Introduction of internet technology as including opening an

Introduction Today’s banking environment is very dynamic and undergoes rapid changes as a result of innovations in internet technology (IT), increased awareness and demand from customers. In Nigeria, the banking industry witnessed lots of challenges due to increase in the awareness and utilization of banking services. The demand for bank operation services equally increased the staff strength and branches of most Nigerian banks.

In spite of this these adjustments the banks cannot satisfy the demands of some of their transactions were based on manual and physical present of their customers. Modern Internet technology brought to relief to the increased volume and complexity of banking operations. Irechukwu’ (2000), itemized banking services that have been influence via the use of internet technology as including opening an account, mandate on customers account, and transaction processing and recording. Internet technology which is synonymous with computer communication technology in everyday language can be defined as technologies that facilitates the information cycle, comprising gathering, process, disseminating and storing of information and as such internet technology encompasses a wide range of technologies such as telephone, computer, word processing application, web browser, servers, full text document, database and main frame computer. Internet technology has provided self-service facilities from where prospective customers can easily complete their account opening documents directly online.

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Internet technology in Nigeria banking system and operation has been acknowledged as the life wire of banks in the financial sector as it promotes and facilitates the performance of banks in the country. This therefore calls for as a result, there is a pre-requisite need to embrace Internet technology. It is in view of this that this research work attempts to examine the influence of Internet technology on the banks bank operation in Nigeria commercial banking. Internet technology has played a prominent role in all areas of human life but the breakthrough of social progress and the vigorous development in technology has immeasurably increased the role of information in every facet of human life. It has also improved the overall processes of commercial banks performance in Nigeria, via the use of innovation and creativity pertaining to internet technology by commercial banks, this as a result has led to smooth, easy and convenient way of banking with adequate and quality service to customers, which has also paved way for efficiency and effectiveness to banking in Nigeria. Banking operation in Nigeria is becoming highly Internet technology based this is because of its inter-sectorial link and as it appears to be reaping from technology revolution, as it is seen by its application in all areas of its activities (Akinuli, 1999). According to Laudon and Laudon, (1991), opined that managers of banks cannot ignore Internet technology because it plays a significant role in contemporary organization.

The application of internet technology concept, techniques, policies and implementation strategies to commercial banking services has therefore become a subject of fundamental importance as it concerns all banks and a prerequisite for local and global competitiveness.Statement of the problem Internet Technology is seen as the book-bone of the financial system in the economy and could also be referred to as the life-line of the economy therefore the success of an economy is solely based on its financial system which out rightly is reference still being made to the past, to do with the banking performance in the economy. A broad opening in technology has been experienced in the world for banks and they are currently taking advantage of these innovations to provide better improved customer and more efficient services that will enhance productivity (Akinuli, 1999; Ovia,2005). According to Milgrom and Roberts (1990) they argued that to be successful, firms typically need to adopt internet technology as part of a “system” or “cluster” of mutually reinforcing organizational approaches. Banking has come of age and as such, competition has alerted banks to look for innovations that will keep their customers and even win more customers.

As a result of the need for efficiency and effectiveness of internet technologyon commercial banks, the web was introduced and has been used mostly for commercial purposes through internet banking and information technology. The adoption of internet technology in the banking sector is also attributable owing to the fact that, linguistic barriers needed to be put to an end to enable easy and cheaper communication during transaction, to foster customer-bank 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. This cloudy atmosphere therefore provides a fertile ground for the researcher to examine the influence of internet technology on commercial banking operation in Nigeria.Objective of the study The general purpose of this study is to examine the influence of internet technology on commercial banking operational in Nigeria.determine the extent to which internet technology has contributed to customer satisfaction and banks performance. determine how skillful and knowledgeable the staff are in the use of internet technology in commercial banks.

To determine whether there is an increase in the level of efficiency and effectiveness of operations since the introduction of internet technologies in commercial banking system. Research QuestionsThe following research questions will be answered in the cause of the study. To what extent does internet technology have any influence on the performance of commercial banks in Nigeria. To what extent has internet technology devices (computer, office automation) help bank staffs in the operations of their duties. To what extent internet technology has increase the level of efficiency and effectiveness of operations commercial banking system. Research Hypothesis In other to carry out this research the following hypotheses have been formulated. H0: The use of internet technology does not have a significant influence on the operational of the commercial banks.

H1: The use of internet technology has a significant influence on the operational of the commercial banks.Scope of The Study This research is concerned with the influence of internet technology on operation of commercial banks in Nigeria. These banks were certified worthy for the research due to the wide spread branch network and high indulgence in I.T practices.

