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CHAPTER FIVE

DISCUSSION, CONCLUSION, RECOMMENDATIONS AND AREAS OF FURTHER RESEARCH

5.1 Introduction

This area discusses, concludes, recommends and also shows areas of further research.

5.2 Discussion

The discussions were made basing on study objectives.

5.2.1 Benefits of using ICT

The results in the study indicate that the use of ICT has facilitated globalization Marasco (1992), who states that ICT has not only brought the world closer together, but it will allow the world’s economy to become a single interdependent system. This means that we will not only share information quickly and efficiently, but we will also bring down barriers of linguistic and geographic boundaries. The world will developed into a global village due to the help of information and communication technology, allowing countries like Chile and Japan who are not only separated by distance but also by language to share ideas and information with each other

Then use of ICT in centenary Bank has also made Communication to become cheaper, this is also in line with Chaffey (2007) asserts that with the help of information and communication technology, communication become cheaper, quicker, and more efficient. We can now communicate with anyone around the globe by simply text messaging them, or sending them an email, for an almost instantaneous response. The internet has also opened up face-to-face direct communication from different parts of the world, thanks to the help of video-conferencing.

The findings in the study indicates that Computerization of organizational operations in achieving efficiency, this view is also shared by Crake Richard (1998) who states that information and communication technology helps to computerize the business process, thus streamlining businesses to make them extremely cost effective money-making machines. This, in turn, increases productivity, which ultimately gives rise to profits; that means better pay and less strenuous working conditions.

The results in the study indicates that the use of ICT has facilitated Time saving of organizational operations, this is also in line with Cortesao L., Martins F., Rosa A., Carvallio P. (2005) argues that information and communication technology helps to bridge the cultural gap by helping people from different cultures to communicate with one another, and allow for the exchange of views and ideas, thus increasing awareness and reducing prejudice, while (Kennedy A, 2001) further argues that ICT makes it possible for businesses to be open 24 x7 all over the globe. This means that a business will be open anytime, anywhere, making purchases from different countries easier and more convenient. It also means that you will have your goods delivered right to your doorstep without having to move a single muscle.

5.2.2 Relationship between ICT system and growth and development in banking sector

The study established that there is a strong positive relationship between the ICT systems and the growth and the development of the Banking sector, this view is also in line with (Kotler 2000), who states that ICT systems like, Standardized accounting process, including faster tracking of errors, improved quality control, efficiency in record keeping, greater efficiency through the use of information and communication components like internets, satellites among others that enables tracking and tracing of the goods in transit, during shipment as well as giving up to date information to the accountants about the quantity of goods in storage so that the accountants are able to reconcile the books of accounts with the physical stock in the store., this views shows that there is direct relationship between the ICT systems and the growth and development of the Banking sector, while Kenneth Lysons 2006), also further states that with the use of technologically components such as Bar coding, Satellite, internets and Image processing among others in the process of managing accounting efficiency, there has been reduction on paper work thereby leading to a substantial reduction of errors, as well as increased capability to obtaining and exchanging real time information. This is possible through the use of information technology systems such as Bar code and scanners which represents a series of alphanumerical characters, bar code readers to interpret bar code symbology, and bar code printers to reliably and accurately print bar codes on labels, cartons, and/or picking /shipping documents.

5.2.3 Challenges halting the growth and development of banking operations

The findings in the study indicates that difficulty in determining interest rates, this is also in line with Liu and Zhu (2006) who argued that credit is granted on faith and defined credit as “the ability of a business or individual to obtain economic value on faith, in return for an expected future payment”. Since trust is built on faith to commit and meet agreed financial obligations, trust, faith, respect and sometimes relationships are compromised if those obligations are not met. Not meeting the obligations is considered as default.

The study shows that ddifficulty in determining credit worthiness, this is also in line with Stiglitz and Weiss (1981 cited by Godquin, 2004) marked the beginning of attempts at explanations of credit rationing in credit markets. They asserted that “… interest rates charged by a credit institution are seen as having a dual role of sorting potential borrowers (leading to adverse selection), and affecting the actions of borrowers (leading to the incentive effect)”.

The findings in the study indicates that Presence of low income earners is abig challenges for Banks this is also in line with (Hahn, 2002) who states that presence of low income earners in an economy, low-income consumers are high-risk borrowers as this is attributed to inadequate income and lack of income security and hence making it difficult for them to make repayments on credit commitments. He further adds that this is compounded by the disproportionately higher cost of credit available to low income earners and lack of ﬂexibility available to consumers who may experience temporary difficulty in maintaining repayments. However, he did not explain the extent of the relationship between poor loan assessment and low-income consumers.

The findings in the study indicates that Competition among financial institutions is a very big challenge for financial institutions this view is also shared by (Bofondi et al, 2003) who states that Competition among financial institutions, found that overwhelming banks competition in prices (interest rates) and moreover with imperfect knowledge of borrowers’ ability to repay their debts has accelerated poor loan assessments to potential borrowers.

5.3 Conclusion

The use of ICT in an organization like centenary Bank has led to globalization and connected departments within the Bank , Communication has becomes cheaper between the different departments, Computerization of organizational operations in achieving efficiency, Time saving of organizational operations and Customer service has improved

The table above shows that the P value is P=0.002 which indicates that there is relationship between the independent and dependent variable.

The study also indicates that challenges with Difficulty in determining interest rates are one of the main challenged faced by ICT in the Banking sector, Difficulty in determining credit worthiness and Presence of low income earners is abig challenges for Banks.

5.4 Recommendations

The study recommends that Centenary Bank should train some of its employees who are not well conversant ICT system to have knowledge on how to use ICT, this will enable the organization to fully benefit from the benefits of using ICT in the Banking sector.

According to the study there is a strong relationship between ICT and the growth and development of the Banking sector, this study that centenary Bank should fully implement ICT to other departments which donot have ICT.

The study also further recommends that Centenary Bank should ensure an effective way of determining interest rates and also ensure that there is effective way of determining credit worthiness in centenary Bank.

5.5 Area of study

The study recommends the following areas for further study;

The benefits of the use of ICT in organizational activities
The influence of ICT in organizational performance
Techniques of enhancing performance of the banking sector