CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In today world we are totally living in a computerized world and we have lost the human element. Many companies have transitioned their information totally to computers and software packages that has moved many people out 0f jobs. We are completely dependent on computers and ability to do task on our own has become very limited.
Computerization has been a revolution in the banking sector. The advent of computers has enormously increased the banking capabilities of the banks and they are able to offer better and wider range of services to their customers. Internet banking, mobile banking, ATMS etc. are all sector. Banks are able to expand at a great rate and offer services to more and more customers because of the use of computers. No organization can offered to operate effectively without adequate and timely information. Baridam (2005), said that information is very important as it serves as a guide for planning, controlling and decision making by both corporate organization and individuals. However, as important as information is, it is not sourced and kept or stored any how or anywhere, as it may be needed at any time for guide and quick action. It is therefore very demanding that information be kept in a safe place that is very easy to react, and in a manner that will be very easy to locate and identify particularly information needed.
In the past so many systems has been used store information for example Unoka in Chinua Achebe’s work little “things fall apart” used while indigos that Is a kind of chalk to mark is wall lives that signify his creditors and the amount he borrowed from each of them. The lives he marked servers as both a reminder and as well an information. Nevertheless, as a man made tremendous progress in the journey of life, he indented new way of story information. According to Hornogreen and Harrisan (2000) dinners club was the first credit card company it started in 1952 as a club for frequent dinner by a man who ran out of many at a restaurant.
Before 2005 dinner club service representatives had to start a file for each other and card holder inquiry, keep track of the accumulating paper and until it had all been received, make decision, and then contact the card holder. All these file work kept on a paper work. The personal card group handles about 10,000 pieces of correspondence a month, so there was a lot of clerical effort maintaining the paper files; with the image of processing system which can convert pictures, drawings and written characters to machines in readable form. All correspondence to this personal utilized image is stored on an optical storage system and given four indices for retrieval purposes date retrieved. Date of credit card change account number and amount. From then, only the electronic images are used, the paper is discarded. Information in computer is very important to both corporate organization, governmental and individuals. But the banking sections benefits more from individuals of computerization. Specially the commercial banks than any other section.
According to Ajiel and Ezi (2000) commercial banks performed the major function namely acceptance of deposit, granting of loan and the operation of their payment and settlement mechanism. In other to perform the mentioned functions efficiently and effectively, electronic banking has been invented to replace the old way of traditional banking operation. According to I .N.UCHIME (2OO7) unpublished in Nigeria electronic banking is an innovation whereby the banking operation and either partly or entire computerized. It is therefore, expected that just as money system replace the barter system and solves problems of long time spent in searching for coincidental goods about from one problems of carrying heavy goods about from one market to the other so also electronic banking should solve the problem of long queue in the banking hall, much time spent in truncation (dropping) business in bank as well as the problem of carrying voluminous amount of money from one place to another.
However, it is globally belief that the computers are able to provide useful information if properly fed with a reasonable or it will result in “garbge in garbage out” the use of computer to carry out a very wide range of activities for work, study and leisure has become part of our everyday life. It is no longer something that you may want to use if you are interested; rather like motor car it is an essential part of our lives. We are constantly told that anyone can use a computer, and in some extent this is true. As we become more and more upon technology this will not be enough computer in commercial and industrial setting have been around for several decides, nothing new about that. What is new however is the availability of computing power at modest cost to managers and workers throughout business organization and banking sectors However, in the banking sector computer has been used in various areas carrying out their day to day activities.
1.2 STATEMENT OF PROBLEM.
Modern technology have brought about the use of computer system in all areas of our human endeavor’s in Nigeria and other African countries workers see this as an attempt to replace them and to result into mass retrenchment or close their jobs. They always believe that where computers are installed will require less human effort to perform the desired operation. The problem of this study can be stated as; does the computer effectively assist in the banking sector?
In some banks customers spend too much time waiting to attend to and at earlier pointed out. There is delay in payment of cheque which leads to the adaption of electronic banking transaction system. Adoption of electronic banking which suppose to ease banking transaction rather resulted in woes to costumers. Most people complain of time wasted in banks, this occurs when there is power in banks resulting to slow down in operation.
Another problem that emerged was that banks do not Have information backup to fall back on should there be any computer break down in investing in electronic banking, the country will need large amount of financial resources in computer technology obviously, the resources is in short supply in Nigeria couple with high level of poverty. For an efficient functioning of electronic payment system, there must be availability of a infrastructural facility such as electricity and telecommunication network, however, power supply fluctuate and there is still constant failure links in networks. Since earlier 2000, banks have been developing and introducing payment card, for the customers as well as deploy ATM’s cards usage was however low due to lack of inter-connectivity i.e switching platform to interconnect the ATM’s for car holders.
EFFECT OF COMPUTERIZATION ON THE DEVELOPMENT OF THE BANKING SECTOR.
