Effects Of Computer In The Modern Banking

Effects Of Computer In The Modern Banking (With Reference To Uba Plc Enugu).


The topic of the study is The Effects of Computer in Modern Banking (With Reference to UBA Plc, Enugu Urban). The use of computer in modern banking has made the overall management of banking far easier than it ever has been at any point in history. With the help of computer in modern banking, banking




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After payment, text the name of the project, email address and your names to 08064502337 operations are faster, easier and reliable. However, it is not without some problems. The study carried was survey research. Instruments used for data collection were questionnaire, persona interview and observations. The statistical tools used for analysis was simple percentage while chi-square (x2) was used for testing of the hypothesis. The objectives of the study were to enlighten the public on the advantages of use of computer in modern banking and problems militating  against it. The following findings were made, computer makes banking interesting for everybody and the employment of computer illiterates in the bank leads to ineffective and inefficient in banking activities. The recommendation of the study was that the management of UBA Plc should employ qualified computer operators and as well control the constant network failure in banking system. In conclusion, the government and the management of the bank should educate the public on the important of computer in banking system.

of the study is that the advantages of computer in modern banking are greater than the disadvantages.



Statement of the Problem

As far as this work is concerned, the statement of the problem is predicated on erroneous assumption that people find it difficult to save, other money in the bank believing that it may not be save their people equally think that banks are not reliable and as a result they find banking business invalid.

It is certain also that people bear the risk of carrying cash from place to place especially the business people.  As a matter of fact, a lot of misfortunes be fall the people making life and transaction very miserable.

Going to bank to lodge in money or withdrew money, people see it as something left for those that have the chance. The long queue and time wasting in the bank make people to have less regard about banking. With the experience that unhealthy ones do not go to bank to avoid collapsing.

The village dwellers especially the adults do not see banking as something made for everybody. They believe banking is for the rich people that lodge in millions of naira as they thought that the poor will not be considered.

All the above problems have been handled by modern banking which involves the use of computer system.

Purpose of the Study

          The main purpose of this study is to find out the advantages of computer in modern banking in UBA Plc, Enugu. The specific purposes include:

  1. To find out the kinds of computer used in modern banking system.
  2. To find out the roles of the computers used in banking system.
  • To find out the reliability of computer in banking system.
  1. To find importance of computer to the bank customers.
  2. To find out the negative effect of computers in modern banking.

Need/Significance of the Study

The significance of the study are:

  1. It will act as guide to individuals or groups who might decide to embark on the same academic exercise as it will provide necessary data needed for further studies.
  2. The Study is of great need to the bank as an institution because it will sensitize the management and the staff to pay more conscious attention to computer education.
  3. The bank customers will benefit because they will acquire knowledge and understanding about computer abilities. Their confidence will be lifted up.
  4. The Government will benefit because it will be an eye opener to it for better or improved policy making to encourage use of computer.
  5. It is equally beneficial to the public hence it reduces the risk of carrying cash.

Literature Review

This section deals with the review of related literature by difference authors. Citations were made of their opinion study with remarks by the researcher.

Increasing awareness of the computer in modern banking is due to certain characters that it possesses. Denning (1991) on his own, emphasized the importance of computer as calculation and coordination of actions as an ongoing concern of all human beings.

Udeh on his own said that computer is a programmable electronic device that includes as a processor, memory and input/output facilities. The memory is used to store programmes and data which the processor can decode and act upon.  Technology development has brought smile to the face of all especially in banking system. It is certain that the banking system increases in our country, more modern design of computers are imported and used for easy banking especially in UBA Plc Enugu Urban.

According to Canlan (1988) it is unworthy of excellent men, loose hours like slaves in the labour of calculation which will be saved if machines were used.

Empirical Study

          Meaning of Computer

          Infact, with the idea of history and evolution of computer, the nature and capacity of computer have been x-rayed. A computer can be defined as a machine/device which processes data or information to produce a desired or an unexpected result.

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Many scholars defined computer, all the definitions are channeling towards the same meaning.

Vikas Crupta in his own view defined computer in this book “secret Guide to computer’s” as a term derived from the word compute. In simple word computer can be defined as an electronic device which takes input from the user in the form of data or instructions. Then it processes the input as for the users instruction and generates output that is displayed before the user.

