The importance of banking industry to every economy cannot be
ignored. Bank is a place where all financial transaction of an economy
impinges on. On the other hand, the impact of computers in alleviating
some of the problems encountered by banks cannot be over-emphasized.
Computer is seen as the most needed tools of improving banking transaction has
not been well adopted by all banks in the Nigerian economy. Some banks
see it as a means of upgrading their chequering up, transactions and keeping
necessary data for customers for loans, advances and other services.
Banks, which have gone into computerization, have observed that the positive
prospect surpasses its negative prospects. This research therefore aims at
showing the actual contributions of computer to the banking industry and the
negative effects experienced by the banks that are yet to go into computerization.
However, in case of the prospects and problems relating to computers, the
researcher used both primary and secondary data and other related literature on
the study topic in addition to this research being a case study, the researcher
used a sample size drawn from UBA Plc in both their accounts and computer
departments. The recommendations and conclusions were based on advising banks
and other financial institutions to introduce the use of computer in their
transactions. A general summary showed whether its contributions has actually
led to the development in this industry and also indicated that computers use
increased the efficiency and effectiveness of operations.
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
Background of the
Statement of problem
The objective of the study
Scope of the
Significance of the
CHAPTER 2: REVIEW OF
Introduction to organizational concepts
The evolution of computer
The role of computer system in
Modern banking operation
The structure of a computer system
Computerization of customers’ banking in the Nigerian
Computer and information system
Criteria for using
The prospect of computerization in
Customer services and computer application in
The banking sector: the computerized services
Misconceptions about computer
Obstructions to customers’ application in Nigeria
CHAPTER 3: RESEARCH
Sample and Sampling Techniques
Method of data collection
Method of data
CHAPTER 4: DATA PRESENTATION AND
How computerized do you consider
Your bank’s services to
Are you computer
CHAPTER 5: DISCUSSION, IMPLICATION AND
Computer services distinguished
Accountant and computers
Background of Study
The first wave of agricultural revolution and the second wave of
industrial revolution developments in world all over, and now being superceded
by a third socio-economic wave, even though the industrial revolution is still
in progress in most part of the third world countries.
This new socio-economic shift termed “third wave is the arrival of
This means that humanity faces a quantum leap forward as we engage
in building a remarkable new civilization from ground up.
Adegbony (2000:3) on his emphasizes on computer revolution
indicated that the first computer was manufactured at the “Hakiard University
in USA in the year 1944 by Charles Babage computer is an advanced technological
innovation, which ahs involved as product of our modern day society. He
heralded that it would make life easy.
The above statement not withstanding, the public still approach
the course with apprehension and in some cases develops absolute fears for the
device. The reason being that the computer came upon the world so quickly
that it now affects our various lives in so many ways. This coupled with
the general lack of knowledge of what computer is, has given rise to the wave
of anti-computer feelings.
It is note that Nigerian industries and businesses are growing
bigger and more complex everyday. Manual recording and filling system of
financial transaction is no longer coping with the rate of sophistication and
competition in these modern businesses.
Management needs timely information for planning and it is only
through computerized accounting methods and control system that can give out
the needed financial data immediately at the close of the banking period.
Banks and other private and commercial institutions are finding it
increasingly difficult to carry out its financial data speedily and accurately
enough to satisfy their numerous time conscious customers. The volume of
service being offered by banks have increased during the years and at the same
time the number of people asking for these services has also increased during
the last decade.
It has been said that horse riding was replaced by the motor
vehicle just because the horse is inefficient from economic point of view.
Also manual operations involving the processing of information on
two thousand salaried people. The cost involved in this type of operation
is numerous like personnel costs, training cost, benefits, leave allowances,
retirement costs etc. Then comes the computer, which will not involve
much cost. The only cost might be training of personnel, while the work
will be done in a speedily time than manual operation.
Computer has more than immense capacity of solving most of the
tedious boredom problems facing accounting system we have in government
ministries, government parastata and private business institutions. They
store information and make the data more available when needed. They
operate with high speed, they are accurate to the points of their activities,
and they are reliable, automatic and versatility. Banks therefore saw
this as need to go into computerization.
