Effective Customer Services Through Management Information System as a Panacea for Growth in the Banking Industry. (a Case Study of Eco Bank Plc, Agbara Branch)
CHAPTER ONE
PURPOSE OF THE STUDY
The purpose of this study is to discover a viable means by which management information system improve customer’s service and growth in banking industry.
Specifically, the study is to:
- Examine the impact of full application of management information system.
- Identify the extent to which management information system solve the ineffectiveness in banking operation
- Determine how the varied effects (eg computer and related equipment by management information system affect banking industry
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
THE EVOLUTION OF THE NIGERIAN BANKING SECTOR.
The history of the Nigeria banking system connects with growth and burst cycles in the number of operating banks and their branches. Signs of growth are usually experienced when the policy environment presents questionable business opportunities within the banking sector. In other words, there seems a sudden policy shift that makes it easy for ordinary business people to initiate processes that creates access to public funds in the name of bank deposits. The banking industry as regulated by the Central Bank of Nigeria is made up of Deposit Money Banks usually referred to as Commercial Banks and other Financial Institutions which includes Micro-Finance Banks, Finance Companies, Bureau De Change, Discount Houses and Primary Mortgage Institutions.
The statement of research problem in this study stems from the fact that banks appear very profitable in Nigeria, whether returns on assets are assessed on country by country, income group or by individual banks. The Nigerian economy observed in the present dispensation has been characterized by worsening economic fortunes in terms of reduced growth, increased unemployment, galloping inflation, high incidence of poverty, worsening balance of payment conditions, high debt burden and increasing unsustainable fiscal deficit. There are management challenges confronting Nigeria banks since the advent of indigenous banks. Aside losses experienced by depositors, shareholders, employees and other stakeholders, the level of confidence in the financial system has been negatively affected.
In the light of the above, some research questions become feasible as follows: Are banks really profitable in Nigeria? Does Bank profitability reflect bank-specific risk? Does weak economic performance exposes banks to risk? Are there management challenges confronting Nigeria banks?
The objective of this study is to assess the determinants of profitability in terms of their returns on investment in the Nigerian banking sector. In essence, bank profits as an important source for equity is imperative. If bank profits are reinvested, it is expected that it should lead to safer banks and consequently high level of profits. This could promote financial stability and economic development. The scope of this study covers the period between 1977 and 2010. The theoretical base of this study is based on the anticipated income theory.
The banking operation began in Nigeria in 1982 under the control of the expatriates and by 1945, some Nigerians and Africans had established their own banks. The first era of consolidation ever recorded in Nigerian banking industry was between 1959-1969. This was occasioned by bank failures during 1953-1959 due to the liquidity of banks. Banks, then, do not have enough liquid assets to meet customer demands. There was no well organized financial system with enough financial instruments to invest in. Hence, banks merely invested in real assets which could not be easily realized to cash without loss of value in terms of need. This prompted the federal government then, backed by the World bank report to institute, of the loynes commission on September 1958.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
Design is the “specification of procedures for collecting and analyzing the data necessary to help solve the problem such that the difference between the cost of obtaining various levels of accuracy and the expected value of information associated with each level of accuracy is maximized”. It comprises a series of prior decisions and provides a master plan for executing a research project.
According to the research, this chapter comprises of the following:
- Areas of study
- Population studied
- Sample and sampling techniques
- Instruments of data collection
- Methods of data presentation
- Methods of data analysis
AREA OF STUDY
In this research work the Eco bank of Nigeria Plc constituted the population studied however, it was not possible to study the bank entirely, the researcher adopted a survey technique and as such the branch in Agbara brach was selected for the study. A population of one hundred (100) was targeted and studied.
SAMPLE AND SAMPLING TECHNIQUES
A sample was determined to obtain a broad view on the economic implication of electronic banking from the bank under study based on this the population of one (hundred) was targeted.
CHAPTER FOUR
DATA PRESENTATION, INTERPRETATION AND ANALYSIS
DATA PRESENTATION
The method of data analysis was based on the statistical table format using frequency distribution and consequently converted into percentages for easy analysis. Each tabular presentation represents the analysis of each question in the questionnaire which was subsequently described and with further discussion.
In all, eighty (80) questionnaires were administered of which seventy were returned the seventy questionnaires received formed the basis for our analysis and conclusion.
CHAPTER FIVE
SUMMARY, RECOMENDATION AND CONCLUSION
SUMMARY OF FINDING
The introduction of electronic banking in Nigeria has a strong influence on the development of the payment system in particular and the banking system in general. However, the introduction of the system, involves commitment of huge amount of financial resources on computer technology and telecommunication facilities, computer technology is a primary requirement for the proper functioning of the electronic monetary transfer system (EMTS)/electronic banking.
The use of computer in payment system would not reduce the importance of branch banking in Nigeria or reduce customer’s confidence on the banking industry, from responses obtained from staff of the bank studied; the introduction of electronic banking has rather increased customers loyalty to banks in general.
The major problems hindering the effective operation of electronic banking in Nigeria are infrastructural deficiencies such as erratic power supply, lack of government support and high charge on payment terminals (POS, ATMS) e.t.c. These problems are only peculiar to Nigeria as it is known that in developed countries issues like power failure or failure links are not in existence.
However, the introduction of electronic Banking System has also contributed significantly to bank income by way of fee or changes gotten from these services.
RECOMENDATION
Uninterrupted Power Supply
The government should endeavor to provide 24 hours uninterrupted power supply because without electricity these products cannot be boosted and effective, but in this country there is erratic power supply, therefore all banking industry should have a standby generator incase of power failure, in other to cover the deficiency of power failure.
Government Supports:
In smooth functioning of the payment system the government have the major role to play, in aspect of financing the payment system which require a lot of capital to maintain and also in the aspect of creating awareness the government should endeavor to inform the public about the benefits derived on the payment system.
Provision of skilled manpower and computer Wizard in operation of the payment system
Skilled manpower and computer wizard should be employed by every Bank, in other to stop, prevent fraudulent personal and hackers from manipulating the Banks data and stealing money from the Banks accounts.
Provision and maintenance of public network, system such as telephone (Nitel) the availability of these basic infrastructures is fundamental to the efficient functioning of the payments system.
Failure to maintain these infrastructures implies that the banks must be ready to provide their own communication networks and operate electronic generating sets to ensure reliable power supply.
Collaboration among banks: Electronic payment system as a result of its huge financial involvement requires that banks must jointly set and manage a network system such as ATMs v-cards etc. collaboration helps to spread and reduce the initial costs of setting up the electronic Banking system.
CONCLUSION
The Nigeria system is as old as the banking industry; this dynamism is manifested by the nature and quality of payment products paraded in the system. These products range from common paper money, cheque, cash to electronic payment Products such as Automated teller machine (ATM), SMARTCARD telephone Banking, internet Banking etc with the introduction of these electronic payments products, it is expected that the volume and cost of processing cheque will be drastically reduced or eliminated.
The C.B.N other financial authorities and banks have a role to play in enhancing the system through effective banking and momentary policies, efficiency and stability are also ensured and promoted. Furthermore, to sustain the electronic payment system, certain strategic measures must be taken to reduce negative effects of the problems identified as obstacles to the smooth functioning of the system.
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