ABSTRACT

This study is intended to evaluate the impact of information technology in the banking industry.
Information technology includes any communication devices such as telephone i.e cellular phone television computer and network hardware and software satellite system and so on as well as video conferencing and distance learning.
Information technology such as on line banking and relationship marketing are increasingly important. In the banking industry they use information technology channels to interest with their financial services provider and this interaction affects the relationship quality between the customers and the financial services providers.
Any banking industry that did not exhibition an information technology gap have more positive perceptions with their financial services provides.
Information technology which deal with the roles and impact it plays on the banking industry has improved the economy.
The objectives of the study includes to find out the major cause of information technology in the banking industry do find out whether the information technology is efficient or not to recommend solution based on the findings and to know whether it perform belong expectation.
Methodology used in collecting data include only primary and secondary sources of data. From the data collected the researcher will find out whether the information technology has improved the services renders or not the researcher will also worked on the problem of information technology and solution to the problem.
Finally she will show how information technology has improved their services in the banking industry.

CHAPTER ONE

INTRODUCTION 
1.1 BACKGROUND OF THE STUDY
Information technology is the concept of acquisition handling process and distribution of data information using computer hardware and software telecommunication and digital electronic.
In banking industry information technology has opened up new opportunities for the Nigeria banking industry to improve on their services. The role of information technology has grown and changed continuously in the banking industry. This explores the socio economic factors associated with the adoption of information communication technologies (ICTs) by the banking industry. The united nations through it UN development programme activity promotes information communication technologies (ICTs) as a powerful tools for economic and social development around the world.
The banking industry has used information technology to enable increase in the volume of transaction. Banks on the others hand has seen the essence of information technology in trying to actually carryout out it functions on the economy and are still bringing more information technologies into various financial services offered to its customers.
Manual keeping of information and manual processing of data/account of the customers is extremely slow and cannot cope with the increase sophistication of customers demand and volume of transactions this modern time.
It has been said that the horse was replaced by the motor vehicle not because the motor vehicle is that much more convenient but because the horse has become inefficient form the economic point of view. For instance if a manual operation which involves the process if information on three thousand salaries people the cost involves in this type of operation is numerous personnel cost retirement scheduling cost etc. then enters the information technology like computer. The computer would not involve much cost rather it will perform the work more speedily than manual operation. There is no doubt that information technology is having a profound influence on all aspects of life including organizations and management information technology is the live wire and the tonic that every because required to exists and flourish.
Information technology has changed the method of transaction and the electronic funds transfer to more strategic innovations like (ATM) automated teller machines and new kind of securities the use of information technology has also some important customers suppliers effects for the customers of service providers.
Online transaction processing system play a strategic role in the banking industry banks are using the internet extranets and other network that tie them electronically to their customers for online transaction processing such relative system which capture and process transactions immediately help them provide superior services to their customers.
These communication links with the micro-computer offer you assess to a greater quality of information than was possible some years back.
In conclusion the adoption of information technology into the banking industry has improving customers services and satisfaction.
Short history of first bank of Nigeria Plc (F.B,N) 
Banking services in Nigeria dates as far back as 1892 when the African banking co-operation was established. In 1894 the banks were amalgamated by British bank of west Africa. Latter it was established in Nigeria. It is this same British bank of west Africa (B.B.W.A) that has grown in dimension and dynamism changing its organizational name relatively to such sources of change and following government directives. It grown the British bank for Africa to Standard Bank of Nigeria (S.B.N) and currently now is known and called the First Bank of Nigeria (F.B.N) PLC 
One is tempted to think sometimes that the new name of the bank symbolized the chronological position it occupies in the banking industry in Nigeria.
First Bank is the bank that came before all other banks and it is one of the banks in Nigeria that have introduced the use of information technology into its bank.

1.2 STATEMENT OF PROBLEM 
This study is an attempt to study the significance of information technology in the banking industry and particularly its effect on the performance of banks.
Essentially the problem evident in this research stems from the fact that the use of information technology was expected to reduce the length of time spent by customers before being served in the bank. But the fact is that customers still spend a lot of time in the banking hall despite the use of information technology like computer.
The quality of the banks account records accuracy completeness and validity of information available form the bank and internal control system of most of the banks are in complete disarray.
Summarily banking services seem not to have changed for better despite the use of all information technology system in the banking industry some facilities online system are not practiced at all in most Nigeria banks. Other services practiced on developed countries banks like cash dispensing services automatic tellers video home banking data base online system of computing and micro computers are found in banks at USA Europe Japan etc. in order to keep with sophistication of their customers.

