Information Communication Technologies (ICTs) in the banking sector in in Abak Town (Nigeria)

Academic Paper, 2013

17 Pages, Grade: B (60)



Background to the Study

Over the years, the advent of Information Communication Technologies has brought remarkable changes to the way people live their live and do businesses today. Most sectors of our economy both nationally and globally are fast adopting the use of Information and Communication Technologies to advance the course of their duties; to enhance quality customers’ service delivery and internal operations. This has brought about remarkable development in these sectors of our economy. Most specifically to the context of this work, the banking industry in Nigeria has undergone remarkable development strides in the bid to improve on the quality of service rendered to its customers and to enhance the profitability of its internal operation.

As a matter of fact, this desire to improve the quality of service delivery might have arisen owing to the impatient nature of Nigerians who tend to show signs of provocation at the slightest delay by bankers while on duty. Take for instance, everybody on a bank hall queue expects the banker to deliver in a manner – super fast, so that they could move on with other schedules for the day. From observations, it can be inferred that people tend to consider it abnormal to spend beyond thirty minutes on a banking hall queue. This has made it incumbent on the management of banks and key players in the banking industry to development new ways to achieve speed; deliver quality services to their clients and maintain proficiency in its internal operations.

Indeed, the banking industry is pressing hard to employ new means and method to curb this challenge they face in the day to day operation of their duty. From the use of manual tallies and register, yesteryears, the banking industry a few years ago, are fast adopting the use of cutting-edge technologies such as computer, automated teller machine (ATM), point of sale (POS) among others to see to it that the enormous desire of customers for speedy, quality and stress-less service delivery is attained (Omotoso, Dada, Adelowo, and Siyanbola, 2012). And, amidst this advances so far, customers of banks are still not satisfied with the way things are going. This makes it right for one to wonder how it was in the past where much time was spend using purely manual methods for cheque clearing, local and international money transfers among many other time consuming tasks.

It, therefore, becomes easy to believe that the inefficiency due to the use of manual approach to initiate and complete business transaction in the banking system was much more obvious and very problematic (). Given the above challenges associated with manual approach to banking, the ever increasing impatient attitude of Nigerians, and the dynamic environment the business operates, it is crystal clear, that there is a necessity for the Nigerian banking sector to fully appreciate and harness the use of modern technologies. This implies, most especially, the interactive ones like the Information Communication Technologies and not the static one; to improve customers’ service delivery and internal operations.

In our contemporary society, it is widely acclaimed that the introduction of the Internet as well as the Information Communication Technologies (ICTs) can be harnessed to improve the productivity of conventional business practices. Even in the banking sector which is the concern of this work, the adoption of ICts by the Nigerian banks is believed to significantly increase the efficiency of banking operations and external customers’ business transactions. Albeit, this work therefore seeks to determine how (these impatient) customers of some banks in Abak town assess the use of Information communication Technologies (ICTs) on speedy service delivery and its implication on internal obvious.

Statement of the Problem

It has been observed that some years after the advent of the Information Communication Technologies (ICTs), a great deal of sectors globally and nationally has adopted the use of these cutting edge technologies to boast the proficiency of their day to day working experience. As a matter of fact, series of studies have been conducted by renowned scholars generally to ascertain the impact of the adoption of ICT in different fields. From their results of findings, it could be inferred that the impact of Information and Communication Technologies (ICTs) on different fields of endeavours has been of significant importance. The coming into existence, within the early 20th century, of these interactive and productive technologies for more efficient business operations has had far reaching advantages.

It has becomes a matter of concern to also question, in a particular sense, the level to which these technologies could be applied in the banking sector and of what relevance these technologies will be to thee effective delivery of quality services and internal banking operations. Hence, the problem of this study can be stated thus: what is the assessment of customers of select Banks in Abak town towards the use ICTs in improving quality service delivery and efficient internal operations?

Research Objectives

The objectives of this study were to:

find out the extent of which ICTs have influenced the performance of select banks in Abak Town;

examine the ways in which ICTs enhance the quality of service delivery of select banks in Abak Town;

determine customers’ assessment of the use of ICTs in select banks in Abak Town;

ascertain the challenges facing the use of ICTs in select banks in Abak Town.

