AN EVALUATION OF COMPUTER IN BANKING SECTOR
(A case
study of Access Bank plc Kaduna)
TABLE OF CONTENTS
Title Page – – – – – – – – – – i
Declaration – – – – – – – – – – ii
Approval page – – – – – – – – – iii
Dedication – – – – – – – – – iv
Acknowledgment – – – – – – – – – v
Abstract – – – – – – – – – – vi
Table of contents – – – – – – – – – vii
CHAPTER ONE:
1.0 Introduction – – – – – – – – – 1
1.1 Background of the study – – – – – – – 2
1.2
Statement of General Problems – – – – – – 2
1.3
Objectives of the study – – – – – – – 4
1.4
Research Question – – – – – – – 4
1.5
Significance of the Study – – – – – – – 5
1.6
Scope of the study – – – – – – – – 5
1.7
Historical Background of
United Bank for Africa- – – – 6
CHAPTER TWO: Literature Review
2.0 Introduction – – – – – – – – 9
2.1 Meaning
of computer- – – – – – – 15
2.3 parts
of computers – – – – – – – 20
2.4 Computer
hardware – – – – – – – 28
2.5 Computer
Software – – – – – – – – 28
2.6 Computer
Network – – – – – – – – 32
2.7 Computer
security – – – – – – – – 36
2.8 The
need for computers in banks- – – – – – – 38
2.9 Effects
of computerization in Access Bank plc – – – – 39
CHAPTER THREE: Research Methodology
3.1 Introduction – – – – – – – – – 47
3.2 Population of the study – – – – – – – 47
3.3 Sampling Techniques – – – – – – – 47
3.4 Source and method of data collection- – – – – – 48
3.5 Method of Data Analysis – – – – – – 49
3.6 Justification
for the instrument used- – – – – – 50
CHAPTER FOUR:
4.0 Presentation and Analysis of Data
4.1 Introduction – – – – – – – – 52
4.2 Data
Presentation – – – – – – – – 52
4.3 Data
Analysis and Interpretation- – – – – – – 56
4.4 Testing
of hypothesis – – – – – – – 60
CHAPTER FIVE
5.0 Summary, conclusion and Recommendations
5.1
Summary – – – – – – – – 68
5.2
Conclusion – – – – – – – – 68
5.3
Recommendations – – – – – – – 71
Bibliography – – – – – – – – – 72
Appendix – – – – – – – – – 36
CHAPTER ONE
1.0 INTRODUCTION
The role in which the computer plays in our
everyday lives cannot be overemphasized. In fact, the computer is one of the
greatest things that has happened to mankind and it should not be seen as a
mere invention but a “revolution”.
One may be wondering how the world would be
without computers and how we would actually cope without it. Before the advent
of computers in early 1980’s, most of man’s jobs were performed manually and
mentally, which were tedious and tiring and of course, these approaches did not
provide desired results because the rate of productivity was very low. But now,
we have an inevitable, non-living assistant to mankind known as the computer
which simplifies the manual and mental procedures, enhances efficient mass
handling of data and information and facilitates greater periodicity.
As the topic suggests, “An evaluation of
computer in banking sector” this project work focuses on the impact of computer
in banking with Access Bank Plc at Au Akilu Road, Kaduna being the case study.
Bankers have enjoyed the benefits of
computerized banking over the years and they would testify that computer has
done much good to banking sector. In Access Bank Plc banking services have been
improved and even the customers can feel the efficacy of computer in the wide
range of services provided by the bank.
It should be borne in mind that the computer
does not only enhance banking services, but also other areas like Accounting,
Agriculture, Education, Commerce, Medicine, Engineering, Communication, Aviation
and Military to mention a few.
1.1 BACKGROUND OF THE STUDY
Years ago, banking services were not
dependent on computer. Actually these banks performed their functions manually.
With the manual procedure in those years a lot of work has to be done just by a
few staff and this perform the tasks that a man-made device would have done
just in the “twinkle of an eye”. Obviously, the computer has helped a bank like
Access Bank Plc to employ just few staff and computers to execute various tasks
that and would have been performed by many staff for days. Computer provides
the banking sector with great packages that help various banks enhance the
services provided to customers. We shall be looking at this later in the course
of this project report.
1.2 STATEMENT OF THE PROBLEM
Every individual including those in the
banking sector knows that computer plays a key role in the day to day
activities. But at this juncture, there is a need to state the inherent
problems associated with the invention of computer.
In banking, Access Bank Plc. to be precise
the researcher came to understand that most, if not all of the work carried out
in the bank are performed by computers. This is good because they make our work
faster, but where the problem lies is that human beings (ie the users of
computer) have totally submitted to computer as if without computer, no work
can carried out. Remember that these computers were made and configured by
human beings so, the computers should be put in their rightful place. Note that
the adverse effect of over-relying on computer leads to laziness on the part of
staff of an organization.
Also, human effort is affected. Most of the
computerized efforts in the past years were taken care of by humans. Today in
banking for example, in the account section various transactions or
documentation are performed by computer, instead of men and women. But the
efforts of these people are obviously not needed. Therefore computer gives room
for more and it does not allow humans to exercise their mental and intellectual
abilities.
The problems associated with this study are
many that one can go on and on to list and discuss them one after the other.
This is the reason why the researcher has embarked on this work to point out
the significant role computer plays in banking sector.
