The Role of Ict in Banking Operations

13419 Words Apr 16th, 2011 54 Pages
1.1 BACKGROUND OF THE STUDY The Nigerian banking system has undergone remarkable changes over the years, in terms of the number of institutions, ownership structure, as well as depth and breadth of operations. These changes have been influenced largely by challenges posed by deregulation of the financial sector, globalization of operations, technological innovations and adoption of supervisory and prudential requirements that conform to international standards (Elumelu, 2005) As at the end of June, 2004, there were 89 deposit money banks operating in the country, comprising institutions of various sizes and degrees of soundness. Structurally, the banking sector was highly
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It utilizes computer based system as well as telecommunication technologies for storage, processing and communication (Adetayo, et al, 2004).
Iromantu (2004), states that Information Technology refers to a host of system, equipment and materials essentially computer based which are used to achieve the set goals of an organization in relation to the functions of an office. ICT has brought about reduction in costs, a wider range of banking services and greater convenience for customers and increase in the volume of profits not forgetting the increased speed at which vital information is being processed.
ICT is the bedrock for national survival and its development in rapidly changing global environment (Toki, 2005). It is ultimately the unique capabilities brought about by ICT that provide the basis for superior firm performance (Santhenam, 2003).

1.2 STATEMENT OF THE PROBLEM All over the world, Information and Communications Technology has become the digital nervous system of financial institutions especially banks. This is because the business of banking is no longer perceived as merely the generation of deposit of liabilities and the creation of liquid asset but rather the generation, storage, manipulation communication and application of financial information (Wikipedia, 2007). Banks have come to realize the importance of ICT in facilitating more effective and efficient operation and management. In light of