Nevertheless, the advent of computer has some problems.
These problems are training of personnel and financial costs. They are
very necessary before any bank could go into computerization. Training of
personnel is very necessary for the effective running and operations of any
computer. The human being is the only thing that can operate a machine
like computer, therefore without an effective personnel, the computer cannot be
Computer is an intellectual tool, which contributes to output, by
increasing effective efficiency, and it is also a tool that is capable of
performing pre-determined tasks faster and more accurate.
Statement of Problems
The problems encountered are:
The problem of inadequate data and information storage by the banks.
The problem of time wastage during the course of the banking activities.
The problem encountered during installation of computerized system.
Problem encountered in training of personnel.
The Objective of the Research
The purpose of this research is to identify:
The prospect computerization has put forth on the banking industry.
Identify the uses to which computer would be put, into so as to maximize
efficiency on effectiveness of the bank operation.
The study would bring into account on over view of computer application to the
numerous services being rendered in our banks as an electronic storage facility.
The study will also identify the various factors hindering the adoption of
computer in the business factors.
This study will bring to light the public misconception about computers and how
these misconceptions would be corrected.
Has computerization of UBA Plc fastened banking services?
To what extent has computerization increased the volume of deposits?
Has computerization increased or reduced the efficiency and effectiveness of
Has computerization been of help to cost reduction in banking industries?
What of the workload of UBA Plc has computerization reduced it?
Is the performance of computer in banking industries move reliable to customers
than manual implementation being used before?
Is computerization of confidential and to point for customers in teams of
accounting than the crude system of then accounting?
Has there been recorded any profit increment in annual statement of account of
the banking industries since inception of computer?
Significance of the Study
At the end of this research, we will be able to appreciate the
fact that this study will enable to make use of the work in both their academic
and research work.
It will also be made clear that various banking industries to day
need computers for effective banking operations.
Definition of Terms
Chambers Universal learners Dictionary, edited by Kire Patrick
(2001, 130) defined computer as a large electronic machine capable of storing
large amounts of information and of performing calculations”.
Advanced learners dictionary 6th edition
page 231 that computer is an electronic machine that can store, organize and
control other machines”.
American Heritage dictionary of English language defined it as “a device that
performs high speed mathematical and logical calculations or that assembles,
stores processes or prints information derived from coded data in accordance
with a pre-determined program.
implies that although computer has no brain of its own to reason like human
beings, it performs complete mathematical problems as fast as possible even
faster than the human brain.
It is a
process whereby computers employed to carry out certain operations, which might
as well have done by man. Such operations are the collection of data, the
analyzing of the data and conversion of such information, which could be used
in banking and many other relevant fields.
Advanced Dictionary, it means storing impression or effect produced in the mind
of a spectator, reader etc.
Operationally, it means where some thing is being brought into operation or is
in use, the effect or result or which is that it has the whole operation.
Advanced Dictionary defines banking as the business of recurring money from
outside sources as deposits irrespective of payment of interest and granting of
money, loans and acceptance of codices or the purchase of bills and cheques or
the sales of securities for the account of others or the carrying in of the
obligation to acquire claims in respect of banks prior to their maturity.
In operational context, persons, groups, organizations, corporate
body or government that do banking business as defined above can be called a
to the actual components that can make up an installation; it comprises the
external or the physical components of a computer.
definition for all terms of programme instruction and supplementary materials
used by personnel to the computer its instructions.
unprocessed items or raw information that make no meaning on its own and are
usually fed into the such as date, account opened, name and address, accounting
number, etc. In data processing systems Ubaka Aroh (1997, 4) defined data
as an observation that does not convey any meaning.
of sending data or instructions into the computer.
presentation of the answer after the processing has been completed it can be in
the form of printed reports or printouts.
system where the branch is not connected directly to the computer center in
such a situation, the branch will use diskettes for transmission before report
could be produced.
system the branch is limited electronically with computer, center.
widely used method of recoding computer data by means of tape. It has
three important advantages, which are speed, compactness and readability.
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