1.0 Introduction
1.1 Background of Study
The modern business landscape is increasingly shaped by technological innovation, with computerization emerging as a key driver of efficiency, competitiveness, and profitability. Computerization refers to the application of computer systems and technologies to automate, streamline, and manage various operations within an organization (Laudon et al., 2016). in the banking sector, this technological evolution has transformed the traditional modes of operation, enabling faster transaction processing, improved customer service, and more effective data management.
In Nigeria, the banking industry has undergone significant reforms, particularly following deregulation and recapitalization policies. These changes necessitated the adoption of more robust information and communication technology (ICT) infrastructures to meet global standards and rising customer expectations (Ayo et al., 2007). As a result, many banks, including First Bank Plc, have invested heavily in computerization to enhance service delivery, reduce operational inefficiencies, and secure their competitive edge in the increasingly digital financial ecosystem.
First Bank Plc, being one of the oldest and most resilient financial institutions in Nigeria, has consistently integrated computer-based solutions into its core banking services. The adoption of computerization tools such as Automated Teller Machines (ATMs), online banking platforms, mobile apps, customer relationship management systems, and real-time transaction processing has significantly impacted the bank’s ability to grow and remain viable. These systems not only facilitate seamless banking operations but also contribute to strategic decision-making and financial analysis, thereby supporting profitability (Adeoti, 2011).
According to Ovia (2005), the growth of First Bank Plc can be measured by its expansion in customer base, branch networks, and market penetration, all of which are facilitated by the efficiency gains from computerization. Viability, which refers to the bank’s capacity to operate sustainably in a dynamic financial environment, is also enhanced through improved risk management systems, fraud detection technologies, and automated compliance processes (Ovia, 2005). Computerization refers to the integration and application of computer technologies into various organizational operations to enhance efficiency, accuracy, and productivity. It involves the transformation of manual systems into automated systems through the use of computers and software solutions (Laudon et al., 2016).
In the modern business environment, especially in the banking sector, computerization has become indispensable due to the growing demand for faster, more reliable, and secure services. The banking sector, being an integral part of any economy, plays a significant role in financial intermediation and economic development. Traditionally, banking operations were largely manual, involving long queues, voluminous paperwork, and delayed transactions. However, with the advent of information and communication technology (ICT), banks have significantly computerized their operations, enabling them to offer improved services such as electronic banking (e-banking), automated teller machines (ATMs), online fund transfers, mobile banking, and real-time account management (Ayo et al., 2007).
First Bank Plc, one of the oldest and most prominent financial institutions in Nigeria, has embraced computerization to remain competitive and meet the expectations of its diverse clientele. Through the adoption of various digital platforms and core banking applications, the bank has optimized service delivery, reduced operational costs, and enhanced decision-making processes. In this context, growth refers to the bank's expansion in terms of branches, customer base, and service range; viability implies the bank’s capacity to sustain operations and adapt to changes in the business environment; while profitability denotes the ability to generate substantial financial returns. The effect of computerization on these three critical areas is worthy of empirical investigation, especially in an era marked by technological disruption and digital transformation. Thus, this study aims to examine the effect of computerization on the growth, viability, and profitability of First Bank Plc.
1.2 Statement of Problems
In today’s rapidly evolving financial sector, computerization is expected to serve as a catalyst for improved operational performance, customer satisfaction, and overall profitability. However, despite significant investments in information technology by First Bank Plc, questions still remain about whether these advancements are truly translating into measurable growth, sustainable viability, and increased profitability.
In addition, many customers still report a preference for in-person banking services due to a lack of trust in digital platforms, occasional system failures, and fear of fraud. This reluctance undermines the full potential of computerization and poses a challenge to achieving optimal efficiency and customer outreach (Ayo et al., 2007).
Furthermore, the complexity of managing sophisticated IT infrastructures is placing increasing demands on human resources, training, and cybersecurity protocols (Agboola, 2006). There is also the issue of whether the enormous capital outlay on computerization is yielding a commensurate return on investment. Although computerization is designed to reduce operational costs and improve service delivery, it is not always clear whether it is significantly improving First Bank’s profitability or just increasing its operational complexity (Laudon et al., 2016). It is against the backdrop that this study seeks to address these problems by assessing the actual impact of computerization on First Bank Plc.
1.3 Aim and Objectives of Study
The aim of this study is to examine the effect of computerization on the growth, viability, and profitability of First Bank Plc.
To achieve this aim, the study will pursue the following specific objectives:
- To examine whether computerization enhances the long-term viability and sustainability of banking services in First Bank Plc.
- To determine the perception of customers and staff on the effectiveness of computer-based services in the bank.
- To evaluate the extent to which computerization contributes to the financial growth and profitability of the bank.
- To assess how computerization influences the operational efficiency of First Bank Plc.
- To identify the challenges associated with the implementation and maintenance of computerized systems in the bank.
1.4 Research Questions
Based on the stated objectives, the following research questions will guide the study:
- How does computerization influence the operational efficiency of First Bank Plc?
- To what extent does computerization contribute to the financial growth and profitability of the bank?
- In what ways does computerization enhance the long-term viability and sustainability of banking services in First Bank Plc?
- What are the perceptions of customers and staff regarding the effectiveness of computer-based services in the bank?
- What challenges are associated with the implementation and maintenance of computerized systems in First Bank Plc?
1.5 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: The challenges of implementing and maintaining computerized systems do not affect the performance of First Bank Plc.
- H1: The challenges of implementing and maintaining computerized systems affect the performance of First Bank Plc.
Hypothesis Two
- H0: Computerization has a negative effect on the financial growth and profitability of First Bank Plc.
- H1: Computerization has a positive effect on the financial growth and profitability of First Bank Plc.
Hypothesis Three
- H0: There is no significant relationship between computerization and the growth, viability, and profitability of First Bank Plc.
- H1: There is a significant relationship between computerization and the growth, viability, and profitability of First Bank Plc.
1.6 Significance of Study
The outcome of this research will be useful to bank management and decision-makers by showing how computerization will support strategic planning, improve service delivery, and enhance competitiveness in the financial industry. It will also accent areas where technological improvements will be needed to boost performance and ensure long-term sustainability.
Additionally, employees of First Bank will benefit as the study will reveal how computer-based systems will affect their workflow, training needs, and productivity.
Furthermore, regulators and policymakers will also find the study relevant, as it will provide evidence that can guide the formulation of effective policies for encouraging innovation and stability in the financial system.
Academically, this research will contribute to existing literature on banking technology and will serve as a foundation for further studies on the relationship between digital transformation and financial performance in the banking industry.
1.7 Scope of the Study
This study focuses on examining the effect of computerization on the growth, viability, and profitability of First Bank Plc, specifically within Lagos State, Nigeria. The study will cover various computerized banking operations implemented by First Bank in Lagos, including online banking services, Automated Teller Machines (ATMs), electronic funds transfer systems, and core banking software applications.
1.8 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.9 Definition of Terms
Computerization:
This refers to the process of integrating computer technology into an organization’s operations to improve efficiency, accuracy, and speed. in the context of banking, computerization involves the use of automated systems such as online banking, ATMs, and electronic funds transfer to streamline services (Ojo, 2019).
Growth:
Growth in this study relates to the expansion of First Bank Plc in terms of customer base, market share, and operational capacity. It reflects how computerization contributes to the bank’s ability to increase its business scale over time (Adewale, 2020).
Viability:
Viability refers to the ability of First Bank Plc to sustain its operations and remain competitive in the financial industry. It encompasses the bank’s capacity to adapt to technological changes, maintain financial health, and meet customer expectations continuously (Nwosu, 2018).
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