This research work aims on focusing on the importance of information technology on banking industries and economic development, with emergence of technology banking industries as tremendously improve in performance and be able to contribute to the development of the nation economy. The aims of this study is to examine the importance of information technology on banking industries and how it has enhanced the performance of banking sector.

Econometrics analysis was employed to differentiate between dependent variable (Y) and independent variables (X) and also to explain other macro economic variables in the study.

From the findings it shows that information technology play a significant role in developing the banking industries and giving an effective performance to the industries.

In conclusion information technology cannot be overstress in the banking industries and economy at large.





1.1     Introduction

1.2     Statement of research problem

1.3     The aims and objectives of study

1.4     The research questions 

1.5     The statement of research hypothesis

1.6     Research methodology

1.7     The significance of the study  

1.8     The scope and limitation of the study

1.9     Definitions of basic terms

1.10   The plan of the study



2.0     Literature review

2.1     Introduction        

2.2     Definition and concept of information and communication technology

2.3     An overview of electronic banking in Nigeria

2.4      The development and operations of information technology in Nigeria’s banking industry

2.5     Queuing cost of banking         

2.6     Causes of banking inefficiency

2.7    operational challenges of information to banking                   

2.8    Information technology and regulatory authority


3.0     The structure of information and communication technology

3.1    Introduction

3.2     The challenges      of human capital development in Nigeria

3.2.1  It and human capital development

3.2.2 Human capital development    

3.3     Impact of information technology on the Nigeria banking industry

3.3.1  Impact on investment

3.3.2  Impact on capacity utilization

3.4      The efficiency of ICT on banking payment system in Nigeria


4.1     Methodology        

4.2     Methods of estimation of analysis

4.3     Model specification

4.3.1  Econometrics model specifications

4.3.2  A priori expectation

4.4      Empirical results and interpretation of the regression result



5.1     Summary of the findings

5.2     Conclusion          

5.3     Recommendations












The background of banking business in Nigeria can be traced to the keeping of valuables over the years .banking in Nigeria has developed to such level that the system does not need to hold all the funds in its vaults for the purpose of meeting the day to day withdrawal needs. The systems hold a small proportion, otherwise known as factional essence to meet the customer’s withdrawal needs. The other (bigger) fraction is what the banks do business with.       

Today’s business environment is very dynamic and undergoes rapid changes as a result of technological innovation, increase in awareness and demand from customers. Business organizations, especially the banking industry of the 21st century operates in complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate.

Banking can simply be express as the business of keeping, lending exchanging and issuing of money {Barnhart and Barnhart 2000} it can also be said to be the business of bankers.

Banking today is undergoing a rapid and radical transformation .the symptoms are obvious, new product, new players, new challenges, new channels are appearing daily this transformation is taking place across all sections of the banking industry.

Information and communication technology (ICT) or (IT) is at the center of this global change curve. Laudon and Laudon 1991 contend that managers cannot ignore information technology system because they play a critical role in a contemporary organization. The point out that the entire cash flow of most fortune companies is linked to information system. The application of information and communication technology concepts, techniques policies and implementation strategies to banking system services has become of fundamental importance and concerns to all banks and indeed a prerequisite for local and global competitiveness IT directly affects how managers decide, how they plan and what products and services are offered in the banking industry. It has continued to change the way banks and their corporate relationships are organized worldwide and the variety of innovative devices available to enhance the speed and quality of service delivery information technology is one of the major issues on any chief executives agenda, thrust into prominence by the massive and increasing magnitude of its costs at a time when  competitive  pressure has never been greater, (Carrington et al, 1994) information system technology can be any organized combination of people, software, hardware, communication networks and data resources that collect, process and dissemination  information in an organization [http/ we pdf].banks urgently need to improve the ability to think strategically about information technology investments.

Only banks that use their technology resources effectively have the opportunity to secure real competitive advantage in this fast changing competitive industry through real product and service differentiation.


The Nigeria financial sector scene was characterized by long queues of people waiting to transact one business or the other in bank before 1980. During this period customer could stay a while just to collect trend in banking, bank executive have resolved to change this ugly situation some of the ways in which this issue could be addressed as:

v    Introduction of more innovative service delivery in banks, in view of the increasing competition in the industry. There is need to engage in more research and development in order to introduce new producer services.

v    There is need to ensure that banks improve their services delivery so that avoidable queue of customers in the banking hall waiting to transact one business or other is reduced to the barest minimum and valuable man hours saved for productive purpose. This will improve the gross product (GDP) of the nation.


v    The impact of information technology should be underplayed. There I need for banks to take advantage of the current development in information technology so as to ensure prompt and quality services. There are few pattern questions that this study intends to bring to light.

