The Impact Of Information And Communication Technology (Ict) On The Operation Of An Organization

The Impact Of Information And Communication Technology (Ict) On The Operation Of An Organization

Chapiter 1

Introduction

1.1 Background of the study

To achieve its organizational objectives, structures, and strategic planning procedures, every organization—business, industry, and government—uses technology to transform its inputs into outputs (Glover R.H., 1993). The quality of information and communication technology (ICT) that decision makers and executive information systems have access to limits the effectiveness of strategic planning. The banking industry in Nigeria is not an exception. One of the resources required in the banking business for efficient administration is technology, more specifically Information and Communication Technology (ICT). Employees now have access to more full information to make quicker decisions, and it has greatly increased the manager’s ability to track individual or team performance and operation.It is now possible for First Bank Plc Kaduna to provide its customers with unified access to manage their personal financial information thanks to the Information and Communication Technology (ICT) services available to it. This bank’s deployment of information and communication technology (ICT) has improved operational effectiveness, decreased costs due to high ICT environment utilization rates, and provided a competitive advantage (Haggani A.B, 2003).Financial services handling practices must transition from outdated manual transactions and data processing to faster, more effective, and highly efficient electronic data processing and Electronic Fund Transfer (EFT), where deposits, withdrawals, bills-pay-in, draft purchases, value for checks, third-party transactions, fund transfers, and inquiries are all completed electronically in a matter of seconds. Information and communication technology (ICT) adoption has also aided First Bank Plc Kaduna in differentiating its goods and services from rivals by keeping up with changing consumer wants and market dynamics (Haggani A.B, 2003).Since the majority of the world’s countries (for example, America) have found this kind of banking to be extremely effective, including Nigeria, it is imperative that banks adopt this shift as quickly as possible due to the complexity of the banking system, its goods, and services. There is no need to overemphasize how the impact of ICT has changed the banking business in terms of offering and delivering effective and efficient services to improve its operations and overall performance. Therefore, the purpose of this study project is to ascertain how Information and Communication Technology (ICT) has affected the performance and operation of Nigerian banks. Bank of British West Africa became Bank of West Africa (BWA) in 1957. The bank started lending to native Nigerians more frequently after the country gained its independence in 1960. At the same time, more people started using the new Bank of West Africa, and people started to trust British institutions because there was a ‘independent’ financial oversight mechanism. Standard Bank bought Bank of West Africa in 1965, renaming the combined entity Standard Bank of West Africa. The Nigerian operations of Standard Bank of West Africa were renamed Standard Bank of Nigeria in 1969. Standard Bank of Nigeria placed 13% of its share capital with Nigerian investors when it floated its shares on the Nigerian Stock Exchange in 1971. The military government in Nigeria aimed to expand local authority over the retail banking industry when the civil war in that country came to an end. Now Standard Chartered Bank has decreased its ownership in Standard Bank Nigeria to 38% in response. Standard Chartered wanted to make it clear that it was no longer in charge of the bank when it lost the majority, therefore in 1979 the bank changed its name to First Bank of Nigeria. The bank had reorganized by that point and now had a record number of Nigerian directors. First Bank established a branch in London in 1982, which it later changed into a subsidiary, FBN Bank (UK), in 2002. Its representative office in Johannesburg, South Africa, was inaugurated in 2004 as part of its most recent worldwide development. MBC International Bank Ltd. and FBN (Merchant Bankers) Ltd. were bought by it in 2005. MBC was established in 1982 as a merchant bank by Paribas and a consortium of Nigerian investors; in 2002, it changed its name to a commercial bank. Sanusi Lamido Sanusi, who had been named governor of the Central Bank of Nigeria, was replaced as group managing director and chief executive officer in June 2009 by Stephen Olabisi Onasanya. Previously, Onasanya served as the executive director of banking operations and services.

1.2 Statement of the problem:

Information and communication technology has revolutionized the banking industry and its introduction has greatly increased the capabilities of banks as they are now able to offer a wider range of services to their customers, including internet banking, mobile banking, and ATMs. It has also become a potential tool in the hands of banks for sustainable growth. It is quite discouraging to see that banks are still unable to live up to the service delivery expectations of their clients despite all these advancements in the banking sector. Long lines in banks, a lack of timely customer service, difficulties processing transactions, and a general decline in client confidence are all regular occurrences. In addition, banks in general—including First Bank Plc Kaduna—have finding it increasingly challenging to fulfill their obligations. These factors sparked the researcher’s interest in examining the effect of information and communication technology (ICT) on the operation and performance of Nigerian banks as well as in realizing the important influence ICT has had on their operations in order to ensure their profitability and expansion.

1.3 Study’s Objectives

This study’s main goal is to determine how information and communication technology affects how Nigerian banks operate and perform. The study’s particular goals are;

1. To find out if ICT has improved Nigerian banks’ profitability.

2. To determine whether ICT has enhanced the assets of Nigerian banks.

3. To find out if ICT has improved Nigerian banks’ liquidity.

4. To find out if ICT has enhanced how well Nigerian banks provide their services.

5. To investigate ICT applications currently being used in the Nigerian financial sector

1.4 Questions For Research

The study aims to provide answers to the following queries in light of the aforementioned goals.

Has ICT improved Nigerian banks’ profitability?

Has the asset base of Nigerian banks grown or risen as a result of ICT?

3. Has ICT improved Nigerian banks’ liquidity?

4. Has ICT boosted the quality of the services provided by Nigerian banks?

5. How do ICT-driven technologies affect clients’ spending habits?

1.5 Hypothesis For Research

H1: Information and communication technology directly affects the first bank’s operations and performance;

H0: The first bank’s operations and performance are unaffected by information and communication technologies;

H1: First Bank’s operations and business have been completely transformed by information and communication technology.

H0: The first bank’s operations and activities have not been changed by information and communication technologies.

1.6 Implications Of The Study

This study’s importance should not be understated because:

This study will look at how information and communication technology (ICT) affects how an organization functions.

The results of this study will definitely give government agencies, the communications industry, and academics the information they need.

1.7 Analysis Of The Study

The effect of information and communication technology (ICT) on how an organization operates will be looked at in this study.First Bank Kaduna will be used as a case study as a result.

1.8 Limitations of the study:

The following are some of the variables that limited this study:

the same problems that plague other types of research, such as the lack of pertinent, up-to-date information on the subject and the inability to collect data

The researcher encountered financial limitations when procuring pertinent resources, printing surveys, and compiling them.

Time is a factor that also poses limitations because the researcher must juggle writing the research and doing other academic work, which is uncomfortable.