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Cover page
Title page ii
Authorization iii
Certification iv
Dedication v
Acknowledgements vi
Abstract ix
1:1 Background to the Study 1
1:2 Statement of the Problem 4
1:3 Objectives of the study – 5
1:4 Research Questions 5
1:5 Research Hypotheses 6
1:6 Significance of the study 6
1:7 Scope of the Study 7
1:8 Limitation of the study 7
1:9 Operational Definition of Key Terms 8
2:1 Information Technology Concepts and Their Use in Banks 9
2:2 History of the Banking Sector in Nigeria and Advent of ICT 15
2:3 Reduction in Repetitive Work 17
2:4 Development of Information Technology in Banks 17
2:5 ICT in the Banking Industry 19
2:6 Effects of Information and Communication Technology (ICT) on Banking 23
2:7 Challenges Facing Nigeria Information Technology 24
2:8 Work Performance 25
3:1 Research Design 27
3:2 Population of the Study 27
3:3 Sampling Procedure and Size 28
3:4 Data Collection 28
3:4:1 Primary Data 29
3:4:2 Secondary Data 30
3:5 Questionnaire Construction 30
3:6 Validation of Instrument 30
3:7 Data Analysis 30
4:1 Presentation of Data 34
4:2 Analysis of Data 40
5:1 Summary of Findings 45
5:2 Conclusions 47
5:3 Recommendations 48
Bibliography 49
Appendix 53
Questionnaire 53
The increasing competitive pressure as a result of technological development,
globalization, changing customer demand has led to survival challenges of many banks in
Nigeria and demanded for improvement in quality of customer service and speed to
enhance profitability, staff performance and cost reduction. Although many employees
are using more of information communication technology (ICT) as part of their jobs, few
studies have examined the impact of ICT on their performance. Specifically, the main
aim of this study is to determine the impact of information technology on the
performance of staff in Nigeria Banking Sector and using Keystone Bank Limited as a
case study. This provides significant value for both practitioners and academics.
Data was collected using hand delivery of questionnaire survey approach, which is the
primary data. The study used unsystematic random sampling procedure in selecting the
respondents as the sample. A total of 60 questionnaires distributed, 52 respondents were
found to be useable for further analysis representing approximately 87% valid response
rate. Chi-Square (X²) technique was used to analyze the data.
The findings showed that a positive correlation exists between ICT and the performance
of staff in Nigeria banks. This implies that ICT introduction and adoption in the banking
industry has resulted to a proportionate increase in staff overall performance based on the
technological factors, which has brought about increases in the skills of workers, staff
productivity, communication rates and also help to reduce stress and workload within the
bank. This is confirmed by the level of hypothesis and calculated value which revealed
that an insignificant size of staff performance exist without the adoption of ICT.
The outcome of this study provides important information on the impact of ICT adoption
on staff performance and their operations in Nigeria banking industry.
1.1. Background to the Study
Over the years, many innovations have taken place in the world. The most striking
and most celebrated is the aspect of information technology. Organizations today
are confronted with rapidly changing market condition indicated by high merger
rate and strong competitors. Under these conditions, traditional management
approaches that focus on financial figures and on centralized, analytical planning
methods are considered to be insufficient for effectively steering the organization
in a dynamic environment, Hoffman (2002). Recent management support
approaches like balanced score card is aimed at providing a broader view of
organizational performance.
The revolution in ICT has changed the banking sector operations from the
traditional to presumably better ways with technological innovation that improves
efficiency. ICT can enhance efficiency via its use and in recent times banks have
been encouraged by the rapid decline in the price of ICT gadgets. This has perhaps
increased the bank level of ICT usage (Ovia, 2005).The increase might have also
been attributable to business environment that became relatively flexible to
accommodate new forms of technological changes as a result of reforms in the
ICT encompasses computer systems, telecommunication, networks, and
multimedia applications and it came into use in the late 1980’s replacing earlier
terms like Electronic Data Processing (EDP), Management Information System
(MIS), although the latter terms are still in use (Frenzel, 1996). ICT has
transcended the role of support services or only electronic data processing; its
fields of applications are somewhat global and unlimited. Its devices especially the
Internet through the World Wide Web (www) and modern computer email
facilities have further strengthened early innovations like the telephone and fax.
