An Evaluation Of Information Technology Impact On The Development Of Effective Marketing Strategies In The Banking Industry


Banks safeguard money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashier’s checks. Banks also may offer investment and insurance products, which they where once prohibited from selling. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinction between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role-accepting deposits and lending founds from these deposits. Burean of Labour Statistics (2008 – 9 Edition, Banking, on the internet at

There are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they begin to expand the range of products and services they offer, there are still key distinguishing traits.

Commercial banks, which dominate the industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sixes, from large global banks to regional and community banks. Global banks are involved in international lending and foreign currency trading. In addition to the more typical banking services. Regional banks have numerous branches and Automated Teller Machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Larry L. Duetsch (2002) banks have become more oriented toward marketing and sales. As a result, employees need to know about all type of products and services offered by banks. Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. Ezeoha, (2005) in recent years, online banks – which provide all services entirely over the internet – have entered the market, with some success. However, many traditional banks have also expanded to offer online banking, and some formerly internet only banks are opting to open branches.

Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings credit unions are company or belong to the same labour union or church. Members pool their savings and, when they need money, they may borrow from the credit union, often at a lower internet rate than that demanded by other financial institutions.

Central banks are government agencies that perform  many financial services for the government their chief responsibilities are to regulate the banking industry and to help implement our Nations monetary policy so our economy can run more efficiently by controlling the Nations money supply-the total quantity of money in the country, including cash and bank deposits. For example, during slower periods of economic activity, the central bank may purchase government securities from commercial banks, giving them more money to lend, thus expanding the economy. Central banks also perform a variety of services for other banks. For example, they may make emergency loans to banks that are short of cash, and clear checks that are drawn and paid out by banks.


According to the viewpoint of Nigerian National Policy for Information Technology (IT) stated that information technology is the bedrock for national survival and development in a rapidly changing global environment and challenges to devise bold and courageous initiatives to address a lost of vital social-economic issues such as “reliable infrastructure, skilled human resources, open government and other essential issues of capacity building”.

In addition, an information technology policy built on reliable human resources and infrastructure constitutes the fundamental tool and means of assessing, planning managing development change and for achieving sustainable growth.

Nigeria and its sectoral areas suffered a lot of inherent constraints or problems like “non-standardization, lack of scalability, lack of paper documentation, lack paper research before development, lack of infrastructure, absence of information technology, personnel problem, poor knowledge of ICT at all levels from suppliers to users and as well as financial constraints (CBN report of the technical committee on ICT February 2003).

However, despite these constraints, there have been successful applications of information technology in different sectors in Nigeria such as, banking, air travel, service provider, software development and the provision of health care. There are numerous information technology initiatives which have been introduced to Nigeria sector to improve this situation and these could help to reduce in balance in the sources of information within Nigeria that if it were easily accessible could be used for development (CBN report February, 2003).

Brynjolfessou, E, and Hitt, L.M. (2000), cited that the impact of information technology depends on use’s attitude and expectations as well as on institutions organization and expanded treatments of both qualitative and quantitative techniques rather than simply quantitative tools. Laudon and Laudon (1991) contend that the application of information technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all banks and indeed a prerequisite for local and global competitiveness.


Matthew Joseph (1999), the use of technology in the delivery of banking services is becoming increasingly prevalent as it is being employed to reduce costs and eliminate uncertainties with the success of ATMs, banks had the incentive to develop new products and new delivery channels, such as home banking via phone and personal computer ATM Networks allowed banks to reach new customers outside the markets served by their branches and created the opportunity for greater price competition John Jordan, (1999). The banks have to a good extent adopted recent advances information technology. This was driven largely by both external and domestic factors. On the external scene was globalization i.e.

Integration of markets (including banking markets) across national boundaries. This meant that banks want to remain actively involved in international banking transactions would have to adopt technology employed for such deals. On the domestic fronts, competitive pressure and regulatory inducements prompted the banks to slowly but steadily embrace the computerization of both front and back office banking operations. With time it was no longer enough to merely computerize bank operations, networking of systems (Local Area Network (LAN) or Wide Area Network (WAN) and even internet linkage became imperative and strategic. Many banks now have their branches online are real-time. However, because most banks used network architecture and solution with little attention paid to their compatibility, interfacing these applications for overall system synergy was difficult (CBN, 2001).


