THE EFFECT OF COMPUTERIZATION ON THE PERFORMANCE OF NIGERIA BANKS A CASE STUDY OF AFRI-BANK NIGERIA PLC)

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Product Code: 00001777

No of Pages: 60

No of Chapters: 5

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TABLE OF CONTENTS

 

                                                                                                PAGE

 

Title page                                                                                i

Certification                                                                           ii

Dedication                                                                              iii

Acknowledgment                                                                   iv

Abstract                                                                                  v

Table of contents                                                                    vi-viii

 

 

CHAPTER ONE

1.0     Introduction                                                                          

1.1     Historical background of Afribank Nigeria Plc.                           

1.2     Statement of the problem                                                     

1.3     Purpose of the study                                                             

1.4     Research question/ Hypothesis                                                       

1.5     Significance of the study                                                       

1.6            Scope of the study

1.7            Definition of terms

Reference

                                               

 

CHAPTER TWO

2.0     Introduction                                                                          

2.1     Evolution of Banks in Nigeria                                              

2.2     Manual operation in banking                                                        

2.3     Computerization of Banking Operation                                       

2.4     The Accounting and the computer                                       

2.5            Internal control of computer in banking operation

2.6            Computerization in Afribank Nig. Plc

2.7            Challenges resulting from 25 Billion Recapitalization of Afribank Nig. Plc.

Reference

 

CHAPTER THREE

3.0     Research Methodology                                                

3.1     Research design                                                           

3.2     Population of the study                                                         

3.3     Sampling design and procedures                                         

3.4     Data collection instruments                                                   

3.5            Procedures or method for data analysis

Reference                               

 

CHAPTER FOUR                          

4.0     Data analysis and presentation of findings                                   

41.     Introduction                                                                           

4.2     Data presentation                                                                  

4.3            Test of hypothesis        

Reference                                                  

 

CHAPTER FIVE

5.0     Summary, conclusion and recommendation                                 

5.1     Summary                                                                                        

5.2     Conclusion                                                                   

5.3     Recommendation                                                                  

          Bibliography                                   

          Questionnaire

 

 

                                                         

CHAPTER ONE

1.O    INTRODUCTION

There is no doubt, we are in the information technology age of which the computer plays a very active role. This has invariably turned the whole world into a global village with new innovation setting in a rapid succession.

 

As a result, banking industry like any other industry, has attempted in utilization of capabilities of the computers in order to improve service and confidence on the part of their customers as well as tap the computerization to improve on their own efficiency.

 

In actual facts, computerization has achieved a lot in solving a major quieting problem in banking halls couple with serious delay to that is rather known as one stop banking i.e. you get into the bank and get any financial service need for them. This has made some banks very successful since the same services can be rendered better and at a faster rate than what can be obtained from another place or bank that is not computerized.

 

 

1.1            HISTORICAL BACKGROUND OF AFRIBANK NIGERIA PLC

Afribank Nigeria plc  was granted a license to carry on banking business on 20th October, 1959 and began operation with the opening on 4th January, 1960 of a branch in Kano and other shortly afterwards in Apapa, Lagos and

                                               

its head office subsequently established in 1961 at No 94 broad street, Lagos.

         

In 1964, the bank originally owned by a Banquede L’Afriqqu Occidental (BIOA) to reflect 49% acquisition of first National City bank Incorporation. The bank was later incorporated as a private limited company under the Nigeria Company decree 1968 on 30th May, 1969. In 1976, the Federal Government of Nigeria acquires 60% ownership of the bank equity share out of which 10% was later transferred to the staff to bring the government holding to 50% while BIOA retained 40% shareholding as a technical partner.

 

Later in 1980, the bank share capital increased from N3.6M to N6m. that also saw the bank having its first Nigeria chairman in the person of Alhaji. T. Galadima. Today, Afribank is one of the most diversified banks in the country with the following wholly owned subsidiaries.

1.                 Afribank International Limited (Merchant Bank)

2.                 IBWA Finance company, Dublin, Republic of Ireland

3.                 Afribank Estate Company Limited

4.                 The Afribank Insurance brokers

5.                 The African finance company limited.

 

In the finance industry, Afribank now occupied on equitable fourth

                                               

position. Its has network of branches covering the entire country with the aid of financial core and Globus software enable them access to all their customers accounts in all their branches.  There is no delay of getting to where you open an account before you withdraw money except when the network fail which is or common. A wide spectrum of corporate institutions and customers enjoy the professional services of the bank in meeting their financial obligations and objectives.

 

The bank mission is to achieve the position of a leading international financial institution providing comprehensive and quality banking and financial services and its structural according through three (3) directorate structure each headed by an executive director as follows

 

·                    Banking operations, which is responsible to branches operations and equally in charge of mortgage and agricultural finances as well as recoveries and security.

·                    Finance and corporate client, which enhance the quality of services, rendered by the banks as its combine computers applications with the aids of Globus software to make their services fast and attractive in corporate finance.

·                    Corporate development and services, which is, charged with the management of human and materials resources of the banks.

 

 

1.2            STATEMENT OF THE PROBLEM

A major problem that had faced Afribank Plc, is the common method in use, that was manual operation and this made their performance and services to be too slow, boring and unattractive. Some operations were computerized and some are not but with the introduction of computerization, there is rapid improvement in their services and activities as well.

