CONCLUSIONES Y RECOMENDACIONES CONCLUSIONES

culture in Uganda (Batanda, 2001). The information given byBatanda(2001) was not quantified and the approach followed was not elaborate,which motivated the study carried out by Namirembe (2007) to establish the influence of ICT onthe banking industry in Kampala. Coupled to this is the fact that ATMs are not the onlytechnologies of e-funds transfer other technologies such as credit and debit cards needto be studied to establish true influence of e-funds transfer on the banking industry inKampala.

Karin, Laurie and Dave(2005) evaluated the Efficacy of Credit Card Regulation inUSA and used the elaboration likelihood model to explore how consumers mightrespond to the revised credit card disclosure requirements, focusing specifically oncollege students.

Random selection approach was used and it was noted that collegestudents possessed a fairly low level of knowledge of credit cards thus are not very wellequipped to make educated choices concerning such cards. While Karin et al (2005) sample of interest was limited to college students; the study used aggregate secondary data in measuring impact of ICT which is more reliable than primary data.

On telephone banking, Bohm, Brown and Gladman (2000) assert that some banks have always accepted instructions bytelephone from trusted customers well known to them, as part of their ordinary branchbanking service. Telephone banking requires a customer and bank to agree at the outsetof the relationship a small category of 'security information' to be used to verify thecustomer's authority to give telephone instructions and usually include a passwordchosen by the customer. Bohmet al (2000) define telephonebanking as a service, which the customer can use to give instructions and getinformation by speaking to bank staff by telephone. Telephone banking technology means availability, accessibility and usage of telephones(wired or wireless telephones) to engage in cash deposit, withdrawal and accountbalance inquiry by users in the banking industry.

Al-Ashban and Burney (2001) studied Customer Adoption of Tele-bankingTechnology in Saudi Arabia and found that customers increasingly extend their use oftele-banking as their experience grows with the system and that education played a vitalrole in the adoption and usage of tele-banking technology. While Al-Ashban andBurney indicated that education played an important role in the adoption and

usage oftele-banking,Osabuohien (2008) studied ICT and Nigerian banks reforms, he identified factors such as bankers‘ age, educational qualification, computer literacy and type of ICT impacts significantly and speed of banking operations, productivity and profitability.

Howcroft, Hamilton and Hewer(2002) indicated that educational levels ofrespondents did not affect the usage of telephone banking. Findings of these two studiesreveal conflicting results.

In Nigeria, telephone banking isstrengthened through the mobile telecommunication system and this has enhanced the growth of telephone banking in Nigeria. Agboola (2005) studied ICT in baking operations in Nigeria he discovered that technology has been discovered to be the main driving forces of competition in the banking industry during his period of study. He went further to state that the adoption of ICTin banks has improved customer services, facilitated accurate records, provides for Home and Office Banking services, ensures convenientbusiness hour, prompt and fair attention, and enhances faster services.Idowu, Alu and Adagunodo (2002), studied the effect of information technology on thegrowth of the banking industry in Nigeria. This study concentrated on the use oftechnologies

such as telephone banking technology. It was noted that the use of ICTensured a quick and improved services delivery to customers in Nigeria, thus anindicating desirable outcomes. While the above study showed positive correlation inNigeria, it was carried out prior to the CBN intervention of 2009 when eight banks were taken over which seriously affected the banking landscape in Nigeria; this study is necessary at this point to fill in the gap in ICT development and bank performance.

. Ayadi (2003) defined Internet banking as a set of systems that enable bank customers to access accounts and general information on bank products and services through a personalcomputer among other intelligent devices or any other activity held on the Internet. He explained further that access to electronic means of payment and the high numberof customers connected to the Internet has changed the perception of banks towardmarket and increased the development of Internet Banking. Hutchinson and Warren(2003) argued that Internet banking requires a sound security procedure thatinvolves designing effective methods via which users can be authenticated in a remoteenvironment such that transactions being conducted are secured

within their respectiveenvironments. Internet banking technology has made remarkable changes in thebanking industry, which include cost reduction due to electronic processing carried outon the Internet. For example in US while the average transaction cost at a full servicebank is about $1.07, it reduces to $0.27 at an ATM and falls to about a penny if thesame transaction is conducted on the web (Nath, Schrick,

&Parzinger, 2001). In the same way, Purcell and Toland (2003) opined that the use of the Internet in the banking institutions can give cost advantage by reducing financial transaction costs; middleman-ship;

emerge into new products in the financial industry and the construction of expensive websites that can secure financial transactions.

In Nigeria, internet banking and the use of other ICT have greatly increased due to huge amount of money expended on IT by banks and the regulatory directive of N10 million limit on cheque transaction and the promotion of cashless policy. According to Kerem (2003) Internet banking technology has led to the incorporation of new features forsecurity transactions, international payments; viewing credit card statements, depositsand account history, customers can now send e-mails from the bank's home page. Thisimplies that banks can

use websites as means to provide services to customers.According to Buys and Brown (2004), Internetbanking accounts in South Africa recently surpassed one million and continued to riserapidly. There is no wide spread dissatisfaction about the security concern on the use ofInternet banking in South Africa, instead, Internet banking has led to increased customersupport and quickens transactions and payments of customers (Buys & Brown, 2004).

Ezeoha (2005) studied Regulating Internet Banking in Nigeria and noted that thereare security concerns in Internet banking where fraud has become a daily business tosome individuals; Internet banking has remained insignificant due to fraud and forgery,e-banking services are offered in Naira only and that in Nigeria Internet banking maytake a long time to fully become one of the economic relevance in the country bankingpractice because of fraud which has made it complex hence causing few customers totransact their businesses through the Internet. Coupled with that is the development ofbanks websites that did not go beyond information purposes. Poor government measureshave also affected the right environment for Internet banking.

This study is necessary to evaluate the development in Nigeria banking

industry after the consolidation of 2005, and the intervention of 2009.

The need to know how ICT investments have impacted on Nigerian commercial banks performance is of great importance to the development of banking industry in Nigeria.