THE RELEVANCE OF IMFORMATION TECHNOLOGY IN THE MODERN BANKING SYSTEM

[attachment=17261]

1.1 INTRODUCTION
Today‘s business environment is very dynamic and undergoes rapid changes as a result of technological innovations which increased awareness and demands from customers. Business organizations, especially the banking industry of the 21st century operates in a complex and competitive environment characterized by this changing condition and high unpredicted economic climate. Information technology (IT) is at the century of this global change curve (Olukun, 1990).


BACKGROUND OF THE STUDY
Modern banking plays an electronic banking which becomes a natural fall out the intense competition going on in the banking sector and this was the result of efforts of banks to introduce the automation banking services. A number of socio-economic factors necessitated the movement of bank form the traditional approach to the services delivery which was produces based to becoming market-oriented where the customer in become the king. In other words, the search customer satisfaction is also profit motivated and this was the basis for embracing automation n the sector. Electronic banking was first introduced in Nigeria in November, 1990 when the society. General-bank (now distressed) landed their first automated taller machine (ATM) since then, there have been rapid technological developments in the Nigerian banking sector (Olukun A-1990)



STATEMENT OF THE PROBLEM
Given the economic down turn in the banking sector, some pertinent issues have raised by the introduction of new technologies in the industry general among them are:
I. The need to effectively coordinate emerging technology in anticipation of data sharing needs. This however must have to be achieved without weakening the structure of the industry.
II. There is the challenge of current wave of globalization coupled with the menace of computer fraudsters.
III. Given the rapid technological developments in the banking industry, every bank is either forced into the introduction and application of the new technology or thrown out of the surrounding computation.


OBJECTIVES OF THE STUDY
The major objective of this study is to achieve the following:
I. To determine the relevance of technology in modern banking system.
II. To find out the influences and challenges of these technology developments in the sector and than attempt to justify the embracement of those technologies by all banks.
III. To examine the effect and improvement of modern banking system.
IV. To focus on the future expectations in the modern banking system and appropriate recommendations will be offered.