CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND RESULT INTERPRETATION

4.1 INTRODUCTION

This chapter contains detailed presentation and discussion of data analysis and the results of this
study. The objective of this study was to find out the effect of information technology on
banking. 350 questionnaires were distributed; of which 349 were well filled and served as the
base for computing and interpreting of the results.

4.2 FREQUENCIES AND PERCENTAGE

This section of the questionnaire covered the respondents’ response to the question.

4.2.1 RESPONDENT’S AGE

The respondents were asked for their age. Table 4.1 depicts the respondents’ age.

Frequency Percent

16-20 95 27.22

21-25 171 49

26-30 64 18.34

31 & above 19 5.44

Total 350 100.0

Table 4.1: Respondents’ age as at the time of filling the questionnaire

The respondents ages ranged from 16 years and above, with the majority being between 21-25
years as 171 (49%) respondents were at this age.
4.2.2 RESPONDENTS’ GENDER

The respondents were asked for their gender. Table 4.2 shows the gender of respondents.

Frequency
Percent

Male 169 48.42

Female 180 51.58

Total 349 100.0

Table 4.2: Gender of respondents

The respondents gender was either male or female, with the majority being female as 180
(51.58%). 

4.2.3 OCUPATION

The occupation of the respondents was examined. Table 4.3 showed the occupational distribution
of the respondents.

Frequency
Percent

Student 290 83.09

Civil Servant 22 6.30

Bank Official 18 5.16

Trader 19 5.44

Total 349 100.0

Table 4.3: Occupational distribution of respondents

Of the 349 respondents who filled the questionnaire, majority were students who are 290
correspondents (83.09)%. There were Traders – 19 respondents (5.44%), Civil Servants – 22
respondents (6.30%) and Bank officials who had the lowest number of respondents at 18
respondents (5.16%)
4.2.4 HOW OFTEN DO YOU VISIT THE BANKING HALL

Respondents helped with the research by telling us how often they go to the bank. Table 4.4
shows the result of their response

Frequency
Percent

not at all 9 2.58

rarely 239 68.48

often 83 23.78

very often 18 5.16

Total 349 100.0

Table 4.4: Frequency and percentage of how often respondents visit the bank

The reply of the respondents showed that a lot of them rarely visit the bank as 239 of them
(68.48%) stated so. However, 83 of the respondents (23.78%) replied in the affirmative of their
frequent visit to the bank.

4.2.5 WHAT INNOVATION PLATFORM DO YOU USE?

There are many platforms through which Nigerians interact with the bank and perform their
transactions. The respondents for this research were able to tell of the platform they use the most,
the data of their reply is stated in table 4.5.

Frequency
Percent

ATM 76 21.78

POS 27 7.74

Online Banking 59 16.91

Mobile Banking 134 38.40

USSD 50 14.33

Bank Token 3 0.46

Total 349 100.0

Table 4.5: Innovation platform used by respondents

Mobile banking is the most used by the respondents as 134 of them (38.40) chose them. The
least used platform is the Bank token used by 4 respondents (0.46%)

4.2.6 WHAT CHALLENGES DO YOU FACE WHEN YOU USE BANKING PLATFORMS
Respondents were asked to tell the kind of challenges they particularly face when they use
banking platforms. All 349 respondents were able to reply accordingly and their response is
shown in table 4.6

Frequency
Percent

Network Failure 224 64.18

Long Queue 61 17.48

Slow Transaction 50 14.33

Power Failure 4 1.15

Perceive cyber fraud risk 10 2.87

Total 349 100.0

Table 4.6: Challenges respondents face when they use banking platforms

224 respondents (64.18%) of all 359 respondents chose that Network failure as the biggest
problem hey face when they use any bank platform.

4.2.7 IT INNOVATION HAS ENHANCED BANK SERVICE DELIVERY

Respondents showed their view about IT innovation. They answered to tell if IT innovation has
enhanced bank serevice delivery.

Frequency
Percent

Strongly Disagree 10 2.87

Disagree 8 2.29

Indifferent 14 4.01

Agree 189 54.15

Strongly Agree 128 36.68

Total 349 100.0

Table 4.7: IT Innovation has enhanced bank service delivery

189 respondents (54.15%) say that IT innovation has enhanced bank service delivery. Majority
of the respondents actually agree that IT innovation has enhanced bank delivery. Only 10
respondents (2.87%) and 8 respondents (2.29%) do not go with the notion.

