1.0 Introduction
1.1 Background of the Study
Banking in Nigeria has witnessed changes in the past few years. Bankers and industry analyst alike would agree that the challenges of economic regression increasing customer expectation and demand of technological advancement have made survival difficult for commercial banks. According to osah (1999), banks in Nigeria are increasingly coming under pressure to offer improved and constant available service in line with banking practices worldwide.
Badajide (2007) noticed that there is presently the growing international integration of financial services, which is rapidly and substantially altering the world economic landscape. And as global trade is increasing new opportunities also have emerged in terms of wider market for trade expanding away of tradable and larger private capital inflows, the need for improved technology is inevitable in the commercial banking sector and thus, the application of computer in commercial banks.
In the present dispensation that is with the use of computers in banks, customers can walks into computerized banks, conclude their transaction under a few minutes. In recent trend, with the use of ATM (Automated Teller Machine) many customer resort to the machine to withdraw cash easily without meeting the cashier any longer. Furthermore, many banks in Nigerian offer electronic banking service that enhance regional and international fund transfer and other transaction that would be discussed later.
The use of computer to swiftly up grade banks financial and 0ther social service to the public is not only the sector where the computer is used for advancement but it is also used in areas like process manufacturing and discrete manufacturing for accounting purchasing, inventory control etc. it is also used by federal government for tax reporting and auditing census analysis accounting and administration.
The state and local government use it also for utility billing, tax record, keeping pay roll and school administration. It is also used by the transport industry for cost analysis, vehicle maintenance etc. The computer is used in school for upgrading the scoring, library cataloging, attendance for premium accounting reserve calculation etc. And in distribution for ware house control, inventory control, forecasting etc. The computer if well maintained and utilized will transform all the sectors that make use of it, to meet world class standard.
1.2 Statement of the Problem
Limited skill and knowledge of the maintenance of the computer systems in commercial banks have misled their customers and other users of their accounting information resulting in customers' dissatisfaction as in these cases of Eco Bank Limited Owerri. Despite the advantages of the use of the computer in commercial banks like convenience, (as there is no time constraint possibility of twenty four hours banking), variety of option due to easy access of information, lower transaction costs etc, some problem are still facing the use of computer in banks.
The problem of “system down-time”, which stop most bank activities for sometime is one major problem this work will focus on when the system is down and customers and users of their counting information stored in the computer immediately it results on customer dissatisfaction.
Historical, culture and current phase of development in Nigeria has compounded this problem, the lack of maintenance culture in Nigeria has prevented the computer system from being well maintained as they should, the source of power, which is Enugu Electricity Distribution Company (EEDC) has not managed to transmit constant power which also lead to system failure. The skill required to maintain these system is not easily found and where vouched for is very expensive.
The maintenance of the system is important so as to reduce and eventually stop system failure in other to satisfy customers and users of the accounting information. Other problem of security and privacy will also be curbed when the system are well maintained the problem of security could take the form of fraud and disaster. That of privacy could records, school record etc. this accessibility could cause the customer some kind of loss and thus he becomes dissatisfied with the computer application of the bank and the bank itself.
1.3 Aim and Objectives of the Study
The aim of the study is to examine the Impact of Computer Application in Commercial Banking Operation. In achieving this aim, the following specific objectives were laid out as follows to:
- Determining the problem of using the computer in the transactions of Eco Bank Plc, Owerri.
- Finding the effects of these problems on the customer of the bank, the users of its services.
- Identifying the steps the bank will take in tackling these problems in order banks to maintain the confidence reposed in it.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What are the problems your bank encounter on her liquidity management?
- Does the computer application management enhance banks profitability?
- How does your bank manage its computer application?
- How much capital do your banks maintain annually?
1.5 Statement of Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: The problem encountered by the use of computer in Eco bank plc, Owerri does not affect the customer satisfaction.
- H1: The problem encountered by use of computer in Eco bank plc, Owerri affects the customer satisfaction.
1.6 Significance of the Study
In many instances the computer performs, many functions to increase the level of productivity and accuracy of records compared to those attained by manual system. However there are still problem associated by its use, which affect the customer. These problems could be reduced to the barest minimum. These studies will therefore, draw attention to the effect of failure on their transaction and their and their customer decision makers who are the users of accounting information will also benefit from this study since they are affected when the system is down and information cannot be immediately accessed over the computer. These decision makers include management again, finance operation, production, marketing, human resource, information system and accounting.
Bank users with direct financial interest like investors and creditors users of accounting information such as tax authorities regulators (e.g) securities and exchange commission (SEC), labour union, Economic planners, Intending investors and customer will find these material useful in understanding the bankers operational better. More so, this work will serve as a reference tool to researchers and information seekers mostly those in the banking sector, computer science and accounting disciplines.
1.7 Scope of the Study
The study is supposed to research into the problems of commercial banks in Imo state encounter by the use of computer but for reasons such as time, finance, increasing number of banks and other obvious reasons Eco Bank Plc was chosen as a case study. Eco bank has over three hundred branches nation-wild but its Owerri branch is going to be examined.
Banking activities of cheque processing proof and transit operations, cost control, online savings, money transfers, demand deposit accounting and other routine banking activities will be covered.
1.8 Limitation of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint:
The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint:
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents:
A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.9 Definition of Terms
Access:
To locate a particular record.
Accuracy:
The constancy of computer generated result.
Bank:
A place where money is lent or exchange or put for safety and or to acquire interest.
Banker:
Person who owns and manages a bank.
Computer:
An electronic tool that is used to collect, organize and communicate vast amounts of information with great speed.
Down Time:
A condition in which direct communication with a computer not possible. Also called off time.
Electronic Banking:
It is the totality of the employment of the application of modern of information technology and communication system to record transaction and financial services for the customers.
Information:
Data that has been organized and processed so that it becomes meaningful.
Integrated:
Multiple function or activities linked in such a way that performance on one can immediately affect any or all of he rest.
Network:
The linking together of several central processing units.
User:
The recipient of computer services.
Outline:
A new dimension of banking services to the public which enable a customer to deposit or withdraw from any branch irrespective of which has eased cash carrying and tremendously enhance inter-state services.