 

Obviously, before introduction of computer technology, customer statement of account was not being promptly made available, sometimes for remittance of periodical returns to be Apex bank, Central Bank of Nigeria. But with the introduction of computerization, statement of account is being promptly provided and it also affords easy and speedy preparation of returns to the Apex bank.

 

1.3            PURPOSE OF THE STUDY

To investigate and analyses the role of the computer in the services of the banking industry.

 

To access the effect of computer ha affected customer’s satisfaction.

 

To find out the advantages gained in using the computer.

                                               

1.4            RESEARCH QUESTION

This study will attempt to find reasonable solutions to the following questions:

 

What effect does computerization perform in banking operations?

 

In what ways has computerization helped and reduced unhealthy performance in banking system?

 

How have the introduction of computer in the bank improve the efficiency and effectiveness of the banking operations?

 

Is there any major difference is computer operation in the banking sector compare to any other commercial sector?

 

What are the problems encountered in computerization in banking activities?

 

HYPOTHESIS

Ho:             Computerization has brought changes in the work Structure of banks.

 H1:             Computerization has not brought changes in the work Structure of banks.

 

                                               

Ho:             Computerization has eliminated the chance of fraud in the

                   banking industry.

H1:              Computerization has not eliminated the chance of fraud in the banking industry.

 

1.5            SIGNIFICANCE OF THE STUDY

The role of the banking industry in a nation economy cannot be over emphasized. It can be likened to the oil, which the entire industrial set up may ground to a halt, the basic services provided by banks industry includes: relieving money (deposit) from outside sources for safe keeping based on the payment of an interest charged to the banking, giving out loan to credit worthy customers, purchase and sales of foreign currency for and behalf of customer’s and money transfer. By mobilization savings and creating credits, the banking system performs a vital role in the over all development of a nation. It is the business of banks channel resources saved with them to those sectors of the economy that need the funds for their operations. Moreover, with the application and utilization of computers system in the banking industry, banks can derive benefits from the computer system which includes improved job efficiency in the area of the mental physical human resources which can be directed towards more intelligent and more decisional tasks against the procedural repetition

                                                         

 

activities which the compute can efficiently and accurate services, fraud  

 prevention or detention (through the computer audit trail) effective account ability, better customer satisfaction, most current information (through the computer on-line validity procedure) easy and friendly (yet security conscious) access to information and the effective and efficient usage sharing of the stored information. Computer has been found very useful and quite interesting too not only in a typical office or banking environment but also at home and other business out let and even in purely manufacture set-up.

 

1.6            SCOPE OF THE STUDY

This research work shall entail a brief survey of the effect of computerization in the banking industry, it must be pointed out at his early stage that despite the great interest the researcher have in this topic, the research study will not be regard as being perfect. This research work, which include:

i.                   Scope: The scope of the study is limited to the effect of computerization in the banking industry.

ii.                 Time: Since time is very precious the study would be limited to whatever information that is available within the reasonable time.

iii.              Effect: the major constraint to the research work is the effect of computerization on the performance of Nigeria banks.

 

1.7            DEFINITION OF TERM

BANK: A bank can be defined as the body of person whether incorporated or not who carry on the business of banking (Bill of exchange Act 210)

GLOBUS SOFTWARE: This is the software used which enable them access to all their customers account in all their branches so that there will not be any delay of getting to where you open an account before you can withdraw money except when the network fail which is not in them or common.  Globus software aids their services fast and attractive in corporate finance

MONEY TRANSFER: With the help of computerization, money transfer is easily to occur without any problem encounter in as much as the procedure has been put in place the money will definitely shown in the account of the customer.

CREDIT CARD: Through the help of computer it is easily to cash money and where in as much as there is money in the account and the pin code is not being used by any other person which attract to fraud committed by another person.

FINANCIAL MARKET: Bank cal also be called financial market where service provided by banks industry includes: relieving money (deposit) from outside sources for safe-keeping based on the payment of an interest charged to the banking giving out loan to credit worthy customers, purchase

and sales of foreign currency for and on behalf of customers and money

transfer.  By mobilization savings and creating credit, buying and selling of security for account and others.

COMPUTERIZATION: Introduction of computerization into banking industry improved job efficiency in the area of mental physical human resources which directed more intelligent and more decisional tasks against the procedure repetition activities which computer can provide accurate services, fraud presentation or detection, effective account ability, better customer satisfaction, most current information through the computer on-line and access information usage sharing and storing.

 

Section (1) explains that an Acceptance house means any person in Nigeria who transacts banking business and whose business mainly consist of granting acceptance facilities or whose operation are in the opinion of the central bank, those of an “Acceptance House” and “Discount House” means any personnel in Nigerian who transacts banking business whose business mainly consistent of trading in bills of exchange, treasury bills or other securities. In addition to engage is major actives of acceptance house, discount house, and Afribanks are highlighted by the decree, Afribanks perform a common activity of all banks – the Business of banking which the 1969 decree defines as the business of receiving money from outside in form of deposit, irrespective of the payment of interest or

the granting to loans and acceptance credit or the purchase and sale of security for accounts of others or the incurring of the obligation to acquire claims irrespective of loan prior.

 

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