Impact Of Information Technology On Banks Operations

INTRODUCTION
Information is unique and vital to the health of banks in Nigeria, if properly receive and manage effectively and efficiently through information management system in an organization. With the end of colonialism, the newly independent states had expected to compete in the new world order.
Eliminating colonial dependence was held as the key to banishing backwardness and speeding up economic growth and development through banks. These dreams have remained largely unfulfilled. The economic gap between the industrially developed and the developing countries of the world continues to widen due to lack of information technology system in the country. The resulting frustrations have emerged as unprecedented unrest and acute technological problems.
In today’s world all aspects of economic development have witnessed and experienced the touch of information technology rapid changes are taking place in technological advancement, perhaps more than in any other field of human activity.

1.1 BACKGROUND OF THE STUDY
Up till now, developing countries have only paid up services to information technology as a factor of economic development through the banking industry. Hence, the running of the main productive sector of the economy is carried out on the basis of lack of advanced technological equipments. All these have shown that information technology have not directly benefited the industrially advanced nations almost exclusively. The characteristic of non-development of information technology in poor nations has been the major factor for lack of social and economic progress in the banking sector of the economy. No matter by what channels modern technology reaches developing nation like Nigeria, it is important that it meets the need of economic growth and development. The process by which the information technology of industrially developed countries is made to match the requirements of developing countries has been called adaptive of technology. The adaptation of technology forms and integral part of its transfer to developing countries in this wise government as well as stakeholders in the banking sector have role to play in bringing Nigeria to the fore of information technological development that will enhance economic growth in Nigeria.

1.2 STATEMENT OF THE PROBLEMS
Modern technology is to a great extent introduced into Nigeria as an integral part of foreign investment, it has not met the desired success. The limits of information technological progress are set by the quality of human resources, the stage of industrial development and the prevailing economic policy frame are problem affecting information technology in Nigeria.
Recently in Nigeria, the banking sector witness unexpected turn around by the regulatory body (CBN) which almost led to the closure of some banks in the system due to mismanagement of shareholders and customers money by some of the directors.
Hence, poor management of investors and customers funds, inability to keep customers’ information for future use, poor network services, conversion of investors money to personal money by some bank executives and poor customers relationship and orientation were now the order of the day due to lack of information technology in its operations. It is on this note the researchers want to examine the impact of information technology on banks operations in Nigeria using Guaranty Trust Bank Plc as a case study.

1.3 PURPOSE OF THE STUDY
The following are the purpose of the study:
– To know the impact of information technology on banks operations in Nigeria.
– To know the impact of banks on economic development in Nigeria.
– To know the policies put in place to develop information technology in Nigeria.
– To know the need for information technology on the banking industry.
– To know why the industry is lacking in the area of information technology.

1.4 RESEARCH QUESTIONS
The stated below are the relevant research questions formulated for the study.
1. Do you think information technology system will increase banks efficiency in Nigeria?
2. Do you think the banking industry is lacking in the area of information technology?
3. Do you think bank management in Nigeria is doing enough to improve information technology in the industry?
4. Do you think we need foreign investors to develop information technology in Nigeria?
5. Do you think information technology have any impact on banks operations in Nigeria?

1.5 SIGNIFICANCE OF THE STUDY
The research is significant for the following reasons:
a. It would give the researchers the knowledge of banks operations in Nigeria.
b. It would also give the researchers the knowledge of the formulated policies to improve information technology in Nigeria.
c. It would be useful to lectures of higher institutions of learning i.e. university and polytechnics.
d. Students of Business Administration, Banking and Finance and others studying related courses can also benefit from a work of this nature.
e. Information technology would give the researchers the knowledge of how information is been managed in the banking industry.
f. It would generate information useful to financial institutions and investors in the field.

1.6 SCOPE OF THE STUDY
This research project is limited to the impact of information technology on bank operator in Nigeria using Guaranty Trust Bank as a case study since information must be received and processed into meaningful use for economic growth and development especially in the banking industry.

1.7 LIMITATIONS OF THE STUDY
Embarking on the work of this nature is a daunting task. The following are the factors which impeded the carrying out of the research as schedule:
a. Finance: Insufficient capital to carry out the research work slow the efficiency of the project writing.
b. Time: The researchers did not really have enough time to gather facts about the research topic.
c. Materials: The non-availability of the needed materials for the work also affects the project writing negatively.
d. Facts: Poor responses to facts disclose by the banks operators and stakeholders in the field also affect the project completion.

1.8 DEFINITION OF TERMS
Information Technology: The study or use of systems (especially computers and telecommunication) for storing, retrieving, and sending information.
Bank: A financial intermediary that creates credit by lending money to a borrower. It’s also a place where money is being deposited for future references.
Mismanagement: The process of not handling something competently.
Shareholder: This is one who legally owns a share of stock in a public or private corporation.
Investment: This is the time, energy or matte spent in the hope of future benefits actualized within a specified date or time frame.
Operation: This is a method or practice by which actions are taken.
Economic Development: This is the quantitative and qualitative changes in the economy.
 

1.9 BRIEF HISTORY OF GUARANTY TRUST BANK
Guaranty Trust Bank Plc was incorporated as a limited liability company licensed to provide commercial and other banking services to the Nigerian public in 1990 and commenced operations in February 1991.
In September 1996, GT Bank Plc became a publicly quoted company and won the Nigeria Stock Exchange presidents merit award. In February 2002, the bank was granted a universal banking license and later appointed a settlement bank by the Central Bank of Nigeria (CBN) in 2003.
Guaranty Trust Bank undertook its second share offering in 2004 and raised over eleven billion naira from Nigeria investors to expand its operations.
On 26th July 2007, GT Bank became the very first sub-saharam bank and First Nigeria Joint Stock Company to be listed on London Stock Exchange and Deutsche Borse.
In the same year, they successfully placed Nigeria’s first private Eurobond issue on the international capital markets.
The GT Bank USA 500,000,000 Eurobond was the first ever benchmark Eurobond issued by a Nigerian corporate and second Eurobond programme by GT Bank in the last five years.
The long term debts of Guaranty Trust Bank Plc are rated BB, by standard and poor and AA by Fitch Ratings which are the highest rating for a Nigeria bank.
They introduced online banking and SMS banking in Nigeria and a naira denominated MasterCard as well as the platinum and world signal cards and with GT Bank on wheels, mobile branches.
On 12th March 2008, GT Bank was given a banking license for the United Kingdom by the financial services authority.
GT Bank is a partner of Eko Atlantic City a new made Island (820ha) in the Atlantic Ocean adjacent to Victoria Island Lagos. It will be the home of the new financial district. The building of Eko Atlantic City started in 2009 and is expected to be finished on 2016.
To commemorate the banks 20th anniversary, the Nigeria postal service issued a set of GT Bank Anniversary Postage Stamps. This was the first time in Nigeria that a corporate organization was honoured in such a way.
In 2011, the bank became the biggest bank in Nigeria by market capitalization.
In 2013, the bank issued a USA 400,000,000 Eurobond at a coupon rate of 6%, the least obtained by a Nigeria company in the international capital market. The Eurobond was issued under the USA 2,000,000 global medium term note programme, which is registered under both regulation in the United State of American and Rule 144A in the United Kingdom and sold investors across Africa, America, Asia and Europe. The bank has over 10,000 employees.