INFORMATION AND COMMUNICATION TECHNOLOGY AND BANKING INDUSTRY
This study assessed the impact of information and communication and banks industry profitability using ten commercial banks in Nigeria. The study used bank annual data over the period of 2001 to 2013. This study applied fixed and random effects models in its analysis. The findings of the study indicated that the use of ICT in the banking industry in Nigeria increases return on equity. It has also been found an inverse relationship between additional sustained investment in ICT and efficiency which the study recommends among other thing shifting more emphasis on policies they will boost efficient. Proper utilization of ICT equipment rather than additional investments. Business organization especially the banking industry is operation in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate with information and communication technology (ICT) is at the center of the change curve. Using a primary data sourced through a structured questionnaire administered to selected banks in delta south senatorial Nigeria and the ordinary least square approach econometric techniques, this study examined the nature of the relationship that exists between banks profitability and the adoption of information and communication technology. The data analysis showed that a marginal change in Nigeria. This implies that a marginal change in the level of the investment and adoption of ICT in the banking industry will result to a proportionate increase in the profit level
1.2 STATEMENT OF THE PROBLEM Identified problems and solution that can have an impact on the banks in the adoption of information and communication technology can been seen as follows: a. consumer awareness b. security c. accessibility to computer d. reluctant to change. e. interdependence and lack of encryption of short message system (SMS). f. insecurity of fund transfer, and standardization of channels. In other to investigate the information and communication technology in banking industry and profitability in addition to problems identified, this study intend to investigate and answer the following questions. To what extent does information and communication technology improved banking sector with reference to the selected commercial banks in Nigeria? Couple with these problems is a situation where a bank issue an individual debit card that is associated with an account with a line of credit and is also an ATM debit card. The individual can perform a number of different types of transaction with the same card. The line of credit could be access fraudulently, where the owner has recourse under consumer credit legislation and under regulation if the fraud involves an electronic fund transfer (EFT). When automated teller machine (ATM) or electronics point of sale (POS) terminals are used, its liability is limited under the effect. If, however, the fraudulent use of the card directly debits its bank account in a paper-based transaction, the consumer had no recourse under government legislation. This is an example where the same card express three different instruments, each of which in the case of fraud, would require different action by the consumer (Agbada, 2008). 1.3 PURPOSE OF THE STUDY: The aim of the study therefore, is to; a. know the co-relation between information and communication b. examine the role of information and communication technology in ensuring efficient service delivery in the banking industry c. examine the impact of information and communication in bank industry profitability d. examine whether information and communication technology has improved the performance of banking operation with reference to selected commercial banks in Nigeria e. analyze the role of information and communication technology in enhancing the performance of banking operation with reference to selected commercial banks in Nigeria.
1.4 RESEARCH QUESTION a. Is there any co-relation between information and communication technology? b. Is the role of information technology ensuring efficient service delivery in the banking industry? c. What is the impact of information and communication in banks industry profitability? d. Has information and communication technology improved the performance of selected banks in Nigeria? e. Is the role of information and communication technology enhancing the performance of banking industry in Nigeria? 1.5 HYPOTHESIS For the purpose of this research, the following null and alternative hypothesis; Ho: there is no significant relationship between the level of information and communication technology and banks profitability. Hi: there is significant relationship between the level of information techn0ology and communication technology and banks profitability.
1.6 SCOPE OF THE STUDY