Research Questions

The following research questions guided the carrying out of this work:

To what extent has Information Communication Technologies (ICTs) influenced the performance of select banks in Abak Town?

In what ways does the use of ICTs enhance the quality of service delivery of select banks in Abak Town?

How do customers assess the use of ICTs in select banks in Abak Town?

What are the challenges facing the use of ICTs in select banks in Abak Town?

Significance of the Study

The findings of this study will be of immense help to the quality control depart of banks in Abak town because it will expose them to the knowledge of how their customers assess the use of Information Communication Technologies in enhancing service delivery; it will also create awareness to these banks on the possible areas which the use of ICT can engender desire quality of customer service.

This study will also be relevance to ICT professionals as it will point them to carrier opportunities available for them in the banking sector in Abak town and Nigeria at large, to upcoming researchers in field of banking and ICT concerns, this study will serve as a resource material and a guide for further research.

Besides, other stakeholders such as government agencies, regulatory bodies, and professional bodies may in one or the other find the results of this work useful in this information age.

Scope of the Study

The scope of this study is divided into two: the content scope and the geographical scope. For the content scope, this work examines the assessment of customers towards the use of ICTs in banks to enhance service delivery and internal operation. Geographically, this work centres on banks operating within the territorial boundaries of Abak main town, in Abak local government of Akwa Ibom State

Definition of Terms

Assessment: Assessment is the rating of the characteristics, quality and/or effectiveness of Information and Communication Technologies in the banking sector. The word, in the verb form, means deciding the characteristics, quality, value as well as the effectiveness of the ICTs.

Banking Sector: Banking sector is a section of the economy, which is devoted to holding the financial assets of others people; and investing these assets as leverage to create more wealth.

Banks: A bank is a financial institution that accepts deposits from public and creates credits.

Communication: This entails the exchanging of information through the use of media. It is a means of connection between two or more people or places.


Conceptual Review

This session of this project work review concepts that form fundamental basis for the better understanding of the topic under study. It reviews concepts that included Information and Communication Technologies, Banking and the Banking Sector in Nigeria; the interplay between ICTs and banking among other, as follows:

Information and Communication Technology

According to Maldeni and Jayasena (2009) Information and Communication Technology (ICT) is fast becoming a dynamic channel that drives economy. It is becoming increasingly important for the growth of our economy as a whole. This ICT has been defined, according to Alawode and Emmanuel (2013) as the automation of processes, controls, and information production using computers, telecommunications, software and ancillary equipment such as automated teller machine and debit cards. It is a term that generally covers the harnessing of electronic technology for the information needs of a business at all levels. Communication is the conveyance or transmission of information from one point to another through a medium.

In the same light, Adeoti (20050 sees Information and Communication Technology (ICT) as the automation of processes, controls, and information production using computers, telecommunications, software’s and other gadget that ensure smooth and efficient running of activities. Adeoti goes further to explain it as a term that largely covers the coupling of electronic technology for the information needs of a business at all levels. ICT has surpassed the role of support services or only electronic data processing; its fields of applications are slightly global and unlimited. Its devices especially the Internet and modern computer email facilities have further strengthened early modernizations like the telephone and fax. Other ICT devices include data recognition equipment, factory automation hardware and services, tele-computing and teleconferences using real time and online system (Adeoti, 2005).

Furthering the discussion, Ovia (2005) contribute that the merging of computer and telecommunication after about four decades of applying computers to routine data processing, mainly in information storage and retrieval, has created a new development where information has become the engine of growth around the world. This development has created catch-up opportunities for developing countries such as Nigeria to attain desired levels of development without necessarily reinventing the wheels of economic growth. This new technology has brought far-reaching revolution in societies, which has tremendously transformed most business (banking) scenes (Ovia, 2005).

