The impact of information technology on obtaining bank loans in Nigeria

Abstract

Objectives The main objective of the study is to determine the effect of the frequency of internet use on the volume of bank loans, to show the impacts of the liberalization of the Nigerian telecommunication sector on the ICT infrastructure, especially in the banking sector.

Summary This study examines the impact of frequency of internet use on the probability of getting a bank loan in Nigeria. Among others, the first finding of this study shows that the reform in Nigeria’s information, technology, and communication (ICT) sector in the early 1990’s increased mobile phone penetration and internet coverage in Nigeria, and these in turn boost the volume and levels of banking electronic transactions.

Conclusions The impact of ICT reforms in Nigeria affects the way banks do business in Nigeria. Banks now advertise most of their product on the internet, thus making the internet one of the platforms on which borrowers can get more information about bank loans and other bank products.