THE IMPORTANCE OF EFFECTIVE MANAGEMENT INFORMATION SYSTEM IN THE BANKING INDUSTRY IN NIGERIA. (A CASE STUDY OF WEMA BANK PLC)

THE IMPORTANCE OF EFFECTIVE MANAGEMENT INFORMATION SYSTEM IN THE BANKING INDUSTRY IN NIGERIA. (A CASE STUDY OF WEMA BANK PLC)


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THE IMPORTANCE OF EFFECTIVE MANAGEMENT INFORMATION SYSTEM IN THE BANKING INDUSTRY IN NIGERIA. (A CASE STUDY OF WEMA BANK PLC)

PROJECT TOPICS AND MATERIALS ON THE IMPORTANCE OF EFFECTIVE MANAGEMENT INFORMATION SYSTEM IN THE BANKING INDUSTRY IN NIGERIA. (A CASE STUDY OF WEMA BANK PLC)


TABLE OF CONTENTS

 

 

Title page                                                                                                         i

Certification                                                                                                    ii

Dedication                                                                                                      iii

Acknowledgement                                                                                          iv

Table of contents                                                                                             vi

CHAPTER ONE                                                                                  

1.0       Introduction

1.1       Aims and objectives of management information system                  1

1.2       Purpose of the study                                                                           2

1.3       Significance of the study                                                                    2

1.4       Scope of the study                                                                              3

1.5       Historical background of Wema Bank                                                3

CHAPTER TWO                                                                                                         

2.0       Literature Review 

2.1       What is management information system?

2.2       Functions of management system  

2.3       Developing a computer based management information

system for the bank                                                                             7 - 8    

2.4       Area of application of computer based management

information system.                                                                            8 - 9                            

CHAPTER THREE                                                                                               

3.0       Research Methodology                                                                       10

3.1       Source of data                                                                                     10

3.2       Sample design                                                                                     11

3.3    Research questionnaire                                                                          11

CHAPTER FOUR                                                                                                   

4.0       Presentation and analysis of data and results                                                 12

4.1       Percentage distribution of variables                                                    12 – 17

CHAPTER FIVE                                                                                        

5.0       Summary, conclusion and recommendation                                       18

5.1       Summary                                                                                             18

5.2       Conclusion

5.3       Recommendation

            Bibliography

Appendix

 


CHAPTER ONE

 

1.0       INTRODUCTION

 

In banking, as we have in all industries the need for information is so important. This is simply because all things being equal, good quality information aids good decisions and it leads to effective performance of managerial function and is in turn should lead to the attainment of the organizational goal.  

 

This age had been tasked information age because managers have all a sudden become very aggressive with their chase for quality information quick and accurate decision must be made. This requires timely and suitable information and bank must react quickly to change in interest rate and other volatile variables in their operation.

 

Extra come must be taken by bank in their decision making exercise because any wrong step can lead to loss of million of naira which is irrevocable unlike in some other industries (wrong decision can result to inadequate and imprecise information of computer to the industry). Indeed the banking industry has employed computer earlier than other industries. There are several reasons for this early introduction of computer i.e. to process an manage the information system of the bank. The need to automate this system many be of two reasons viz (a0 Excessive work as a result of an over load of operations which the manual method cannot handle properly. (b) It may be as a result of the banking industry with an aim improving its competitive position.

 

The banks Insurance company, broker age houses, saving institutions etc. offers similar services to their customers. This exposures of its customers to many different satisfying or similar services makes them very difficult to stay in business, therefore better services have to be offered by the bank and these come from good decision making which is itself is a good information system product. Good information can only be obtained by proper management of the  information system when one can only consider the function of commercial banks in Nigeria such as:

 

 

1.      Granting of credit facilities to customers

 

2.      Creating money

 

3.      Safe keeping of valuable items   

 

4.      International trade advisory services

 

1.1       AIMS AND OBJECTIVES OF MANAGEMENT INFORMATION SYSTEM (MIS)

 

The basic aims and objectives of management information system (MIS) in banking industry and to reduce the problem or barriers of effective communication and processing of data in the banking industry other objectives are as follows:    

 

 

1.      To facilitate the practice of electronics banking (E-banking) in Nigeria effectively.

 

2.      Management information system encourage the effectives performance or implementation of automate trending system (ATM).

