The Impact of Information and Communication Technology (Ict) on Profitability in the Nigeria Banking Industry: Focus on Some Selected Banks
THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON PROFITABILITY IN THE NIGERIA BANKING INDUSTRY: FOCUS ON SOME SELECTED BANKS
BY
AKOMBO TERSEER SIMON
BSU/MS/MBA/09/3150
A SEMINAR PAPER PRESENTED TO THE DEPARTMENT OF BUSINESS MANAGEMENT, BENUE STATE UNIVERSITY, MAKURDI
AUGUST, 2011
Abstract
Commercial banks—assaulted by the pressures of globalization, competition from non-banking financial institutions, and volatile market dynamics—are constantly seeking new ways to add value to their services. The question “What drives performance?” is at the top of the minds of managers and policy makers alike, as the first step in understanding superior performance and, hence, striving for it. Substantial research efforts have gone into addressing this question, starting from the strategic level and going down to operational details. This paper seeks to explore the contribution of Information and Communication Technology (ICT) on Profitability in the Nigerian Banking Industry. It focuses specifically on Union Bank Nigeria Plc (UBN), First Bank Plc(FBN) and United Bank for Africa(UBA) which are among the few banks that have transformed from total manual banking to the present ICT driven Banking. Seven (7) year profit/loss before tax of these banks is used as the main data for this study. Comparative analysis of profit/loss for the years in view is carried out and significant changes point to the fact that Information and Communication Technology have impacted positively on profitability. It is therefore recommended that banks should pay serious attention to changes in Information and Communication Technology and apply same as it relates to their industry.
INTRODUCTION
In recent time, Information and Communication Technology (ICT), which basically involves the use of electronic gadgets especially computers for storing, analyzing and distributing data, is having a dramatic influence on almost all aspects of individual lives and that of the national economy
BY
AKOMBO TERSEER SIMON
BSU/MS/MBA/09/3150
A SEMINAR PAPER PRESENTED TO THE DEPARTMENT OF BUSINESS MANAGEMENT, BENUE STATE UNIVERSITY, MAKURDI
AUGUST, 2011
Abstract
Commercial banks—assaulted by the pressures of globalization, competition from non-banking financial institutions, and volatile market dynamics—are constantly seeking new ways to add value to their services. The question “What drives performance?” is at the top of the minds of managers and policy makers alike, as the first step in understanding superior performance and, hence, striving for it. Substantial research efforts have gone into addressing this question, starting from the strategic level and going down to operational details. This paper seeks to explore the contribution of Information and Communication Technology (ICT) on Profitability in the Nigerian Banking Industry. It focuses specifically on Union Bank Nigeria Plc (UBN), First Bank Plc(FBN) and United Bank for Africa(UBA) which are among the few banks that have transformed from total manual banking to the present ICT driven Banking. Seven (7) year profit/loss before tax of these banks is used as the main data for this study. Comparative analysis of profit/loss for the years in view is carried out and significant changes point to the fact that Information and Communication Technology have impacted positively on profitability. It is therefore recommended that banks should pay serious attention to changes in Information and Communication Technology and apply same as it relates to their industry.
INTRODUCTION
In recent time, Information and Communication Technology (ICT), which basically involves the use of electronic gadgets especially computers for storing, analyzing and distributing data, is having a dramatic influence on almost all aspects of individual lives and that of the national economy
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