Financial institutions in Nigeria are revolutionizing their operations through use of information technology since they have come to realize the fact that computerized banks gains in the long run. 

Data was collected from primary source and was analyzed using simple percentage and chi-square to test the formulated hypothesis from one hundred and. fifty administered questionnaires sent and gotten from both staff and customers of United Bank of Africa (UBA) PIc. 

The study has shown that information technology is extremely important in the present and in the future banking operation. 


Title Page




Table of content



1.0 Background of the Study

1.1 Historical Background of United Bank for Africa (UBA) Plc

1.2 Statement of the Research Problems

1.3 Objective of the Study 

1.4 Research Questions

1.5 Research Hypothesis

1.6 Scope and Limitation of the Study

1.7 Justification of the Study

1.8 Research Methodology

1.9 Organization of the Study

1.10 Operational Definition of Terms



2.1 Introduction

2.2 Information Technology Concept 

2.3 Past Researches on Information Technology

2.4 Evolution of Information Technology

2.5 Development of Information Technology in Banking Industry 

2.6 Computer Technology in Banking Industry 

2.7 Information Technology in Growing Nigerian Financial Market 

2.8 Globalization, Information Technology and Nigerian Commercial Bank

2.9 Benefits of Applying Information Technology

2.10 Challenges Facing the Application of information Technology in Nigerian Banks 




3.0 Introduction 

3.1 Research Design 

3.2 Population and Sample 

3.3 Method of Data Collection

3.4 Method of Data Analysis 



4.1 Introduction

4.2 Classification and Analysis of Responses

4.3 Personal Information 

4.4 Data Analysis and Interpretation

4.5 Discussion of Findings 



5.1 Summary of Findings 

5.2 Conclusion 

5.3 Recommendations




1.0 Background of the Study 

Development in a country can be measured in terms of its overall social, economic and political development. But no matter how developed the country is, it cannot be self-sufficient, there is an everyday urge to improve in the social relationship, economic development and politics. 

In Nigeria, during the pre-colonial era, there is always an interaction' which starts mostly from trading 'activity which enables the country to exchange what it has for what it requires. Trading was carried out among the various tribes that made up the present Nigeria nation through the primitive methods of trade by barter system which is the exchange of goods for services. Likewise, objects like shells, cowries, beads, etc. were adopted as means of exchange. However, as society grew more complex, these crude methods of exchange became insufficient. Coins and paper notes were introduced and these made it' easy for any amount of goods and services to be acquired at the exchange of such coins and paper notes. 

Thus as the nature of businesses became more wide and complex, it became very imperative for all sectors to be connected with a modern means that would be simpler, faster and more convenient. This gave birth to the modern day banking system using information technology. The banking industries are now getting connected with the information technology facilities which make banking operation, service and business activities easier, faster, more efficient, and more effective for individuals and organizations alike to transact businesses. The impact has become far reaching to the extent that organizations jostling for relevance in a competitive environment cannot help but embrace the potentials of the e-revolutions. 

Information Technology (IT) is a man-made resource, embracing principally the electronic technologies of computers and telecommunications (voice, data, and video), and comprising of both electronic hardware and computer software. The significance of IT intoday's successful organization cannot be underestimated. It plays a major role in the success of the organization in today's highly competitive world by providing easy and fast means of collecting, storing, retrieving, processing, transmitting and distributing information. There can be various other factors that determine the success of a firm, and a firm may use various strategies to pursue the path of success. However, fast and easy access of information through the use of IT is very important to the firm because it influences all the other success factors, and the competitive strategies cannot be practically implemented without its support. Therefore, no business-firm that minimizes the use of IT can attain the topmost position in its business. This is very much true in the case of financial institutions, which include commercial banks. Commercial banks have a major role in the economic development of a country. They are the major financial intermediaries between the sources of funds and the users of funds; and their business is heavily dependent on information related to the fund market, which includes fund suppliers, fund users, brokers; information related to the central bank, and Ministry of Finance directives that they have to follow; and information related to their competitors. Besides, their business also includes providing financial information to their customers licensee, commercial banks arehighly information intensive, and the use of IT by them, for easy and fast means of information collection, storage, retrieval, processing, transmission, and distribution of information, should have' extensive contribution to their performance. 