 

3.      Management information system encourages the effective implementation of universal banking system (U-Banking).

 

4.      If helps the bank to perform automated clearing system services.

 

5.      If assists in gathering none and better information in the banking industry.

 

6.      Management information system reduces information processing cost.   

 

7.      Management information system aim at reducing works in the banking industry.

 

8.      Management information system ensures proper and adequate documentation of the banking industry.

 

9.      Management information system reduce the number of errors and mistakes that occur in the banking industry.

 

1.2       PURPOSE OF THE STUDY

 

i.          Evaluate the impact of management’s information system in the banking industry.

 

ii.         Assess the effectiveness or effect of automated management information system in the banking industry.   

 

iii.        Measure the impact of automated management information system in the performance operation of commercial banks in banking.

 

 

 

1.3       SIGNIFICANCE OF THE STUDY

 

The project work is significance in such a way that it (i) offers better services which come from good decision which itself is a good product (ii)      It identify areas which need to be improved upon in order to satisfy banking community in Nigeria (iii) It prepares Nigerian commercial bank to meet international requirements for the purpose of global network banking service.

 

 

 

 

 

1.4       SCOPE OF THE STUDY       

 

The scope of the study is limited to commercial bank due to time and financial constraint apart from the fact commercial banks are the most popular among banks and moreover majority of members of the public patronize commercial banks.        

 

 

 

1.5       HISTORICAL BACKGROUND OF WEMA BANK PLC

 

Wema Bank is an indigenous banking institution established during the period when Nigeria as a country was under a colonial M.A. Okupa and Mr. A.A. Alade under the company ordinances (Cap 133) with the trade name Agbonmagbe Bank Limited on 1st May, 1945 and is known as Wema bank. The ultimate aim of the founder was to assist indigenous merchant and business man who are discriminated against by the expatriate banks in the area of credit facilities allocation. This, width the wave of bank springing up of and ultimately, Wema bank qualified as the first oldest indigenous bank that is surviving till to day.

 

The period of acquisition of ownership of Wema bank Limited by the Western Region Government could be classified as the beginning of the bank adolescent stage strategic plan was set up and solid capital base was setup, built for instance, the shame capital of $10,000 in 1964 rose to $25,000 in 1990 and $2500 in 1991 and $7,000 in 1998.  Highly qualified staff were employed computerization of the services rendered were embarked upon up till to day while the management were give free hand to operate.

 

All these highlighted factors have them attributed however to the success of the story of the bank there were serves of problem that faced the bank during the period of ownership of the bank by the Western Region Government some of which are frequent government interference in the operation of the bank in the area of personal recruitment and decision making, which adversely affects the bank performance. The growth of the banks was also affected greatly by the political instability and loans and advances, granted influential customers were bad from inception.

 

The situation change in 1988 when Wema bank Plc want to the capital market and the customer and Government, interest was reduced to 40% of the total equity share capital while the individual own the 60% of the equity share capital.

 

There was wide branch network objectives embarked upon to erase the sigma of the Wema bank Plc, as a sectional branch network stood at Eighty five (85) spread all over the country in 1991 and total asset stood at #18,291,800,000.

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Extra come must be taken by bank in their decision making exercise because any wrong step can lead to loss of million of naira which is irrevocable unlike in some other industries (wrong decision can result to inadequate and imprecise information of computer to the industry). Indeed the banking industry has employed computer earlier than other industries. There are several reasons for this early introduction of computer i.e. to process an manage the information system of the bank. The need to automate this system many be of two reasons viz (a0 Excessive work as a result of an over load of operations which the manual method cannot handle properly. (b) It may be as a result of the banking industry with an aim improving its competitive position. .. banking and finance project topics

THE IMPORTANCE OF EFFECTIVE MANAGEMENT INFORMATION SYSTEM IN THE BANKING INDUSTRY IN NIGERIA. (A CASE STUDY OF WEMA BANK PLC)

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