1.3 OBJECTIVES OF THE STUDY
The general aim or purpose of this study is
to discuss the refe computer plays in banking sector. Specifically, the study
is set out to:
i.
Investigate why banks switched to the use of computer
system.
ii.
Attempt to identify and analyze the effect of computer to
Access Bank Plc.
iii.
Expose to readers the role played by computer in the
activities of banks.
iv.
To appraise the failure (if any) or weaknesses of
computer in Access Bank Plc.
v.
To expose industrial corporate bodies and other financial
institutions to the role which computer can play in the activities of the bank
vi.
Finally, to recommend to users certain computing
procedures that will enable the achievement of effective and efficient banking
1.4 RESEARCH HYPOTHESIS
The hypothesis of this work shall be:
HO (Null Hypothesis)
That the application of computer for banking
purpose, has not enhanced the performance of banks
Hi (Alternative Hypothesis)
That the application of computer for banking
purpose, has greatly enhanced the performance of banks
1.5 SIGNIFICANCE OF THE STUDY
This study is significant because it will
enable the following class of people to benefit a great deal from the findings
that are contained in this research work:
a. Firstly, it will enable other merchant
and commercial banks that have not gone computerized to know the importance of
computers and benefits they will derive through the use of the computerized
systems
b. It will help to determine whether
computer knowledge is a must for banking operations and professional
accountants alike
c. It will also be of great significance
to potential and existing customers of Intercontinental Bank Plc. and of other
banks to know the relevance of computer
(d. The management and staff of Access Bank
Plc, related organization and the entire public will benefit from this because,
they would know what computer is, its, functions and how it has contributed
immensely to banking sector. This study will also be of importance to future
researchers alike who can base their research work on if for others to benefit.
1.6 SCOPE OF THE STUDY
This research work focuses on the role that
computer plays in banking sector. The study is carried out in the data room of Access
Bank (Nig.) Plc Kaduna, located at Au Akilu Road, opposite Mobil filling
Station. It covers some practical application of computers in its locale. A
detailed study shall be made of all the departments in the place of study, as
most of the fields of operations were computerized at the time of writing this
project work, as well as other relevant areas where we can acquire more
information. The findings of this study will primarily be based on the data
collected from the case study.
1.7 HISTORICAL BACKGROUND OF ACCESS
BANK PLC.
Access Bank Plc. came into existence in March
1989 as a product of the partnership among some visionary and dynamic Nigerian
businessmen to provide innovate and customer focused products and services that
will satisfy the Public’s growing need for sophisticated banking services.
Since its inception as Nigerian Intercontinental Merchant Bank Limited, the
bank has been providing a wide array of products and services covering
investment banking, retail funds management and credit management.
The bank is managed by a dynamic, versatile
and result-oriented team and easily won national acclaim by emerging as the
most profitable merchant bank just five years after its take-off. Over the
years, the bank has grown to symbolize innovation service excellence and
professionalism, with a diversified group structure spanning the various areas
of the financial service business. The group is today made up of vibrant
commercial banks: Equity Bank of Nigeria Plc. Gateway Bank and Global Bank and
a flourishing insurance company, WAPIC Insurance Plc.,
Access Capital Markets Limited (ICML) and two
associate companies: Access securities Limited and Associated Discount House
Limited (ADHL). The discount house bought into Gateway Bank Plc. And owns
controlling interests; while Equity bank has investment in Pioneer sorting
Company Limited.
In July 1999, the bank converted to a
commercial bank and later obtained a universal Banking License to avail many
more customers of its unique and customized products and services as well as to
tap into other market opportunities in the Nigerian economy. Following a
resolution of the Board in October 2001, the bank changed to a public limited
liability company in June 2002 and followed it up in July same year with an
initiation public offer (IPO).
The capitalization of the bank has since been
further boosted with N3.58 billion being proceeds of the lPO and by mid 2004,
the bank’s capitalization had hit N8 Billion before the new minimum
capitalization of N25 billion was set by the regulations. Subsequently, the
bank went back to the capital market and returned impressively with its new
capitalization hitting over N34.7 billion. The bank’s shares are listed on the
Nigerian stock Exchange (NSE). In the current financial report, the group
posted
N8.1 billion profit before Tax and N6.1
billion profit After Tax. Presently all these parameters have made Access Bank
the fourth largest bank in Nigeria.
Following the CBN’s decision for Banking
consolidation, the bank merged out four Banks (Intercontinental, Equity Gateway
and Global Banks) into single entity. A mega Bank with the name Access Bank Plc
emerged on the 10th October, 2005. The mega bank now has capitalization
in excess of N50 billion in shareholders fund, total asset of N354 billion.
Total deposit in excess of N216 billion, foreign currency lines of $182 million
and a total branch network of 174 branches as at October 2005.
Access Bank Plc offers a full range of
products coverage a wide spectrum of the market. These include but not limited
to Access diamond Fund (IDF), Intercontinental valuable Yield Account (IVY), Access
Premium savings account (IPSA) and the Access Classic Current Account
(I-CLASS). The bank has also been licensed as a direct agent for Western Union
money Transfer as well as a principal partner licensed by Master Card
International to issue Master Card and by Inter Switch Limited to issue debit
cards in Nigeria.
A socially responsible organization, Access
Bank maintains a long-standing policy of corporate responsibility to the communities
in which it operates. Annual investment in social responsibility in the areas
of Public Health and Education has moved up to N300 million.