IMPACT OF INFORMATION TECHNOLOGY ON BANKING EFFICIENCY: EVIDENCE FROM THE BANK OF INDUSTRY, KADUNA STATE
Keywords:
Information Technology, Banking Efficiency, Bank of Industry, Customer SatisfactionAbstract
The study examined the impact of information technology on banking efficiency at the Bank of Industry, Kaduna State. The increasing adoption of information technology in banking has transformed service delivery, but its effect on efficiency remains a topic of interest. The study utilized a mixed-methods adesign, specifically a survey and documentary research design. The population of the study was 400 staff and clients of the Bank of Industry Kaduna branch, and a sample of 200 participants was derived using the Taro Yamane formula. The major findings revealed that the information technology components collectively explained 72.8% of the variance in banking efficiency which indicate a significant positive relationship between information technology adoption and banking efficiency, highlighting the need for continued technological investment. It was also revealed that Core Banking Applications and Online Banking Platforms had the strongest significant positive effects on banking efficiency. The study therefore, concluded that information technology has been a primary driver of improved efficiency in the Bank of Industry, drastically reducing loan processing times and operational costs. The study recommended among other things that the bank must prioritize strategic investment in its core information technology infrastructure (networks, power, and servers) to address the significant reliability gap, which is currently undermining its other successful information technology-driven systems.References
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