Effect Of Information Technology On The Efficiency Of Zenith Bank Plc

This study was conducted on the effect of information technology on the efficiency of Zenith bank plc. cover all the banks in Zenith Bank Plc, both Damaturu branch Yobe State and Jos branch Plateau State. The study employed the survey research design. The population of the study consisted of all staff (senior, middle cadre and junior) of Zenith Bank Plc, Damaturu branch, Yobe State and Jos branch, plateau state as at 2020. The whole populations of Zenith Bank Int"l Plc, Damaturu branch staff are sixty (60). This study adopted the simple random sampling technique. The method of data analysis included the use of tables, percentages and using chi-square test to analyse the data used. The result of the study showed that since the computed value is less than the critical test value (6.657218 < 14.067) we therefore conclude that, the zenith bank should accepted reject the null (H0) hypothesis and accept the alternative (HA) hypothesis. Thus, the information technology has increased the volume of deposits in the Zenith Bank Plc; the availability of information technology promotes satisfaction-oriented result to their customers; the information technology has contributed to the efficiency on bank and bank customers; and the information technology actually find out what problems encounter by the customer products and service in your bank. The study concluded that the adoption of information technology has influenced the content and quality of banking operations. From all indications, information technology (IT) presents great potential for business reengineering of Nigeria Banks. The study recommended that the banking sector should encourage information technology in financial operation/ activities.

Introduction

1.1 Background of the Study

The world today is shaped by the advancement in the field of information and communication technology (ICT). The relevance of ICT to the development of corporate organization and the entire would cannot be over emphasized. For instance, Nigeria has come to realize the fact that no modern economy can be sustained without integral ICT and has adopted the technology towards the growth of its economy.

The introduction of new technologies has led to higher level of production, improved communication and more effective and efficient process management. It is also been able to improve decision making, increase citizen participation in economic development, support a modern workforce, enhance social wellbeing and narrow the digital devices.

The banking sector as transform banking industry to a high performance, by increased demand for information technology (IT) in the banking sector become imminent and unavoidable in the world at large and Nigerian in particular. Invariably the future lies in the (IT) information technology driven banking systems and services. Banks have embarked on deployment of (IT) information technology based banking products and services such as automates teller machine (ATM), internet banking, mobile banking solutions, Point of sale terminals, computerized financial accounting and reporting, human resources solution among other (Ovia, 2005).

Performance is defined as valued contribution to reach the goals of an organization. Contribution can be made by individuals or groups of employees as well as by external groups. In the past, the measurement of performance was usually restricted to a financial perspective, resulting in various limitation.

Zenith bank PLC is a leading Nigerian financial institution and one of the biggest and most capitalized companies on the Nigerian stock exchange. Established in May 1990, zenith bank began operations in July of the same year as a commercial bank. Its shares were listed on the Nigerian stock exchange in October 21, 2004 following a highly successful initial public offering (IPO). The bank has a shareholder base of about one million, an indication of the acceptance of the zenith brand.

However banks have to provide an excellent service to customer who are sophisticated and will not accept less than about average service. Thus, the issue of service marketing in general, and banking sector in particular has become one of the most important and modern directions which have witnessed a substantial expansion during the last years in almost all societies. E-banking offers significant benefits for both banks and customers. It provides bank additional channels to delivers products and services to customers at a lower cost (Lin, Hu, and Sung 2005). These channels expand the geographical area for banks and can help attract and keep further customer (Dandaparni, Karels, and Lawrence, 2006). Such bank services like E-banking, Automated Teller Machine (ATM), mobile banking solutions, point of sales terminals and internet banking and not only provides to customers with appropriate and faster transactions but also benefits from higher interest rate resulting from cost saving by the banks (Sumra & Manzoor, 2013).

1.2 Statement Of The Problem

One of the challenges confronting e-banking in Nigeria could be classified into three classed as human constraints, operational constraints and technical constraints. The human, constraints include physical disability poor sight, illiteracy and ageing. The operation constraints standardization of channels. Furred, funds and standardization of channels. The technical constraints are cantered on the lack of supporting infra structures such as erratic electricity supply, interdependence and lack of encryption on short message system (SMS) message (Agbada, 2008).

Other identified problems that can have an effect of information technology on the efficiency in the banking sector, can be grouped broadly as psychological and behaviour. These include consumer awareness for personalized services among others. Additionally, diffusion of smart card innovation needs high investment for the upgrades of ATMS and EET/POS terminals to be capable of accepting smart cards and presumably a substantial investment in adding smart card technology for mobile computer and telephony stand to be another challenge. The implementation of smart card for the whole Europe, according to visa figures requires eight billion dollars ($8 billion) investment. Although this is an affordable amount for many of the potential players, most players would only pay the entire amount if it would give them some proprietary or luck in advantage. So far, no player has felt confident enough to take a committed first mover position. This is in developed countries, what more of a developing country like Nigeria (Ovia, 2005).

