OF INFORMATION AND COMMUNICATION TECHNOLOGY ON CUSTOMERS SERVICE DELIVERY
STUDY OF UBA PLC)
TABLE OF CONTENTS
1.1 Background of the study - - - - - - 1
of Problem - - - - - - - 7
1.3 Objective of the study - - - - - - - 9
Questions - - - - - - - 10
of Hypothesis - - - - - - 11
1.6 Significance of the Study - - - - - - 11
1.6 Scope of the study - - - - - - - 12
1.7 Definition of terms - - - - - - - 12
2.1 Introduction - - - - - - - - 18
2.2 Conceptual Framework212.2.1 Information Technology
and the Common Banking Products - - - - 35
2.3 Theoretical Framework - - - - - - 39
2.4 Empirical Literature Review - - - - - 45
3.1 Introduction - - - - - - - - 56
3.2 Area of the study - - - - - - - 56
3.3 Population and Sample Size of Study - - - - 56
3.4 Sources of Data - - - - - - - - 57
3.5 Method of Data Analysis - - - - - - 57
3.5.1 Test of Hypotheses and Inference - - - - - 57
3.5.2 Decision Rule and Justification - - - - - 58
PRESENTATION AND ANALYSIS
4.1 Introduction - - - - - - - - 59
of Respondent’s Demographic Variables - - 60
Analysis - - - - - - - - 63
4.4 Test of Hypothesis - - - - - - - 69
of Findings - - - - - - - 70
of Finding - - - - - - - 71
CONCLUSION AND RECOMMENDATION
5.1 Summary - - - - - - - - - 73
5.2 Conclusion - - - - - - - - - 74
of the Study - - - - - - 76
5.3 Recommendations - - - - - - - 76
Bibliography - - - - - - - - - 81
Appendix I - - - - - - - - - - 82
Appendix II - - - - - - - - - 83
of the study
technology is a body of tools with the convergence of communication and
computer. It is also series of machine, which can execute sequence of instructions.
The sequence of instruction is a program made particularly flexible and not
rigid and can be change depending on the information being processed (Goldberg,
new millennium brought with it new possibilities in terms of information access
and availability simultaneously, introducing new challenges in protecting
sensitive information from some eyes while making it available to others.
Today’s business environment is extremely dynamic and experience rapid changes
as a result of technological improvement, increased awareness and demands Banks
to serve their customers electronically. Banks have traditionally been in the
forefront of harnessing technology to improve their products and services.
Banking industry of the 21st century operates in a complex and competitive
environment characterized by these changing conditions and highly unpredictable
economic climate. Information and Communication Technology (ICT) is at the
centre of this global change curve of Electronic Banking System in Nigeria
today. (Stevens 2002).
that they have over the time, been using electronic and telecommunication
networks for delivering a wide range of value added products and services,
managers in Banking industry in Nigeria cannot ignore Information Systems
because they play a critical impact in current Banking system, they point out
that the entire cash flow of most fortune Banks are linked to Information
application of information and communication technology concepts, techniques,
policies and implementation strategies to banking services has become a subject
of fundamental importance and concerns to all Banks and indeed a prerequisite
for local and global competitiveness Banking.
advancement in Technology has played an important role in improving service
delivery standards in the Banking industry. In its simplest form, Automated
Teller Machines (ATMs) and deposit machines now allow consumers carry out
banking transactions beyond banking hours.
online banking, individuals can check their account balances and make payments
without having to go to the bank hall. This is gradually creating a cashless
society where consumers no longer have to pay for all their purchases with hard
cash. For example: bank customers can pay for airline tickets and subscribe to
initial public offerings by transferring the money directly from their
accounts, or pay for various gods and services by electronic transfers of
credit to the sellers account. As most people now own mobile phones, banks have
also introduced mobile banking to cater for customers who are always on the
move. Mobile banking allows individuals to check their account balances and
make fund transfers using their mobile phones. This was popularized by First
Atlantic Bank (now First Inland Bank) through its “Flash me cash” product
Customers can also recharge their mobile phones via SMS. E-Banking has made
banking transactions easier around the World and it is fast gaining acceptance
delivery channels today in Nigeria electronic Banking are quite numerous has it
is mentioned here Automatic Teller Machine (ATM), Point of Sales (POS),
Telephone Banking, Smart Cards, Internet Banking etc Personal computers in the
Banking industry was first introduced into Nigeria by Society Generale Bank as
the popular PC easy access to the internet and World Wide Web (www) and internet
is increasingly used by Bank’s as a channel of delivering the products and
services to the numerous customers.
almost all Banks in Nigeria have a web presence; this form of Banking is
referred to as Internet Banking which is generally part of Electronic Banking.
