COMPUTERIZATION OF BANKING SERVICE ITS EFFECT ON THE EFFICIENCY OF BANKING SERVICE IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1              BACKGROUND OF STUDY

The need for information is great and necessary in banking sector because of the nature of their business quick and accurate decision must be taken, like in the money market foreign exchange etc.  Banks must react quickly to change the interest rate and volatile variable in their operation where as in the production industries, mistakes can be rectified and losses been minimized.

Millions of naira may be irretrievably lost in the banking industries as a result of wrong decision based on increase information, computer is employed prominently by Nigeria banks at all the three management operations, management control and strategies.  Leading is the most important activity of banks.

The need for change as for effective use of computer lending office arose as a result of banks experiencing growing competition from officers lenders, funds available are thereby increase move costly time and savings with the result that the average cost of funds will be relatively higher, loans are becoming move complex and also great concern for the profitability of customer’s total bank relationship rather than profit derived from the use of specific service.  The transformation process could be seen as the management process which has to be effective to ensure the feasibility of working on the set inputs to produce not only the service, but also to come up with reasonable profit for the shareholder and the public at large.

1.2              STATEMENT OF PROBLEM

The computer has for many years been used for financial planning in Nigeria banks.  Information is required to complete every step involved in planning either objective definition and target decision, forecasting, calculating planning gaps definition constraints and means.  Through the use of computer leads to effective use of information’s, like problem awareness, support problem analysis and selection of alternative, influence the choice of most appropriate options, permit a feedback on the implementation plan which can be used for drawing up the budget for constituting investment portfolio and bank balance sheet management.

In area of organizational control In banks, the computer has been found useful, especially in terms of quick signal which bring about fast awareness of problems.

Generally, computer system makes it possible to centralize authority and control in the banking services.

1.3       OBJECTIVE OF STUDY

To examine the extent to which computerization of banks has affected or contributed to the banking service in Nigeria.  To make recommendation on how to improve the efficiency of banks in Nigeria by using computerized banking operations.  To determine the effect of computerized banking towards future development in the banking industry with an eye in the direction of improving its competitive position.

To correct unsatisfactory output i.e. Errors in deports and statement delay in processing work and need for system change.

1.4       SIGNIFICANCE OF STUDY

It is hoped that this study will help to ascertain the extent to which computerization the extent to which computerization of banking service, it effect on the efficiency of banking service in Nigeria.  These is particularly important for making bank policies which effect computerization of banking service in Nigeria and its effect, in which to achieve their arm and objectives.

It is important to note that this study will help to identify the drawback and also solve the Nigeria errors in supplying rightful information concerning banking service.

It can also be useful to the monetary authority because, it suggest the monetary & fiscal policy.

1.5              DEFINITION OF TERMS

E.F.T:-            Which means electronic fund transfer is used to link together all branches of the banks within the state/country through the use of computer, A.T.M:-  Automated teller machine are computerized equipment, which in addition to dispensing cash, allows the customer the opportunity of paying cash after normal hours.

CREDIT CARDS:-  Provides the means of obtaining goods and services, but pays on a future date.

M.I.C.R:-       This improves the cheque through clearing system by eliminating errors due to wrong setting.