Coupled with these problems is a situation where a bank issue an individual debit card that is associated with an account with a line of credit and is also an ATM debit card, the individual can perform a number of different types of transactions with the same card. The line of credit could be accessed fraudulently, where the owner has recourse under consumer credit legislation and under regulation in the fraud involves an electronic fund transfer (EFT) where automated teller machine (ATMs) or electronic point of sales (POS) terminals are used, his liability is limited under the EETA. However the fraudulent use of the card directly debits his bank account in a paper-based transaction, the consumer has no recourse under current legislation. This is an example where the same card represents three different instrument, each of which, in the case of fraud, would require different action by the consumer (Agbadga, 2008).

In order to investigate the effect of (IT) on bank performance in addition to problems identified, this study intends to investigate and answer the following question:

To what extent does (IT) improve bank efficiency with reference to the selected commercial banks in Nigeria?

1.3 Objectives of the Study

The main objective of the research project is "the effect of information technology on the efficiency in banking sector" with reference to Zenith Bank PLC, Nigeria. And the specific objectives are:-

To determine the extent to which information technology has increased the volume of deposits in Zenith Bank Plc

To examine the availability of information technology enhance customers satisfaction in Zenith Bank

Examine the efficiency of information technology on bank-customer relationship;

Does information technology actually find out what problems encounter by the customer while using (IT) products and service;

1.4 Research Questions

This research work shall be guided by the following research questions:

Has information technology increased the volume of deposits in the Zenith Bank Plc.

Has the availability of information technology promotes satisfaction oriented result to the customers.

Does information technology contribute to the efficiency on bank-customer relationship.

Does information technology actually find out what problems encounter by the customer products and service in your bank.

1.5 Research Hypotheses

The hypothesis to be tested in the curse of this research work is:

Ho:1 The information technology has not increased the volume of deposits in the Zenith Bank Plc.
Ho:1 The information technology has increased the volume of deposits in the Zenith Bank Plc.

Ho:2 The availability of information technology dos not promotes satisfaction-oriented result to their customer.
Hi:2 The availability of information technology promotes satisfaction-oriented result to their customers.

Ho:3 The information technology does not contribute to the efficiency on bank and bank customers.
Ho:3 The information technology has contribute to the efficiency on bank and bank customers.

Ho:4 The information technology actually has not find out what problems encounter by the customer products and service in your bank?
Hi:4 The information technology actually find out what problems encounter by the customer products and service in your bank?

1.6 Significance of the Study

In the light of the stated objectives which this study is set to achieve, the following are the significance of the study:

It would justify the application of information technology increased the volume of deposits in Nigerian banking sector.

It would also observe the availability of information technology enhance customer"s satisfaction in Zenith Bank.

It would help to evaluate the adoption of information technology by Nigeria bank in terms of its effect on bank"s efficiency and bank customer relationship;

It would help information technology by identifying the actually problems encounter by the customer products and service in your bank?

1.7 Scope and Limitation of the Study

The researcher intend to cover all the banks in Zenith Bank Plc, both Damaturu branch Yobe State and Jos branch Plateau State to have a better insight of the problems associated with the effect of information technology (IT) on efficiency. Nevertheless, this study will be limited to Zenith Bank Plc, Damaturu branch and Jos branch. This study therefore covers the management and staff, customers and their environment besides the subject itself as it affects its mastery. This study shall cover the period since the introduction of information technology in Nigeria banking sector to date. Information technology was introduced into Nigerian economy upon the commencement of the electronic payment scheme in 1996. All the various information technology and banking performance toward development of a country.

1.8 Definition of Terms

1. Information:

Is data that have been processed into a form which is meaningful to the recipient and which is of real or perceived value in current or prospective decision and actions.

2. Technology:

Refer to the scientific knowledge used in practiced ways in industry such as computer system and so many others

3. Information Technology:

Is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise.

4. Efficiency:

AS the level of performance of a business over a specified period of time, expressed in terms of overall profits and losses during that time evaluating the efficiency of a business allows decision making to judge the results of the business strategies and activities in objective monetary terms.

5. ATM:

Is an Abbreviation for Automated Teller Machine. It is a cash point that can be used to withdraw cash.

6. Bank Account:

Is a record of financial transactions between a bank and the customer which is maintained by the bank.

7. Point of Sale:

(POS) this refers to the location at which a payment of a card transaction occurs, usually by way of a device such as a credit card terminal or cash register.

8. GSM Banking:

Is an abbreviation for Global System Mobile: This is mode of e-banking makes use of global system for mobile communication (GSM) phones as the primary electronic device.

9. Bank:

As a place where money and other valuable are kept for safe until when they are needed.

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