Computerization and the Growth of the Banking Sector (2000-2019) Evidence From Nigeria
Chapter One
OBJECTIVES OF THE STUDY
The main objective of the study is the computerization and the growth of the banking sector (2000-2019) evidence from Nigeria. Specifically, The objectives of this study are:-
- To determine the Effects of IT on Customer Services
- To examine the Promptness and efficiency of services
- To evaluate the Influence of IT on patronage
- The determine the Perception of customers on the ease of banking transactions
- To examine the Effects of IT on the interaction between cashiers and customers
CHAPTER TWO
REVIEW OF RELATED LITERATURE
CONCEPTUAL FRAMEWORK
According to the free online dictionary gives the following definitions of a system.
A set of connected things or parts forming a complex whole in particular.
A system is a set of thing working together as parts of a mechanism or an interconnecting network. A system is a set of interacting or interdependent group or components forming an integrated whole or interacting elements forming a collective entity; a methodical or coordinated assemblage of parts, facts, concepts etc.
According to Hartzell (2006) defines system as any series of interconnected elements forming an organized whole with a common objective. Example can range from an individual central nervous system to a societies family and kingship arrangements.
Stallings (2010) states that computer system like any system consists of an interrelated set of components. The system is best characterized in terms of structure the way in which components are interconnected and functions the operations of the individual components. The major components of the computer system are the processors memories, and 1/0 devices i.e. input and output devices. The task of a processor is to fetch instructions one at a time from a memory, decode them and execute them. The fetch – decode – execute cycle can always be described as an algorithm and, in fact, is sometimes carried out by a software interpreter, running at a lower level. To gain speed, many computers now have one or more pipelines or have a superscalar design with multiple functional units that operate in parallel. Systems with multiple processors are increasingly common. Parallel computers include array processors, on which the same operation is performed on multiple data sets at the same time, multiprocessors, in which multiple CPUs share a common memory, and multiprocessors, in which multiple computers each have their own memories but communicate by message passing. Memories can be categorized as primary or secondary. The primary memory is used to hold the program currently being executed. Its access time is short – a few tens of nanoseconds at most – and independent of the address being accessed. Secondary memories, in contrast, have access times that are much longer (milliseconds or more) and dependent on the location of the data being read or written. Tapes, magnetic disks and optical disks are the most common secondary memories. Magnetic disks come in many varieties, including floppy disks, Winchester disks, IDE disks, SCSI disks and RAIDs. Optical disks include CD ROMs and CD-Rs and DVDs.
Finally 1/0 devices ie input and output devices are used to transfer information into and out of the computer. They are connected to the processor and memory by one or more buses. Examples are terminals mice printers and modems.
Ikemefuna (2006) defines system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Societies are systems, and so are automobiles, plants and human bodies. They take inputs, transform them, and produce some output. The unique characteristic of the systems viewpoint is the interrelationship of parts within the system. Every system is characterized by the diverse forces; differentiation and integration in a system. Specialized functions are differentiated which replace diffuse global patterns such as in the human body for instance, where the lungs, heart and liver all have distinct functions. Similarly organizations have divisions, departments and such like units charged with performing specialized activities. Every system therefore requires differentiation to identify its subparts and integration to ensure that the system does not breakdown into separate elements.
According to Free Merriam, a computer system refers to the hardware and software components that owns a computer or computers. Computer system will include the computer along with any software and peripheral devices that are necessary to make the computer function.
French (1996) state the basic elements that make up a computer system areas follows:
- Input
- Storage
- Control
- Processing
- Output
A brief description of each element
- Input
Most computers cannot accept data in forms customary to human communication such as speech or hand-written documents. It is necessary, therefore, to present data to the computer in a way that provides easy conversion into its own electronic pulse – based forms. A keyboard device is just one of many kinds of input device.
- Storage
Data and instructions enter main storage, and are held until needed to be worked on the instructions dictate action to be taken on the data. Results of action will be held until they are required for output.
- Control
The processor controls the operation of the computer. It fetches instructions from main storage, interprets them, and issues the necessary signals to the components making up the system. It directs all hardware operations necessary in obeying instructions.
- Processing
Instructions are obeyed and the necessary arithmetic operations, etc. are carried out on the data. The part of the processor that does this is sometimes called the Arithmetic – Logical Unit (ALU), although in reality as for the “control Unit”, there is often no physically separate component that performs this function. There arithmetic logical operations / numbers takes place at incredibly high speeds, e.g. 10million numbers may be totalled in one second.
