CHAPTER ONE

INTRODUCTION

The Banking Sectors in Nigeria and elsewhere in the world plays a major role in mobilizing financial resources from the surplus units and channeling same to meet the investment needs of deficit units of the economy. Before the Structural Adjustment Programme (SAP) of 1986. The  major banks were operating profitably at near complacent level as competition among them was more of the cooperating type.

The SAP initiated in 1986 changes both the structure and content of the banking business. The members of Banks not only grew tremendously but the technique of delivery of banking services to customers and the range of production in the market have also changed in the same dimension (Tubor Ocun 1999). The influx of new generation banks and the introduction of a more vibrant service delivery by some of the Banks through the use of modern technology facilities to meet the challenging needs of their customers set the old generation banks at their wit end. The latter not only need to contend with maintaining their share of the market but also their profit level in order to remain competitively and profitably relevant.

Banks needed to adopt and use information technology (HASSAN 1998). For this reason, other banks could not match the pace of Zenith Bank Plc in the adoption and use of modern technology facilities due to the large number of branch networks. However, Zenith Bank have the weapon of solid financial base, public confidence and early start which enables them to remain competitively relevant in the market in the short run. The old generation banks started to adopt and use modern technology facilities gradually and this brought with it re-engineering and realignment into the system to conform to the new trend. Thus the manual banking operation which has been dominant in the sector for many decades, have started to give way to modern banking with the use of modern technology facilities. The usage of modern facilities broadly referring to computer and peripheral equipment has been tremendous growth in service industries in the recent past.

The most obvious examples is perhaps the banking industry where through the introduction of (IT), information technology related products in internet banking, electronic payment, security investment, information exchange (Berger, 2003), banks now can provide more diverse services to meet customers expectation owing to the voluminous work and the need to meet up with customers demand in the Banking Industry, Zenith Bank Plc has developed and adopted the use of high technology electronic devices facilities such as computer and other viable services for customers satisfaction. According to (Akinyomi, 2010), computers play a very vital role in storage, analysis and retrieval of information with a twinkling of an eye.

Suffice it to say that electronic banking is the order of the day in most Nigerian banks of today, computerized banks quickly respond to customers who include ascertainment of account balance, rapid fund transfer, withdrawal or deposit of cash, western union money transfer and other inquiries. With the availability of Automated Teller Machine (ATM) Zenith Bank can also offer quicker services to their numerous and teaming customers outside the banking hall with the use of this facilities. Furthermore, online banking facilities give customers the opportunity to withdraw or deposit money from the account at any branch in Nigeria and the world in general (Adelman, 2008). However, the impact which modern technology facilities could have on bank services delivery is a function of two factors.

• Investment in information technology (IT)
• The use to which it is put or attains operational efficiency and meets the organization objectives.
  • Background of the Study

According to (Adeyemi 2006), the application of modern technology facilities on Zenith bank customer services can reduce customers waiting time this brings about efficiency in bank services delivery. In the 1970’s, computers were used primarily for data processing. The emergency multimedia computer system has revolutionized banking service in Nigeria in such areas of application as data base processing, word processing and desktop publishing, graphic and image processing office automation and e – mail.

It is obvious to note that only banks that are effectively and efficiently will remain competitively relevant and profitable. In the course of this study, Zenith bank Plc has been chosen to examine the impact of modern technology facilities in bank customers’ services.

• STATEMENT OF THE PROBLEM

Although there are researches which have been made in modern technology in previous studies but lack of literature on its impact on customer’s services in the Nigeria banking industry points out that these problems have been addressed marginally. The following problems associated with this study include:

1. The need to ascertain the promptness and efficiency of services as perceived by customer through the use of modern technology facilities.
2. The perception of customers on the ease of conducting banking transaction through the use of modern technology
3. The need to ascertain the effect of modern technology on the interaction between cashier and customers.
4. Lastly, the need to ascertain the impact of modern technology on the productivity of the bank.   
   • OBJECTIVES OF THE STUDY
5. To determine whether modern technology has brought efficient and effective services delivery to customers
6. To determine whether information technology has led to increase in Zenith Bank deposit.
7. To determine if modern technology has led to enhance customers satisfaction.
8. To ascertain if modern technology has contributed to development and growth of Zenith Bank Plc.
9. To determine the impact of modern technology facilities on bank deposit and its profitability. 
   • RESEARCH QUESTION
10. Does modern technology helps to improve Zenith Bank Plc Internal Operations and administrative work?
11. Does modern technology facilities the real time, online operation of Zenith Bank?
12. Does modern technology help improve the receipt and payment of cash to Zenith Bank customers?
13. Does modern technology helps in improving Zenith Bank customers’ reaction time?
14. Has modern technology reduced customers cashier interaction time?
    • RESEARCH HYPOTHESIS
15. There exist no significant relationship between modern technology facilities and customers’ services in the bank.
16. There exist significant relationship between modern technology facilities and customers’ services in the bank.

• SIGNIFICANT OF THE STUDY

The concept of computer technology and internet system has transformed the entire universe into a global village. The banking industry should not be left out of the innovation in information technology for a more efficient management with the advent of computers; banks offer varieties of services which range from Automated Teller Machine (ATM), online or network bank services and automated credit card services. All these services through the use of advanced information technology device gives the customers the advantage of withdrawing or depositing money out or into  their various account anywhere in the world.

Moreover, the study will be useful to the banking sector and the Nigeria economy in general. This is because banks provide the bulk of money inform of loan for medium and long term investment in any capitalist economy. Since it has been proven that with the introduction and application to banks as well as prudent management of resources result to the following:

1. Improved customer satisfaction
2. Increased in deposit base
3. Enhance productivity
4. For the customers, it will enable the bank to be aware of customers needs for new service and plan to make them available.
5. For the bank, immediate replies to customers queries with reference to ledger – keeper
6. Finally, development and growth of the banking industry with all these points. The significance of modern technology facilities in the banking sector could not be over-emphasized
   • SCOPE OF THE STUDY

This study is on the impact of modern technology facilities on bank customers services is basically limited to Zenith Bank Plc, Akwa Ibom State. In the process of carrying out this study, there were some set back which has hindered the research from having a broad scope. These range from inadequate financial resources to move around for data collection, typing and photocopying, also the unwillingness to supply needed primary data which will invariably affect the duration of this research work