1.1 Introduction
This study of management information system in banking industry can be better understood by a brief description functions and its elements. The fundamental areas, which make use of the Management Information System (MIS) which has been defined by Lucey (2005) a system (MIS) to convert data from internal and external sources into information and to communicate that information in an appropriate form to managers at all levels in all function to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible.
Murdick and Ross also defined (MIS) as a communication process in which information (input) is recorded, stored and retrieved (processed) for decision (output) or planning operating and controlling. Data processing is to organize and to check and also process raw data into valuable information in n effective and efficient manager.
In the area of decision marking the management information system can be useful in two ways one way is that it monitors disturbance in the system, determine the course action and decision correction to get the system controlled.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Banking has been in existence since 2.500BC, the early bankers the joys in company initially, transacted their business in benches in the market place. The word Bank itself is direct from Italian word "Banco" was broken up by the angry people (The depositor of money) hence our word bankrupt from banco-rupto that broke barch (Wole Adegunmi, 1985). Management Information System constitutes an efficient tools and even threat to management. Planning involves the establishment of strategies to help achieve the set objectives or the purpose. Information is required to identify as many alternatives and to complete the trade off involved in the choice to be made loaning required model knowledge of input to a process and output of model.
The current era is the age of information, which has increased in size and different types, and its importance has emerged in all organizations and all sectors, and this is why the latter’s interest in it has increased, as a result of the acceleration of its transmission and accumulation waves at a tremendous speed and the inability of traditional methods to address it, especially that information that is used in banks, and this explains the interest of the latter (El-Waer and Telilani, 2017).
In all this, information is required and this information supplied by management information system. Control is the process of setting standard of performance measuring performance against standards and performs to plan and required about information on the capacity and probable performance of this system to control.
The bank of British of the concern remain the sole bank in the country until 1917 when the colonial bank open offices in Jos, Kano, Lagos as well as Port-Harcourt. These two banks are still in operation. The next bank that came into operation, existence was the British and French bank, which later became the United Bank for Africa opened in 1947.
It has been in operation until it was established in Nigeria in 1961 by a consultant of five internal boss to take over banking business carried on Nigeria since 1949 by the British and French Bank Ltd. (UBA) have 132 branches in Nigeria with headquarters at N 57 Marina Lagos.
United Bank for Africa Plc came into Idah in October 1983 with total number of staff (14), management staff is (3) Junior workers is (11) this is how comes about UBA Plc in Idah local government of Kogi State.
The type of banking are known today did not begin until sixth century. When Italian goldsmith working on London begins expanding their business to include the safe keeping of people valuables and money where such valuable and money were despites and kept safe for individuals. Recipients began to change hard on place of money and valuable they represented and this because the fore-runner of our present day bank notes. They realized that some of the money deposited with them could be lent out and interest earn on it for the purpose of profit.
The practice proved to be rewarding and many establishment tried an advantage of it is no way of making easy profit. This was how banking started, though many of the goldsmiths fall from the business due to over lending by the customers not refunding to goldsmiths. In Nigeria, the earliest activities were carried out by elder Dumpster and company and Africans banking co-operation in 1980.
The critical analysis of the function role of management information system in banking industry is necessary for one to examine the historical context and growth and the development information system in the organizational framework in which it is being utilized. Before the introduction of computer, manual and unit recording equipment were basically performed on an individual basis.
Even though the manual equipment such as calculator, pen, paper, typewriter, lava-arch file etc are relatively cheap. They are intensive because of this, they are costly and run. It is important to note that the manual method are flexible, that is, one can easily change my data processing procedures since they do not have to follow a set of rigid rule. Integrated data processing equipment has been developed and retrieval of information no in vogue of effective required specially trained personnel in order to operate them more effectively. Early banks do not have to depend entirely on a computer system because without it, they would still be an effectively management information system. Basically, management information system is also defined as a system; approach that treated business department as integrated parts of one total system rather than separate entities.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact of Management Information System (MIS) in the Banking Industry.
1.3 Statement of Problems
Investigation revealed that certain problems have appealed to student which poses some weakness against the expected role of (MIS) in a banking sector.
Inadequate management information system can lead to lack of investors and consumers can not be able to invest.
To consumers and there is problem of weakness of in the business environment, thereby making the economy of the country failed.
Another problem is sudden capital inflows instructive governance and management processes, poor managerial officials.
Lack of proper information system in the Nigeria bank, bank faces liquidations (credit, market liquidity) when the information system fails from the top office the whole branches affected or is drawn. There is no room for decisions making between the top officers, thereby causing conflict.
Inability to bring to awareness to Nigeria banks customers and business men. Also, inadequate management information system hinders employment because due to that, it can lead to lose of job employment of the bankers, junior staff and top managers.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact of Management Information System in the Banking Industry. In achieving this aim, the following specific objectives were laid out as follows:
- To determine how computer has helped the activities of banking industry through effective management information system;
- To investigate the way by which information system is used in order to eliminate duplication effort in the banking sector;
- To prove its effectiveness and efficiency in prompt services; and
- To examine how management information system provides management with necessary tools to facilitate decision making and in the selection of alternatives.
1.5 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:
- Does management information system, provides management with the necessary tools to facilitate decision making and selection of alternatives?
- Does computer help in the activities of banking industry through management information system?
- How does Management Information System proves it effectiveness and efficiency in prompt services?
- Does management information system investigate by which information system is properly used in order to eliminate, duplication effort in the banking sector?
1.6 Research 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: Management Information System does not provide management with necessary tools to facilitate decision making and in the selection of alternatives.
- H1: Management Information System provides management with necessary tools to facilitate decision making and in the selection of alternatives.
1.7 Significance of Study
The importance of an effective and efficient information management in banks can not be over emphasized because it enhances the proper condition of the various banking operation activities in the country.
Without management information, bank has no method of coordinating into help activities and external taxes, there must be adequate current, accessible, effective and efficient information feedback
For any banking operation to achieve its goals, or objectives which could be profit oriented or geared towards the satisfaction of needs, there is need for proper delegation of authority and responsibility of different level for effective management.
For better interaction with banking environment management need information which will improve the happening outside the bank with this information provided, they can then coordinate their objective.
For the survival and meeting up the desires of the share holders. It is important that the banking industry have an adequate and up to date information network will motivate the employees towards the effective and efficient services which in turn encourage the customers towards banking transactions.
The customers will equally be motivated to invest and patronize banks that has adequate current accessible effective information system as these will guarantee satisfaction services it will equally enhance the effective discharge of the assigned duties for both the management and staff will lead to high return and subsequent profit maximization.
1.8 Scope of Study
The scope of the research is focused on the Impact of Management Information System in the Banking Industry using United Bank for Africa (UBA) as a case study.
This research will cover the element both in-depth and natures of literature review of management process, development of information in the bank, impact of control, changes in decision making, information system and general characteristics of management information system.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- 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.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- 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).
1.10 Definition of Terms
Information: Data that has been processed in a way that is meaningful and beneficial to the users recipients.
Management: Management is the process by which the manager create, direct, maintain and operate purposeful organization through coordination human effort.
System: This is the putting together of different parts to make up a whole to achieve a common goals.
