THE EFFECT OF COMPUTER SYSTEM IN NIGERIA BANKS

(A CASE STUDY OF FIRST BANK OF NIG. OKPARA AVENUE ENUGU)

By

UKWUANI GODWIN .E

Presented To

Department of Accountancy

TABLE OF CONSTANTS

Title page

Approval page

Dedication

Acknowledgement

Table of contents

Abstract

CHAPTER ONE

INTRODUCTION

First Bank Of Nigeria PLC Enugu

1.1 Background of The Study

1.2 Statement of Problem

1.3 Objective of Study

1.4 Significance of Study

1.5 Scope and Delimitation Of Study

1.6 Research Question

CHAPTER TWO

LITERATURE REVIEW

2.1 The Evolution Of Computer

2.2 General Background To Computer

2.3 Definition And Nature Of A Computer

2.4 Reasons For The Use Of Computer In Banking Services

2.5 Computer Crime/ Abuse

2.6 The Effects Of Computer On Banks

2.7 Computer And Banking

2.8 Misconception About Computer

2.9 Hindrance To Computer Application In Nigeria Banks;

2.10 Summary Of Reviewed Related Literature

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

3.2 Area Of Study

3.3 Population Of The Study

3.4 Sample And Sampling Procedure

3.5 Instrumentation

3.6 Validation Of Instrument

3.7 Reliability of the Instrument

3.8 Method of Data Collection

3.9 Method of Data analysis

CHAPTER FOUR

4.0 Data presentation and Result

4.1 Summary of result

CHAPTER FIVE

5.1 Discussion of result

5.2 Conclusion

5.3 Implication of the study

5.4 Recommendation

5.5 Suggestion for further study

5.6 Limitation of the study

References

Appendices

ABSTRACT

The study is a survey, which sought to establish that computer system in Nigeria banks has improved the services rendered by banks. The problem of the study were stated, including the purpose and significance of the study and also there was the review or related literature.

Questionnaire was the instrument used for the study. The (80) eighty members of staff of first bank of Nigeria Plc. Enugu main branch were used for the study.

The result obtained from the questionnaire ere analyze. The purpose of the study was to find out, whether fraudlent practices in the banking services has reduced by the use of computer, spend in the bank hall and to find also services computerization has improved. The questionnaire was distributed to eighty respondents and was recovered.

The researcher made the following findings- that computerization has improved the services rendered by banks. This was proved through the analysis of data collected using research question. The Nigeria bank was faced with the problem of inadequate infrastructures and manpower etc.

The investigator made the following recommendation; there should be provision of event facilities (manpower and adequate infrastructures) to boost.

CHAPTER ONE

INTRODUCTION

FIRST BANK OF NIGERIA PLC (FBN)

Banking services in Nigeria dates as far back as 1892, when the African banking co-operation was established. In 1894, the banks were amalgamated by British bank of West African when the latter was established in Nigeria. It is this same British bank of the West Africa (BBWA) that has grows in dimension and dynamission, changing and its organizational name relatively to such sources of change and following government directives. It grows from British bank for Africa to standard bank of Nigeria (SBN) and currently known as the First bank of Nigeria Plc (FBN) Plc.

In fantasy, one is tempted to think that the new name of the bank symbolizes the chronological position it occupies in banking industry in Nigeria. First bank in Nigeria that have introduced the use of computer into its banking systems.

1.1 BACKGROUND OF THE STUDY

A computer is electronic devices, which store on magnetic layer, diskette, hard disk etc. analyze and produce information as required from the data on them.

Computer operators at an electronic speed and logic. It can perform large repetitive and complex, calculation with utmost accuracy and at astonishing speeds. For centuries, record keeping has been manual, mechanical and develop through the age of machine assisted into the resent day computer age in which we are in.

The computer is our advanced technological innovation, which has evolved as product of our modern society and it is a modern age tool ion management.

Although the computer is a " child of our modern day society". Many people approached the subject with apprehension and in certain cases developed absolute fear for this device, the reasons for all these are obvious. The computer came upon the whole world so quickly and it is sure now to affect our various lives in so many different ways. This coupled with the general lack of knowledge of what computer is, given rise to a way of anti-computer feeling.

The application of computer in Nigeria is a very recent phenomenon. Its use in the business sector in Nigeria economy is also very new and has not bee fully integrated into business sector. Bank on the other hand has been the essence of this device in trying to actually carry out its function on the economy, and have now started brining in the computer into various financial services offered to its customers.

Manual keeping of information and manual processing of data/ accounts of the customers is extremely slow and cannot cope with the increase sophistication of customers demand and volumes of transaction this modern time. It has been said that the horse was replace by motor vehicle not because it is that much more convenient, but because the horse has become inefficient from the economics view point. For instance, if a manual operator which involves the processing of information on three thousand salaried people, the cost involved in this type of operation in numerous viz, personal cost, retirement, scheduling cost etc.

The enters the computer. The computer would not involve much cost rather it will perform the work more speedily than a manual operation.

