CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The low productivity, profitability and efficiency of many Nigeria banks necessitate the introduction of information technology to find solution to the challenges of the present day banking system. This paper has tried to assess the impact of information communication technology on the efficiency of thirteen commercial banks in Nigeria. Madueme Ifeoma Stella (2010). The banking industry is one of the critical sectors of the economy whose contribute to the pace of development and economic growth cannot be fully quantified changes in today’s modern world reveals that the important of natural factors cannot equip the banking sector fully to grapple with the exigencies of global completion.
Madueme Ifeoma Stella (2010) According to Hanna (1994) information flexibility and fast response are the key new factors for coping with global competitoion information communication technology plays a critical role in these areas for the purpose of quality enhancement. According to Hanna, information technology transforms the way people do things, increasing the amount of information available to economic agents, information intensity of processes, occupations, institution, product and economics. It enhances working of markets reduces transactions and co-ordination cost within an across enterprises and institutions. Information technology has radically change how banking is doing all over the world, the volume and speed of banking transaction has improved tremendously as a result of quantuim growth in information technology which has created business opportunities for banks.
The positive impact of information communication technology on the global criteria, especially improved revenue corroborates with findings of Laudon and Laudon 2008 that studies the entire cash flow of most fortune 500 companies and linked their success to information system. They concluded that information technology directly affects how managers decide, how they plan and what products and services are produced. The banking industry in Nigeria has witness tremendous changes linked with the development in information technology over the year. In Nigeria information technology gave birth to electronic baking. This represents benefit such as anywhere banking, anytime banking and elongated banking hours to customers. These benefits provide comfort, convenience and ease of use for banks transactions. Before the advent of electronic banking customers could only make transactions in the banking hall. Electronic banking has facilitated the integration of the functions of some large banks that have several branches around the country on centralized network so that transaction can be carried out at any branch on the network without the customer being physically present in the branch Woherem (2005)