THE IMPACT OF INFORMATION COMMUNICATION TECHNOLOGY ON BANK'S PERFORMANCE: IN THE CASE OF DASHEN BANK S.C

Abstract

The Information Communication Technology revolution in commerce is strongly affecting the performance of the economy especially in banking industry. This study examines the impact of Information Communication Technology in Bank performance. For the purpose of this study explanatory quantitative research approach were adopted. The data which are collected from the secondary source were analyzed using multiple regression and t-statistics techniques. Hypothesis formulate were tested and the study revealed that the adoption of Information Communication Technology has positively and significant impact on the profitability performance measured by ROE and NIM. However, it is negatively correlated with ROA significantly. On liquidity performance of the bank as measured by LIQ1 has negative strong significant correlation with ICT. The result of paired sample test also revealed that the mean value of profitability performance during post adoption of ICT is positive and greater than the pre adoption of ICT. In the contrary, with regard to liquidity, the mean value is decrease during the post adoption of ICT and smaller that the pre adoption period of ICT. Based on those findings, the study recommends the bank to give emphases on efficient utilization of ICT products that help to increase the gains from investing on ICT. These enable the bank to increase their profitability and stay competitive on the industry.