More scholars like Adekunle Oduronke Eyitayo and Fumilayo Akeju in the book titled, “computer studies” (P.23) defined computer as any machine or device which under  the control of a stored program can accept data in a prescribed form, process that data and supply the results as information in a specified form.

Oxford Advanced Learner’s Dictionary defined computer as an electronic for storing and analyzing information fed into it, making calculations or controlling machinery automatically.

The term computer as seen receive information as input process the information based on the instruction and direction of the user and finally provides output which is the result. A computer can in theory be made out of almost anything and mechanical examples of computers have existed through much of recorded human history.  The first electronic computers were developed in the mid-20th century (1940-1945). They were very large in size. Modern computer is simple and small enough to fit into mobile devices and can be powered by a small battery.

The Importance of Computer to the Banking Industry

There are various ways through which computers are widely used in the banking industry. It can be used to carry out from simple to complex tasks of the banks. For example instead of making manual records and then storing the files, all data is stored in computers. It is more quick and productive. More data can be stored in this way. Moreover, data can be easily stored, and retrieved from computers.

The online banking further gives the evidence of excessive use of computer in banking sectors. Just in a couple you can retrieve all of your previous transactions in your account. Transfer of money can be also made on line through these computers. It has been noticed that banking sector in the world is moving from traditional banking sector possible only through the introduction of computers in banking sector.

Banking would be a dangerous filed to work in without computers (Dr. Ozofor 2007). People would go to the bank carry large sums of money early in the morning and leave the bank the following morning just to finish counting the money manually usually getting blisters after that but computers have made it all easier on the operation research side, it has proved so effective that one can simply walk to the ATM and withdraw money without necessarily waiting in a long queue to get served by the teller, getting around clients details is far much more improved than ever before.

Elsley 2005 maintained that if we were to think carefully through our days we would find that we use computers and the internet for normal transaction everyday.

Despite this assertion, the role of computer in modern banking cannot be over bordered. Computers are necessary to any and every day business.

According to Jenna (2002) he asked question saying, can you imagine trying to run a banking system without computer?

The answer is no because of computer extra-ordinary importance in the modern banking especially in UBA Plc Enugu urban. The scholar in his view see computer as something that is useful in every activities of human race. He said computers are very important to the business world.

Banking without computer is like living without food. Computer have made the work of banking comparatively faster and accurate, every organization struggle to achieve its competitive elge. It has reduce the unnecessary costs of an organization, make it core competitive. Computer was, is and will be a great invention ever created by science. This is very true, that expecting life in banking without computer is difficulty to run with time conservation and accuracy. Computers are like panacea for nowadays business.

Patient (2006) in her view computer plays a significant role in inventory control, processing and handling order, communication between satellite banks in an organization. It equally helps for advertising. The bank advertise their functions in the internet for the consumption of every one thereby attract much customers.

Modern banking with the use of computer is a blessing to every living being and a second messiah that save people from frauders, swindlers and thieves hence every information is saved in a computer system in the bank.

Characteristics of Computer in Modern Banking

Computer characteristics are those special features or advantages of the computer that makes it different from other electronic gadgets. The criteria for using computer in our various professions or places of work especially in UBA Plc banking system include:

Accuracy:  Computers are made and have found to calculate and measure things more accurately than human beings the computer satisfies the need for a high degree of accuracy and its consistency can be relied upon. This makes the annual report and the work of the accountants and auditors very easy and accurate.

Processing speed: Computers work at a very high speed. Its processing speed helps the bank to attend o millions of customers a day. Thereby making people (the public) to embark on banking their  money hence it does not waste time.

Volume/Capacity: Computers can store and handle large amount of data/information with ease. The use of computer in modern banking helps to store data for years which help for reference purposes

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Data collection: Through networking computers can get information quickly from near and distant people and other computers example internet. The bankers use computer to get information about their customers that opened account with them years ago may be on a different and far branch. They equally get information passed by central bank of Nigeria (CBN) in internet. All these make banking work easy both for the bankers and their customers.

Quality:  The output of documents prepared with the computer are always much better than that of manual or mechanical devices such as type writer. With the use of computer in modern banking, bank managements were able to produce quality, materials that facilitate banking, things like cheque book, teller etc.

