Table of Contents 1.1- Introduction..................................... 2 1.2- Objectives:...................................... 2 1. To explain reasons for not implementing IT system in the AIB...........2 2. To explore employees views on IT system................................2 3. To show the effect of IT system on consumer demand for bank services. . .2 4. To show the effect of IT system on employees income....................2 5. To show the effect of IT system on Bank Revenue........................2 1.3- Significance..................................... 2 1.4-Methodology....................................... 3 1.5 Analysis and Findings............................. 4 1.6-Conclusion....................................... 22 1.7-Recommendation:.................................. 22 1.8-Attachment....................................... 23
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Table of Contents1.1- Introduction........................................................................................................21.2- Objectives:..........................................................................................................2
1. To explain reasons for not implementing IT system in the AIB.......................................................................2
2. To explore employees views on IT system........................................................................................................2
3. To show the effect of IT system on consumer demand for bank services.........................................................2
4. To show the effect of IT system on employees income....................................................................................2
5. To show the effect of IT system on Bank Revenue...........................................................................................2
1.3- Significance........................................................................................................21.4-Methodology.......................................................................................................31.5 Analysis and Findings.........................................................................................41.6-Conclusion.........................................................................................................221.7-Recommendation:.............................................................................................221.8-Attachment........................................................................................................23
1.1- Introduction
Afghanistan International Bank (AIB)
The Afghanistan International Bank “AIB” started its operation in March 2004 and is said to
be the first private bank in the country and promoted by multilateral development financial
institutions. Now days, technology has entered the life cycle of all institution to be more
specific the business organizations. Therefore, AIB banks needs to go forward and continue its
operation by adopting new technological in other word, it needs to replace its old manual
system with the current technologically equipped systems in to boost its activities and function
right according to modern worlds of business, and more importantly, to survive amongst tough
competition in the market.
1.2- Objectives:
1. To explain reasons for not implementing IT system in the AIB 2. To explore employees views on IT system3. To show the effect of IT system on consumer demand for bank services 4. To show the effect of IT system on employees income 5. To show the effect of IT system on Bank Revenue
1.3- Significance
This research was conducted based on importance of using information technology in today’s
business life and help us understanding how it is interrelated in businesses. More specifically, the
application computerized system, software, globalized banking, money transfer and etc, in
banking industry. Replacing old manual system with the modern system extends AIB branches
across the country with less number of professional but effective employees which will lead to
an extra profit margin for the Bank. This research has been conducted according to actual data
collected from field while considering the importance of IT in the business organization,
similarly, it would change image and also bring fundamental changes in the system of the bank.
While on the other hand, it would also benefit the junior students
1.4-Methodology
This research is quantitative research in which close ended questionnaireisused. Questionnaire
was distributed among sampleto get their feedback. Though, a number of questions were also
asked from the AIB staff. Keeping their views in mind questionnaires were produced and
distributed in Kardan University among students of MBA . Proper instruction and guidance
were given to students before they fill the questionnaire. Population of this research is 28 people/
respondents from whose feedback is taken.
1.5 Analysis and Findings
Frequency Table
Gender of the Respondent
Frequency Percent Valid Percent Cumulative Percent
Valid male 19 67.9 67.9 67.9
female 9 32.1 32.1 100.0
Total 28 100.0 100.0
As it is shown in the above table and graph the population of this research is 28 people among
whom 19 are male and 9 are female.