The usage of Information Technology (IT) has seen tremendous growth in banking industries where through the introduction of IT related products in internet banking, electronic payments, security investments, information exchanges Berger (2003), banks now can provide more diverse services to customers with less manpower. Seeing this pattern of growth, it seems obvious that IT can bring about equivalent contribution to profits in general, two positive effects regarding the relations between IT and banks’ performance has been observed. First, IT can reduce banks’ operational costs (the cost advantage). For example, internet helps banks to conduct standardized, low value-added transactions (e.g. bill payments, balance inquires, account transfer) through the online channel, while following their resources into specialized, high-value added transactions.

Woherem (1997) discovered that Nigeria banks since 1980s have performed better in their investment profit and use of information technology systems, than the rest of industrial sector of the economy. An analysis of the study carried out by African Development Consulting Group Ltd (ADCG) on IT diffusion in Nigeria shows that banks have invested more on IT, have more IT personnel, more installed base for PCs, LANs, and WANS and a better linkage to the internet than other sectors of the Nigeria economy.

Aragba – Akpore (1998) wrote on the application of information technology in Nigerian banks and pointed out that IT is becoming the backbone of banks’ services regeneration in Nigeria. Ovia (2000) discovered that banking in Enugu metropolis has increasingly depended on the deployment of information technology. He contended that on-line system has facilitated internet banking in Enugu metropolis as evidences in some of them launching websites. He found also that banks now offer customers the flexibility of operating an account in any branch irrespective of which branch the account is domiciled.


Bank setting up effective Wide Area Network (WAN) and being interconnected with their international correspondent banks funds transfers both nationally and internally have aided the bank in its super performance. These in essence enable easy signatory and image verification of customer in the quickest possible time in case of withdrawals or references.

When while, the inter-connecting state of transferability enable customers both near and far to access their transactions, account balance, lodgments, cheque payments, cash withdrawal etc. The scene gives customers opportunities to make suggestions complaints or even seek information without leaving their various locations. The off-shoot of this inter-connectivity led the world to be a global village or globalization in focus.


The Western Union Money Transfer scheme is a service through which funds can be sent electronically from any part of the world through a secure system to Nigeria. Such funds can easily be cashed in any of the hard currency at any of their business offices nationwide or recognized bank. It is one of the forms of speed transfer process as possibilities from ICT revolution.


A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage Michael Porter (1985) when it comes to market strategy, banking is like any other industry. The banking industry is operating in a state of flux, and organization that want to grow their share of the market must stay ahead of the curve and move quickly to capitalize on emerging opportunities. Nicola Cetorelli, (2001). In addition, the banking industry today is challenged by the emergence of commodity banking, the risk of specialization and the cost of innovation. So what’s a banker to do? Identify the strategy that provides your organization its greatest likelihood of success, based on factors such as:

  • Community demographics and economics
  • Competitive landscape
  • Technology infrastructure
  • Availability of skilled personnel

In today’s very competitive market place a strategy that insures a consistent approach to offering your product or service in a way that will outsell the completion is critical.

However, in concert with defining the marketing strategy you must also have a well defined methodology for the day to day process of implementing it. It is of little value to have a strategy if you lack either the resources or expertise to implement it. In the process of creating a marketing strategy you must consider many factors. Of those many factors, some are more important than others because each strategy must address some unique considerations, it is not reasonable to identify every important factor at a generic level.


–       A good marketing strategy must have the following:

  1. It must be clear and unambiguous
  2. It must clearly identify what the company is offering to the market.
  3. It must be able to determine how the product offered will reach the ultimate user.
  4. It must be consistent with other strategies as well as with the capacities and resources possessed by the company.
  5. It must not be vague, but rather specific
  6. A good marketing strategy must be synergistic in nation
  7. It must be well timed
  8. It must be able to exploit the internal, external and international opportunities available to the company.
  9. It must be able to propel the company from its present market position to a future desired position.
  10. A good marketing strategy must be able to motivate the company’s personal and promote goal congruence between the company and its personnel.


Adoption of IT has influence the content and quality of banking operation in Enugu metropolis on the development of effective marketing strategies from all indication, IT presents great potential for business process reengineering of banking industry in Enugu metropolis. Investment in information technology should form an important component in the overall strategy of banking operations to ensure effective performance. It is imperative for bank management to intensify investment in IT products to facilitate speed, convenience and accurate services or otherwise lose out their competitors. The banking industry in Enugu metropolis presents IT providers with great opportunity to market their innovations. Success in this area however depends on how they can customize their services to appeal to the ready minds of various stake holders in the industry.

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