The delivery of products by banks on public domain is an indication of
advertisement which is known has E-Commerce. Electronic commerce on the other
hand is a general term for any type of business or commercial transaction it involves
the transfer of information across the internet. E-Commerce involves
individuals and business organization exchanging business information and
instructions over electronic media using computers, telephones and other
communication equipments. This covers a range of different types of business
from consumers to retails products.
Electronic banking as it is; is a product of E-Commerce in the field of banking
and financial services. It’s offers different online services like balance
enquiry, request for cheque books, recording stop payment instructions, balance
transfer instructions, account opening and other form of traditional banking
services. The Internet allows businesses to use information more effectively,
by allowing customers, suppliers, employees, and partners to get access to the
business information they need, when they need it. These services all translate
to reduced cost: there are less overhead, greater economies of scale, and
internet is revolutionizing sales techniques and perceptions of leading brands,
and the internet is intensifying competition in all its forms. Banking are
continuing to use the internet to add value for their customers; but in order
for this to work effectively - maximizing opportunities, reducing risks and
overcoming problems – an E-Banking strategy is required as an impact.
growth of the Web and Internet as new channels, the growth in their use by
customers, the growth in their use by customers, and the floor of companies
entering the market, presents a series of key challenges to companies. It is
easy and cheap to put up a website.
to create an environment delivering effective service on the Web to a
significant proportion of your customer base requires an E-Banking strategy.
Banking offers different online services like balance enquiry, request for
cheque books, recording stop payment instructions, balance transfer
instructions, account opening and other form of transitional Banking services.
impact of information Technology on service delivery in banks cannot be overemphasis. Hence the need to
investigate it impact on service delivery in UBA Kakuri branch in Kaduna.
In Nigeria, customers of banks today
are no longer about safety of their funds and increase returns on their
investments only. Customers demand efficient, fast and convenient services.
Customers want a Bank that will offer them services that will meet their
particular needs (personalized Banking) and support their Business goals for
instance; businessmen want to travel without carryout cash for security
reasons. They want to be able to check their balance online, find out if a
cheque is cleared, transfer funds among accounts and even want to download
transaction records into their own computer at work or home. Customers want a
preferential treatment and full attention by their choice Bank. All these are
only achievable through the use of ICT: In line with rendering qualities and
acceptable services that most Banks in Nigeria are gearing toward and investing
large sum of money in information and communication Technology, expectedly such
Banks services have been improved. United Bank for Africa (UBA), Zenith Bank,
GT Bank (to mention few) are in the forefront in the use of IT in rendering
services to their Customers (The Guardian Newspaper April 18, 2008p 21).
Hence, some of the typical issues
posing serious challenges on service delivery in bank are advance information
technology. Banks and the entire financial sector in Nigeria have been most
radically affected by these developments. This is so because information
technology has become a critical business resource and its absence could result
in poor decision and ultimately business failure. As such many banks and
financial institutions have failed in the past due to their inability to
utilize information technology in marketing their financial services as well as
business environment is very dynamic and undergoes rapid changes due to
technological innovation, increased awareness and increased demands from
customers. The banking industry of the twentieth century operates in a complex
and competitive environment characterized by these changing conditions and
highly volatile economic climate, and information and communication technology
ICT) is at the centre of this global change curve (Agboola,2006). Hence the
banks that will survive and complete effectively in today’s business
environment must necessarily integrate ICT into its operational processes.
this scenario, this thesis attempts a synthesis of empirical facts on the
extent to which information and communication technology has informed innovations
in the operational modalities and service delivery modes of banks in Nigeria
and the impact of this on bank performance. It is against this background that
the subject matter is seen as a problem worthy of investigation.
1.3 Objective of the study
central objective of the study is to examine the impact of information and
communication technology on customer’s service delivery. The specific
Investigate how Information and communication Technology enhances
customer’s satisfaction in United Bank of Africa.
Examine the benefits a customer derives from using ICT tool in United Bank for Africa.
Identify the challenges militating against ICT operation in United Bank
In the study the research question below is proffered
does ICT enhance customer’s satisfaction in United Bank of Africa?
benefits do customers derive from using ICT tools in United Bank of Africa?
are the challenges militating against ICT operation in United Bank for Africa?
stated hypotheses tested in this study;
and communication Technology does not enhance bank service delivery.
and communication technology enhances bank customer satisfaction.
