Project – An investigation into the impact of computer in customer service delivery in Nigeria Selected Bank
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
A computer could be defined as an electronic device capable of accepting data, performing ordered operations on data and reporting on the outcome of these operation. Wikipedia, (2023).This electronic tool can be used to store information’s on magnetic tapes, diskette, hard diskette, analyze it and produce information’s as required from the data on them; in other words, it is an information-processing machine. A computer is a very fast electronic processing machine which has high storage capacity, it can perform large repetitive and complex calculations with utmost accuracy and at an astonishing speed. Wikipedia, (2023).
In the past, record keeping has been manual, mechanical and developed through the age of machine assisted into the present-day computer age which we are in. The computer performs many functions which includes input, storage, processingand output functions. The computer is an advanced technological innovation which has evolved as product of our modern society and a modern tool in management. Though the computer is a modern tool in our society, many people approach the uses of computer with apprehension and in certain cases develop absolute fear for it for some obvious reasons. Danga, (2015).
The computer came upon the whole world so quickly and is seen now to affect our various lives in so many different ways. And also, the general lack of knowledge of this device has brought fear into the uninformed society. The application of the computer in the Nigerian economy is a very recent phenomenon. Its functions and uses in the economic sector is also very new and has not been fully integrated into the business sector. Spark, (2018). The banking sector on the other hand has seen the important of this device in this modern-day banking has now brought in the computer into various financial services offered to its customers. Manual keeping and processing of data/information’s of the customers is extremely slow and cannot cope with the increased sophistication of customers demand and volume of transaction today. It has been said that the motor vehicle replaced the horse not because it is more convenient but because the horse has become inefficient from the economic point of view. Spark, (2018).
In advanced economies, technology has played a key role since 1960’s. The role of computer in financial world and other spheres of life cannot be over-emphasized or, be over-looked and this has made it inevitable as the whole world has been turned into a global village. But in developing countries on the other hand, technology has relatively been poorly deployed in customer services.Nevertheless, bank even in the strategic role of technology driven services, played in the efficient and costeffective service delivery. Investments in innovativebanking technology worldwide have therefore grown exponentially in past decade. Darka, et al, (2016).
Computer has in particular brought a complete paradigm shift on bank performance and on the customer service delivery in the banking industry. In a bid to catch up with global development, improve the quality of customer service delivery, and reduce transaction cost.Darka, et al, (2016). Banks have invested heavily in the application of computer,and have widely adopted computer networks for delivering a wide range of valueadded products and services. Darka, et al, (2016). The computer development has a significant effect on development of more flexible and user-friendly banking services. In this context one of the objectives of this paper is to examine the relevant literature to what previous researchers have found about the impact of Information Technology on banks performance and customer service delivery after adoption of information technology. Customer satisfaction and customer service delivery is a key parameter for banks to ascertain how effectively the web furthers their objectives of customer acquisition, retention and increased share of wallet.(Adesina and Ayo, 2010).
The research on the influence of computer on customer service delivery in the banking industry have is broad. However, few areas, with consumer’s perspective are left with less exploratory debate. Today, computer has become the heart of banking sector, while banking industry is the heart of every robust economy. If it collapses so will the economy of that country. It is absolutely evident from the current recession, in European banks crises, and in turn. Spark, (2010). Computer has created a new infrastructure for the world economy to become truly global and also provided the users of new technology a competitive advantage over their rivals. Electronic banking system has become the main technology driven revolution in conducting financial transactions. However, banks have made huge investments in telecommunication and electronic systems, users have also been validated to accept electronic banking system as useful and easy to use (Adesina and Ayo, 2010).
Castells (2011) reveals that, today transactions worth billions of dollars can only take place in seconds in the electronic circuit throughout the globe by pressing a single butting. Although, ICT has revolutionized the way of living as well as conducting businesses and study of Banking industry has received increased attention over the last decade, it continues to pose challenges for marketers and academic alike.
Loonam et al (2018), ICT advancements, globalization, competition and changing social trends such as heightened customer proactiveness and increased preferences for convenience have caused intense restructuring of the banking industry.
Electronic banking system was an innovation into the banking industry. It was introduced to ease the problem of;
- Casting delay in transaction
- Clearing
- Transfer of fund
- Accuracy in information from one location to the other
It can be seen that before the introduction of computer in banking industry, a lot of problems were faced in processing transaction in various sections of the bank, but with computerization, all these problems have been reduced or eased off. The system has been embraced worldwide because it is easier and convenient for both the sender and receiver. This has made banks like Zenith Bank, Intercontinental Bank, Diamond Bank etc to joined suit with First Bank Nigeria Plc in giving Western Union Money Transfer services to people within and outside Nigeria.
Computerization or electronic banking has even helped in introducing electronic cards known as pay cards (Credit and Debit Cards). This was introduced to avoid the risk of carrying cash around. The electronic card is loaded with any amount in alternative to physical cash with ease. The electronic pay card has gone a long way in its establishment;hence people prefer it to holding physical cash. In fact, computer has come to stay and has become a vital part in our society because it has the capacity of extending man’s power to perform mental tasks and provide imagination services.