The use of IT is widespread – fromthe most developed countries through the developing countries to the least developed countries, although the extent of overall use is directly related to the level of development. Commercial banks, since they are highly information intensive, have invested in IT extensively. Even in a country like Nepal, a developing country still at the lower rungs of the development ladder, new banks in the near past years started their operations with computerized systems. In Thailand, another developing country that is trying to climb on to the developed platform, commercial banks have computerized operations, and many of their services/products are IT based. In developed countries like the US and Canada, IT has become a necessity for financial institutions if they want to survive in the market, and the financial institutions keep on trying to come out with new services/products which are IT based, Pritam (2002). 

1.1 Historical Background of United Bank for Africa (UBA) Plc 

United Bank of Africa (UBA) Pc is the West Africa's largest banking and financial services group as measured by asset base, number of customers, branch network and profitability. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services. The bank employs more than 17,000 staff (Core and support) who serve their over 6 million personal, business, public 'sector and institutional customers through their offices in Nigeria, Ghana, Cameroon, Cote d' Ivoire,New York, London and the Cayman Island. 

As a leading player inthe African financial services sector, the banks aspiration is to fly the flag of African excellence within the global financial community and to be a role model to other African businesses. 

The United Bank of Africa (UBA) PIc has largely been a Nigerian and West African Bank. As the largest financial services company (by balance sheet size, branch network, customer base and profitability) in West Africa and the biggest listed company in Nigeria (by market capitalization, December 2007), the group has been recognized as a leader within the financial services industry in the region and a key driving force of the region's economic development. UBA now has presence in seven African countries, spanning West, Central and East Africa, with main operations in Nigeria and Ghana, two of the most vibrant economies of Africa. 

Africa and beyond 

UBA is intensifying its efforts to extend its reach beyond West Africa into the rest of the continent, as it pursues its vision to be the undisputed leading and dominant financial services group in Africa. Beyond Africa, the group's aspiration is to be the bank of choice for all transactions involving Africans and Africa- related businesses, wherever these may be around the world. In addition to presence in the Cayman Islands, UBA is the only Sub-Saharan African Bank with regulatory presence in New York (Dating back to·1984). With ~e establishment of UBA Capital (Europe) Ltd, the Group's London­based investment banking arm regulated by the financial services authority (FSA), UBA became the only African bank with dual presence in both New York and London. UBA Capital will be the Group's beachhead for launching into the rest of Europe. In Asia, UBA is currently focused on the most populous and fastest growing economy in the region-China. UBA Group recently entered into the Memorandum of Understanding (MOU) with state­owned China Development Bank (CDB)'China's second biggest bank, on a partnership deal for financing long-term infrastructural projects across Africa, UBA (2007 Annual report). 

International Institutional Investors 

The exiting prospects for UBA Group have attracted the attention of international investors seeking emerging markets opportunities, such as the Board of Directors of the International Finance Corporation (IFC) in· March 2007. The' private sector financing arm of the World Bank Group, granted UBA a US$50 Million convertible debenture loan as part of a US$75million financing and advisory services package approved for the group. The US$50 million inflow was converted into equity on September 30, 2007. In May 2007, the African Development Bank (ADB) took a US$50 million equity position in the UBA, the first time it has made a direct equity investment in a private sector· organization on the continent throughout its 43-year history. In addition, a Global Depository Receipts (GDR) programme jointly placed. and managed on the international securities markets by JP Morgan Chase and Renaissance Capital raised approximately US$300 million from other international institutional investors, during UBA Group's combined rights issue and public offer in April 2007. 

E-Banking Services 

UBA is the clear leader in the deployment of solutions across electronic channels in West Africa. As at 30 September 2008 it has 1,256 ATMs, 3,296 pas machines deployed. Outside of Nigeria, they had a further 55 branches and 76 ATMs. During 2008, UBA processed 10% of the total value of all POS transactions in Nigeria. In 2008 UBA also pioneered the deployment of cheque-deposit ATMs into the Nigerian market. In May 2009, UBA again pioneered the first cash deposit ATM in Nigeria. These successes will be extended to the rest of Africa. 