4.2.8 IT INNOVATIONS ARE EASY TO USE

The 349 respondents who contributed to this research took their time to state of IT innovations
are simple and ready to use.

frequency
Percent

Strongly Disagree 8 2.29

Disagree 8 2.29

Indifferent 15 4.30

Agree 226 64.76

Strongly Agree 92 26.36

Total 349 100.0

Table 4.8: IT innovations are easy to use

Majority of the respondents believe IT innovations as it concerns banking are easy to use. Only a
small percentage of the respondents do not agree. 8 respondents (2.29%) each disagreed and
strongly disagreed.

4.2.9 IT HAS MADE CASHLESS POLICY POSSIBLE

Table 4.9 is showing what respondents think about information technology and then cashless
policy in Nigeria. Has IT made the cashless policy possible.
 Frequency
Percent

Strongly Disagree 6 1.72

Disagree 9 2.58

Indifferent 10 2.87

Agree 194 55.59

Strongly Agree 130 37.25

Total 349 100.0

Table 4.9: IT has made cashless policy possible

194 respondents (55.59%) agreed that information technology has made cashless policy possible.
130 respondents (37.25%) strongly agreed on the matter; and 6 respondents (1.72%) and 9
respondents (2.58%) strongly disagreed and agreed.

4.2.10 IT ENHANCES ANYTIME BANKING

One of the things information technology hopes to achieve in banking is to make it accessible at
all times. It is to this effect that the respondents show if this reason is effective or not.
 Frequency
Percent

Strongly Disagree 8 2.29

Disagree 7 2.01

Indifferent 16 4.58

Agree 192 55.01

Strongly Agree 126 36.10

Total 349 100.0

Table 4.10: IT enhances anytime banking

Most of the respondents believed that information technology enhances anytime banking. This is
evident in how 192 respondents (55.01%) and 126 respondents (36.10%) of the 349 respondents
respectively agreed and strongly agreed with the notion.

4.2.11 IT INNOVATIONS HAS REDUCED MONEY LAUNDERING & CORRUPTION IN

NIGERIA

Respondents gave reactions to whether IT innovations has reduced cases of money laundering
and corruption in Nigeria.
 Frequency
Percent

Strongly Disagree 44 12.61

Disagree 105 30.09

Indifferent 86 24.64

Agree 92 26.36

Strongly Agree 23 6.59

Total 349 100.0

Table 4.11: IT innovations has reduced money laundering and corruption in Nigeria

There was a lot of disagreement in this area, as 105 respondents (30.09) strongly disagreed.

4.2.12 CUSTOMERS HAVE SATISFACTION WHEN IT INNOVATIONS ARE USED

Respondents were asked to if they get satisfaction when they use IT innovations. All 349
respondents were able to reply accordingly and their response is shown in table 4.12
 Frequency
Percent

Strongly Disagree 4 1.15

Disagree 31 8.88

Indifferent 67 19.20

Agree 220 63.04

Strongly Agree 27 7.74

Total 349 100.0

Table 4.12: Customers have satisfaction when IT innovations are used

220 respondents (63.04%) agreed that they get satisfaction when they use IT innovations. 67
respondents (19.20%) were indifferent.

4.2.13 IT TRANSACTIOS ARE KEPT PRIVATE

The 349 respondents who contributed to this research took their time to state if IT transactions
are kept private
 Frequency Percent

Strongly Disagree 8 2.29

Disagree 30 8.60

Indifferent 47 13.47

Agree 228 65.33

Strongly Agree 36 10.32

Total 349 100.0

Table 4.13 IT Transactions are kept private

228 respondents (65.33%) agreed that IT transactions are usually kept private and 8 respondents
(2.29%) strongly disagreed.

4.2.14 IT IS ALWAYS AVAILABLE TO CUSTOMERS

Respondents filled the questionnaire to tell if banking innovations are always available to them.
 Frequency
Percent

Strongly Disagree 3 .86

Disagree 32 9.17

Indifferent 45 12.89

Agree 221 63.32

Strongly Agree 48 13.75

Total 349 100.0

Table 4.14: Innovations are always available to customers

Of 349 respondents who filled the questionnaire, 221 of them (63.32%) agreed and stated that
they always get access to IT innovations when they want to use banking services. 3 respondents
(0.86%) strongly disagreed.