Other ICT devices include data recognition equipment, factory automation
hardware and services, tele-computing and teleconferences using real time and
online system (Adeoti, 2005). It is a concept that is having a remarkable effect on
almost entire aspects of the human endeavors. This connotes that it involves the
application of principles to engage physical component in achieving an intended
goal. The convergence of computer and telecommunication after about four
decades of applying computers to routine data processing, mainly in information
storage and retrieval, has created a new development where information has
become the engine of growth around the world. This development has created
catch-up opportunities for developing countries such as Nigeria to attain desired
levels of development without necessarily ‘reinventing the wheels’ of economic
growth. This new technology has brought far-reaching revolution in societies,
which has tremendously transformed most business (banking) scenes (Ovia,
Banking has become highly ICT based and because of its inter-sectorial link, it
appears to be reaping most of the benefits of revolution in technology, as
can be seen by its application to almost all areas of its activities (Akinuli, 1999). It
has broadened the scope of banking practices and changed the nature of banking
as well as the competitive environment in which they operate. A broad opening
has been experienced around the world for banks and they are currently taking due
advantage of these innovations to provide improved customer services in the face
of competition and faster services that enhance productivity (Akinuli, 1999;
The role of technology in the “information age” is well recognized by banks,
businesses, industries, governments and as such has completely woven in to their
organizational structure and strategic planning process. Previous research work
shows that information technology has become the nervous system of banks today
and as such Nigerian banks which do not have the means to deliver banking
service online and real-time across all branches within the country and abroad will
be termed uncompetitive.
The integration of banks structure, business processes and strategies by the use of
specialized information technology is considered a vital part of performance
management concept. It has to be ensured that, strategic changes trigger
modification on the business process level and the supporting information
technology, and that innovation on the information system initiates the adjustment
of the company strategy.
Organizations in the financial sector especially banks strive to achieve creation
goals for the benefit of their owners or clients. These goals may be expressed in
terms of objectives which include among others, increasing revenue, improving
services rendered, expanding the customer base, minimizing cost of operations.
Nigerian economy yearns for development. Irrespective of the fact that she is
blessed with enormous natural resources, she remains one of the poorest countries
in the world. Banks today are looked upon as vehicle of change for a much needed
economic growth and development as it befits on banks to develop the most
effective means of delivering effective, efficient and quality service that will help
drive our awaited economic success. These can be made possible if and only if
information technology is properly put to use in the banking sector.
The role ICT in the banking sector became of interest to this study due to the
significant role it plays in the economy by stimulating economic growth through
the intermediation of 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, 1998; Ojo, 2007).
Hence, Information technology has been acknowledged as the life wire of banks in
the financial sector as it promotes and facilitates not just the organizational
performance but also staff performance of banks in the country. These therefore
call for a pre-requisite need to embrace information technology. It is in view of
this that this research work attempts to examine the impact of information
technology on the performance of Staff in Nigeria banking sector today.
1.2. Statement of the Problem
Banking has come of age and as such, competition has alerted banks to look for
innovations that will make their staff perform better and keep their customers. As
a result of the need for efficiency and effectiveness in the banking sector, the web
is introduced and used mostly for commercial purpose through internet banking
and information technology. The adoption of information technology in banking
sector is owing to the fact that, linguistic barriers needed to be put to an end to
enable easy and cheaper communication during transaction, to foster customerbank relationship, increase customer satisfaction, improve operational efficiency,
reduce the running cost, reduce transaction time, give banks competitive edge,
provide security to investors fund and promotion of other financial services.
Despite the adoption of information technology in banking sectors today with its
numerous objectives, observation has however shown that, not all the objectives
have been realized and felt by users. It is therefore imperative for the researcher to
establish the influence of ICT on the performance of staff in Nigerian banking
industry, with particular reference to Keystone Bank Limited.
1.3. Objective of the Study
The broad objective of this study is to assess the impact of ICT on the overall staff
performance in Nigeria Banking Sector.