UBA remains the only bank in Nigeria with a full electronic platform for payroll administration for corporate clients. Going beyond payment of salaries, corporate organizations are given a convenient, secured electronic alternative to managing employees. 

Some of the banks e-banking services include: U-Direct, U-Mobile, EMS, BankCollect, Pay Direct, If-Pay, SMS/E-Mail Alerts, U-Dividend monitor, U-­Dividend, Dubai Visa Solution, Etranzact, Schools Online, EduPortal. 


UBA has maintained a consistent and solid financial performance in its long history. They have a history of leading and pioneering innovations in the Nigerian financial sector. The, following are parts of the bank's landmark achievements: 

⦁ UBA was the first among international banks to be registered under Nigerian Law in 1961. 

⦁ UBA is the first Nigerian bank to offer an IPO following its listing on the Nigerian Stock Exchange in 1971. 

⦁ UBA is the, only sub - Saharan African bank (ex-RSA) with a branch in USA (New York)- set up in 1984.

⦁ UBA was the first Nigerian Bank to introduce a Cheque Guarantee Scheme known as UBACARD in 1986. 

⦁ UBA is the 1st and only Nigerian Bank to obtain a banking license in the Cayman Islands -1988. 

⦁ UBA is the only. Nigerian company with .a GDR programme - 1998 (1stfor a Nigerian Bank as a means of facilitating international investor interest).

⦁ Best Domestic Bank in Nigeria (Euromoney 2000) 

⦁ UBA is the 1st Nigerian Bank to obtain a banking license in Ghana -2004. 

⦁ UBA led the consolidation in the Nigerian banking industry with merger of Standard Trust Bank Pic and UBAin 2005. 

⦁ UBA received excellent credit ratings (short and long term); Global Credit Rating (SA) AA+ and A+ in 2005 

⦁ UBA was the first to introduce the Nigerian Government Bond Index in 2006. 

⦁ UBA is the first ever Nigerian Bank to surpass the N 1 trillion balance sheet size (including contingents) -:- 2006. 

⦁ UBA is the first Nigerian Bank to enter into strategic relationship with the international Finance Corporation (IFC). 

⦁ UBA is the first private sector organization in Africa to benefit from a direct equity investment by the African Development Bank. 

⦁ UBA is the first Nigerian financial institution to introduce a loyalty programme (the Lion's Pride Reward Scheme). 

⦁ UBA Global Markets in collaboration with Federal Mortgage Bank of Nigeria (FMBN) was the first bank to introduce a mortgage bond backed by securitization of black Africa. 

⦁ UBA is the only Sub-Saharan African Bank (ex-RSA) with operations in the USA (New York established since 1984) and London.

⦁ UBA is the largest e-banking footprint in Nigeria (Interswitch 2007). 

⦁ UBA is the largest Nigerian bank by assets, deposits, and branch, ATM and customers (Fitch. 2007). 

⦁ UBA is ranked Number One Bank in Nigeria (Agusto&Co, 2007). 

⦁ UBA is the second highest moving Nigerian bank according to The Banker world rank (The banker, July 2008). 

1.2 Statement of the Research Problems 

The banks in Nigeria among other sectors has developments but at the same time, it brings about its attendant problems. The questions this research work intends to answer are as follows: 

1. How has an information technology aid banking operation?

2. Why are banks unable to strictly comply with the mission statement/corporate mission? With information technology, some bank management does not adequately plan to meet the services quality. For example, the required number of customers to be attended to by a cashier within the daily working hours to guide against long queues is neglected- this causes delay in service delivery time leading to long queues in the banking hall. 

3. Why is high incidence of bank fraud borne information technology? Thisfraud ranges from ATM card fraud, internet banking fraud, email and text message fraud, fund transfer to untraceable offshore accounts, among others.