This research reviews the enabling environment for technology driven bank services in making effective planning, organization and implementation of the policies of the organization in order to meet customer’s satisfaction. Introduction of computer networks similarly created a new banking culture that granted customer flexibility in customer services delivery through wider choice of transaction outlet give bank’s networks of branches. On this premises, this study seeks to examine the influence of computer on customer services delivery in banks, A case study of First Bank Nigeria, Obudu branch.
1.2 Statement of problem
In Nigeria, customers of banks today are no longer about safety of the funds and increase returns on their investments only. Customers demand efficient, fast and convenient services. Customers want a Bank that will offer them services that will meet their particular needs (personalized Banking) and support their business goals for instance: businessmen want to travel without carrying cash for security reasons. They want to be able to check their balance online, find out if a cheque is cleared, transfer funds among accounts and even want to fowled transaction records into their own computer at work or home. Customers want preferential treatment and full attention by their choiced Bank. All these are only achievable through the use of computerin line with rendering qualities and acceptable services that most Bank in Nigeria are gearing toward and investing large sum of money in information and communication Technology. UBA Zenith Bank, GT Bank, First Bank etc, to mention few are in the forefront in the use of computer in rendering services to their Customers (The Guardian Newspaper,(April 18, 20018 p21). Hence, some of the typical issues posing serious challenges on service delivery in bank are advance information technology. Banks and the entire financial sector in Nigeria have been most radically affected by these developments. This is so because information technology has become a critical business resource and its absence could result in poor decision andultimately business failure. As such many banks and financial institutions have failed in the past due to their inability to utilize computer in marketing their financial services as well as their operations.
Today’s business environment is very dynamic and undergoes rapid changes due to technological innovation, increased awareness and increased demands from customers. The banking industry of the twentieth century operates in a complex and competitive environment characterized by these changing conditions and highly volatile economic climate, and computer is at the centre of this global change curve (Agboola,2006). Hence the banks that will survive and complete effectively in today’s business environment must necessarily integrate ICT into its operational processes Given this scenario, this attempts a synthesis of empirical facts on the extent to which information and communication technology has informed innovations in the operational modalities and service delivery modes of banks in Nigeria and the impact of this on bank performance. It is against this background that the subject matter is seen as a problem worthy of investigation.
1.3 Objective of the study
The central objective of the study is to examine the influence of computer on customer services delivery.
The specific objective is:
- Investigate how computer enhances customers service delivery in First bank.
- To examine the benefits a customer derives from using computer related tools in First Bank.
- To identify the challenges militating against effective application of computer in customer services delivery in First Bank.
1.4 Research questions
The following research questions guide the studies;
- How does computer enhance customer’s satisfaction in First Bank?
- What benefits do customers derive from using computer in First Bank?
- What are the challenges militating against the effective application of computer in customer service delivery in First Bank?
1.5 Significance of the study
The study would enable the banks executives and indeed the policy makers of the banks and financial institutions to be aware of the importance of computer in the electronic banking as a product of electronic commerce with a view to making strategic decisions. The research is equally significant because it would provide answers to factors militating against the implementation of electronic banking in Unity Bank Ple; prove the success and growth associated with implementation of electronic banking highlight the areas of banking operations that can be enhanced via electronic banking and also be a valuable tool for Students. Academician, institutions, corporate managers and individuals that want to know more about electronic and digital banking trends especially in Nigeria
1.6 Scope of the study
This study is narrowed to influence of computer in customer delivery in Bank, a case study of First Bank,Obudu branch. The study consisted of workers and customers of First Bank, Obudu, who are engaged in banking service delivery.
1.7 Definition of terms
ATM card:An ATM card is a dedicated payment card issued by a financial institution (i.e. a bank) which enables a customer to access their financial accounts via its and others’ automated teller machines (ATMs) and, in some countries, to make approved point of purchase retail transactions.
Bank:A bank is a financial institution that is licensed to accept checking and savings deposits and make loans. Banks also provide related services such as individual retirement accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit boxes.
Chip Card:A chip card is a standard-size plastic debit or credit card that contains an embedded microchip as well as a traditional magnetic stripe. The chip encrypts information to increase data security when making transactions at stores, terminals, or automated teller machines (ATMs). Chip cards also are known as smart cards, chip-and-PIN cards, chip-and-signature cards, and the Europay, Mastercard, Visa (EMV) card.
Computer:A computer is an electronic device that manipulates information, or data. It has the ability to store, retrieve, and process data. You may already know that you can use a computer to type documents, send email, play games, and browse the Web.
Electronic data interchange:Electronic Data Interchange (EDI) is the electronic interchange of business information using a standardized format; a process which allows one company to send information to another company electronically rather than with paper.
Payment system: The ‘payments system’ refers to arrangements which allow consumers, businesses and other organizations to transfer funds usually held in an account at a financial institution to one another.
Transaction alert:Transaction Alert means the notification sent to the Accountholder’s Mobile Device on transaction performed via the e-Banking Service through Push Notification service.
Project – An investigation into the impact of computer in customer service delivery in Nigeria Selected Bank