Impact Of Computerization In A Banking Industry

IMPACT OF COMPUTERIZATION IN A BANKING INDUSTRY

ABSTRACT

The world over continues to grow in population, size and sophistication technology. It becomes sector on which the teeming population depends in for knowledge also grows. Be it as it may, the Nigerian situation is such that we, for the state of advantages associated with technological growth have started computerizing most business and banking operation in our financial institution and business organizations big and small. One of such organizations are United Bank for Africa, which were understudied for the impact of computerization in Banking industry, technology on accounting system and its effect in employment. The problem, purpose and significance of the study to United Bank for Africa were considered. Review of existing literature will then follow. The research method made use of generated data revealed to the researcher that the use of computer in United Bank for Africa was set up. Area of computer application (1) General Accountant. (2) Inventory and (3) Payroll. In testing the problem respondents agreed that computerization led to mass retrenchment of workers. However research revealed otherwise.

PROPOSAL

The Nigerian situation is such that we, for the state of advantages associated with technological growth have started computerizing most business and banking operations in our financial institution and business organizations big and small. One of such organizations is United Bank for Africa, which will be understudy or that will be study. The problem, purpose and significance of the study to United Bank for Africa will be considered. Review of existing literature will then follow. The research method will make use of generated data that will be revealed to the researcher that the use of computer in United Bank for Africa was set up. The area of computer application in the banking sector in the United Bank for Africa are:(1) General Accountant. (2) Inventory and (3) Payroll. Hypotheses will be test as well as the problem so as to agree that computerization led to mass retrenchment of workers. Conclusion and recommendations will be draw from the data which will be obtaining from the respondents.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF STUDY  

Alvin Tofler, one of the most successful of contemporary popularizes has proclaimed the arrival of an “adhocratic” society.

This expansive vision of nearly emerging post industrial order, mirroring that of Daniel Bell is encapsulated in Tofler’s view that we are living through a period of massive societal development.

First wave of agricultural revolution and the second wave of industrial revolution development in the world over is now being superseded by an third socio-economic ware, even through the industrial revolution is still in progress in most part of the third world countries. This new socio-economic shift termed third ware is the arrival of computer revolution.

This means that humanity faces quantum leap forwards as we engage in building a remarkable new civilization from group up.

Definition of computer: the oxford dictionary defined computer as an electronic device which stores information on e.g magnetic tape, analysis it and produces information as required from the data on tapes or deistic.

While the American Heritage dictionary of the English language defined it as a service that computes especially as electronic machine that performs high speed mathematical or logical calculations or the assembles, store correlates or otherwise processes and prints information derived from loaded data in accordance with a predetermined programme.

This implies that although computer has no brain of its own to reason live human beings, it performs complete mathematical problems as fast as possible even faster than the human brain.

The computer is an advanced technological convention which as evolved as a product of our modern day society (Hard, 2005: 10).

The above statement not withstanding, he public still approach the course with apprehension and in some cases develop absolute fear for this device. The reason being that the computer came upon the whole world so quickly that it now affect our various lives in so many ways. This compile with the general lack of knowledge of what the computer is, has given rise to the ware of anti-complex feeling.

It is of note that Nigerian industries and businesses are growing bigger and more complex everyday. Manual recording and filling system of financial transaction is no loner coping with the rate of sophistication and competition in this modern businesses.

Management needs timely information for planning and it is only through computerized accounting methods and control system that can girl 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 specially 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 this services has also increased during the last decade (James, 2000).

Another is a manual operation which involves the processing of information on (2000) two thousand salaried people. The cost involved in this type of operation is numerous like personnel cost; turnover cost, raining cost, benefits, leave allowance, retirement costs, etc. then comes the computer which will not involve much cost. The only cost might be training and personnel. While the work would be done in a speedy time than in manual operation.

The computerization and its impact on the banking in Nigeria cannot be over emphasized. Just as earlier noted, the use of computer in banking and other financial institutions is still a very recent development.

Note all the banks and business sectors have actually computerized. Those that have gone computerized still leach computers is some departments which those banks which have not gone into computerization are still looking into the possibilities. But as a nation grows, its economy develops while the necessary tool that will help any economy to develop is the level of information obtainable.

The computer has an immense capacity fro storing information and for marring the data available when needed. Because of this information consciousness in the economy, it becomes apparent that for any meaningful development planning, the availability of information should be a necessary tool, banks therefore saw in this a need to go into computerization (Michael. 2002).

 Nevertheless, the advent of computer as stated earlier has some problems but looking at it very closely, it might not pose a problem to banks. These problems are training of personnel and financial cost. Then are very necessary before any bank could go into computerization.

Training of personnel is very necessary for effective running and operation 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 very efficient, just as stated once by a writer on computers.

My computer can read that is input

My computer can add that is output

It can  even remember than man, that is memory

But my computer cannot love, that is human all this are very necessary for the personnel raining for the effective running of a computer. As a conclusion the computerize an intellectual.