THE ADOPTION INFORMATION TECHNOLOGY AND THE IMPROVEMENT OF CUSTOMER SATISFACTION OF SELECTED BANKS IN JOS PLATEAU STATE

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

All banks operating in Nigeria must now use electronic devices and apply electronic payment (concepts, methodologies, regulations) in order to remain competitive on a worldwide scale. The recent consolidation effort in the Nigerian banking industry has prompted many banks to focus on the use of different technology devices to promote/achieve customer satisfaction, which guarantees a constant improvement in profitability and a greater return on investment. Yet, with the expansion of banking services throughout the world, Nigerian banks are under more pressure than ever to boost output (Chernatony and McDonald, 2019). Customers in today's digital banking era may complete their business at any computerized bank in the blink of an eye. Many banks, particularly those of a younger age, have begun offering electronic banking services to better serve their customers in light of recent developments in computer technology.

There has been a slight shift away from cash, as confirmed by Balachandher (2021). As Patrick (2019) points out, the value of transactions tend to grow, and so does the charismatic advantage of cash. Therefore, as the value of an item or service grows, the proportion of transactions conducted in non-cash forms increases. These are the results of developments in information and communication technologies (ICT). Lodgments (deposits) and withdrawals of cash have become more easier both domestically and globally because to advancements in information and communication technology. These days, teller machines may print out deposit slips (receipts) for cash deposits. In addition, automated processes have been developed to facilitate the ordering of third-party payable bank drafts and certified bank checks (Adeoye, 2018). 

Adeoye (2018), who authored a book on the topic of new technologies and performance enhancement in the banking industry, claims that the transformation of central currency into bits and bytes that can be transmitted via satellite transponders, fiber optic cables, or even traditional telephone lines is one of the most significant outcomes of these innovations. Balmer and Wilkinson (2020) argue that new technologies provide a challenge for banks to adapt to but also numerous chances to employ. For Stan (2019), an electronic payment system is one in which monetary exchanges are made entirely digitally rather than physically exchanging money.

Information has always played a significant part in human existence, but the advent of social progress and the rapid advancement of science and technology have exponentially expanded the importance of information in every aspect of human endeavor. The fast proliferation of a mass of diverse information has given birth to the phrase "information explosion" and spawned a scientific approach to information and the explication of its most distinctive qualities, which has resulted in fundamental shifts in the conceptualization of information (Adeoye, 2018). It was expanded to incorporate information sharing not just between humans but also between machines and between the animal and plant kingdoms. Globally, the rate of technological progress has had a tremendous impact on how people live, work, and play. Today's corporate climate is very dynamic and subject to quick change due to creativity, innovation, technical advancements, heightened consumer awareness, and higher customer expectations. Information and Communication Technology (ICT) is at the center of this global transition curve, which is defined by fluctuating circumstances and a highly unpredictable economic climate. This is especially true for 21st century business organizations, particularly the banking sector (Baker and Crompton, 2022).

According to Adeoye (2018), managers cannot disregard Information Systems since they play a crucial role in modern organizations. They note that the majority of Fortune 500 companies' entire financial flow is related to their Information System. The application of ICT concepts, methods, policies, and implementation strategies to banking services has become a basic issue for all banks and a need for local and worldwide competitiveness. Information technology has a direct impact on the many managerial activities of planning, coordinating, and the nature of banking services. With the diversity of new gadgets accessible to improve the speed and quality of service delivery, it has consistently altered the way banks globally structure their business relationships.

Anderson and Evans (2018) emphasized that financial service providers must adapt their old operating procedures in order to survive in the 1990s and beyond.

Customers are assumed to be one of the most crucial stakeholders in every firm, since companies are unlikely to flourish without them. As a result, marketers place a premium on research in the domain of customer behavior, specifically behavioral intention. Knowledge of consumer behavior will go a long way towards guaranteeing successful marketing practices in the customer's best interest, which will ultimately enable a favorable customer attitude towards the organization. Moreover, since a customer's intended behavior is a strong indicator of his real behavior, the customer's intended behavior is a significant predictor of his actual behavior (Balmer, and Wilkinson, 2020).

