Banking sector is one of the critical pillars of an economy, its contribution to the development and economic growth cannot

be completely computed. Basic function of a bank is to transfer capital from people having excess of capital to an investor who needs capital. Bank intermediations play a significant role in the economy. At present natural sources are not enough to equip the banking sector to cope with the competition but the technology has the major effect contributing to the economies of scale. Both bank and technology are complementing and reinforcing each other in functioning. Information technology (IT) has turned over time to be a necessity, it is no more a luxury as it became the life blood for consumers as well as organizations. IT has affected all sectors from manufacturing to services, even banks can't detach from its effects. Role of technology in banking operational efficiency and cost control is well documented in literature. Rapid change in technology has a crucial role in business operations. Technology plays a significant role in operating efficiency, loan quality and risk management. The effect of technology on operations, structure and policies in banking:
1. An automated teller machine (ATM) is a computerized telecommunications device that enables the clients of a financial institution to perform financial transactions, some examples are withdrawing of cash and cash deposit, without the need for a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN code).

Advantages:

ATMs are faster than going to the bankno long lines. You can withdraw cash at any time, day or night. The banks dont need to be open. Use of the ATM to get cash instead of swiping the debit card can help with budgeting by controlling spending and providing a statement of transactions instead of a bunch of receipts. You can withdraw cash at ATMs in foreign countries. Enjoy favorable exchange rates when ATMs dispense foreign currency and your bank debits your account in U.S. dollars. Disadvantages: ATM may be off-line (system down). You may forget your PIN number. Personal safety is a risk with ATMs in empty parking lots, poorly lighted places, or behind bank buildings. In these places, there's always the risk someone will be lurking nearby to rob you of your money when you are finished. The ATM can break down or run out of cash. Fees charged to use ATMs of other banks can become expensive.

2. This mode of e-banking makes use of the Global System for Mobile communication (GSM) phones as the primary electronic device. GSM has improved the operational efficiency of many banks in the country. The mobile banking services basically allow customers to operate their accounts with the operating banks from mobile phones to a large extent as long as their phones and network support SMS (short messaging service). The user could be able to check account balance up to his two last transactions 3. Funds Transfer Customers can electronically transfer funds across the globe without any problem or delay through Internet as compared to the traditional method before the advent of information technology when funds are seriously delayed before they are delivered to the recipients. 4. On-Line Banking With the aid of information technology, online banking provides the opportunity of paying bills and performing transactions of any kind electronically. Electronic payments can be credited or debited the same day. Customers can make payments for goods or services without necessarily coming in contact with physical cash and running the risk of handling a large amount of money. 5. Electronic Mail Information technology has given rise to electronic mail which improves communication between individuals, external parties and the bank within or across various geographical regions or boundaries. The availability of online information provides bankers and customers with a powerful vehicle for research. 6. Bankers Automated Clearing Services This involves the use of Magnetic Ink Character Reader (MICR) for cheque processing. It is capable of encoding, reading and sorting cheques. Also, request for cheque books or purchase of draft can be made and granted via electronic devices that are web enabled. Summarily, the impact of information technology in banking industries cannot be over-emphasized. It has provided flexible and convenient services to customers. Most current e-banking applications make use of the Internet which allows customers to obtain current account balances at any time. Customers do not need to bother themselves once money have been deposited or withdrawn from their accounts as most banks in Nigeria employs the use of short message service (SMS) to intimate customers of their balances immediately the transaction is performed. There are indeed no doubts that majority of organizations including the banks have taken the advantage of IT to enhance their operations. Today most of them have website on the Internet in order to extend their services globally, provide executive services and promote quality of service delivery. Driven by their ambitious aspirations to dominate the financial services landscape, and under the leadership of a dynamic and visionary management team through information technology, banks have been rapidly transformed from being just a bank to a one-stop-shop financial solutions provider. As the economies of different countries continues to improve, following the established path of other emerging markets; that is, increased political stability, improved government finances, growing domestic consumer demand, high commodity prices and significant improvement in other economic indicators, the banks in are well positioned as a warrant on the world renaissance story. It is expected that when the 3G network is operational, it will boost m-Commerce activities but it requires investment in the quality of cell phones. However, there are enormous opportunities for mCommerce implementation based on the rate of growth and the diffusion of mobile devices. There is prospect for patronage but may be dependent on the available services.