Age of the respondent
Frequency Percent Valid Percent Cumulative Percent
Valid 17-21 6 21.4 21.4 21.4
22-25 14 50.0 50.0 71.4
26-30 4 14.3 14.3 85.7
31-35 4 14.3 14.3 100.0
Total 28 100.0 100.0
Keeping in view the above table and graph the age of the population is divided into four
categories. Those whose age is between 17 and 21 they are six, between 22 and 25 are 14 while
between 26 and 30 are 4 and 31-35 are also 4
Income of the respondent
Frequency Percent Valid Percent Cumulative Percent
Valid 15000-25000 8 28.6 28.6 28.6
26000-35000 5 17.9 17.9 46.4
36000-45000 5 17.9 17.9 64.3
46000-60000 10 35.7 35.7 100.0
Total 28 100.0 100.0
As shown in the above table and graph people who have different categories of income are in
favor of replacing the old system into new. Those whose income is from 46000-60000 are 10 out
of 28, and then those who have 15000-25000 Afs per month are 8 out of 28, and 5, 5 from those
whose income is 26000-35000 and 36000-45000 respectively.Education of the respondent
Frequency Percent Valid Percent Cumulative Percent
Valid high school graduated 13 46.4 46.4 46.4
Bachelor degree holder 15 53.6 53.6 100.0
Total 28 100.0 100.0
This research is conducted from 13 school graduated and 15 bachelor degree holder.
As it is expressed in the table and graphJob of the respondent
Frequency Percent Valid Percent Cumulative Percent
Valid student 11 39.3 39.3 39.3
Finance assistant 5 17.9 17.9 57.1
finance officer 3 10.7 10.7 67.9
HR Assistant 3 10.7 10.7 78.6
Manager 3 10.7 10.7 89.3
none 3 10.7 10.7 100.0
Total 28 100.0 100.0
This research is conducted mostly from those who have jobs and according to the estimation
most of the people are in favor of replacement of the old manual system into new.Experience of the respondent
Frequency Percent Valid Percent Cumulative Percent
Valid 1-2 years 3 10.7 10.7 10.7
2-3 years 7 25.0 25.0 35.7
3-4 years 1 3.6 3.6 39.3
4-5 years 4 14.3 14.3 53.6
none 13 46.4 46.4 100.0
Total 28 100.0 100.0
This research is conducted both from experienced and jobless people, they have different ideas
regarding the replacement of the old system into new
Using IT system is much preferred in banks
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 17 60.7 60.7 60.7
Agree 8 28.6 28.6 89.3
Disagree 2 7.1 7.1 96.4
strongly disagree 1 3.6 3.6 100.0
Total 28 100.0 100.0
In here the people are asked whether using IT is preferred or not, so 17 people are strongly agree,
8 are agree, 2 disagree and 1 strongly disagree. This means a strong percentage of the people are
in favor of using modern IT system in the banks.IT system benefits customers the most
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 8 28.6 28.6 28.6
Agree 16 57.1 57.1 85.7
Disagree 3 10.7 10.7 96.4
strongly disagree 1 3.6 3.6 100.0
Total 28 100.0 100.0
This question is asking the people that IT system give much more benefits to their customer, so
in this regard 8 people are strongly agree, 16 are agree, 2 disagree and 1 strongly disagree, means
75% of the population are in favor of replacement.IT system is more reliable for new generation
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 10 35.7 35.7 35.7
Agree 12 42.9 42.9 78.6
Disagree 5 17.9 17.9 96.4
strongly disagree 1 3.6 3.6 100.0
Total 28 100.0 100.0
As it is shown in the above table and graph, for78% of the population of this research modern
banking and new IT system is more reliable and credible.
Technology helps to avoid corruption in banks
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 8 28.6 28.6 28.6
agree 13 46.4 46.4 75.0
disagree 4 14.3 14.3 89.3
strongly disagree 3 10.7 10.7 100.0
Total 28 100.0 100.0
From the above table and graph we can say that the new IT system is more transparency in new
system in the banks as compared to the old system.
Helps smooth functioning of the banks
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 8 28.6 28.6 28.6
agree 16 57.1 57.1 85.7
disagree 3 10.7 10.7 96.4
strongly disagree 1 3.6 3.6 100.0
Total 28 100.0 100.0
Having looked into the table and graph it is to be stated that the new and modern technology
helps smooth functioning in the banks.