1.3 OBJECTIVE OF RESEARCH 
It is necessary to state the primary objectives of the research having stated the problems in information technology and economic objectives that they are expected in the banking industry.
They are as follows
a. This work is set out to find out the major cause of information technology in the banking industry.
b. This find out whether the information technology is efficient or not in the achievement of certain objectives of the banking industry in particular 
c. To see if the non-realization of the information technology objective is due to chosen instrument or in appropriate application of the instrument 
d. To recommend solution based on the finding 
e. The policy recommendation based on the finding will be used as a guide in the further application of information technology.

1.4 SCOPE AND DELIMITATION OF STUDY
The researcher study is limited to the first bank of Nigeria Plc Okpara Avenue branch were actual information technology of some banking services has been introduced.
The research would be carried out through case study which will be more realistic than a survey. A survey was however found out to encompass the whole banking industry in Nigeria but a case study would be more realistic one for the purpose of the work.
This also limits the work to first bank of Nigeria Plc. Although the research tries as much as possible to get the general view on the information technology in banking industry but this work laid emphasis on the significance of information technology on the banking industry which was the purpose of the work.

1.5 RESEARCH QUESTIONS 
a. Has the use of information technology in the Nigerian banking industry improved the banking sector
b. Has the adoption of the information technology in the banking industry reducing the fraudulent practices.
c. Has banking services changed for the better as a result of information technology system in banking industry?
d. Has information technology improved the poor inadequate transactions in the banking industry
e. Has information technology system of banking industry reduced the time customers spend in the banking hall.

1.6 SIGNIFICANCE OF STUDY
Since information technologies have been found to play a major role in increasing the efficiency of banking services in the various industries or firms including banking industry the research into the significance of information technology in the banking industry becomes important.
This is necessary because it would give very good understanding of what information technology is all about and their contribution to increases efficiency in our banking system.
One of the most promising significance of this study is that several banks today are using neural network programs to detect credit fraud. Also it is being used by some leading investment bank to track stock price pattern and predict their movements. Information technology in banking sector has made it possible for home banking smart phones with screen built in moderns and programmable micro-processors to enable the customers access a verity of financial services from home.
Information technology in banking industry has made possible for the use of electronic funds transfer at point of sales with pay-now-buy-later and credit cards had “buy-now-pay-later.
Electronic funds transfer at point of sale (EFPOS) Signify buy-now-pay-now” and even without cash transaction if the user present her automated tellers machine card when she buyers goods and electronic funds transfer at point of sale system will immediately debts her bank account. 
Through the use of smart card the processor type smart cards with in built integrated circuit or micro-chips offers a wide range of transaction opportunities in the banking industry with the helps of information technology.
Information technology in banking sector has help through electronic data interchange (EDI) this is typically denotes paperless financial transactions across the location. Electronic data interchange (EDI) is fast becoming the standard for inter-company transaction. Electronic data interchange (EDI) is an example of the almost complete automation of an e-commerce supply chain process. Electronic data inerter change (EDI) is still a popular data transmission format among major trading partners primary to automate repetitive transactions

1.7 DEFINITION OF TERMS
Electronic fund transfer these are major from of electronic commerce system in banking and relating industries electronic funds transfer system use a variety of information technology to capture and process money and credit transfers between banks and business and their customers.
Electronic data interchange (EDI) data representing a variety of business transaction document (such as purchase order invoices requests for quotation and shipping notices) are automatically exchanged between computers using standard document message formats.
E- commerce –this support the complete seller-to-buyer relationship. Electronic commerce model includes promoting and communicating company and product information to a global user base accepting order and payment for goods and services online delivery software and information products online collaboration for new product development.
Automated Teller Machine ( ATM) is the self-service banking it gives vending machine convenience to consumers for deposits and with drawls of cash transactions.
Credit cards-is a small plastic card that allows its holder to buy goods and services on credit and to pay at fixed ineterva.
Information-This is the data that have been shaped into a form that is meaningful and useful to human beings.
Information system can be defined technically as a set of interrelated components that collect (or retrieve) process store and distribute information to support decision making coordination and control.
Information technology- Is the study or use of electronic equipment especially computers for storing analyzing and distributing information of all kinds which could be used in banking and so many other relevant field.
Banking-Banking in its operational meaning is the business of accepting of deposits from outside sources irrespective of the payment of interest also means of granting of money loans and acceptance of credits or the purchase of bills and cheque or purchase and sell of securities for the account acquire claims in respect of loans`.