CHAPTER ONE1 :0INTRODUCTION1:1 BACKGROUND TO THE STUDYToday‟s business environment is very dynamic and undergoes rapid change as a result oftechnological innovation,increased awareness and demands from customers. Businessorganization, especially the banking industry of 21st century operates in a complexenvironment characterized by these changing condition and highly unpredicted economicclimate.Information and communication technology(ICT) is at the centre of this globalchange. They point out that entire cash flow of most fortunate 500 companies is linkedto information. The adoption of ICT is defined as a collective term for a wide range of software,hardware, telecommunications and information management techniques, applications anddevices, that are used to create, produce, analyze, process, package, distribute, receive, retrieve,store, and transform information (Brady et al.,2002).In essence the importance of information and communication technology banking isitemized through information technology industry. Effectiveservice delivery in informationbanking brings about reduced frustration and Improve level of awareness in anorganization (Ato,2004). Information technology has continued to change the way banksand their corporate Relationship are organized. worldwide and the variety of innovationdevice available to enhance the speed and quality of service delivery.Ezeamama,(2010): reported that information and communication technology refers to thevarious technologies that enhance the creation, storage, processing, communication anddissemination of information. It involves the different infrastructure used in these2processes, their application and numerous service, these infrastructure renders. In 1978annual report, the Bank reported that the department made steady progress on its effort toeffectively use of information and communication technology (ICT) to improve theefficiency and the quality of service delivery on financial sector. Information andcommunication technology is radically changing all over the world. The volume andspeed of handling transactions has improved tremendously as a result of the growth ofinformation technology which has created a lot of business opportunities. Application ofinformation and communication technology is capable of enhancing optimal performancein service delivery if appropriately carried out. Optimal utilization of facilities might beachieved if the design is done based on clear understanding of how the service is to bemeasured. Such measurement include customer‟s service rate, traffic intensity and theaverage number of customers in the queue. All these assist to make decisions on thelevel at which information and communication technology can be applied for an optimalperformance in Banking operation. What prompted this work was the variouscomputerization activities going on in the banking sector which has been accredited tothe use of information and communication technology(ICT) in running of activities inthe banks. The study has also been considered worthy among numerous research work dueto the contribution to the banking system and economy at large. The study is to look atthe effect which ICT has on banking sector and also the threats it has created since theuse of ICT which has been an increase. Also to find it out the information andcommunication technology has really improved the productivity of the banking sectorcompared to when it was not being used. As such the information technology bankingmakes use of modern satellite communication facilities and different modes of

transportation technology Banking is thus high capital – based organisation which hasnetwork being spread by using modern sophisticated equipment: (Akunyili, 2004,)1:2 STATEMENT OF THE PROBLEMSThis Research work is a study of the impact of information and communicationtechnology(ICT) on the banking sector. Many problems confronting the banks in Nigeriais in their use of information and communication technology(ICT). The problemassociated with the study is to determine the true position of the banking system andwhat it should achieve if it will align with the global Information. This howeverbecomes a huge task as the study tries to,1. Identify the degree acceptance of information and communication technology inbanking sector.2. Examine the contribution of information and communication technology to thegrowth of the banking sector.3. Know if information and communication technology is enhancing efficiency inbanking sector and the effects it will have on banks that have not fully adoptedit in their banking system.1:3 0BJECTIVE OF THE STUDYThemain objectives of this study include the following;1. To identify the degree acceptance of information and communication technology inthe banking sector.42. To examine the contribution of Information and communication technology to thegrowth of the banking sector.3. To know if Information and communication technology is enhancing efficiency inthe banking sector