With old system AIB cannot compete with other banks
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 10 35.7 35.7 35.7
agree 6 21.4 21.4 57.1
disagree 10 35.7 35.7 92.9
strongly disagree 2 7.1 7.1 100.0
Total 28 100.0 100.0
This means competition with the old system in current situation is difficult in the banking
industry as it is seen in the table and graph.
IT system bring more facilities to the bank as compare to customers
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 7 25.0 25.0 25.0
agree 13 46.4 46.4 71.4
disagree 6 21.4 21.4 92.9
strongly disagree 2 7.1 7.1 100.0
Total 28 100.0 100.0
If IT system is implemented in the banks, so it will bring more facilities to the banks as
compared to the customer, as it is seen in the above table and graph
AIB staff will hardly resist this change
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 2 7.1 7.1 7.1
agree 9 32.1 32.1 39.3
disagree 17 60.7 60.7 100.0
Total 28 100.0 100.0
This means if new and modern IT system is implemented in the so the staff of AIB will not
create problems and will not resist this change. As it is seen in the table and graphNew system would not be good for the existing staff
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 3 10.7 10.7 10.7
agree 14 50.0 50.0 60.7
disagree 8 28.6 28.6 89.3
strongly disagree 3 10.7 10.7 100.0
Total 28 100.0 100.0
After implementation of the new IT system in AIB for 60% of the existing staff it will
not be a good and fruitful change
Manual system should not be replaced with new
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 8 28.6 28.6 28.6
agree 8 28.6 28.6 57.1
disagree 6 21.4 21.4 78.6
strongly disagree 6 21.4 21.4 100.0
Total 28 100.0 100.0
As it is illustrated in the both in the table and graph almost 50% of the population o prefer to
replace the old and manual system into new system
Accurate and transparent transaction process
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 5 17.9 17.9 17.9
agree 17 60.7 60.7 78.6
disagree 6 21.4 21.4 100.0
Total 28 100.0 100.0
In here the people are asked about the accuracy and transaction process, so as it seems in the
table and graph approximately 80% of the population agrees and they believe that in new system
there is accuracy and transaction process is transparent as compared to the old system.
No one will support installation of new technology system
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 2 7.1 7.1 7.1
agree 8 28.6 28.6 35.7
disagree 16 57.1 57.1 92.9
strongly disagree 2 7.1 7.1 100.0
Total 28 100.0 100.0
As it is shown above in case of installation of the new system near to 65% of the population will
support the installation of the new system and only 35% are against the installation of the new
system.
Replacement of old system into new is much costly
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 6 21.4 21.4 21.4
agree 16 57.1 57.1 78.6
disagree 5 17.9 17.9 96.4
strongly disagree 1 3.6 3.6 100.0
Total 28 100.0 100.0
Above table and graph show that out of 28 respondents 16 agree, 6 strongly agree, 5 disagree,
and 1 respondent is strongly disagree. New system connects the bank with the rest of the world
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 14 50.0 50.0 50.0
agree 8 28.6 28.6 78.6
disagree 6 21.4 21.4 100.0
Total 28 100.0 100.0
Above table and graph show that out of 28 respondents 14 strongly agree, 8 agree, and 6
respondents are disagree.
provides better and timely services to the customers
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 11 39.3 39.3 39.3
agree 14 50.0 50.0 89.3
disagree 1 3.6 3.6 92.9
strongly disagree 2 7.1 7.1 100.0
Total 28 100.0 100.0
Above table and graph show that out of 28 respondents 14 agree, 11 strongly agree, 2 strongly
agree, and 1 respondent is disagree.
The old system is more standardized than the new
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 2 7.1 7.1 7.1
agree 4 14.3 14.3 21.4
disagree 15 53.6 53.6 75.0
strongly disagree 7 25.0 25.0 100.0
Total 28 100.0 100.0
Above table and graph show that out of 28 respondents 15 disagree, 7 strongly disagree, 4 agree,
and 2 respondents are strongly agree which means more than 85% of the respondents are in favor
of replacement.
