IMPACT OF COMPUTERIZATION IN MICRO FINANCE BANK (A Case Study Of Nsukka Urban)
ABSTRACT
The study is aimed at determining the impact of computerization of microfinance bank in Nsukka urban. Cross sectional survey research design was used. The population of the study were eighty (80) was sampled for the study. Five research questions were raised to guide the study. Structured questionnaire which was validated by lectures was the instrument used for data collection statistical means were instrument used for data analysis. The result of the study showed that; computerization has a great impact on microfinance bank, helps in documentation of the bank, helps improve customers loans interaction, and it helps in making preparation and processing of credit and makes work more reliable, it reduces the keeping of bulky documents in the bank, helps in having safer storage of information and helps in reducing the workload of staff in checking balance. Finally it increases the speed of banking system.
Background of the Study
Microfinance bank has impacted the Nsukka urban by using computer in preparing different types of account, processing of customer’s statement of account, money transfer and cash dispensing version. The banking transaction that were manually done before the advent of computer into the banking system is now practiced in microfinance banking. Akukwe (2003) pointed out that as early as 1950’s the magnetic in character recognition (M.T.C.R) system was used by bank chequ. Micro finance bank is still in use, in the banks today. However, the latest computer technology in the bank industry is found in the use of automated teller machines (A.T.M) and electronic fund transfer (E.F.T) system. Under the electronic funds transfer your pay roll cheques as work are despaisted to your account with ease and your regular monthly payment are automatically made on your behalf. Again fund can easily be transferred from your savings to cover the cheque you have issued to people or organization in respect of the purchase you made, or donations you announced. An A.T.M. is a specialized computer terminal installed at such place like the inside and outside of the banks, supermarket, shopping plaza , hotels for quick and faster deposits and withdrawals of funds. Customer use this arrangement to transfer fund between accounts without necessarily going to the bank. Robinson (2001) examines microfinance bank as small-scale financial services- primarily credit and savings provided to people who farm or fish or herd who operate small enterprises or who provide services: who work for wages or commissions who gain income from renting out small amount of land, vehicles draft animals or machinery and tools and other individuals and groups at the local levels of developing countries both rural and urban. Ndiaye (2005) opined that access to improved financial services and access to more and better ways of turning savings into lump sums help poor people from sliding deeper into poverty and helps Nsukka people lay foundation for their ambitions to better themselves and their families. In most developed countries the history of microfinance bank is yet to be written. In many countries it will be difficult to do so for want of written document. This makes it difficult to build on the existing ones, mostly informal foundations of microfinance and learn from past experience.