4.2.15 DUE TO IT INNOVATIONS BANKERS HAVE LESS CUSTOMERS VISITING THE

BANK HALL
The 349 respondents who contributed to this indicated if bankers get less customers visiting the
banking hall.

Frequency
Percent

Strongly Disagree 16 4.58

Disagree 61 17.48

Indifferent 31 8.88

Agree 175 50.14

Strongly Agree 66 18.91

Total 349 100.0

Table 4.15: IT innovations have reduced customers visit to the bank hall

175 respondents (50.14%) agreed; 66 respondents (18.91%) strongly agreed; and 61 respondents
(17.48%) disagreed that IT innovations has reduced the number of people who go to the bank.

4.2.16 IT HAS INCREASED SECURITY RISK IN BANKING SERVICES

The 349 respondents who contributed to this indicated if IT innovation in banking has increased
security risk in banking services.

Frequency
Percent

Strongly Disagree 12 3.44

Disagree 63 18.05

Indifferent 61 17.48

Agree 175 50.14

Strongly Agree 38 10.89

349 100.0
Total
Table 4.16: IT innovation in baking has increased security risk in banking services.

175 respondents (50.14%) agreed; 63 respondents (18.05%) disagreed; and 61 respondents

(17.48%) were indifferent as to whether IT innovations has increased security risk in banking
services.

4.2.17 IT HAS MADE IT EASY TO COMMIT FRAUD

Respondents filled the questionnaire to tell if banking innovations has made it easy to commit
fraud.

Frequency
Percent

Strongly Disagree 13 3.72

Disagree 68 19.48

Indifferent 63 18.05

Agree 166 47.56

Strongly Agree 39 11.17

Total 349 100.0

Table 4.17: IT innovation has made it easy to commit fraud

166 respondents (47.56%) agreed; 68 respondents (19.48%) disagreed; and 63 respondents

(18.05%) were indifferent as to whether IT innovations has increased security risk in banking
services.

4.2.18 IT INNOVATIONS ARE NOT RELEVANT AT ALL TIMES

The 349 respondents who contributed to this indicated if IT innovation are not relevant at all
times

Frequency Percent

Strongly Disagree 37 10.60

Disagree 139 39.83

Indifferent 62 17.77

Agree 97 27.79

Strongly Agree 14 4.01

Total 349 100

Table 4.18: IT innovations are not relevant at all times

139 respondents (39.83%) disagreed; 97 respondents (27.79%) agreed; and 62 respondents

(17.77%) were indifferent as to whether IT innovations are relevant at all times or not.

4.2.19 IT INNOVATIONS ARE COST INTENSIVE

Contributors who filled the questionnaire were asked if IT innovations are cost intensive

Frequency
Percent

Strongly Disagree 19 5.44

Disagree 108 30.95

Indifferent 59 16.91

Agree 138 39.54

Strongly Agree 25 7.16

Total 349 100.0

Table 4.19: IT innovations are cost effective

138 respondents (39.54%) agreed; 108 respondents (30.95%) disagreed; and 59 respondents
(16.91%) were indifferent as to whether IT innovations are cost intensive or not.

4.2.20 ATMS THAT ACCEPT DEPOSIT ARE NECESSARY

Respondents filled the questionnaire to tell if ATMs that accept deposit are necessary

Frequency
Percent

Strongly Disagree 8 2.29

Disagree 29 8.31

Indifferent 34 9.74

Agree 193 55.30

Strongly Agree 86 24.64

Total 349 100.0

Table 4.20: ATMs that accept deposits are necessary

193 respondents (55.30%) agreed; 86 respondents (24.64%) strongly agreed; and 34 respondents
(9.74%) were indifferent as to whether ATM that accept deposit are necessary or not.

4.2.21 BANKERS NEED MORE IT INNOVATIONS FOR EFFECTIVE SERVICE

DELIVERY
Respondents filled the questionnaire to tell if bankers need more IT innovations for effective
service delivery

Frequency
Percent

Strongly Disagree 5 1.43

Disagree 5 1.43

Indifferent 17 4.87

Agree 225 64.47

Strongly Agree 97 27.79

Total 349 100

Table 4.21: Bankers need more IT innovations for effective service delivery

225 respondents (64.47%) agreed that bankers need more IT innovations for effective service
delivery; just 5 respondents (1.43%) strongly disagreed.

