The effect of automation on corporate banking operational efficiency: A case study of Sterling Bank, Kano
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Background of the Study
Automation in banking has emerged as a transformative force, redefining the operational landscape of financial institutions worldwide. Sterling Bank in Kano has increasingly implemented automation technologies to streamline processes, reduce manual intervention, and enhance operational efficiency. The automation of routine tasks—such as transaction processing, customer onboarding, and compliance monitoring—has enabled the bank to lower operational costs and minimize human error, ultimately contributing to improved service delivery (Abiola, 2023). This technological shift is particularly relevant in corporate banking, where operational efficiency is critical to maintaining competitive advantage and ensuring regulatory compliance.
Sterling Bank’s adoption of automation is driven by the need to address the challenges posed by legacy systems and the increasing complexity of financial transactions. By integrating robotic process automation (RPA), artificial intelligence, and machine learning algorithms, the bank has been able to optimize internal workflows and enhance customer interactions. These technologies provide real-time data processing and error-free execution of tasks, leading to faster turnaround times and higher customer satisfaction (Chima, 2024). Furthermore, automation facilitates better resource allocation, enabling the bank to reassign human capital to strategic roles that require critical analysis and decision-making. The resultant efficiency gains have had a demonstrable impact on the bank’s operational performance and cost structure (Folorunsho, 2025).
Despite these benefits, the implementation of automation at Sterling Bank has not been without challenges. Issues such as system integration complexities, high initial investment costs, and resistance to change among staff can impede the full realization of automation’s potential. Additionally, the rapid pace of technological evolution necessitates ongoing upgrades and continuous staff training to maintain operational efficiency. This study seeks to critically evaluate the effect of automation on operational efficiency in corporate banking at Sterling Bank, with a focus on identifying both the benefits and challenges inherent in the automation process (Ibrahim, 2023).
Statement of the Problem
While automation has been widely adopted as a means to enhance operational efficiency in corporate banking, Sterling Bank in Kano continues to face obstacles in achieving the desired outcomes. One significant problem is the difficulty in seamlessly integrating new automation technologies with existing legacy systems, which often results in process disruptions and data inconsistencies (Johnson, 2023). The high upfront costs associated with deploying automated systems and the need for continuous technical support further strain the bank’s operational budget. Additionally, employee resistance to the adoption of automation—stemming from fears of job displacement and the steep learning curve associated with new technologies—poses a barrier to full-scale implementation.
Moreover, the lack of standardized performance metrics to evaluate the impact of automation on operational efficiency complicates efforts to quantify benefits. This ambiguity makes it challenging for management to justify further investments in automation. External factors, such as regulatory constraints and cybersecurity risks, also contribute to the problem by adding layers of complexity to the automation process. These issues collectively hinder Sterling Bank’s ability to maximize the operational benefits of automation, ultimately affecting its competitive position in the corporate banking sector (Kehinde, 2024). The study, therefore, aims to explore these challenges in depth and propose strategies to overcome them, ensuring that automation translates into measurable efficiency gains and improved service delivery (Lekan, 2025).
Objectives of the Study
- To assess the impact of automation on operational efficiency in corporate banking at Sterling Bank, Kano.
- To identify the challenges associated with integrating automation technologies into existing banking systems.
- To propose strategies for optimizing automation processes to enhance overall operational performance.
Research Questions
- How does automation affect operational efficiency in corporate banking at Sterling Bank?
- What are the major challenges encountered during the integration of automation technologies?
- What strategies can be implemented to overcome these challenges and improve efficiency?
Research Hypotheses
- H₁: Automation significantly improves operational efficiency in corporate banking at Sterling Bank.
- H₂: Integration challenges with legacy systems negatively affect the efficiency gains from automation.
- H₃: Effective change management strategies enhance the successful implementation of automation technologies.
Scope and Limitations of the Study
This study is centered on Sterling Bank in Kano and examines automation processes within its corporate banking division over recent operational periods. Limitations include data accessibility issues and the rapidly evolving nature of automation technologies.
Definitions of Terms
- Automation: The use of technology to perform tasks with minimal human intervention.
- Operational Efficiency: The ability to perform banking functions effectively while minimizing costs and errors.
- Corporate Banking: Financial services provided to corporate clients, emphasizing streamlined and efficient processes.
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