The specific objectives of this study are to;
1. identify how the adoption of information technology affects the performance of
staff in Nigerian Banking Sector (keystone Bank Limited).
2. examine the technological factors that can enhance the growth of Nigerian
3. assess the effect of ICT on the performance of staff in keystone Bank Limited.
4. establish the relationship between ICT and Staff performance in the study area.
1.4. Research Questions
The study would examine the following questions;
1. To what extent does the adoption of information technology influence staff
performance in Nigeria Banking Sector?
2. To what extent has ICT influence the performance of staff in Keystone Bank
3. What are the technological factors that can enhance the growth of Nigeria
4. How do we establish the relationship between ICT and Staff Performance in
Keystone Bank Limited?
1.5. Hypotheses
1. H0 (1): The adoption of information technology has no significant effect on
staff performance in Nigerian Banking Sector.
2. H0 (2): There is no significant impact of ICT on staff performance in Keystone
Bank Limited
3. H0 (3): There are no known technological factors that can affect the growth of
Nigerian Banking Sector.
4. H3 (4) Information and communication technology has not led to improvement
of relationship in the Bank hence, staff efficiency has not improved.
1.6. Significance of the Study
The significance of this research work is that it would explore the impact of
information technology on the performance of employees in Nigerian banking
sector with special references to Keystone Bank Limited context. This particular
industry was chosen because of the rigor employees are made to go through in the
industry in the course of meeting the targets of the management. This has affected
the economic, social and private lives of the employees. It is intended to
investigate whether employees’ performance is influenced by the technological
innovation (ICT) adopted by the management. It is hoped that this study would
contribute to the promotion of the existing frontier or boundary between ICT and
banking sector.
It would also help to find out the reasons why banks today have to forgo the
former ways of operation to modern banking such as e-banking and as such
identify the problems arising from the operational system of commercial banks in
The knowledge that would be gained from this research work will assist
management of banks to appreciate the importance and use of information
technology to achieve the overall efficiency and effectiveness in operation.
It would as well contribute to existing literature by identifying the major barriers
to the adoption of this innovation on banking operation in Nigeria and suggest
how to address them.
It would also be a valuation tool for students, academic institutions, and
individuals that want to know more about the impact and relevance of information
technology in Nigerian banking sector.
1.7. Scope of the Study
This study will be limited to the influence of ICT on the operations of banking
sector in Nigeria and how it affects the performance of employees. Specifically,
the information in this research work is limited to the activities of Keystone Bank
Limited. The field survey shall be conducted in Lagos because it is the commercial
nerve center of the country.
1.8. Limitation of the Study
There are some of limitations of this study, despite the fact that Research would be
successful. In any Research work, it may be impossible to take good care all
problems involved, the only thing a Researcher can do is to consider those factors
that are essential to Research. The actual limitation of the study is career pressure
as well as time constraints due to other family commitment.
1.9. Operational Definition of Key Terms
1) Information: Information is a data that has been processed. It is also
referred to data that have a particular meaning within a specific context, or
data that have been processed in such a way to be useful to the recipients.
Ayatse (2005).
2) Technology: According to the oxford advanced learners dictionary (7th
edition) “technology is a specific knowledge used in practical ways in
industry”. For example, designing new machines which are made to meet
up the demand of current and future situation/trend.
3) Data: Data are facts, events and transactions, observations that describe a
particular phenomenon. Ayatse (2005).
4) Computer: Computer is an electronic machine that can store, organize, and
find information, do calculations and control other machines. It is also said
to be an electronic data that accepts, process, stores and output data at high
speed according to programmed instructions. Micro soft Encarta (2009).
5) Performance: Performance in this context entails how well or badly an
individual/organization does something or how well or badly something
6) Bank: A bank is said to be an organization that provides various financial
services to individuals like lending or keeping money for people. These
banks provide security and comfort to customers.
7) Internet: This is an international computer network connecting other
networks and computer from companies, universities etc. It is termed as a
massive connector of network linking millions of computers.
8) Communication: This is the transfer of information from one point to
another either electronically or non-electronically, with the information
being understood by the receiver


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