4.2.22 ARTIFICIAL INTELLIGENCE IS NEEDED IN BANKS

Respondents filled the questionnaire to tell if artificial intelligence is needed in banks

Frequency
Percent

Strongly Disagree 5 1.43

Disagree 22 6.30

Indifferent 41 11.75

Agree 207 59.31

Strongly Agree 74 21.20

Total 349 100.0

Table 4.22: Artificial intelligence is needed in banks

207 respondents (59.31%) and 74 respondents (21.20%) agreed and strongly agreed respectively
that artificial intelligence is needed in banks.

4.2.23 NOT ALL TRANSACTIONS NEED IT INNOVATIONS

Respondents filled the questionnaire to tell if all transactions need it innovations.

Frequency
Percent

Strongly Disagree 23 6.59

Disagree 95 27.22

Indifferent 57 16.33

Agree 148 42.41

Strongly Agree 26 7.45

Total 349 100.0

Table 4.23: Not all transactions need IT innovations’

148 respondents (42.41%) and 95 respondents (27.22%) agreed and disagreed respectively that
all transactions need IT innovations.

4.2.24 IT INNOVATIONS IN BANKING SERVICES DELIVERY ARE AVAILABLE TO

ALL CUSTOMERS
Respondents filled the questionnaire to answer the question of whether innovations in banking
service delivery are available to all customers.

Frequency
Percent

Strongly Disagree 8 2.29

Disagree 62 17.77

Indifferent 40 11.46

Agree 193 55.30

Strongly Agree 47 13.47

Total 349 100.0

Table 4.24: IT innovations in banking services delivery are available to all customers

Of the 349 respondents, 193 respondents (55.30) agreed that IT innovations in banking services
delivery are available to all customers.

4.3.1 POSITIVE EFFECTS OF INFORMATION TECHNOLOGY INNOVATIONS ON

BANKING SERVICES DELIVERY
 Items SA A I D SD Mean SD Decision
I.T. innovations has enhanced banking
129 189 14 8 10 4.20 0.849 Accept
services delivery
I.T. innovations are easy to use 93 226 15 8 8 4.11 0.772 Accept
I.T. has made cashless policy possible 131 194 10 9 6 4.24 0.776 Accept
I.T. enhances anytime banking 127 192 16 7 8 4.21 0.808 Accept
I.T. innovations has reduced money
23 92 86 105 44 2.84 1.144 Reject
laundering and corruption in Nigeria
Customer has satisfaction when I.T.
28 220 67 31 4 3.68 0.791 Accept
innovations are used
I.T. transactions are kept private 37 228 47 30 8 3.73 0.848 Accept
I.T. is always available to customers 49 221 45 32 3 3.80 0.821 Accept
I.T. innovations in banking services
47 193 40 62 8 3.60 1.002 Accept
delivery are available to all customers
Table 4.25: Positive effects of IT innovations on banking services delivery

The positive effect of IT on banking in Nigeria, are shown in table 4.25 above. The mean results

showed that information technology in banking has enhanced banking service delivery; made

cashless policy possible, enhanced anytime banking; given customers satisfaction and privacy

and is available to all customers. The mean of 2.84 showed the only disagreement with the

positive impact of IT on banking as proposed by this research. The results showed that IT

innovations has not helped to reduce money laundry and corruption in Nigeria.

4.3.2 NEGATIVE EFFECTS OF IT AND HOW IT AFFECTS THE CUSTOMERS WHILE

DELIVERING BANKING SERVICES
 Items SA A I D SD Mean SD Decision
Due to I.T. innovations bankers have less
129 189 14 8 10 3.62 1.116 Accept
customers visiting the banking hall
I.T. has increased security risk in banking
93 226 15 8 8 3.47 1.020 Accept
services
I.T. has made it easy to commit fraud 131 194 10 9 6 3.43 1.043 Accept
I.T. innovations are not relevant at all times 127 192 16 7 8 2.75 1.096 Reject
I.T. innovations are cost intensive 23 92 86 105 44 3.13 1.098 Accept
Bankers need more I.T. innovations for
28 220 67 31 4 4.16 0.700 Accept
effective service delivery
Table 4.26: Negative effect of IT on banking system in Nigeria

The negative side of information technology in banking has proposed by this research are found
to be true. In other words, IT has reduced the visit of customers to the bank; increased security
risk; made it easy to commit fraud; very expensive to operate and also not easy to maneuver.

