  Today, information technology (IT) has become a key element in economic
development and a backbone of knowledge-based economies in terms of operations,
quality delivery of services and productivity of services. Therefore, taking
advantage of information technologies (IT) is an increasing challenge for
developing countries. There is now growing evidence that Knowledge-driven
innovation is a decisive factor in the competitiveness of nations, industries,
organizations and firms. Organizations like the banking sector have benefited
substantially from e-banking, which is one among the IT applications for
strengthening the competitiveness. This paper presents the current trend in the
application of IT in the banking industries in Nigeria and gives an insight
into how quality banking has been enhanced via IT. The paper further reveals
that the deployment of IT facilities in the Nigerian Banking industry has
brought about fundamental changes in the content and quality of banking
business in the country. This analysis and clarification of how Nigerian Banks
have used IT to reengineer their operations is detailed through literature
review and observation. Three categories of variables that relate to the use
and implementation of information technology devices were considered in this
paper. These include the nature and degree of adoption of innovative
technologies; degree of utilization of the identified technologies; and the
impact of the adoption of IT devices on the bank operations.