4. Does huge investment into information technology in banks have a proportionate profit return? 

1.3 Objective of the Study 

The objective of the study is to examine how the adoption of information technology affects the operations of commercial banks in Nigeria such as: 

1. How the introduction of information technology has influenced bank performances as well as assessing logically whether the adoption of information system has influence on the growth and development in the banking sector. 

2. Also to find out the reason why banks nowadays have to abandon the former ways of operations to modern banking such as e- banking and identify the problems arising from the operational system of the commercial banks in Nigeria'. 

3. To investigate into the extent of effectiveness and efficiency in banking sectors after the introduction of information technology. 

4. To examine the modes by which commercial banks can improve on their service delivery in order to attract depositor's funds. 

5. To access how information technology helps in the reduction of cost and benefit in increasing the revenue profit of the bank. 

6. To access how information technology has assisted m the enhancement of globalization of Nigeria commercial banks. 

7. To access how information technology has affected the customer base of the banks. 

8. And finally to make recommendations based on findings. 

1.4 Research Questions 

1. Does the introduction of information technology have influence on bank performances? 

2. Is there any reason why banks nowadays have to abandon the former ways of operations to modern banking such as e-banking? 

3. Are there effectiveness and efficiency in banking sectors after the introduction of information technology? 

4. What are the modes by which commercial banks can improve on their service delivery in order to attract depositor's funds? 

5. In what way has information technology helped in reducing the cost and benefit of the bank? 

6. Does information technology assist the enhancement of globalization of Nigeria commercial banks? 

7. Does information technology affect the customer base of the bank? 

1.5 Research Hypothesis 

Hypothesis I 

HI: The use of new information technology leads to improvement in banking services. 

Ho: The use of new information technology does not lead to improvement in banking services. 

Hypothesis II 

HI: The use of information technology gives the bank a competitive edge over other banks in the banking industry. 

Ho: The use of information technology does not give the bank a competitive edge over other banks in the banking industry. 

Hypothesis III 

HI: The use of new information technology has contributed to the profitability and growth of the banks. 

Ho: The use of new information technology does not contribute to the profitability and growth of the bank. 

1.6 Scope and Limitation of the Study 

The research work covers the role information technology plays on the banking operations of commercial banks in Nigeria. Specifically, the information in this research work is limited to happenings in the United Bank for Africa Pic. Emphasis is laid on activities in the United Bank for Africa Pic, in selected branches, in Lagos. The period of the study is to be focused on 2004-2010. 

The major limitations of this research work are the constraints encountered in the use of questionnaires for generating data information. Bank customers often find the efficiency of the operational system of the bank in different ways or perspectives; hence, it 'is not possible to determine the exact level of differences between belief and practice in the banking operation. 

The bank staffs are not ready to give out information in any form particularly in writing as it may be required in the case of questionnaires due to secrecy. To get information or data from these groups of people, it takes a long process one has to exercise a lot of patience. 

Due to time and financial capability, the researcher was unable to cover all the products of the bank that has been made possible through information technology. I limit my findings to elective banking department in head office at Lagos and some of the branches in Lagos state. 

1.7 Justification of the Study 

The banking system is required as a catalyst for a rapid macro-economic development of other sectors of the economy; hence, its stability should be the priority of the government most especially during the democratic dispensation. Going by the recent distress in banking industry in Nigeria, the level of public confidence in the sector has dwindled and this has led to the instability syndrome in the sector and as such the public assurance and confidence on efficiency in the private sector in decaying. 

The major cause of this syndrome can be attributed to the problems inherited in the banks operational system. The quest for globalization and commercialization has brought about innovations in technology. The digital age and the potential threat posed by non-traditional competition which necessitates innovation has made it inevitable for Nigerian commercial banks to improve upon their operation as they face evolving revolution are being confronted with increasingly sophisticated customer base compelling them to offer today what their customers would be expecting tomorrow. Banks have to deviate from just being a profit making bank to a more conscious customer centered institution. 

