Impact of Information and Communication Technology (ICT) on the Performance of Commercial Banks in Kogi State, Nigeria

Abstract

Commercial banks play critical role in enhancing the nation’s economy however, its performance largely depends on the extent to which its resources are utilized. This research on the impact of information and communication technology on the performance of commercial banks in Kogi state is conducted to determine the extent to which information and communication technology resources such as mobile banking, internet banking and telephone banking enhances the performance of commercial banks such as efficiency, competitive advantage and cost reduction. In undertaking the research, the study adopts a descriptive survey design with an infinite population of respondents who are Customers of the selected commercial banks and sample of 384 was used adopting the Krajcie and Morgan sample size formular. However, out of the total sample size of 384 reached only 258 completed and returned the questionnaire giving a retrieval rate of 67%. The study elicited data using a 24 items structured questionnaire designed in a five points Likert scale. The three hypotheses earlier formulated were tested using simple linear regression. Findings from the research revealed that there is significant positive relationship between the application of information and communication technology and performance of commercial banks in Kogi state. The study specifically revealed that there is significant positive relationship between mobile banking and efficiency (r =.083, p-value <0.05), there is significant positive relationship between internet banking and competitive advantage (r =.078, p-value <0.05) and there is significant positive relationship between telephone banking and cost reduction (r =.089, p-value <0.05). Premised on the findings, this research therefore recommends that the application of information and communication technology tools should not only be sustained in the commercial banks in Kogi state but its infrastructure should be improved through innovative techniques so as to ensure improved performance of the banking sector in Kogi State.