Thus, Information Technology has arisen as a catalyst in the many sectors of the globe to facilitate the processes and procedures necessary for the achievement of diverse organizational objectives. This research got interested in the function of Information Technology in the banking sector owing to the substantial role it plays in supporting economic development via the intermediation of money to economic agents who need them for productive activities. This role is essential for every economy that aspires to experience real development, since it brings together borrowers and lenders of financial resources more effectively than if they were to deal with one another directly (Mattila, 2020).

This considerable contribution of the services industry and banking sector in Nigeria warrants research in order to boost the sector's continued expansion, which will ultimately improve the economic performance. It is highlighted, however, that one of the ways banks can satisfy the expectations of their clients, who are the lifeblood of the bank's business, is by gaining a knowledge of their behavior (Woldie, 2022).

This study's primary objective is to investigate the impact of information technology on customer satisfaction at selected banks in Jos Plateau State.

1.2 Statement Of The Problem

Today's world is molded by developments in the realm of information technology (IT). It is impossible to overstate the importance of Information Technology (IT) to the operation of the banking sector in Nigeria and the rest of the globe. The application of Information Technology in banks in Nigeria is believed to have a positive impact on service delivery in terms of reducing customers' waiting time and providing convenient service, operational efficiency including cost reduction, and profitability of the banks; consequently, satisfied customers will always return (Zeithaml and Bitner, 2019).

However, banks in Nigeria confront a number of information technology-related challenges, including inconsistent power supply, unrealizable network architecture, inadequate connection, insufficient bandwidth, the expense of deploying information technology equipment, and the need to develop human resources. In light of this terrible circumstance, the purpose of this research is to examine the adoption information technology and the improvement of customer satisfaction of selected banks in Jos Plateau State.

1.3 Objective Of The Study

The overall aim of this study is to critically examine the adoption information technology and the improvement of customer satisfaction of selected banks in Jos Plateau State. Hence, the study will be channeled to the following specific objectives;

To ascertain the extent information technology are being adopted by banks in Jos Plateau State. 

Find out the information technology commonly adopted among the selected banks in Jos Plateau State. 

Ascertain whether there is a significant relationship between information technology and customers satisfaction.

Find out the impact of information technology on customers satisfaction of selected banks in Jos Plateau State.

1.4 Research Questions

The study will be guided by the following questions;

What is the extent information technology are being adopted by banks in Jos Plateau State?

What are the information technology commonly adopted among the selected banks in Jos Plateau State?

Is there any significant relationship between information technology and customers satisfaction?

What is the impact of information technology on customers satisfaction of selected banks in Jos Plateau State?

1.5 Research Hypothesis

The hypothetical statement below will be validated in the course of this study;

Ho: There is no significant relationship between information technology and customers satisfaction.

Ha: There is a significant relationship between information technology and customers satisfaction.

1.6 Significant Of The Study

The study will be significance to the managers of banks, customers of banks and academic researchers and students interested in these areas; the managers of banks would get hint on how to further deploy Information Technology to enhance profitability, operational efficiency and service delivery of their banks. The customers would have the benefit of improved services and satisfied customers will always come back, this impact a great deal on the bottom line of the banks.

Finally, the study will be of great importance to other researchers, academics and students who are interested in Information Technology on customer’s satisfaction and bank performance. The study would have contributed immensely to the existing body of knowledge.

1.7 Scope Of The Study

The study is structured to examine the adoption information technology and the improvement of customer satisfaction of selected banks in Jos Plateau State. The study will borders across to ascertain the extent information technology are being adopted by banks in Jos Plateau State, find out the information technology commonly adopted among the selected banks in Jos Plateau State, ascertain whether there is a significant relationship between information technology and customers satisfaction, and find out the impact of information technology on customers satisfaction of selected banks in Jos Plateau State. The respondents for this will be delimited to customers of the selected bank of the study area.

1.8 Limitation Of The Study

Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.

1.9 Definition of Terms

Information Technology (IT): Information Technology is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise (Davies and Chun, 2015).

Customer: A customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration (Adeoye, 2018).

Customer’s satisfaction: The degree of satisfaction provided by the goods or services of a company as measured by the number of repeat customers (Boulding, 2015).  

Economy: The relationship between production, trade and the supply of money in a particular country or region. It is the system of trade and industry by which the wealth of a country is made and used. 

Bank: A bank is a financial intermediary and money creator that creates money by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet (Balmer and Wilkinson, 2020).