ABSTRACT
This research work is on the Impact of Computer to Modern
Banking in Nigeria. A case study of Zenith Int’l Bank
In advanced economies, technology has played a significant
role since 1060’s. The role of computer in the financial world and other
spheres of life cannot be over-looked and this has made it inevitable as the
whole world has been turned into a global village. But in developing economies
on the other hand, technology has relatively been poorly deployed in computer
services.
In Nigeria, deregulation of the banking industry in 1986 saw
banks deploying technology as the chief competitive weapon to achieve
significant market shares in the crowded banking industry. This brings a good
decision on the other leas to effective performance of managerial functions, which
should in turn lead to the attainment of the organization’s goals.
The research used both primary and secondary data from
findings. It was observed that about 90% of the banks in Nigeria has improved
and agreed that computerization has lead to affective bank performance and have
also reduce the cost of running bank services.
In trying to state the
impact and problems related to computer in the banking industry, the
researcher observed that some problems faced by these banks are; inefficient
planning, fraud, errors, irregular functioning of telecommunication facilities
etc, and recommend that;
Proper awareness and orientation should be made with regards
to illiterate bank customers who are still novice to computer innovations.
The computer department should be manned by people of good
integrity and sound knowledge of computer to reduce fraud in the banks.
There should be adequate power supply to fasten and improve
operation and also reduce cost of running bank services.
TABLE OF CONTENT
Title Page –
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i
Approval Page- –
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Dedication-
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Acknowledgement-
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Abstract- – –
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Table of Content-
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viii
CHAPTER ONE
Introduction- – –
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1
1.1 General
Overview- – –
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1.2 Statement of
Problems- – – – –
– 4
1.3 Objectives of
the Study- – –
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– 5
1.4 Significance of
the Study- – –
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– 5
1.5 Research
Questions- – –
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– – 5
1.6 Scope of the
Study- – – –
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– 7
1.7 Limitations of
the study- – –
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– 8
1.8 Definition of
Terms- – – –
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– 9
CHAPTER TWO
2.0 Literature
Review- – –
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– – 11
2.1 Background of
the study- – –
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– 11
2.2 Evolution of
Computer Technology- – – –
– 16
2.2.1
Definition of Computer- – –
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– 18
2.2.2 Types of
Computer- – – –
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– 19
2.3 Evolution and
Development of Nigerian Banking System-
20
2.4 Future of
Computer in Nigeria Banking System-
– 23
2.5 Problems
Associated with the use of Computer-
– 25
2.6 Computer Related
Fraud in the Banking Industry- – 26
2.6.1 What is
Computer fraud – – –
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– 27
2.6.2 Forms of
Computer Fraud – – –
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28
2.7 Impact of
Computer in Nigeria Banking Operation –
– 30
2.8 Summary of the
Chapter- – –
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– 35
References- – –
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36
CHAPTER THREE
3.0 Research
Methodology- – –
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– 37
3.1 Research
Design- – –
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3.2 Sources of
Data- – –
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3.3 Method of data
Collection- – –
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39
3.4 Population
Size- – –
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3.5 Sample
size- – –
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40
3.6 Techniques for
Data Analysis- – – –
– – 40
CHAPTER FOUR
4.0 Data
presentation and Analysis- – –
– – 42
4.1 Data
presentation- – –
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– – 42
4.2 Data Analysis-
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– – 43
4.3 Analysis of
Hypothesis- – –
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– 51
CHAPTER FIVE
5.0 Summary,
Conclusion and Recommendations-
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5.1 Summary of
findings- – –
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– 57
5.2 Conclusion- –
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– 60
5.3 Recommendation- –
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61
Bibliography- – –
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– 63
Appendices – – –
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– 66
CHAPTER ONE
INTRODUCTION
1.1 GENERAL
OVERVIEW
In advanced economies, technology has played a key role
since 1960’s. The role of computer in financial world and other spheres of life
cannot be over-emphasized or, be over-looked and this has made it inevitable as
the whole world has been turned into a global village. But in developing
countries on the other hand, technology has relatively been poorly deployed in
customer services.
Nevertheless, bank even in the strategic role of technology
driven services, played in the efficient and cost effective service delivery.
Investments in innovative banking technology worldwide have therefore grown
exponentially in past decade.
In Nigeria, deregulation of the baking industry in 1986 saw
banks deploying technology as the chief competitive weapon to achieve
significant market shares in the crowded banking industries (Aduba, 1997). This
brings a good decision on the other hand leads to effective performance of
managerial functions which should in turn lead to the attainment of the
organization’s goal. The vital ingredients for effective information apart from
accuracy must also include uniformity, timeliness, reliability, clearness and
must be promptly transmitted to the recipient and same time must be relevant to
the area of specification.
Therefore, this presentation reviews the enabling
environment for technology driven bank services in making effective planning,
organization and implementation of the policies of the organization.
Introduction of computer networks similarly created a new banking culture that
granted customer flexibility in services delivery through wider choice of
transaction outlet give bank’s networks of branches.
Electronic banking system was an innovation into the banking
industry. It was introduces to ease the problem of;
Casting delay in transaction
Clearing
Transfer of fund
Accuracy in information from one location to the other
It can be seen that before the introduction of computer in
the banking industry, a lot of problems were faced in processing transaction in
various sections of the bank, but with computerization, all these problems have
been reduced or eased off. The system has been embraced worldwide because it is
easier and convenient for both the sender and receiver. This has made banks
like Zenith Bank, Intercontinental Bank, Diamond Bank joined suit with First
Bank Nigeria Plc in giving Western Union Money Transfer services to people
within Nigeria.
Computerization or electronic banking has even helped in
introducing electronic cards known as pay cards (Credit and Debit Cards). This
was introduced to avoid the risk of carrying cash around. This electronic card
is loaded with any amount in alternative to physical cash with ease. The
electronic pay card has gone a long way in its establishment because people now
prefer it to holding physical cash. Infact computer has come to stay and has
become a vital part in our society because it has the capacity of extending
men’s power to perform mental tasks and provide imagination services.
1.2 STATEMENT OF
PROBLEMS
Before the introduction of computer in banking operation,
the banking industry was faced with a lot of problems that made some people to
lost interest and confidence in them (banks). These problems are as follows;
Delay in responses and services delivery time
Improper handling, storing and keeping of date and records
Inaccuracy/errors in data entries and interests
computations.
Transmission of fund from one place to another.
Cash holding movement
Delays in clearing cheque
Poor monitoring of accounts leading to fraud
In order to eradicate or minimize all these problems, and
foster confidence in banking industry, computerization was introduced to overcome
all these problems and build confidence back into the industry and the people.
(Anderson, 1979)