The bank operations is weighted before and after the incorporation of internet technology into the system. The study will be concerned with how the employees and the customers are reacting to this new innovation. The study will also consider if investment made in internet technology was worth the end result achieved.

And also endeavor to expatiate on the new facilities leading to the assimilation of internet technology in the banking industry in Nigeria. Due to the time and financial resources available, this study needs to be limited to the confine of the selected banks.Significance of the study Internet technology has a major driving force to the development of technology which has impacted positively in virtually every sector of the Nigerian economy. In the banking sector, financial institutions use computers in their day to day operations in order to provide quality of service to their customers via the use of modern day technology. Internet technology has also improved customers knowledge about the use of computer and other gadgets through which customers of a bank can access their bank account and make other payments anywhere in the world.

Internet technology has also enhanced government work via reliable infrastructure, skilled human resources, open government and other essential issues of capacity building and also developing centers to improve IT capabilities especially at zonal, state and local levels. Research Methodology of The StudyThe Research Design In order to access the influence of internet technology on operation of commercial banks in Nigeria with respect to the banking services rendered, a questionnaire survey is conducted. Some questionnaires will also be issued to the bank managers, employees and I.T staffs in order to get an appreciation of what type of I.

T systems and electronic application services were available in the chosen banks. Meanwhile, due to the time and financial resources available, this study needs to be limited to the confine of the selected banks. The information will be observed, analyzed, compared, contrasted and conclusions will be arrived at.

These conclusions will be derived from the questionnaires and most likely to provide answers to questions posed by this research. This will help to clarify and broaden our sense of direction in this research work. Sources of DataThere are two sources of data which includes primary and secondary data. This research work will make use of primary data. Primary Data: The use of questionnaires will adopt a structured questionnaire approach which will be administered to commercial banks. Secondary Data: This will include text books, journal, newspaper, internet etcPropose Method of data analysis The data to be collected shall be presented in tables complemented with write ups for comprehensive analysis. In testing the stated hypothesis, the chi-square technique shall be used.

Literature Review Several authors have conducted investigation on the impact of ICT on the banking sector of the Nigeria economy. Agboola et al (2002) discussed the dimensions in which automation in the banking industry manifest in Nigeria. They include: Bankers Automated Clearing Services: This involves the use of Magnetic Ink Character Reader (MICR) for cheque processing. It is capable of encoding, reading and sorting cheques. Automated Payment Systems: Devices used here include Automatic Teller Machine (ATM), Plastic Cards and Electronic Funds Transfer. Automated Delivery Channels: These include interactive television and the Internet. Agboola (2001) studied the impact of computer automation on the banking services in Lagos and discovered that Electronic Banking has tremendously improved the services of some banks to their customers in Lagos.

The study was however restricted to the commercial nerve center of Nigeria and concentrated on only six banks. He made a comparative analysis between the old and new generation banks and discovered variation in the rate of adoption of the automated devices. Aragba-Akpore (1998) wrote on the application of information technology in Nigerian banks and pointed out that IT is becoming the backbone of banks’ services regeneration in Nigeria. He sited the Diamond Integrated Banking Services (DIBS) of Diamond Bank Limited and Electronic Smart Card Account (ESCA) of All States Bank Limited as efforts geared towards creating sophistication in the banking sector. Ovia (2000) discovered that banking in Nigeria has increasingly depended on the deployment of Information Technology and that the IT budget for banking is by far larger than that of any other industry in Nigeria. He contended that On-line system has facilitated Internet banking in Nigeria as evidenced in some of them launching websites. He found also that banks now offer customers the flexibility of operating an account in any branch irrespective of which branch the account is domiciled.

ReferencesAgboola, A. A. (2001) “Impact of Electronic Banking on Customer Services in Lagos, Nigeria” in Ife Journal of Economics and Finance. Department of Economics, O.

A.U, Ile-Ife, Nigeria, vol. 5, Nos. 1;2 *Agboola, A.A (2003): ‘InformTechnology, Bank Automation, and Attitude of Workers in Nigerian Banks’ in Journal of Social Sciences, Kamla-Raj Enterprises, Gali Bari Paharwali, India. Aragba-Akpore, S. (1998): ‘The Backbone of Banks’ Service Regeneration’, Moneywatch, July 22 , p23.

Irechukwu, G., (2000), ?Enhancing the Performance of Banking Operations through Appropriate Information Technology, In: Information Technology in Nigerian Banking Industry, Spectrum Books, Ibadan, 63-78.Akinuli, O.M. (1999), “Information Technology in Nigeria’s Banking Industry: Operational Applications, Problems and Future Challenges”, CBN Bullion, 23(3), 71-75.


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