Mobile banking brings more reliability to the customers
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 3 10.7 10.7 10.7
agree 13 46.4 46.4 57.1
disagree 10 35.7 35.7 92.9
strongly disagree 2 7.1 7.1 100.0
Total 28 100.0 100.0
Above table and graph show that out of 28 respondents 13 agree, 3 strongly,10 disagree agree,
and 2 respondents strongly disagree. This means if AIB will adopt so more and more customers
will be attracted as it is shown abovewithout hiring the professional staff replacement is not possible
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 9 32.1 32.1 32.1
agree 15 53.6 53.6 85.7
disagree 3 10.7 10.7 96.4
strongly disagree 1 3.6 3.6 100.0
Total 28 100.0 100.0
Above table and graph show that out of 28 respondents 15 agree, 9 strongly agree, 3 disagree,
and 1 respondent is strongly disagree. This tells us that new system can only be implemented
when professional people are appointed.There is no universally accepted standards for the new system
Frequency Percent Valid Percent Cumulative Percent
Valid strongly agree 4 14.3 14.3 14.3
agree 8 28.6 28.6 42.9
disagree 6 21.4 21.4 64.3
strongly disagree 10 35.7 35.7 100.0
Total 28 100.0 100.0
Above table and graph show that out of 28 respondents 10 strongly disagree, 8 agree, 6 disagree, and 4 respondents are strongly disagree.
1.6-Conclusion
From this research it has been concluded that the Afghanistan International Bank (AIB) to try its
best to replace the old and manual system into modern new technology. In order to compete in
the specific field (Bank industry) and in order to attract more and more customers, AIB is left
with no option and alternative except the replacement of the system. If the system is replaced so
the structure of the bank will change, and definitely it will operate effectively and efficiently all
around the country,
If we have look into the banking sectors, so all the banks especially the private are using the
latest and updated technology that is why it is strongly needed for AIB as well to adopt the new
technology and to provide more and more facilities to their customers otherwise it is hardly
difficult for it to survive it business.
If new technology is adopted by AIB so it will provide ATM services and mobile banking
similarly it can join western Union and SWIFT.
Keeping in view into the result of the research, it is to be stated that new and modern system is
one of the necessities of nowadays, therefore if AIB will implement it then more customers can
be attracted, its business can be survived, transparency and accuracy will be there and it will be
counted one of the reliable banks in the country.
1.7-Recommendation:
Keeping in view intothe result of the above research and according to the demand of the new
generation, those who have complete familiarity with the information technology and can
understand its significance in any area or field especially in bank industry it is strongly
recommended not only for AIB but all the banks irrespective of its ownership (whether private or
public) should replace the old system into new.
1.8-Attachment
Strongly agree 1Agree 2Disagree 3Strongly disagree4
1. Using IT system is much preferred in Banks 1 2 3 4
2. IT system benefits customers the most 1 2 3 4
3. IT system is more reliable for new generation 1 2 3 4
4. Technology helps to avoid corruption in Banks 1 2 3 4
5. Helps smooth functioning of the banks 1 2 3 4
6. With old system AIB cannot compete with other banks 1 2 3 4
7. IT system brings more facilities to Bank than customers 1 2 3 4
8. AIB staff will hardly resist the change 1 2 3 4
9. New system wouldn’t be good for old staff 1 2 3 4
10. Manual system shouldn’t be replaced with new 1 2 3 4
11. Would it be good for AIB to introduce new IT system 1 2 3 4
12. Accurate and transparent transaction process 1 2 3 4
13. No one will support installation of new technology system 1 2 3 4
14. Replacement of old system into new is costly 1 2 3 4
15. New system connects the bank with rest of the world 1 2 3 4
16. Provides better and timely services to customers 1 2 3 4
17. The old system is more standardized than the modern 1 2 3 4
18. Mobile banking brings more reliability to the customers 1 2 3 4
19. Without hiring the professional staff replacement is not possible 1 2 3 4
20. There is no universally accepted standard for the new system 1 2 3 4
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