14 Dec 2017

Information Technology and its Role in Commercial Banks in Nigeria.

Information Technology is applicable at all levels of business practices in Nigeria. As businesses spread, so is the need to adopt new ways in the business world. This can be confirmed through the e-banking services available to banks and organizations. For instance, The Nigeria Automated Clearing System (NACS) introduced automations from the comfort of their offices; which can confirm pay and settle all transactions between themselves and their customers. This has helped put an end to manual instruments which has being the practice in the history of banking in Nigeria.

IT affects commercial banks in their service delivery; in terms of network connections, most customers prefer banks with good internet speed where they can transact very fast without network hurdle. This affects banks as they may lose their customers to other competitors.

They may also be facing the issue of cost because maintaining a good mobile banking requires high financial capacity which traditional banking may not face.

However, Information Technology in Nigeria, has greatly improved banks’ productivity, transactions and service delivery. IT has greatly led to the development of commercial banks in Nigeria as they provide prompt and efficient services to their customers.

Due to IT, Commercial banks in Nigeria are able to perform the following;

  • Service delivery with the use of online real-time transaction. Funds Transfers are more accurate, cheaper in charges and has helped in minimal cash handling.
  • Point of Sale Machines (P.O.S.) and cards can be used to buy goods.
  • Online payment of utility bills such as PHCN bill, DSTV bill, and revenue bills, such electronic transaction can be credited the same day.
  • Large volume of transactions can also be done with low administrative cost.
  • Customers can download their detailed account transaction statement online from their homes or offices.
  • Live chats for customers with 24hrs online enquiry service.

The Western Union Money Transfer, is a known information technology technique, that has clotted the Nigerian banking system and brought cooperation among Nigerian banks. A significant advantage of this is that it has proved to be a veritable source of foreign exchange for banking.

IT has made commercial banks focus more on customers’ needs and improve on strategies to serve them better. This made most of them to continually come up with unique ways to gain their customers loyalty and trust. Example, is the Diamond bank “eSusu”, a contributory platform for target savings and Salary4life. Access bank’s “Payday Loan” gives customers access to loan without collateral on their mobile banking system.

 

Written by Busayo Tomoh

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