IMPACT OF INFORMATION TECHNOLOGY (IT) IN MARKETING OF BANKING SERVICES
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IMPACT OF INFORMATION TECHNOLOGY (IT) IN MARKETING OF BANKING SERVICES
ABSTRACT
This study examined the impact of information technology in the marketing of banking services, using U.B.A Bank as a case example.
The study specifically addressed the concerns listed below.
Performance of information technology in banking
industry.
The extent to which the current economic situation influences information technology in banking operations. The overall levels of satisfaction offered to clients were measured using a questionnaire and oral interviews.
The necessary information was gathered from respondents, who included bank employees and customers. The data collected from the two zone banks in Enugu metropolis were tallied as frequencies and percentages.
The chi-square statistic was employed to examine the various hypothesis interpretations and analysis, yielding the following results.
That all respondents acknowledged the importance of information technology in banking services.
Banks employed information technology to recruit customers.
Most clients prefer U.B.A Bank’s information technology to those of other banks.
That the majority of the despondence accepted that quality services influence their selection for banking operations.
Furthermore, data pertinent to this research issue will be analysed in order to reach meaningful conclusions. Tables will be utilised to process raw data, which means that all information obtained will be analysed and presented in a table.
The scope of the study is quite broad if it must be carried out in all U.B.A. banks in Enugu due to a lack of time and materials resources to cover the entire U.B.A. bank in Niger.
Based on the research investigation, the researcher discovered the following:
That banks can only improve their delivery capabilities through increased investment in information technology.
That bank’s customer association has inadequate service delivery due to their high level of information technology.
However, the study provided several recommendations based on the findings.
That banks should develop a marketing department to ensure that consumers’ requirements are met, as the main goal of marketing is customer satisfaction.
That bank should get into a contract with information technology firms to hire their information technology or completely outsource this task to information technology organisations.Chapter one
INTRODUCTION
1.1 Background of the Study
As a financial institution, the primary goal of a bank is to mobilise savings and apply funds profitably.
According to Ogbu Andrew C., a bank executive, in an interview with him at U.B.A Bank on March 15, 2009, the main goal of U.B.A bank is to attract a significant share of the consumers found. (Ogbu, Andrew C.).
According to Uchenna E.O. (1997, p. 1), information technology on marketing of banking services arose to challenge all previous concepts in banks, and that information technology is the key to achieving organisational goals, which include determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors.
According to Nwankwo Eze A. (1998), an article published on September 25, many banks have historically strived to improve their counter services by hiring additional staff to cope with an increasing number of customers.
This did not provide such a result. With the advancement of information technology, banks have been able to automate some, if not all, of their processes, resulting in decreased costs in terms of employee wages and client wait times.
Decision making, loan and credit evaluations, and other banking services have all become much more efficient because to information technology accounting information systems.
Banking has recognised that survival in a competitive market is dependent on the level of information technology used protectively. That the spectrum of information technology used by the UBA bank must be defined by the needs of its clients.
He went on to say that, while technology has advanced, it has also produced technical development.
According to Jaret Charles T. (1998, p.9), the benefits that information technology offers are:
Quick decision-making because information can be sent more quickly.
Better decision since the information is complete, adequate, and up to date.
Better management – since the information system may closely align with the organization’s, departmental, and individual customer goals.
This study aims to investigate the influence of this investment on the functioning of banking services marketing for important industry participants who have embraced information technology.
1.2 Statement of the Problem
Banking is part of the service business. The quality of services provided by UBA Banks has drawn criticism from people from all walks of life.
According to Jarret (1998, p. 35), in the past, a major share of banking services were performed manually, necessitating relatively big labour resources to handle a number of repetitive transactions.
However, the wait time for such services had caused annoyance and unhappiness among a number of customers.
He also stated that most banks do not prioritise their consumers as much as they should. There is currently fierce competition, and competing requires the use of information technology marketing. Are these complaints fair, or are they simply a breakdown of the banking industry because it is profitable in an economic downturn?
The purpose of this study is to investigate the influence of a bank’s automation on banking service marketing.
It is critical to consider the possible progress and acknowledge the present widespread use of automated systems in banking service delivery. That the development of on-line back-office terminal systems similar to massive mainframe batch-processing computers has enabled the bank to deal with fast increasing volumes of transactions that could not have been handled manually.
He went on to say that using information technology is an entrepreneurial activity because information as a business resource should be controlled, and it considerably expands the potential accessible.
1.3 Object of the Study
This study’s aims include the following:
a. To investigate the relationship between information and technology and banks’ ability to supply services.
b. To advise how UBA bank executives might coordinate and manage the massive investment in information technology while maximising profit.
c. To tie the advancement of information technology to good service delivery by UBA banks.
d. Investigate the influence of information technology and investment on UBA bank profitability and customer loyalty.
d. To investigate the impact of banks’ information technology investments on client loyalty.
1.4 Hypothesis.
The null hypothesis will be tested against the following alternative hypothesis:
Ho: Customers’ choice of banks is not determined by the bank’s level of information technology investment.
Hi: Customers’ choice of bank is determined by the bank’s amount of information technology investment.
Ho: Customers’ preferences are not determined by high information technology or how information technology is used in banks.
Hi: Customers’ preferences are determined by either the amount of information in technology or how information technology is used in banks.
Ho: Customers do not regard their banks as high-technology institutions.
Hi: Customers view their banks to be technologically advanced.
1.5 Scope of the Study
If the survey is to be conducted at all UBA banks in the Enugu city, its reach is extremely broad.
The study is constrained since there is not enough time or material resources to cover the entire country.
The study is limited to (Enugu state), and the results may not reflect the situation throughout the country. These findings may not be applicable to all U.B.A. banks in Nigeria, however what happens at UBA bank in Enugu state can be applied to other U.B.A institutions.
However, U.B.A banks were chosen because they account for a larger proportion of the industry participating in over-the-counter cash transactions.
1.6 Definition of Terms
The terms used in this should be understood to mean the following:
MARKETING
Marketing is the human activity of directing the flow of goods and services from manufacturers to customers via an exchange process that directly or indirectly meets human wants and needs.
BANKING
Banking is defined in the 1969 act as the business of receiving monies from outside sources as deposits, or respective of the payment of interest and acceptance of credits or purchases of bills and cheques,
or the purchases and sales of securities claims respect of loan prior to their transactions for other or the effected of transferring and clearings, and such other transaction as the commission may, on recommendation of the central bank, by order published in the federal
Information Technology
Information technology is the study or application of electronic equipment, particularly computers, for the storage, analysis, and distribution of data of various types, such as words, numbers, and images.
Automated Banking
Automated banking is a gadget that allows consumers to deposit, withdraw, and transfer funds while the bank is closed.
SERVICES
There are distinct intangible activities that provide want satisfaction when sold to customers and/or industry users and are not necessarily related to the magnitude of a product or other services.
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