THE IMPACT OF INFORMATION TECHNOLOGY IN THE BANKING SECTOR (A CASE STUDY OF OCEANIC AND ZENITH BANKS). A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
The role played by information in aiding managerial work to support decision-making particularly in the banking sector cannot be ignored, considering the fact that banking operations rely substantially on management information systems. Although, most banks in the past operate manual system of information processing and storage, which is associated with problems of inaccuracy, poor storage facilities, cost and time constraints, had a negative effect on the delivery of services both to consumers of banking services and in – house management decision making. Thus, it made banking operations in Nigeria inconsistent with the dynamic global trend of banking.
An attempt to follow the present global trend of banking necessitated the employment of “on – line” banking operations by the new generation banks in the country. This process simply means deviation from the old fashion simple manual system to the much up graded computer based information system. This computer based information system use computer hardware and software, telecommunications networks, computer based data management techniques and other forms of information technology (I.T) to transform data into varieties of information.
This milestone achievement in management led both Zenith Bank and Oceanic Bank International which commenced operations in the 1990’s adopt information technology in their daily operations thereby ensuring maximum customer satisfaction. MIS gave them an edge over their competitors. Operating as real – time and on – line banks, these banks alongside other banks have revolutionized banking operations in Nigeria.
However, if information systems do not support the strategic objectives, business operations, or management needs of an organization, they can seriously damage its prospects for survival. Therefore, managers must balance the technological capabilities of information technology with its behavioural effects on people, and organizations to efficiently and effectively meet strategic objectives. Thus, the field of information systems has become a major functional area of business administration.
THE COMPONENTS AND ACTIVITIES OF MANAGEMENT SUPPORT SYSTEMS
SOFTWARE FOR
- Managerial Reporting
- Decision Support
- Strategic Information
- Expert Advice
Other Networked Computers
Knowledge
Bases
Model
Bases
Corporate
Data Bases
Information for
Decisions
Management Work Stations
Managerial
End-User
NOTE: These are resources needed to provide management reporting, decision support, strategic information, and expert advice to managerial end users.
This conceptual overview emphasizes the main purpose of management information systems that support business operations and managerial decision – making.
Providing information and support for management decision – making by all levels of management (Top Executives – Middle managers – supervisors) is a complex task.
Information system (IS) for gathering, processing and disseminating information has been an integral part of every organization’s processes forever. However, the arrival of technologies, which were cable of helping carry out those processes, changing them, eliminating the need for some of them and enabling new processes to be developed, has made the management of information systems a subject needing specific attention.
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