Essay regarding The Function of Informationtechnology on the Nigerian Banking Program

The Part of Informationtechnology on the Nigerian Banking System

Information Technology and Banking

Automation

It truly is becoming increasingly challenging, if not really

impossible, intended for banks employing traditional

methods (manual methods) to compete favorably

in the industry. According to Gandy, (1995, p. 18),

the potential of the brand new information time to deliver

finance directly into someones home is definitely

causing trepidation among the big retail banking companies.

IMF convention of 1989 confirmed that

Information Technology has already established more influence

on even more fundamentals, quicker, than

almost any other exterior change in a history

of the financial industry. It really is transforming every single

aspect of a bank's business, from its managing

information towards the nature in the products and

providers it offers. It fundamentally impacts many

from the key individuals of both cost and revenue,

which will increasingly determine a bank's overall

earnings and competitive positions'

With Information Technology, electronic

funds and information copy systems have

been variously designed to deliver solutions to

clients in a ‘better' and ‘faster' ways. Today,

investment in technology is becoming an

crucial component of a general strategy in

banks. Writing on fresh technologies and

performance improvement in the banking

industry, (Ovia, 1997, s. 2) mentioned that the new

technologies have created unparalleled wired

economy. The transfer of money from level ‘A'

to point ‘B' has led to turning using the

money into bits and bytes through satellite

transponders, fibre optic cables or regular

mobile phone lines.

Financial institutions utilize computer based systems as well

because telecommunication technology for storage space,

processing and communication (Adetayo et ing.,

1997, p. 692). Computer technology has provoked

several technology and automated devices. The

advent of computer and its various application

areas has really brought succour towards the agitating

mind of many lender executives. Computer system, an

computer that allows inputs, procedures

them, produces outputs, and stores info (Barry,

1988, p. 9) has become a potent weapon within their

hands. The origination of computer was an

result of a planned search for methods of

producing effective, accurate and timely

INFORMATION TECHNOLOGY, BANK MOTORISATION 217

enables banks to get nearer to their customers,

find out what they want, and deliver a

wider variety of services at lower costs (Gate, 1996,

p. 20).

The first stage of the using IT in

banking was the use of Laptop as a back again office

affair to transfer accounting and record keeping

activities by branch ledgers to a central

system The 2nd application region was on the

automation in the labor intensive business of

removing cheque (David, 1982, pp. 78-79). The

third area of technological app accords

priority to the liberation of banks and customers

from the classic constraints of your energy and place.

Right here, existence of high-speed cash dispensers

and provision of home bank facilities have got

brought banks into deeper and more repeated

contact with buyers. Customers may do

their very own banking after they want and at the

ease, comfort, level of privacy and reliability of

all their homes. Your fourth application area centers

upon innovative technology where new releases

and companies are made open to the

consumers. Banks surely have computerized credit rating

ratings and programs that determine the moment

calculation of accounting balances is to be performed.

The bank industry, which slowly progressed

over the decades, has all of a sudden found by itself

experiencing a powerful process of transform and

alteration occasioned simply by deregulation and

the exigencies of technological revolution. This kind of

has incredible effects within the mode of banking

procedure and workers requirements.

Automatic Devices

I . t refers to the

automation of processes, regulates, and

details production employing computers,

telecommunications, software and ancillary

gear such as Automatic Teller...