For Maldeni and Jayasena (2009), “the availability and usage of adequate ICT skills are important factors, which influence the competitiveness among commercial banks in this era of e-Economy. There are multiple factors which govern the performance of an organization; of those, Information Communication Technology has a significant positive impact on the organizational performance” (p. 29). An example of how the ICT has had an impact is evidence on the Banking Industry; its emergence allows banks to apply credit-scoring techniques to consumer credits, mortgages or credit cards. Hence, products that used to be highly dependent on the banks evaluation of its customers have now become more standardized. Other examples of ICT impact on the Banking Industry include the increased process efficiency, which can reduce costs in banks, and the branch renewal, where focus is gradually shifting away from traditional brick and mortar banks towards the dual-bank concept presented earlier (Alawode and Emmanuel, 2013).

According to Ashrafi and Murtaza (2008), ICT refers to a wide range of computerized technologies that enables communication and the electronic capturing, processing, and transmission of information. These technologies include products and services such as desktop computers, laptops, hand-held devices, wired or wireless intranet, business productivity software, data storage and security, network security etc.

The tendencies above have also produced changes in the structure of bank income. As a result of increased competition that has lowered margins in lending operations (the banks’ traditional business), banks have diversified their sources of income and rely increasingly on income from fees services rather than interest rate spreads. Fees charged for services include typical banking activities like payment transactions, safe custody and account administration. Data storage and retrieval is another wonderful innovation brought into the Banking Industry, where specialized software is engaged to create at a base to be manipulated by Database Management Software (DBMS). A single database created could be used for several purposes within the system in order to eliminate data redundancy.

The emergence of information and communication technology in the 21st century cannot be underestimated. It has changed the old systems of communication in totality; information is disseminated via the internet to heterogeneous audience with sped on daily basis. Lauratine (2011) citing Bermiger (2005) cited in Maryann and Udeajah (2004), agrees that Information and Communication Technology (ICT) as a system of technology is the nervous system of contemporary society transmitting and distributing seasoned and controlled information and interconnectivity, a myriad of independent units. Samadar (1995) articulated that ICT is an instrument for creation, storage, management and dissemination of information by electronic devices. Currently, with the availability of technology devices, journalists, who have the computer skills, are capable of processing their stories immediately. However, Marcelle (2000) cited in Maryann and Udeajah (2014), does not see as a complex entity, but as an application, distribution, processing, and transformation of information with the help of internet tools.

Historically, ICTs have originated to bring development in the world, the first programmable computers were developed till the 1950s, despite that the high level of language was not well developed till the 1950s. ARPANet, as at then, was the originally the internet stated in 1969 and the first personal computer developed in 1976/77 (Apple, TRS-89 and commodore). The IBM PC arrived in 1981, Microsoft Windows in 1985. However, Tim Lee and others in 1989, at the European Laboratory proposed a new protocol for information distribution. The protocol metamorphosed into the World Wide Web (WWW) which was based on hypertext which links text to other texts. In 1991, user-friendly interfaces to the internet were developed (Gopher, Veronica, Jughead) and then in 1993 the first graphic browser for the World Wide Web was developed.

Since then, the internet became the source of information that entertains, educates, informs, and even promotes cultures of people globally. It also added more skills to journalists to conduct research at any given time and also to engage in deep reportage. This linked the connectivity of computing devices to grow to a higher level which allow global information to flow from developed countries to developing countries. (Centre for research and Digital Innovation, 2013).

Information and Communication Technologies (ICTs) and Banking

The concept of Information and Communication Technologies entails a global interconnected network providing free exchange of information; it is not a single network. It implies the most pragmatic use of information technology as medium of universal communication (Saranya, Anitha and Vasantha, 2014). It has brought unprecedented changes in society. Spanning the entire globe, the net has redefined the methods of communication, work, study, education, interaction, entertainment, health, trade and commerce. The versatile facilities and opportunities provided by the ICT led to the development of electronic commerce. This became possible when the ICT transformed from the ordinal system providing static web pages, into interactive two-way system such as E-Commerce, E-Banking and Corporate Internet Banking (CIB).


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Information Communication Technologies (ICTs) in the banking sector in in Abak Town (Nigeria)
B (60)
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ISBN (eBook)
ISBN (Book)
information, communication, technologies, icts, abak, town, nigeria
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Edikan Ukpong (Author), 2013, Information Communication Technologies (ICTs) in the banking sector in in Abak Town (Nigeria), Munich, GRIN Verlag,


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