APPLICATION OF computer TECHNOLOGY TO COMMERCIAL BANKS IN NIGERIA
APPLICATION OF COMPUTER TECHNOLOGY TO COMMERCIAL BANKS IN NIGERIA
CHAPTER ONE: APPLICATION OF COMPUTER TECHNOLOGY IN COMMERCIAL BANKS IN NIGERIA
1.0 BACKGROUND OF THE STUDY
Commercial banking in Nigeria began in 1892, with the establishment of the Bank of British West Africa (now the Bank of Nigeria). This was followed in 1917 by the Barclays Bank, which is now known as the Union Bank of Nigeria.
These two banks dominated the Nigerian banking scene until 1933, when the National Bank of Nigeria Ltd was created. The country's first successful indigenous commercial bank was created (albeit the national deposit insurance institution NDIC advised the financial firm in October 1992).
The bank owed the NDIC approximately N1 billion and had a negative asset assessed at N1.8 billion, indicating that the bank's liabilities exceeded its assets.
As a result of the NBN Ltd's success following its establishment. Between 1933 and 1951, several Nigerians attempted to establish commercial banking firms.
However, many collapsed because to poor management and undercapitalization. This was scarcely surprising given that there was no legislation of any type to halt the bank's operations, and there was no central bank to supervise and help in the establishment of the financial system.
The Banking Ordinance of 1952 was Nigeria's first attempt to establish a regulatory framework for the establishment of a strong banking system. The fact that the central bank of Nigeria (CBN) was founded at the beginning of the period (1958) influenced commercial banks' activities during the period (1959-1966).
The primary functions of the Nigerian Central Bank are as follows:
i. To print legal tender cash in the country
ii. maintaining the naira's external international worth
iii. To encourage monetary stability and some form of financial structure
The Nigerian Central Bank is also in charge of growing the country's money and capital markets. The CBN also acts as a banker and financial adviser to the federal government of Nigeria, as well as a banker to other banks in the country,
so one can say that the establishment of the CBN led to a continuous strengthening of banking in Nigeria, and that today, there are more than 50 commercial banks in Nigeria with balances all over the country, despite the fact that it was established relatively recently (1959-1966).
In general, commercial banks play a significant role and have a significant impact on the economic, social, and political spheres of any nation when it conducts dual debt transactions.
The importance of information technology in commercial banks cannot be overstated. Banking entails thousands of daily transactions, and records may be required for references, cross-checking, and account records.
Once a transaction is made, it must be recorded in a specified form, such as cheque settlement, the provision of regular debits, and credit exchange transactions.
In one case, most bank transactions are computerised and data processing and computer allows these functions to be performed accurately and quickly because computers are machines that by design are able to accept, process, and retrieve information. The main advantage of computer in performing these functions is its speed, accuracy, and large storage capacity.
Communication is critical in banks since banks cannot operate in isolation and must deal with correspondents in other financial centres. It must maintain consistent communication with its other affiliates and reporters in Nigeria.
The central bank issues operational instructions to all banks. Telex, Facsimile (Fax), electronic mail stations, satellite modems, and other communication (information) technologies are available.
1.2 STATEMENT OF THE PROBLEM
Computers are increasingly becoming indispensable nowadays, with many home and office tasks that were previously performed manually being automated at a rapid global scale.
As a result, it is becoming clear that in whatever discipline of study or nature of employment computer is now an important tool for efficiency improvement and precision of job or task execution, but despite this, very few researches have been conducted into areas of computer applications and in
The project's goal is to look into every conceivable application of computer and information technology in the Nigerian commercial banking business. The following issues will be addressed by the stud:
1. How trustworthy is commercial banking's use of information technology?
2. How effective and efficient has the application of information technology improved the execution of a specific job or task?
3. What efforts should be taken to reduce paper consumption and computer storage capacity?
4. Is the use of information technology so precise and quick in operations?
1.3. SIGNIFICANCE OF THE STUDY
The increasing importance of computer and information technology in today's business world accounts for the need for this research. The evolution of computers and their increasing effects on the way we do things today is crucial to discuss.
i. This is for readers and businesspeople to have an understanding of how far and how successfully humanity has progressed in integrating technology to our daily lives.
ii. It is also to advise banks and other sectors on how the nature of their operations would look when computerised, as well as to provide a platform for other institutions to discuss the relevance of computers in today's banking operations.
iii. The research will also be beneficial to both individuals and businesses in terms of long-term growth and development.
1.4 OBJECTIVES OF THE STUDY
The purpose of this research is to evaluate the use of computer capacity in the banking business through the following specific objectives.
a) Gather information about computer development and its application in the banking business.
b) Determine whether or not compute is being used effectively in banks.
c) To advance policy implications and proposals that may improve the prospects of computer utilisation in the banking business.
d) To gain knowledge of computer development and its trends in the banking business.
The goal of this study is to investigate the hypothesis that:
Ho: The introduction of computer technology to commercial banks is not a key tool for increasing efficiency and job precision.
H1: The introduction of computer technology to commercial banks is a significant tool for increasing efficiency and work precision.
1.6 SCOPE OF THE STUDY
This work is restricted to computer usage in commercial banks. Since their inception in Nigeria, the study will focus on union banks, as well as the storage of information systems to determine how information is used in commercial banks step by step. This study's scope will include all information technologies employed in commercial banks.
1.7 limitations OF THE STUDY
It is critical for the researcher to state anything that has hampered their efforts during research to gather resources required for profit.
i. The researcher must consider the time constraints imposed on him or her in order to present the entire work.
ii. Due to a lack of funds, it will be difficult for the researcher to personally visit all Union Bank offices.
iv. Obtaining information from bank employees may be difficult.
iv. Inadequate appointment keeping by some of individuals chosen for interviews, i.e. some of those picked for interviews do not maintain the time of their appointment with them.
1.8 DEFINITION OF TERMS
A computer is a machine that follows instructions to process data, solve a given problem, or complete a certain task.
Programme data refers to the instructions that operate a computer when it executes a task. The phrase data refers to a symbolic representation of facts about people, objects, and places that are raw or undesirable in their current state and must be changed into a refined or desired state.
Banking is the process of accepting deposits and issuing loans.
A record is a collection of connected items or fields that perform a certain item, unity, or entity procedure: A system flow chart's written description: A system analysis technique that displays procedures graphically.