Computer system has played some major role in the Nigeria banking sector, but it is still a very recent development and are not making adequate effect in the banking industry because not all banks in Nigeria have actually gone computerized. Those which have gone into computerization, have only certain or far department computerized, which those Nigeria banks which have not gone into computerization are still looking into possibilities of being computerized.

However, the coming of computer as earlier stated has some of this attendant problems, but looking at it very critically, it might be a serious problem to the banks. These are personnel and fiancé cost./ these are five necessary thing which must be available before any banks can go into computerization. Personnel are very necessary for the effect running of any computer.

This is why Charles A. Myres in his book said that computer good or evil computer is being operated by human beings only. As stated by Charles A. Myres.

My computer can read, that is input, my computer can add, that is output. it can as well remember better than, man, that is memory. But my computer cannot love, that is in human being. All these added to the necessity of trained personnel for the effective running of computer.

In conclusion, the computer is an intellectual tool which contributes to output, by increasing efficiency and it is tool that is capable of performing pre-determined tasks, faster and more accurately now.

1.2 STATEMENT OF PROBLEM

High incidence of indiscipline, disloyalty and fraudulent practices, are still seen in the banking sector, notwithstanding the presence of computers, there are still cases of poor record keeping, missing ledger card, improper accounting procedure and hence mis-management in the banking firms.

This has brought high incidence of fraud and incredible ill practices in the industry.

Poor management of banking industry, be it the members of the executives or the general staff, is another contributing factors that ushered in the high incidence of indiscipline and cheating in the banking circle. The quality of the bank account records accuracy, completeness and validity of information available from the bank and internal control system of most of the banks are in complete disarray.

The use of computer is expected to reduce the length of time spent by customers before being served in the bank. But the fact is that customers still spend a bit of time in the banking hall despite the use of computer. This has risen a question as to the effectiveness of computer in the banking industry. In developed nations like America, Europe and Japan, all banks operations are computerized in order to keep with the sophistication of their customers, but with manual practices still existing in Nigeria banks, customers are unnecessarily delayed during processing of their documents and money counting. Despite the fact that most banks claiming to be computerized in Nigeria, not all of then have really gone computerized. The ones, which have gone into computerization, have only few departments, while banks which have few department.

Computerized, while banks, which have not gone into computerization are still looking into the possibilities of being computerized, which is due to the problems of personnel and financial cost.

Banking services not to have changed for better despite the use of computer system in the banking family. Some banks services like revisions of night sage facilities, issuing of cheque cards are not practiced at al in most of our banks. Also other services practiced in developed countries, banks like dispensing services, automated teller machine, introduction automated teller video, home banking, data base, online system of computing and micro-computers are found in banks at USA, Europe, Japan etc in order to keep with sophistication of their customers.

1.3 OBJECTIVE OF STUDY

The objectives are as follows

1. To find out, whether fraudulent practice in the banking services has been reduced by the use of computers.

2. To fine out, it computerization of banking services has reduced the time customers spend in the banking hall.

3. To ascertain, whether banks have varied for better with the introduction of computer in the banks.

4. To discover how far computerization has produced communication system/infrastructures in is plight to produce more information for efficient, management.

1.4 SIGNIFICANCE OF THE STUDY

Since computerization have been found to play a major role in increasing the efficiency of banking service in the various industries or firms including banking industry. The research into the effect of computerization in banking industry becomes important.

This is necessary, because it would give very good understanding of what computers are and its contributions of increase efficiency in our banking system.

However, works on computers in business and banking in recent times have only tried to look into the development of soft-wares and hard-wares for different services, but this research will look into the effect of computer system on our banking industry and highlighting the problems that have passed stresses to the adequacy of computer system in the banking industry.

The findings of this study are expected to help banks company (i.e) and other business enterprise to know the extent or how far computerization have gone into the banking industry in Nigeria.

It will also enable banks know that there is no comparison between Nigeria banks and other banks in developed world. The discoveries and recommendation, if implemented by banks will improve their standard in the level of computerization and increase their level of efficiency in their general transaction. This still increases both the banks and customers relationship.

1.5 SCOPE OR DELIMITATION OF THE STUDY

The researcher's study limited to the First Banks of Nigeria Plc. Enugu main branch where actual computerization of some banking service has been introduced.

The research would also be carried out through a case study which will be more realistic than a survey in Nigeria but a case study would be more realistic one for the purpose of the work. This also limits the work to a certain bank viz. first bank on Nigeria Plc.

Through, the research tries as much as possible to get the general view on the general computing in banking industry but thin work could emphases on the effect of computerization in Nigeria bank, which was the purpose of the work.

1.6 RESEARCH QUESTION

A field study using questioned and schedules of interviews was chosen to accomplish the objective of this study, which is summarized in the following research questions.

1. Has the computerization of the banking industry improved the service rendered by banks in Nigeria?

2. Has computerization reduces the incidence of fraudulent practice in the banking sector?

3. Has computerization of banking sector reduced the time customers spend in the banking halls?

4. Has computerization of Nigeria banks introduced more information for efficient management