Abstract

This study examines the impact of Information and Communication Technology on commercial banks with case study of BICEC in Buea. It specific objectives were; to investigate the impact created by ICT on accounting systems in financial institutions, to identify challenges face by accountants as a result of the adoption of ICT, to identify strategies to improve ICT packages use banks.

This study use descriptive and inductive analytical tools like tables and figures expressed in frequencies and percentages, chi square (goodness of fit) with 5% confidence interval and moment correlation coefficient have been use to examine the impact of ICT on commercial banks.

The result revealed that ICT have a significant effect on commercial banks. Since the chi square calculated was greater than chi square tabulated (4.5>3.5) of BICEC bank in Buea, we rejected the null hypothesis (Ho) and accepted the alternative hypothesis (H1) and hence it was concluded that ICT has an impact on commercial banks.

CHAPTER ONE

INTRODUCTION

1.1Background of Study

This chapter starts with discussing the background of the study so as to present some insight of the issue of information and communication technology (ICT) in general and in the commercial banks in particular.

This project is based on the impact of information and communication technology in the banking industry. BICEC bank has been chosen as the case study. In the conclusion, information and communication technology on commercial banks has a big role to play in enhancing the effectiveness and efficiency of services.

The improvement in computer technology have greatly improve accounting systems and change economic life. Computer and communication technology has lead to rapid exchange of documents, research collaboration, increase office productivity and data analysis. It has also given individual economic actors a new tool for recognizing and fighting for economic and business openings.

Computer technology works in the computer application and telecommunication equipment to transmit, store, retrieve and manipulate data such as ATM (automatic teller machine) which allows customers to complete basic transactions without the aid of a branch representative. Credit cards and debit cards can be used to access most ATMs. Another example of communication technology is telephone which is used in banking industry in order to contact their customers and obtain account balances and list of latest transactions and for transfer for example, funds transfer through MTN mobile money account and ORANGE mobile money account between a creditor and a debtor.

Nammi Sai Abhishek, (January 1, 2017). E banking is each and every aspect of bank that you could do without visiting a branch of the specific bank physically or in person. This saves a lot of paper which otherwise was to be done by preparing physical paper (vouchers) which is a prescribed format for which is taken as a request from customers which serves as evidence.

Today’s business environment is very dynamic and undergoes rapid changes as a result of technical innovation, increased awareness and demand from customers. Banks use ICT in accounting (computerized accounting, record of data, Human resource management and research. It can be said that most banks are now aided by the use of computers.

The use of information technology devices has become a customary practice in commercial banks.  Information technology has led to improved worker’s performance speed and accuracy and in general, has reduce the length of transaction processes and procedures.

Interconnected, global business environment, computerized accounting systems becomes the engine of growth in business organizations in today’s computerized systems. ICT therefore involves the computerization of accounting information system which is put in place so as to make decision making easy. These are accompanied with a number of benefits like speed of carrying out transactions, quick analysis timeliness, accuracy and reporting. Dindi Genil (2013)

Computerized accounting process automate the accounting process improving efficiency and cutting down costs. It tends to be more accurate, faster to use and less subject to error.

With a substantial increase in the volume of accounting transactions and increase in exposure to errors due to complexity of the accounting system, there was a need for a system which could store and process accounting cost with increased speed, storage and processing capacity. This led to the development and introduction of accounting software packages Ryan Valencia (2013)

The improvement in information technology have transform many firms in professional service industries but still non as much as those in the public.

Today’s business is very dynamic and is fast changing as a result of creativity innovation technological changes, increase in awareness and demand from customers. Many business organizations most especially the banking industry works in a complex and competitive environment which is always changing and economic climate with information and communication technology are highly unpredictable. Hence the rule of ICT in the banking industry become of importance to the study because of the important role it plays in the economy by stimulating economic growth through the transferring of funds to economic agents which is needed for production.

This makes the objective of this study to be as to the role of information and communication technology in ensuring effective and efficient delivering of services in the banking industry as a way of maximizing profit which is the objective of commercial banks. It is clear that information and communication technology impact has been made on banking. This the ability of business as well as the government to develop and make use of the computerized system to track and record financial transactions easily.

It is of most important that since the inception of information and communication technology (ICT), computerized accounting system makes accountants to process large amount of financial information which his process quickly through the accounting system.

Quicker processing time for individual transactions had also reduce the amount of time needed to choose out each accounting period. Transactions that would have taken an accountant months or years to prepare would be done quickly and faster and thereby cutting high cost that would have resulted in preparing these reports. (cooper, 2008).

1.2 Problem statement

The computerization of the bank’s operations and service as well as the introduction of accounting software and Automated Teller machines by some financial institutions has help in improving the financial strength of some Cameroonian banks.

Information technology is an entrepreneurial as corporate resources should by managed and it greatly increase the opportunities that are available to the organization.

As a result of increased demand for customer deposits Cameroon banks especially have realized the imperative of good and prompt customer service: Due to the fact that some customers lost their deposit in technically insolvent or distressed banks, customers have now become wiser, and more discerning alert with regard to choosing where it is safe to put their money and where they would be served promptly, preferably in a pleasant and friendly environment. Thus, they have started looking at the level of service and professionalization of banks before deposing their funds. Proximity to banks has lost its value. The issue now is safety and level of service with respect to quality speed and efficiency has become of most important.

Banks have realized that one way in which they can provide quality service is through the use of technology. Hence there is a growing rate of adopting new technologies in Cameroon banking operations. More so, there is a growing evidence that customers have started associating quality of service in a bank with the bank’s possession of online real time system. It can be said possession of such system is now judged to be of a high banking quality service in Cameroon.

1.3 Objective Of The Study

The main objective of this study is to investigate the impact of introducing and using information and communication technology on accounting information system in financial institutions in Buea.

The specific objectives are as follows.

1. To investigate the impact created by ICT on accounting systems in financial institutions in Buea
2. To identify the challenges, face by accountants as a result of the adoption of ICT.
3. To identify strategies to improve on ICT packages use in banks.

1.4 Research question

The study is aimed at finding answers to the following questions the main question

What are the ICT packages use in commercial banks the specific questions are?

1. Do ITC tools put in accounting system in financial institution produce intended or desire results?
2. What are the challenges face by accounts as a result of adopting ICT?
3. What are the ICT packages use by commercial banks in Cameroon (Buea Municipality?
4. What is the relationship between ICT and commercial banks in Cameroon Buea Municipality?
5. What is computerized accounting.

1.5 Hypothesis

The null hypothesis will be tested against the alternative hypothesis

H0: ICT has no impact on commercial banks in Buea (BICEC Buea)

H1: ICT has an impact on commercial banks in Caner (BICEC Buea).