Adoption of Information and Communication Technology (Ict) in the Banking Sector: Success or Failure?

5916 Words Mar 9th, 2013 24 Pages
ADOPTION OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) IN THE BANKING SECTOR: SUCCESS OR FAILURE?
Ukeh, Moses Ichongo
Superlife Consulting, Makurdi
2013

Abstract

Nigerian banking industry has become highly ICT-based and is reaping the benefits of technological revolution as evidenced by its application in most of its operations. The objective of this paper was to determine if the Nigerian banks have failed or succeeded in the adoption and use of ICT (see table 2.1). An evaluation of the adoption and use of ICT infrastructures from the periods between years 2000 to 2008 indicated steady growth. It is presumed that as of today, the Nigerian banks may have attained their ICT potentials in their operations, though with some
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The increasing use of ICT has allowed for integration of different economic units in a spectacular way. This phenomenon is not only applicable to Nigeria but other economies of the world, though the level of their usage may differ. In Nigeria, ICT usage especially in the banking sector, has considerably improved, even though it may not have been as high as those observed for advanced countries (Adeoti, 2005; Adeyemi, 2006).
The use of ICT in the banking sector became of interest to this study due to the significant role it plays in the economy. It helps in stimulating economic growth by directing funds to economic agents that need them for productive activities. This function is very vital for any economy that intends to experience meaningful growth because it makes arrangements that bring borrowers and lenders of financial resource together and more efficiently too than if they had to relate directly with one another (Adam, 2005; Ojo, 2007). In essence, the banking sector acts as a bridge that connects lenders and investors in the economy.
The bank reforms (especially the recapitalization that specifies a minimum capital base of 25 billion naira for commercial banks), are pursued with a view to making the sector realize its objectives in advancing the economy (CBN, 2006). It is expected that the impact of these reforms will be enhanced
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