THE NIGERIAN FINANCIAL MARKET AND THE CHALLENGES OF INFORMATION TECHNOLOGY-BASED OPERATIONAL SERVICES

Abstract

This paper seeks to examine the Nigerian financial market and the challenges of financial intermediation using ICT-based services. The paper specifically looks at the role of information technology on the banking sector. The paper reveals that information technology has facilitated financial intermediation, through cost reduction and timely delivery of financial services. However, the paper observes that most banks in Nigeria are facing keen competition both within and outside the shores of Nigeria such as mass movement of high-asset based operations towards efficiency thereby combining their advantages of big assets with efficiency which further expands their market and narrows  those of the banks with relatively lower assets. Besides, there is the problem of financial fraud aided by information technology. The paper therefore recommends that Nigerians banks should invest in both information technology and human capital to brace up to the challenges of the electronic banking and transaction. Finally, there should be legislative and judicial crackdown on financial crimes which has assumed a monumental dimension with the advent of information technology-based services..