1.6 Significance of the Study
study would enable the banks executives and indeed the policy makers of the
banks and financial institutions to be aware of electronic banking as a product
of electronic commerce with a view to making strategic decisions. The research
is equally significant because it would provide answers to factors militating
against the implementation of electronic banking in Unity Bank Plc; prove the
success and growth associated with implementation of electronic banking
highlight the areas of banking operations that can be enhanced via electronic
banking and also be an invaluable tool for Students, Academician, institutions,
Corporate managers and individuals that want to know more about electronic
banking trends especially in Nigeria.
1.6 Scope of the study
pursuance of the objective of the study; attention shall be focus on
information technology in banks. In order to conduct an empirical investigation
into the impact o information and communication on bank customer service
delivery in united bank for Africa and will also examine the nature of ICT
operation in united bank for Africa from 2007 to 2009.
1.7 Definition of terms
Automated Teller Machine: According to Peter and Sylvia (2008), an ATM combines
a computer terminal, Recordkeeping system, and cash vault in one unit,
permitting customers to enter a financial firm’s bookkeeping system with either
a plastic card containing a Personal Identification Number (PIN) or by punching
a special code number into a computer terminal linked to the financial firm’s
computerized records 24 hours a day. Once access is gained into the system,
cash withdrawals may be made up to pre-specified limits and balance inquiries,
and bill paying may take place. Mishkin (1998) states that the wonders of
modern computer technology have also enabled banks to lower the cost of bank
transactions by having the customer interact with an electronic banking
facility rather than with a human being. One important form of electronic
banking facility is the automated teller machine (ATM), which has the advantage
that it does not have to be paid over time. Furthermore, because of its low
costs, ATMs can be put at locations other than a bank or its branches, further
increasing customer convenience. The low cost of ATMs has meant that they have
sprung up everywhere. Although ATM was introduced in the Nigerian banking
industry in early 2000, most banks embraced its use after the 2005 banks’
consolidation. Today, there is hardly any bank without the ATMs.
banks have also deployed the ATMs to other locations such as supermarkets,
tertiary institutions, hospitals, hotels and so on. There is no doubt that the
introduction of ATMs by banks is to reduce operation costs and to ensure that
the customers are better served. But the ATM is not without challenges because
there are always people out there who would want to reap where they did not sow
.The infrastructures that support the machine are susceptible to abuse, misuse
and failure in many ways, resulting in financial loss as a result of fraud,
unauthorized use of customers personal identification number and loss of
customers confidence. ATM fraud has taken an alarming proportion and most
customers are now afraid to use their ATM cards. There is no doubt that there
must be collusion between some bank staff and fraudsters for such frauds to
succeed. This is one of the reasons customers are fret about the security of
on-line transactions. While on the other hand, some customers have not helped
matters because of their carelessness or fraudulent nature.
debit card use by banks customers in making transactions via ATM. The card is a
complex circuit that process micro processors with a single chip that contains
the complete arithmetic and logic unit of computers , it provide access to
customers to perform balance inquiry, mini statement and cash withdrawal as
well as transfers through the use of Automated teller machine. This debit card
can also be used for internet online and post transactions.
this is a card containing one or more computer chips or integrated circuit for
identification, data storage or special purpose processing used to validate
personal identification numbers authorize purchase, verify account balances and
store personal records.
Data Interchange (EDI):
The transfer of information between organizations in machines readable form. Electronic
monetary value is measured in currency units stored in electronic form on
electronic device in the consumer’s possession. This electronic value can be
purchase and held on the device until reduced through purchase or transfer.
this is a product that enables the
bank to offer customers to access services anywhere. Customers can make their
transactions anywhere such as account balance inquiry, transactions inquiry.
Bill payment/electronic fund transfer. Transfer between accounts etc.
System: A financial system that establishes
that means for transferring money between suppliers and of fund, usually by
exchanging debits or Credits between financial institutions.
Of Sale (POS) Machine:
A Point-of-Sale machine is the
payment device that allows credit/debit cardholders make payments at
sales/purchase outlets. It allowed customers to perform the following services
Retail Payments, Cashless Payments, Cash Back Balance Inquiry, Airtime Vending,
Loyalty Redemption, Printing ministatement etc.
A Card with a computer chip embedded,
on which financial health, educational, and security information can be stored
Alert: Our customers carry out
debit/credit transactions on their accounts and the need to keep track of these
transactions prompted the creation of the alert system by the Bank to notify
customers of those transactions. The alert system also serves as notification
system to reach out to customers when necessary information need to be
Union Money Transfer (WUMT):
Western union Money transfer is a
product that allowed people with relatives in Diaspora who may be remitting
money home for family up-keep, Project financing, School fees etc. Nigerian
Communities known for having their siblings gainfully employed in other parts
of the world are idle markets.