IMPACT OF COMPUTER SYSTEM IN NIGERIA BANKING SECTOR

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Let us start by defining what a computer is. A computer could be defined as an electronic device capable of accepting data, performing ordered operations on data and reporting on the outcome of these operation. This electronic tool can be used to store information’s on magnetic tapes, diskette, hard diskette, analyze it and produce information’s as required from the data on them; in other words, it is an information-processing machine. A computer is a very fast electronic processing machine which has high storage capacity , it can perform large repetitive and complex calculations with utmost accuracy and at an astonishing speed. In the past, record keeping has been manual, mechanical and developed through the age of machine assisted into the present day computer age which we are in. The computer performs many functions which includes input, storage, processing and out put functions. The computer is an advanced technological innovation which has evolved as product of our modern society and a modern tool in management. Though the computer is a modern tool in our society, many people approach the subject with apprehension and in certain cases develop absolute fear for it for some obvious seasons. The computer came upon the whole world so quickly and is seen now to affect our various lives in so in any different ways and also the general lack of knowledge of this device has brought fear into the uninformed society. The application of the computer in the Nigerian economy is a very recent phenomenon. Its functions and uses in the economic sector is also very new and has not been fully integrated into the business sector.

The banking sector on the other hand has seen the important of this device in this modern day banking system and have now started bringing in the computer into various financial services offered to its customers. Manual keeping and processing of data/information’s of the customers is extremely slow and cannot cope with the increased sophistication of customers demand and volume of transaction in this time. It has been said that the motor vehicle replaced the horse not because it is more convenient but because the horse has become inefficient from the economic point of view. For instance the computation of information on three thousand salaried people manually involves numerous cost which includes; personnel cost, retirement, scheduling cost etc. but using the computer would not involve much cost instead it will perform the job more accurately and speedily than a manual operation. However the coming of the computer as earlier stated has some of it’s problems specially to the banks; these includes personnel and finance cost. These two things must be in place before any bank can be computerized, personnel is very necessary for the effective running of any computer. Computer can only be operated by human being only . As stated by Charlse A. Myres my computer can read, that is input, my computer can add, that is out put, it can even remember better than man. That is memory; but my computer cannot lone, that is human being; all this adds to the fact that trained personnel is needed for the effective running of the compute. In conclusion, the computer is a device that is capable of performing per-determined tasks, faster and more accurately now.

1.2 STATEMENT OF PROBLEMS.

Before the computerization of first banks of Nigeria Plc. There existed some problems which includes. 1. Long queues of customers observed in first bank of Nigeria Plc were because their operations were partly manual. 2. Assessment of information had been difficult because the systems were not fully on- line and real-time. 3. Information were not kept properly because they were in files and folders that would easily be misplaced or prone to fire etc. 4. The first bank Plc had not networked all their branches as a result the customers would not be able to withdraw in stations other than the ones they had account. 5. Banking service in first bank of Nigeria Plc was deployable before the full computerization of their systems.

IMPACT OF COMPUTER SYSTEM IN NIGERIA BANKING SECTOR