AN EXAMINATION ON THE  ROLE AND IMPACT OF TECHNOLOGY IN  FINANCIAL SECTORS: CASE STUDY OF AFRILAND FIRST BANK, YAOUNDÉ, CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The financial sector has undergone significant transformations in recent years, with technology playing a pivotal role in shaping the landscape of banking and financial services. However, as the global economy becomes increasingly digitized, financial institutions are compelled to adapt and leverage technological advancements to remain competitive and meet the evolving needs of their customers. On the other hand, technology possesses the potential to improve operational efficiency, streamline processes, and enhance customer service. It also possesses the potential to improve operational efficiency, streamline processes, and enhance customer service.In the past decade, the integration of digital technology has become pervasive.

The term technology refers to the application of scientific knowledge, tools, and methods for practical purposes, often in the creation and use of machinery, systems, and devices to solve problems or accomplish tasks. It also refers to the use of sophisticated information and communication technologies in order to offer better services in a secure, reliable and affordable manner. Technology is being utilized in almost all spheres of life. With scientific development, it is not possible to avoid technology now-a-days. In addition, the use of technology decreases the stress in the process and increases the comfort of the performer. Similarly, it has changed the face of many industries and so is the case of banking and financial services sector. It has played a major role in easing the banking and financial services transactions during the last decade. Beyond that, the evolution of financial technology (fintech) has redefined traditional banking operations, impacting aspects such as customer interactions, transaction processing, and data management (Deloitte, 2018). FinTech (financial technology) is a catch-all term referring to software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike (Weber, 2019). Also, Banking automated teller machines (ATMs) have proliferated, offering expanded functionalities. Computerized banking is now standard, with mobile devices facilitating convenient access to financial services. Furthermore, according to Wright, M. (2015)financial firms have introduced various technological tools, including mobile banking applications, personal financial management websites, and dynamic online financial plans, reflecting the industry's commitment to leveraging advancements for enhanced service delivery.  Morever, Afriland First Bank holds a significant position in the financial realm of Cameroon, functioning as a key financial institution in Yaoundé. The operational strategies of the bank reflect broader trends within the financial sector, indicating the industry's response to the digital era. Therefore, a survey will be conducted on an examination on the  role and impact of technology in  financial sectors: case study of Afriland First Bank, Yaoundé, Cameroon

1.2 Statement of the Problem

Despite encountering some minor challenges, the financial services industry has undergone significant transformations through the adoption of technology. Technological change stands out as one of the primary drivers influencing the industry's development. Notably, while the fundamental functions performed by financial service firms have remained constant across time and borders, the methods, instruments, and entities involved in delivering these services have evolved. Additionally, key functions provided by financial service firms include clearing and settling financial transactions, risk management, transfer of economic resources across time, borders, and industries, financial aid provision, investment options, credit transactions, and financial consultation. Although these functions have endured, the manner in which services are executed, the tools employed, and the entities delivering these services have undergone notable changes. Hence, it is in the light of these that the study seeks an examination on the  role and impact of technology in  financial sectors: case study of Afriland First Bank, Yaoundé, Cameroon.

1.3  Objectives of the Study

The main purpose of this study is to examine  the  role and impact of technology in  financial sectors: case study of Afriland First Bank, Yaoundé, Cameroon Specifically, the study will;

1.Assess the current technological infrastructure and systems employed by Afriland First Bank.

2.Investigate the role of technology in various financial processes in Afriland First Bank.

3.Assess the impact of technology adoption on the efficiency and effectiveness of Afriland First Bank's operations.

4.Investigate  the challenges associated with integrating technology into financial services in Afriland First Bank.

5.Assess the perceptions of employees on the use of technology in banking services.

1.4 Research Questions

The following questions have been prepared for the study:

1.        What is the current technological infrastructure and systems in place at Afriland First Bank?

2.        How does technology play a role in different financial processes within Afriland First Bank?

3.        How has the adoption of technology impacted the efficiency and effectiveness of Afriland First Bank's operations?

4.        What challenges are associated with integrating technology into financial services at Afriland First Bank?

5.        What are the perceptions of Afriland First Bank's employees regarding the use of technology in banking services?

1.5  Significant of the Study

This study will help customers in adopting new financial tools, making educated decisions, and navigating the ever changing market. Further more, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to an examination on the  role and impact of technology in  financial sectors: case study of Afriland First Bank, Yaoundé, Cameroon.

1.6 Scope of the study

The scope of this study is boarded on an examination on the  role and impact of technology in  financial sectors: case study of Afriland First Bank, Yaoundé, Cameroon.  Theoretically, this study will assess the current technological infrastructure and systems employed, investigate the role of technology in various financial processes, assess the impact of technology adoption on the efficiency and effectiveness of Afriland First Bank's operations, investigate  the challenges associated with integrating technology into financial services in Afriland First Bank and assess the perceptions of employees on the use of technology in banking services.

Geographically, the study will be delimited to staff of Afriland First Bank, Yaoundé, Cameroon.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed.

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.8 Definition of Terms

Technology: refers to the application of scientific knowledge, tools, and methods for practical purposes, often in the creation and use of machinery, systems, and devices to solve problems or accomplish tasks.

Financial Technology: Fintech, is a term used to describe innovative technologies and software applications that provide financial services or enhance the efficiency of existing financial processes

Financial sector: refers to the portion of the economy that deals with the management, control, and investment of money. It includes a wide range of institutions, such as banks, investment firms, insurance companies, stock markets, and other entities that facilitate the flow of funds within an economy.