The Effect of Technological Innovation on the Performance of Money Deposit Banks. A Case Study of Uba, Enugu State
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To determine effect of financial incentives on technological innovation adoption in Deposit money Banks in Nigeria
- To explore the extent to which fraud risk affect technological innovation adoption in Deposit Money Banks in Nigeria
- To determine the effect of turnaround time on technological innovation adoption in Deposit Money Banks in Nigeria.
- To appraise influence of transaction cost on technological innovation adoption in Deposit Money Banks in Nigeria.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Theoretical Framework
Theories provide a generalized explanation to an occurrence. Therefore a researcher should be conversant with those theories applicable to his area of research (Kombo & Tromp, 2009; Smyth, 2004). According to Muiruri and Ngari (2014) a theoretical framework guides research, determining what variables to measure, and what statistical relationships to look for in the context of the problems under study. Thus, the theoretical literature helps the researcher to see clearly the variables of the study; provides a general framework for data analysis; and helps in the selection of applicable research design. Theories and models on innovation adoption which informed this study are; Theory of innovation, Innovation diffusion theory, Transaction cost innovation theory, Fraud triangle theory and Rational choice theory. These theories informed the source of the variables of the study and the interactions between the dependent and independent variables.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the effect of technological innovation on the performance of money deposit banks.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the effect of technological innovation on the performance of money deposit banks
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of technological innovation on the performance of money deposit banks
Summary
This study was on the effect of technological innovation on the performance of money deposit banks. A case study of UBA, Enugu state. Four objectives were raised which included; To determine effect of financial incentives on technological innovation adoption in Deposit money Banks in Nigeria, to explore the extent to which fraud risk affect technological innovation adoption in Deposit Money Banks in Nigeria, to determine the effect of turnaround time on technological innovation adoption in Deposit Money Banks in Nigeria and to appraise influence of transaction cost on technological innovation adoption in Deposit Money Banks in Nigeria. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of UBA, Enugu state was selected randomly. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up human resource managers, accountants, customer care officers and marketers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Technological innovation adoption is gradually gaining ground in Nigeria. Full fledge banking innovation products and services such as ATM, POS, EFT, Internet banking and Mobile banking services are now in use. Innovative banking offers benefits to both banks and customers. Karjaluoto and Pashnila (2004) mentioned two fundamental reasons underlying financial innovation banking development and penetration. First, banks get significant cost savings in their operation through the services. It has been proved that online banking channel is the cheapest delivery channel for banking products once established. Secondly, banks have reduced their branch networks and downsized the number of service staff, which has paved the way to self-service channels as quite many customers felt that branch banking took too much time and effort. However, Customer satisfaction is derived largely from the quality and reliability of banks’ innovative products and services (Curry & Curry, 2000). If customers are satisfied, they will buy a lot from vendor and will give vendor a large share of their business. The days of a customer adopting one product or company for life are long gone. With easy access and global competitiveness, customers are often swayed by advertising and a chance at a better deal. Quality levels and features between competing brands and organizations are often comparable. Banks should note that; the thing that separates competitors is their level and quality of service. It is not unusual for customers to switch back and forth between products or organizations simply because of pricing and a bad impression about an organization or lack of quality service.
Recommendation
The study recommends that the government should ensure existence of stable conducive business environment and ensure constant availability of developmental infrastructures like electricity and telecommunication facilities. This will reduce the running cost of financial innovation, Banks must be careful about their charges and the way they transfer costs to customers. From competition point of view, the banks must realize that customers have choice of product and choice of bank. Issue of transaction cost therefore becomes an important strategic matter. Banks should look at and reduce chances of double charging their customers under various disguise, bring down administrative charges and costs and possibly look into areas of operation and price collaboration within themselves in the interest of stepping up general patronage and improvement of financial innovation adoption. Banks can consider venturing into provision of telecommunication providers service, obtain appropriate license either singularly or as a consortium, a move to reduce telecommunication and operational costs, and fast track service delivery: a strategic choice in the interest of their customers and adoption of financial innovation
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