- Output
Results are taken from main storage and fed to any output device. This may be a printer in which case the information is automatically converted to a printed form called hard copy or alternatively data may be displayed on a monitor screen similar to that used in a television set.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
The methodology of research is a conceptual field work on which the whole /conduct of research is based.
Ozo and Odo (2007) define research as the systematic and scientific method of finding solutions to a problem. Research is a planned and systematic process of collecting, presenting, analyzing and interpreting data for purpose of arriving at dependable solution to human problem. The methodology for users on the various method and technique employed by the research in the course of collecting and analyzing data with the view of obtaining solutions to the problems.
RESEARCH DESIGN
Saunders and Philip (2012) states that research design is general plan of how you will go about answering your research questions it will contain clear objectives derived from your research questions specify the sources from which you intend to collect data, how you propose to collect and analyze them.
Ani and Ugwu (2007) adds that research design composes of series of prior decisions that take together provide a master plan for executing a research project. They continues that it is the specification of procedures for collecting and analyzing the data necessary to help solve the problem at hand the researcher used survey research design for the study, which was employed because of the research topic for this study.
Population of the study
A study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description (Prince Udoyen: 2019). In this study the study population constitute of all the customers fro the bank
CHAPTER FOUR
RESULTS AND DISCUSSION
Table 1 shows the IT systems that are being used in the selected banks. Telephone, Facsimile, Local Area Network, computer system, MICR (Magnetic Ink Character Recognition), were used in all the banks. All banks used Very Small Aperture Terminal (VSAT), Electronic Funds Transfer (EFT), and wireless radiophone. The researchers were able to identify IT devices available in the selected banks from personal interview conducted with the 5 branch managers and 15 IT staff in the banks.
IT systems and electronic application service in the selected banks
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
CONCLUSION
The study has dealt with the effects of IT as perceived by customers on growth of commercial banks in Nigeria, which make use of IT in their operation. The study revealed that IT has appreciable positive effects on the bank productivity, cashiers’ work, banking transaction, bank patronage, bank services delivery, customers services, and bank services. These affect the growth of the banking industry in Nigeria positively because customers can now collect money from any branches of their bank. Also customers do not need to move about with large sums of money, and customers are being attended to within a short period of time.
The study also revealed that telephones, computer systems, LANs, and Facsimile services are available in nearly all the banks making using of IT in Nigeria while WANs (Wide Area Network), Electronic File Transfer, and wireless phones are available in some of the banks. This finding confirms Alu’s (2002) claims on the IT devices available in Nigerian banks. Research has shown also that IT is really helping these banks, so other banks in Nigeria that are not making use of the IT are encouraged to do so.
From the study, the major hindrance to the use of IT in the banking industry in Nigeria is inadequate electric power supply. Electricity supply is not regular because of the limitation of the machine that is supplying electricity to Nigeria. Furthermore, the Nigerian government is finding it difficult to equip the NEPA (National Electric Power Authority) while the demand for electricity is increasing daily. Therefore, the situation will continue to worsen until the Nigerian government funds NEPA appropriately. So, for this nation to be effective in the use of IT in the banking industry and to make the banking industry grow in an appropriate way, there is a need for the Nigerian government to find a solution to the epileptic supply of electricity throughout the country, since NEPA is owned by Nigerian government and there is no private company in Nigeria that provides electricity.
REFERENCES
- Alu, A.O. (2000) Effects of Information Technology on Customer Services in the Banking Industry in Nigeria, M.B.A. Thesis in Management and Accounting, Obafemi Awolowo University, Nigeria.
- Coombs, R., Saviotti, P. and Walsh, V. (1987) Economics and Technological Change, Macmillan: London.
- Ige, O. (1995) Information Technology in a De-regulated Telecommunications Environment, Keynote address, INFOTECH 95. First International Conference on Information Technology Management, Lagos, November 16-17.
- Levitt, T. (1992) The Globalization of Markets, in: Transnational Management: Text, Cases and Readings in Cross-Border Management. Richard D. Irwin. Smith, Adam (1776): The Wealth of Nations
- Ugwu, L. O. (1999): Assessment of Impacts of Information Technology on Selected Service Industries in South Western Nigeria, MSc. Thesis in technology Management, Obafemi Awolowo University, Nigeria.