4.3.3 FASTER AND MORE CONVENIENT IT INNOVATIONS AVAILABLE TO

CUSTOMERS

Items SA A I D SD Mean SD Decision

Artificial intelligence 75 207 41 22 5 3.93 0.842 Positive
ATMs that accept deposit are necessary 86 193 34 29 8 3.91 0.935 Negative
Table 4.27: Faster and more convenient IT innovations available to customers

While artificial intelligence actually help in banking. ATMs that accept deposit are not really
available for customers, hence not effective.

4.4 HYPOTHESES TESTING

4.4.1 HO1: Does information technology innovations have significant effects on banking
services delivery

Sum_Positive_effect Decision

Chi-Square 322.994a
df 26
Asymp. Sig. .000 Significant
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is
13.0.

4.4.2 HO2: Does information technology innovations have significant negative effects on
banking services delivery

Negative_effect
Decision
Chi-Square 346.828a
Df 19
Asymp. Sig. .000 Significant
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is
17.4.

4.4.3 HO3: relationship between respondents demographic variables and effect of information
technology innovations on banking services delivery

Regression
Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .065a .004 -.005 6.15055
a. Predictors: (Constant), Occupation, Gender, Age

ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 54.449 3 18.150 .480 .697b
Residual 13013.264 344 37.829
Total 13067.713 347
a. Dependent Variable: Sum_Effect
b. Predictors: (Constant), Occupation, Gender, Age

Coefficientsa

Model Unstandardized Standardize t Sig.

Coefficients d
Coefficient
s
B Std. Error Beta
1 (Constan 53.792 1.567 34.338 .000
t)
Age .559 .469 .075 1.191 .234
Gender .205 .692 .017 .296 .767
Occupati -.198 .456 -.026 -.433 .665
on

a. Dependent Variable: Sum_Effect

4.5 Discussion of the Result

The research brought to light the fact that IT has been of great impact on the banking systems in
Nigeria. The findings both from the questionnaires and the library research reveal that IT leads
enhance bank service delivery system.

Regarding the first research question, the respondents which comprises of bank users and
bankers believe that IT has a positive effect on banking system in Nigeria. The second research
question was treated carefully and showed that IT improvement also has an adverse effect on
banking in Nigeria.

We cannot deny that the advancement of technology was a necessity of the current era.
Businesses need to adopt and embrace new technologies to provide excellent business operation
and services to their clients. The bank industry is not an exception with regards to this
adaptation. So it is worth suggesting that the banking industry needs to spend more on IT and
better apply IT to improve its operations, customer services and products. Banks should devote
more resources to development of secure IT systems, services and product.
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings.

The overall result of the research work is that:

1. Information Technology innovation in the banking sector has positive effect on the

banking system especially has it helps enhance the banking system and makes customers

find banking easy. This implies that banks should invest more on IT and create more

awareness for the use of IT, especially among customers for their day-to-day transactions.

2. Information Technology innovation in banking operations also has adverse effects. This

is so in the sense that it exposes bank customers and their transactions and gives them no

privacy or security whatsoever. Banks should look into this aspect and ensure that they

build customer confidence in using their products.

3. Many customers acknowledge how much artificial intelligence has done in the innovation

process of banking. Notwithstanding, customers desire that there will be an available and

sufficient number of Automated Teller Machines that will be able to carry out the

function of deposit collection, While there are a few machines like that in Nigeria, banks

can ensure that there is more of the machines and make them accessible to customers.

5.2 Conclusions

This study examined the effect of Information Technology deployments on banking service

delivery in Nigeria.

The finding of the study shows that Information Communication deployments have a positive

and significant impact on service rendered by the bank; and also a negative turnaround too.
The empirical result suggest that since Information Technology Innovation has influenced

banking services in many positive ways, by having enhance baking service delivery, banks

should invest on IT for increase improvement of the banking sector.

5.3 Recommendations

In the light of these findings the following recommendations are suggested, having seen the

relationships that exist between the variables under study:

1. There should be an increased awareness by banks to customers to the use of IT in

banking. This is possible through advertisements and a corresponding increase in the

capability of IT services in the banking system.

2. The vulnerability caused by the innovation of IT in banking sector should be reduced to

the barest minimum or eradicated completely. The security of the people who interact

with the banking system through Information Technology should be guaranteed. When

people are sure that their privacy is protected, they will be eager to use the IT innovation

services, hence contributing to the positive effect of IT innovation in banking.

3. Banks should provide ATMs that accept deposit and also not limit what they can achieve

with IT tools. They should look out for other devices, tools and platforms they can use to

make banking efficient for customers.