an offshoot of globalization  under this system, banks were no longer specialized in either merchant banking or commercial banking ; rather they are allowed to provide banking and other financial services to their customers under the new universal banking license. It also prompted a rapid and significant branch office expansion program with its attendant significant increase in the volume of customer’s transactions in banking industry for survival and profitability (Johnson, 2005).

The increased demand for Information and Communication Technology (ICT) in banking sector became imminent and unavoidable in the world at large and Nigeria in particular. Invariably, the future lies in the ICT drivers banking systems and services. Banks have embarked on deployment of ICT based banking products and services  such  as: Automated Teller Machine (ATM), Internet Banking (IB); Mobile Banking Solutions, Point of Sales Terminals, Computerized Financial Accounting and Reporting, Human Resources Solution among others (Ovia, 2005)

Researches by Grigorian, et al; (2002); Nzotta and Okereke, (2009); Thiel, (2001) has shown that globalization has caused intense competition in the banking industry, worldwide. The phenomenon called “globalization” has significantly intensified competition in three particular aspects in the way competition had evolved giving it a new dimension viz.

1. Banks faces pressure from a wide and diverse range of competitors.
2. The regulatory environment t has become less protective of the banking sector.
3. Competition has become global in nature Abdulsalam, 2006)

1.2     Statement of the Problem

One of the challenges confronting e-banking on Nigeria could be classified into three classes as: human, operational and technical constraints. The human constraints include physical disability, poor sight, illiteracy and aging. The operational constraints includes: Insecurity of funds transferred, funds and standardization of channels. The technical constraints are entered on the lack of supporting infrastructures such as; erratic electricity supply interdependence and lack of encryption on Short Message System (SMS) messages (Agbada, 2008).

Additionally, diffusion of smart card innovation need high investment for the upgrades of ATMs and EFT/POS terminals to be capable of accepting smart cards and presumably a substantial investment in adding smart card technology for mobile  computers and telephony stand to be another challenge. The implementation of smart cards for the whole Europe, according to Visa figure requires eight billion dollars ($8 billion) investment which although is an affordable amount for many of the potential players, most players would only pay the entire amount if it would give them some proprietary advantage. So far, no player has felt confident enough to take a committed first mover position. This is in developed countries what more of a developing country like Nigeria (Ovia, 2005).

Coupled with these problems is a situation where a bank issue an individual debit card that is associated with an account with a line of credit  and is also an ATM debit card, the individual can perform a number of different types of transaction with  the same card. The line of credit could be accessed fraudulently, where the owner has recourse under consumer credit legislation and under regulation if the fraud involves an Electronic Fund Transfer (EFT). When Automated Teller Machine (ATM) or Electronic Point of Sale (POS) terminals are used, his liability is limited under the ETTA. If however, the fraudulent use of the card directly debits his bank account in a paper traced transaction, the consumer has no recourse under current legislation. This is an example where the same card representing three (3) different instruments, each of which in case of fraud would require different actions by the consumer (Agbada, 2008).

In order to investigate the impact of ICT in bank performance in addition to problems identified, this study intends to investigate and answer the following question:

• To what extent does ICT improve bank performance with reference is the selected deposit money banks in Nigeria?

1.3     Objectives of the Study

The main objective of the study is to examine the effects of the introduction of computers on bank performances in Nigeria. The specific objectives include:

1. To ascertain the uses of computers in the Nigerian banking industry.
2. To examine whether the application of computers has helped in fraud detection in Nigerian banking industry.
3. To investigate if the introduction of computers has reduced queries in the banking halls
4. To identify if the computer application has enhance service delivery in the Nigeria banking industry.
5. To explore the problems of computer applications in the Nigerian banking industry

1.4     Research Question

1. What are the uses of computers in the Nigerian banking industry?
2. To what extent have the introduction of computers helped in fraud detection and control in banks?
3. How has the introduction of computers helped in reducing queues in the banking halls?
4. To what extent have computer application enhance service delivery in Nigerian banks?
5. What are the problems facing computer application in the Nigerian banking industry?

1.5     Research Hypotheses

Ho₁:   Computer application in banks does not reduce queues in the banking halls

Ho₂:   Computer application in banks has no significant positive impact on fraud detection and control.

Ho₃:   There is no significant correlation between computer application and service, delivery in banks.

1.6     Scope of the Study

The scope of the study is based on the computer application and the performance of deposit money banks in Nigeria with GTB and UBA Plc as a case study, all in Owerri branch, Imo State.

1.7     Significance of the Study

This work will be of significance to banks, monetary authorities, government and stakeholders of the banking industry. It will help them appreciate the benefits of computer application in the banking sector and take informed decisions thereafter.

It will serve as a reference material to future researchers who may want to carry out further research on the area(s).

1.8     Organization of the Study

This work contained here has five (5) chapters, chapter one covers the introduction, statement of the problem, objectives of the study, research questions, hypotheses, scope of the study, significance of the study, definition of terms, etc.

Chapter two centered on review of the related literature chapter three covers the research methodology; chapter four handles the data presentation, analysis and discussion of findings.

Chapter five covers summary, conclusion and recommendations.

1.9     Definition of Term

Computer: It is an electronic device that is capable of accepting data as input, processing the data and finally giving out information as output.

Software: Is the invisible components that cannot be seen physically by the uses of the system.

Computer Network: Is the ability of several computers to communicate with each other.

Electronic Fund Transfer (EFT): Is the electronic that is used effectively to transfer the value of exchange process for goods, service, ideas or information from one bank account or another.

Electronic Fund Transfer at Point of Sale: Is an electronic means of transferring funds from the account to the company’s account at the point of sale of goods and services. It is an act of computerizing with a card reader and data links into the banking system which can transfer funds electronically.

Automated Teller Machine (ATM): These presented bank with more economical, substitutes for “brick and mortal” branches. It is an electronic terminal that allows a customer to withdraw cash and transfer funds between accounts.

Information and Communication Technology (ICT): Is all the technology vied to handle telecommunications, broadcast media, audio visual processing and transmission system as well as network base control and monitoring functions.

Deposit Money Bank: They are resident depository compositions and quasi-corporations which have any liability in the form of deposit payable on demand and transferrable by cheque.

Short Message Banking (SMS): It is a technology enabled service offered by banks to its customers, permitting them to operate in some selected banking services through their mobile phone SMS messaging.

Pages:  77

Category: Project

Format:  Word & PDF        

Chapters: 1-5                                 

Material contains Table of Content, Abstract and References.