This research will enable banks to identify ways of remaining competitive in the global and domestic financial industry. It also helps prepare banks repositioning towards meeting the challenges imposed by global banking. Also, it is expected that the work will contribute to the bank's future projections on strategies to be used in attracting depositor's funds, reduce queues in the banking hall, the bank's management policies. 

Finally the research work will also be- a contribution to knowledge in academic field and serve as a source of reference to researchers who would carry out research on similar study in the future. 

1.8 Research Methodology 

Data for this research work will be collected using two of data gathering techniques. The primary source will be facilitated through questionnaires to be administered at random among staff and customers of the selected bank. 

Information from internet, journals and articles and the use of textbooks as well as the CBN bullion will constitute the secondary source of data for this research work. 

Also, primary data to be collected for this project will be analyzed through the descriptive approach, while the secondary data will be analyzed using tables,' frequencies and percentages. Data to be collected in this regard include data on bank productivity, capacity utilization and employment size. 

1.9 Organization of the Study 

This research work contains five chapters. 

Chapter one contains the introduction of ·the study, statement of problems, objective of the study, statement of Hypothesis, scope of the study, justification of the study, research methodology, Operational definition of technical terms as well as the plan to the study. 

Chapter two covers the literature review while chapter three deals with research techniques and source of date. 

The date gathered in chapter three were presented, analyzed and interpreted in chapter four while the summary, conclusions and recommendations of the findings were discussed in chapter five. 

1.10 Operational Definition of Terms 

Computer Crime: Crime actions accomplished through the use of computer systems, especially with intent to defraud, destroy or make unauthorized use of computer system resources. 

Computer Terminal: Any input output device connected by telecommunication links to a computer. 

Data: Facts or observations about physical phenomena or business transaction 

Data Base: A collection of logically related records or files. It consolidates many records previously stored in separate files so that a common pool of data records serves many applications. 

Data Processing: The execution of systemic sequence of operations performed upon data to transform it into information. 

Documentation: A collection of documents or information that describes a computer program information system or required data processing operations. 

Electronic Data Processing: The use of electronic computers to process data automatically. 

Electronic Mail (e-mail): The transmission, storage, and distribution of text materials in electronic form "Over communication networks. 

End User: People who make use of information system. 

Fault Tolerant System: Computers that have multiple central processors, peripherals and system software that are able to continue operations even if there is a major hard ware or software failure. 

File: A collection of related data records treated as unit. 

Information: These are data placed 'in a meaningful and useful context for an end user. 

Local Area Network (LAN): LAN is a communication network that typically connects computers, terminals and other computerized devices within a limited physical area such as an office building, manufacturing plant or other work sites. 

Manual Systems: Systems that require continual human operation and intervention that utilizes simple data processing tools such as paper forms, pencils and filling cabinets. 

Master File: A file that is either relatively permanent or one that is treated as authority in a particular job. 

Network: An inter-connected system of computers, terminals and communications channels and devices. 

Online: Pertaining to equipment or devices under the control of the central processing unit. 

Output: Computer results or data that has been processed into useful information. 

Programs: A set of instructions that cause a computer to perform a particular task. 

Secondary Storage: Storage that supplements the primary storage of a company system also known as AUXILLIARY STORAGE. 

Software: A computer program supplied by Computer Manufacturers, independent software companies or other computer programmers and users. 

System: An arrangement which involves the handling, processing or manipulation of resources of whatever type so as to meet objectives. 

Transaction Processing System (TPS): An information system that processes data arising from the occurrence of business transactions. 

User-Friendly: A characteristic of human-operated equipment and system that makes them safe, comfortable and easy to use. 


Crown and May J. (1995): A Review of Banking Activities and its Regulatory Framework in Nigeria; The Past, Present and Future in NDIC Quarterly, Vol. 9 No.4.

Khalifa, T. (2000): Financial liberalization and Banking frangibility in Nigeria: An empirical investigation. First bank Bi-annual Review Vol.8, No 17, December. Pp 59-72. 

Tulien, B. (1997): Banking and Economic Development: Some Lessons of History. New York: Oxford University Press, 1972 Nigeria Deposit Insurance Corporation (2002), Annual Report and Statement of Accounts. 




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