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superseded by an third socio-economic ware, even through the industrial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
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
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.
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 nose 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
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.
It has been said that hires was replaced by the motor vehicle not
because the motor vehicle is that much convenient but because the hoarse
is more efficient from the economic point of view.
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
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
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.
1.2 STATEMENT OF PROBLEMS
What is computerization as it relates to banking industry in Nigeria?
Manual operation is fast being replaced by computer operation in the
banking industry nowadays. What edge does the computer electronic
machine has over the manual ones?
In an economic view point, how has this computerization in the
banking industries help in alleviating the sufferings of the citizen of
in Nigeria? Since the advent of computerization in the banking in
Nigeria, it is appalling that the level of unemployment is still soaring
up. Why has the act of fraud in the banking industry in Nigeria since
the debit of computer more pronounced? And also sophisticated any costly
How do we achieve a more positive and efficient result with computer
in the banking industry in Nigeria? These are some of the important
questions which this study wishes to handle.
1.3 RESEARCH QUESTION
- Of what benefit is the computer electronic machine over the manual machine as it relates to banking industry in Nigeria.
- To what extent has computerization in the banking industry in Nigeria affected the economic development?
- To what extent has fraudulent practices as a occasion by computerization of banking industry affected the industry?
- How can a computer be maximally utilized towards making a positive impact in banking industry, in Nigeria?
1.4 OBJECTIVE OF THE STUDY
1.4.1 The purpose of this study is to actually
highlight the impact computerization has put forth on the banking
industry since its involvement into the industry. It would also identify
the uses which the computer would be put into in order to increase the
operation efficiency and effectives of the banks.
1.4.2 However, the study would pay special
attention to the united bank for Africa plc (UBA) in trying to state the
effect of computer and its uses in banking industry. The study is
designed to give an overview of a computer application to the numerous
service being rendered in our banks, how it affected output and
efficiency, also how it has helped to improved the bank accounting
information and storage system.
1.4.3 The study would look into the historical
development of computer to enable us appreciate the dynamic nature of
Also the historical background of united bank for African plc (UBA)
shall be examined the bank in computer utilization from its inception
1.4.4 The content of the study would be directed
towards actually banking activities and transactions. It would be such
as to help in laying a foundation for anybody who does not have
experience of the application of computers in banking have experiences
of the application of computers in banking have a better understanding
and conceptualization of its intricacies of operations.
1.4.5 The study would also provide an appraisal
of the operational performance of the computer system, the problems
associated with the use of the machine and provide possible solution to
minister or eliminate the problems.
1.5 SIGNIFICANCE OF STUDY
This study will be benefited by the following group of individual, corporations and companies, they includes:
- Student in school of financial studies: These students will benefit
from this work in many ways, also helping them to know some certain
problem associates with the introduction of computer in organization.
- Banking industry: This project work will yield an immense benefit to
the banking industries in our economy. All thee banks that are
intending to be computerized and already comprised ones will all benefit
from that work.
- System analyst: The person who studies the existing system in an
organization and changes the old to eh new system. He will benefit from
this work in that, it will help to know some certain technicalities in
implementing a new system.
- Shareholders of banks: The owner of banking industries
(shareholders) will benefit from this work in that it will form a part
of encouragement to them to computerize their banks since computerized
banks yields more profit.
- Finance Horse: All the finance hoses, with benefit from the work
including government will benefit from this work, it will help all of
them in knowing the advantage and disadvantages of computerization and
decide in which one to do.
- Depositors or investors tenders (be) benefit customers, will all
benefit from the worn to customers, will certainly know hat computerized
banks will not waste much of his her time while manual operated banks.
1.6 SCOPE / DELIMITATION OF STUDY
The major aim of this study is to highlight the impact of
computerization on the banking industries and the scope would be
restricted mainly to the United bank for African plc where almost all.
1.7 DEFINITION OF TERMS COMPUTER
An electronic device used in storing, retrieving and solving mathematical and logical problems and information.
Computerize: To solve information in a computer or to use a computer
to control operation. In operational meaning, it is a process whereby
computers are employed to carry out certain operation which might as
well have been done by man a such operations are the collection of data,
the analysis of this data and conversion of such into information which
could be used in banking and may other relevant fields.
Impact: By oxford advance dictionary it means, strong impression or
effect produced on the mine of a spectator, reader, heaven etc.
Operational it means where something is being brought into operation
or is in use, the effect or result which it has on the whole operation.
Banking: Oxford advance dictionary defined banking as the business of
receiving money form outside sources as deposits irrespective of
payment of interest and granting of money loans acceptance of credits or
the purchase of bills and cheque or the purchase and sales of
securities for the account of others or the incurring of the obligation
to acquire claims in respect of loans prior to their maturity or the
assumption of guarantees and other warranties for others or the
effecting of transfers and clearing and such other transaction the
commissioner may on the recommendation of the central bank by order
published in the federal Gazette designated as banking business.
In operational context, person, group, organization, corporate body
or government that do banking business as defined can be called a bank.
So UBA Plc can be regarded as the people’s bank that is being sponsored by the government.
Hardware: This refers to the actual component that make up an
installation. It comprises that external components of the computer or
any related devices that can be touched such as the cpu (central
processing unit) and ups (uninterrupted power supply).
Software: A general description for all forms of programme
instructions and supplementary materials used y personnel to give the
computer its instructions. Such as the interview section of the computer
(brain) that performs the functions.
Data: These are raw information about customers which are usually fed
into the computer such as data, account opened, name and address,
account number etc.
Input: The process of sending data / instructions into the computer.
Output: The presentation of the answer after the processing has been completed. It can be in form of printed reports.
On line: A computer system where the branch is lined electronically with the computer centre.
Off Line: A computer system where the branch is not connected
directly to the computer centre. In such a situation, the branch would
use diskettes for transmission to the computer centre for processing
before reports could be produced.
Magnetic tape: This is a widely used method of recording computer
data by means of tape. It has three important advantages speed,
compactness and readability