These are:

a)     To extent has information technology in banking helped at improving customer patronage?

b)     Does information technology in banking affect profitability?

c)     Can information technology brings efficiency and effective in banking services. 


i)      To evaluate the effectiveness of information technology in improving quality of services in banks.

ii)     To ascertain the effect of information technology on the performance of banks.

iii)    To evaluate the effect of in information technology on the staff performance.


i)      To what extent has information technology in banking helped at improving customer patronage?

ii)     Does information technology in banking affect profitability?

iii)    Can information technology bring efficiency and effectiveness in banking services?


Hypothesis is generally defined as a conjectural statement or tentative statement on a relationship between two or more variables.

The following research hypotheses were used to test the effectiveness of information technology in the banking industry.

i)      Null hypothesis (H0)

ii)     Alternative hypothesis (H1)

Null hypothesis states that no differences exists between two or more variables, it is a hypothesis of no different form.    Thus, it haws the scientific advantage of placing the investigator in a neutral ground thereby reducing the element of personal bias to the minimum.  It is the null hypothesis that is usually tested.

An alternative hypothesis is an hypothesis, which specifies any of the possible conditions not anticipated in the null hypothesis. It specifies conditions, which hold of the null hypothesis does not hold.

1)     Ho:  There is no significant relationship between commercial Banks total asset and investment on I.C.T.

Hi: There is a significant relationship between commercial Banks total asset and investment on I.C.T.

2)     Ho: The commercial banks loan to the economy does not have a significant relationship with economic growth.

Hi: The commercial banks loan to the economy has a significant relationship with economic growth.

3)     Ho: Information Technology does not have a significant relationship with commercial banks performance.

Hi: Information Technology has a significant relationship with commercial banks performance.

4)     Ho: Information Technology does not have a significant relationship with customers' patronage.

Hi: Information Technology has a significant relationship with customers' patronage.


In achieving the stated objectives, the research methodology shall adopt econometric approach. The econometric tools will be the regression analysis using the Ordinary Least Square Method (OLS). The regression model will be simple linear and little of multiple regression analysis will be used.


Information technology has brought about changes in the economic and social conditions of the developed countries. Nigeria, as developing country can realize IT to increase her traditional economic services to global markets. The study therefore, was based on assessment of the impact of information technology in a financial organization.

The significance of the study will include among others the gains that will accrue to the research and invariably other interested parties. To the researcher a vast knowledge of the impact of information technology in banks will be gained. The result of this study will serve as a guide to decision markers in the financial sector.


The scope of this study shall be information technology in Guaranty Trust Bank plc. The study is supposed to touch on the very sensitive area of the bank’s operation. As such reliance is placed the willingness of the banks official to divide relevant information for the purpose of the study. In other to ensure objectivity of comments and remarks. Reliance was placed on secondary data such as annual report and statement of account. The reports are usually prepared by independent professional’s standard and codes of conduct.  

But because of financial and time constraints the researchers decides to limit the research to Guaranty Trust Bank Festac Branch

The researcher was faced with limitations of obtaining data from the employees and customers of the bank.

There was the problem of paucity of data; this problem is indispensable in research efforts in modern environment since the study is centered on a sensitive part aspect of bank practices.

 Moreover, the major difficulty the researcher encounter was the time constrains, the researcher had little time going to other banks for comparison.


BANKS: It is an institution where money /valuables or documents are kept for safe keeping and creates money by lending to customers.

INFORMATION TECHNOLOGY: This is the use of electronic devices (technology) to carry out major activities in an organization. It is the

E-BANKING: Electronic banking this refers to the use of electronics to carryout baking transactions.

MOBILE BANKING: This refers to the use of mobile phones to perform or carryout some banking services or transactions.

SYSTEMS: This is the connection of computers within an organization to work together.

INTERNET: This is the global connection of computers in order for them to be able to share and exchange all kinds of information.

INTRANET: This is connection of computers in an organization to share all kinds of information.

A.T.M.: Automated Teller Machine is an electronic machine that gives out cash to a customer as desired by the customers’ trough the use of a card and pin.

PINS: This is a set of numbers required by an electronic device before it can perform some certain functions.



To be divided into five chapters

Chapter one: - Introductory Part 1.1 to 1.9.

Chapter two: - Literature Review.

Chapter three:-Structural Composition of the Study.

Chapter four: - Research Methodology, Data Analysis and Interpretation of Results.

Chapter five: - Summary, Conclusion and Recommendation.