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IMPACT OF INFORMATION TECHNOLOGY IN BANKING INDUSTRY

IMPACT OF INFORMATION TECHNOLOGY IN BANKING INDUSTRY

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IMPACT OF INFORMATION TECHNOLOGY IN BANKING INDUSTRY

ABSTRACT

This study focuses on the impact of information technology in the banking business. Sky Bank will be selected as a case study.

This involved collecting both primary and secondary data in order to address the research challenge. The population of the study consists of Sky Bank employees and consumers who use their services.

The research instrument utilised for data collection was a questionnaire and oral interviews. Tables, frequencies, and percentages were utilised to present and analyse the data acquired. The chi-square statistic was utilised at a 5% level of significance to assess the various hypotheses.

The researcher’s data analysis yielded the following findings:

– Customers are dissatisfied with the bank’s information technology.

– Based on the data above, the researcher recommended that the bank do the following:

(a) Enhance information technology to improve service efficiency and customer satisfaction.

(a) The bank should continue to look for information that will help them satisfy their consumers.

(c) The problem of funds and the high cost of information should be addressed by releasing funds to strengthen the bank’s information technology.

The study concludes that Sky Bank’s information technology plays an important role in improving the efficiency of its services.

Chapter one

1.0 Introduction

1.1 Background of the Study:

The world is a global village. Bedsores have evolved into an organic economic activity capable of creating goods and services as a result of the world’s current status.

Given the organic nature of business, science and technology are continually evolving and improving. Businessmen and women have recognised the necessity to adapt their methods of doing business activities in order to keep up with current practices and effectively confront the constant and new problems that the firm faces.

This increased expectation challenges the business sector to develop new ways to improve business performance. There are numerous problems in business.

These problems are characterised by frequent changes in client trade as well as competition in the business circle by other competitors, all with the goal of obtaining or controlling the patronage of the majority of customers in the industry.

According to Nwukw (1998), an article published on September 29th, many banks have previously strived to improve their counter services and lower the waiting time for such services by hiring additional staff to cope with an increasing number of consumers.

However, the advertisement for information technology did not offer many results. Banks, including all state bank head offices, have been able to automate some, if not all, of their operations, resulting in cheaper costs in terms of employee wages and customer waste.

Loans and credit evaluations, as well as other financial services, have been made far more efficient thanks to information technology in all state banks, according to information systems.

All state bank head offices, realising that their survival in a competitive economy is dependent on the level of information technology, have adopted it cautiously. That the scope of information technology used by all state banks must be decided by the unique needs of its customers.

Thus, in order to compete favourably and effectively in today’s complicated business climate, the company must keep up with dynamic changes while also adopting new ways now applied all over the world, i.e.

by most successful businesses. To that purpose, this research world will investigate and research “the use of management information systems (MIS) to improve customer service and growth in the banking industry.”

1.2 Statement of Problem:

Information technology is an entrepreneurial endeavour since corporate resources must be controlled and it significantly expands the potential accessible to the organisation.

As a result of the rising demand for customer deposits, Nigerian banks, particularly the new generalisation banks, have recognised the importance of providing excellent and timely service.

Furthermore, as a result of some customers losing their deposits in previously technically insolvent or distressed banks, customers have become wiser, more discerning, alert, and sophisticated in terms of deciding where it is safe to put their money and where they will be served quickly, preferably in a pleasant, courteous, and friendly environment.

As a result, they have begun to evaluate the degree of service and professionalism provided by banks before depositing monies. Proximity to the bank is no longer a concern. Safety and service quality, as well as speed and efficiency, have emerged as critical imperatives.

Banks have realised that using technology is one way for them to provide superior services. As a result, new technologies are being adopted at an increasing rate in Nigeria’s financial activities.

Furthermore, there is rising evidence that clients have begun to associate a bank’s quality of service with its availability of an online real-time system. In fact, in Nigeria, having such a system is currently considered a must for providing high-quality banking services.

1.3 GOAL OF THE STUDY:

Among the study’s objectives

(a) To investigate the relationship between information technology and banks’ ability to supply services.

(b) Investigate the impact of information technology and investment on the profitability of all state banks and customer loyalty.

(c) Investigate the impact of information technology.

(d) To link the advancement of information technology to good service delivery in all statistic banks.

(e) To advise how first, bank executives might direct and manage picture investment information technology while maximising profit.

1.4 HYPOTHESIS FORMATION

The null hypothesis will be compared with the alternative hypothesis.

Ho1: Customer choice of banks is not determined by the bank’s level of information technology investment.

Hi: Customers’ choice of banks is determined by the bank’s amount of information technology investment.

Ho: Customer loyalty is not dependent on a bank’s high level of information technology.

Hi: Customers do not regard all state banks to be high-technology banks.

H3: Customers view all state banks to be high-technology banks.

1.5 Significance of the Study

Information technology has had a significant impact on the expansion of Nigeria’s banking industry. Telephone, facsimile, wireless radiophone, very small operational terminal satellite (VSAT) telegraph, and computer system are some of the accessible communications and information technologies utilised in the banking business today.

So, for a bank to be seen as delivering high-quality service, it must have an information technology (IT) system that allows it to provide service to clients in a more prompt, courteous, and attentive manner, at no additional cost to the customers.

The use of information technology increases bank productivity in the sense that it allows the bank to serve a larger number of customers because it speeds up cashiers’ work.

The study found that information technology has a significant favourable impact on bank productivity, cashier and bank services, banking transactions, bank patronage, and customer service.

These have a favourable impact on Nigeria’s banking business because clients can now collect money from any of their bank’s outlets. Customers do not have to carry big sums of money, and they are served quickly.

Customers value the impact of information technology on inquiries about their account status. It also indicated that almost all banks that use information technology provide telephone, computer, and facsimile capabilities. Also, the adoption of ATMs (Automatic Teller Machines) has tremendously aided money transactions.

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