ABSTRACT

In recent years, banking industry has been undergoing drastic changes, reflecting a number of underlying developments. Significant advancements in communication and information technology accelerated and broadened the dissemination of financial information and financial services and all these increase the complexity. Using location –based technology is a simple solution to complex, real-world problem for monitoring of distribution/location of financial institution in finding or selecting location for  the best new bank branch for business expansion, monitoring of bank performances and lack of decision support tool for strategic planning amongst others. This study involved acquisition and digitizing of existing maps, points picking of financial institutions within the study area using GPS and demonstrating through various analysis the potentials of GIS in management of distribution of financial institutions.. The methodology adopted for this project involved acquisition of primary and secondary data of the study area, processing using different softwares such as ArcGIS 92, analyzing, and displaying a thematic map of the study area show of distribution of banks. The digital map of awka, the capital of Anambra State being a comprehensive final product of the project was produced. It was recommended thatdigital map of the study area should be made available to decision makers in order to enhance efficient social development,  GIS as a tool should be used for  research changes in the environment, monitoring, distribution,  management and location of  financial institutions amongst others.

CHAPTER ONE

1.0  INTRODUCTION

1.1 Background of the Study.

Financial institution is the institution which collects funds from public and places them in financial assets, such as deposits, loans, and bonds, rather than tangible property or any organization in the business of moving, investing or lending money, dealing in financial instruments, or providing financial services. This includes commercial banks, thrifts, federal and state savings banks, saving and loan associations, and credit unions.

In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. 

In 1892 Nigeria’s first bank, the African Banking Corporation, was established. No banking legislation existed until 1952, at which point Nigeria had three foreign banks (the Bank of British

West Africa, Barclays Bank, and the British and French Bank) and two indigenous banks (the National Bank of Nigeria and the African Continental Bank) with a collective total of forty branches. 

In 1952 several Nigerian members of the federal House of Assembly called for the establishment of a central bank to facilitate economic development. Although the motion was defeated, the colonial administration appointed a Bank of England official to study the issue. He advised against a central bank, questioning such a bank’s effectiveness in an undeveloped capital market.

In 1957 the Colonial Office sponsored another study that resulted in the establishment of a

Nigerian central bank and the introduction of a Nigerian currency. 

At the end of 1988, the banking system consisted of the Central Bank of Nigeria, forty-two commercial banks, and twenty four merchant banks, a substantial increase since 1986. 

Other financial institutions included government-owned specialized development banks: the

Nigerian Industrial Development Bank, the Nigerian Bank for Commerce and Industry, and the

Nigerian Agricultural Bank, as well as the Federal Savings Banks and the Federal Mortgage Bank. Also active in Nigeria were numerous insurance companies, pension funds, and finance and leasing companies. Nigeria also had a stock exchange (established in Lagos in 1961) and a number of stockbrokerage firms. 

Geographic Information System (GIS) is a complete computer system that links information about where things are located with information about what particular data represents. Unlike a paper map where ‘what you see is what you get,’ a GIS map can combine many layers of information.

 Unlike paper map, a digital map created by GIS will have dots or points that represent features on the map such as cities, lines that represent features such as roads and areas that represent features such as lakes. GIS can be used in banking sector for proper location of new branches.  

1.2 STATEMENT OF PROBLEM

The financial institutions in Awka is faced with a lot of problems such as: Finding the best new bank branch location, lack of branch performance monitoring tool, lack of customer and competitor analysis tool, lack of asset monitoring and management tool and others. GIS technology is a tool which aids in solving the aforementioned problems.

1.3  AIM AND OBJECTIVE OF THE STUDY

The Aim of the project is to show the application of Geographic information System (GIS) in management of distribution/location of financial institutions in Anambra State. This can be achieved through the following objectives;

Ø    Acquisition of base map of Anambra State showing boundary locations

Ø    Points picking of the financial institutions using GPS

Ø    Digitizing the map of Awka capital territory and showing location of financial  institutions

Ø    Demonstrating through various analysis the potential of GIS in management of  distribution of financial institutions.

1.4  STUDY AREA

Awka, the Capital of Anambra State was the chosen area for the study. It is located between latitudes 6°06′ N and 6°16′ N and longitudes 7°01′ E and 7°10′ E. It lies within the tropical rainforest zone of West Africa. (see figure 1). The average relative humidity is 80%. The mean daily temperature is 20°C. The inhabitants are Igbo’s and mostly Christians.

1.4.1  Population

The population of Awka town as at the last published national population census conducted in

Nigeria in 1991 stood at 58,225. This is made up of 28,335 males and 29,890 females (National

Population Commission, Awka). The population figure which was projected to 109,792 up to

June 2004 using the national population growth rate of 5%.  Awka is the Capital of Anambra State, Nigeria with an estimated population of 301,657 as of 2006 Nigerian census. This further confirms Awka’s urban status since the United Nation defines a city as a settlement of 20,000 or more in population (Albert, 1994). Awka’s position as divisional headquarters prior to and after Nigeria’s independence in 1960 helped to consolidate her emerging urban status. Figure 1 shows the location of study area.

Awka however, witnessed a recession in growth during the Nigeria civil war of 1967-1970. Nonetheless, the mass return to, and the reconstruction effort of the people after the war quickly cushioned the negative impact of the war. Dike (1979) notes that the massing of two brigades of soldiers at Awka with their concomitant purchasing power attracted non-Igbo petty merchants to the town after the war and formed the bedrock for re-grouping of population and re-capitalization process of Igbo merchants in the Awka area.

1.4.2   Climate

The study area witnesses two distinctive climatic changes in a year. The dry season which occurs between early November and March with prevailing dust – laden northeasterly wind blowing from April up to October with South westerly moisture laden air mass moving northwards into the city. The city records highest rainfall around September. The rain occurs as violent downpour accompanied with thunderstorm and heavy flooding. Within the study period, the mean daily temperature is 20⁰C while the mean annual rainfall is 200cm. The average relative humidity is 80%.

1.4.3  Vegetation and Water Resources

The study area is located in Anambra State and it is within the tropical rainforest zone of Nigeria. This area is characterized by presence of many tree species of the rainforest interspersed by tall grasses. Vegetation therefore consists mostly of wooded shrub lands and pockets of forests.

The study area is traversed by rivers such as Uvunu River and Obibia River. Some of the streams dry up in the middle of the dry season leaving sandy exposed surfaces. These river valleys  support the growth of dense vegetation. The basic crops within the study area are grown as subsistence or market garden corps. Thus the farmland is mostly the outfield. 

A fallow system is practiced within the study area and major crops are yam, maize cassava, cocoyam, vegetables and fruits. Other crop trees include palms, cashew, mango, rubber, oranges and pear. The agricultural practices in the area depend on the annual rainfall.