1.1 BACKGROUND OF THE STUDY 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;
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;
In order to eradicate or minimize al 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)
1.3 OBJECTIVE OF THE STUDY The aim of this study is to examine the importance of application of computer to banking operations with regards to efficiency, profitability, effectiveness of computer operation to the realization of the set goals in the banks and economy as a whole. Also this study or research will enable us to know the various problems that have been associated with banking industry and its operation can be averted or reduced through modern technology computerization.
1.4 SIGNIFICANCE OF THE STUDY Computers have replaced the crude mechanical and manual system of recording, analyzing and typing of banking information. New greater qualities of data can be processed at greater speed and accuracy.
1.5 RESEARCH QUESTIONS In order to properly address this issue, the following questions were formulated to investigate and analyze the responses of the people on the impact of computerization in the banking industry. The questions are;
1.6 SCOPE OF THE STUDY The Scope of this study is on the assessment of impact of the computer on banking operations. This tends to provide enabling environment for technology driven bank services in making effective planning, organization and implementation of the policies of the organization through computer. Introduction of computer networks similarly created a new banking culture that granted customer flexibility in services delivery through wider choice of transaction outlet given banks networks of branches. However, Zenith Bank Int’l Plc and First Bank Nigeria Plc will be studied to particularly appreciate the performances and problems encountered by these organizations.