Security/protection/safety: Using the computer it is very easy to secure and protect any information in bank transaction using password, key board lock, back up etc.

This certain that everything that has advantage must also have disadvantage. The disadvantage or rather the negative effect of computer in modern banking are as follows.

Ability to commit fraud:

It increases the ability to commit fraud or rather stealing in the bank. By the use of ATM, many criminals do still the secret numbers of another and use it to withdraw the persons money. The operator of the computer needs an expert unless it leads to a lot of mistakes.

Some people use fake names and passport to claim money (salaries) in the bank hence everything is done in net not physical. The problem of network failure affect the use of computer in modern banking. Many at times ATM will be out of service making withdrawing boring.

Over View of the Study

Origin of Banking

The word banking has come of age and therefore has been used by different people in different ways. Although the concept in this research work will be particularized to a certain setting or idea and practices.

Banking is of ancient origin though little is known about it prior to the 13th century. Another aspects of bank origin were the acceptance of deposit. These might derive from the deposit of money or valuable for safe keeping or for purpose of transfer to another party. They might represent the deposit of money in current account. English Bankers had by 17th century, begin to develop a deposit banking system and the techniques evolved were to prove influential elsewhere.

Benton (1768) noted that at the 13th century, the London Goldsmiths kept money and valuables in sale custody for their customers. In addition they dealt in bullion and foreign exchange acquiring coin for profit. As a means of attracting coin for sorting, they were prepared to pay a rate of interest and it was directly in this way that they began to supplant as deposits bankers. Their great rivals the money Screeners (9700).

It could be simply note that at about the same time, a practice grew up whereby a customer arrange for the transfer of his credit balance to another party by addressing an order to the banker. It could be noted that bankers are fundamental elements in any developed society. They provide the financial infrastructure to business and individuals in order for the efficient running of a nations economy in parallel, the individuals  established their importance, the study will consider how changes made in their operations will invariably have an effect on those who use the services.

Based on this Starr (2001) observed that this is already taking place as information technology increasingly finds its way into high street banks and other financial services. We are all aware of the ATM and the widespread use of various forms of payment card in circulation and increasing use (EFT/POS) system (P.8).

The application of it is having more than just a minor impact on individuals lives indeed it is driving our society closer towards a cashless  society as technology removes the need for tangible currency and physical payment system. This impact on the individual of these development towards a cashless society.

Origin of UBA Plc

Today’s United bank for Africa Plc (UBA) is the product of the merger of Nigeria’s third (3rd) and fifth (5th), namely the old UBA and the erstwhile Standard Trust bank Plc (STB) respectively, and a subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB). The Union emerged as the first successful corporate combination in the history of Nigeria banking. UBA’s history dates back to 1948 when the British and French Bank Limited (BFB) commenced business in Nigeria and erstwhile STB and CTB both in 1960 following Nigeria’s independence from Britain, UBA was incorporated in 1961 to take over the business of BFB. Although today’s UBA emerged at a time of industry consolidation induced by regulations. The consolidated UBA was born out of a desire to lead the domestic sector to a new era of global relevance by championing the  creation of the Nigerian consumer finance market, leading to private/public sector partnership at supporting the acceleration of Nigeria’s economic development and growing the institution from banking to a one stop. Financial services institution, while spreading its footprints across Africa tuo earn the reputation as the face of banking in the continent.

United Bank for Africa Plc (UBA) is a public limited company incorporated in Nigeria in 1961 and Headquarter in Lagos. As the bank UBA spreads it came to Enugu for easy financial  system.

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UBA Plc started in Enugu in the year 1971 February 13th. It started at no 10 station road Enugu. It has eleven braches in Enugu Urban.

Elsey (1988) observed that the computer allows the learner to up date or correct existing information. He believed that computer provides better changes, sophisticated reveal techniques, different signed characters flashing characters, overlay flexibility, animation, operation, clarification of detail and the control of video play back machine or other equipment.

Walker (1983) quoted by Harper (1989) said that computer contributions to instruction include more active learning, more varied sensory and conceptual models, less mental drudgery, learning at a rate nearer the speed of thought instruction  that is better tailored to individuals learning rates and more independent learning.

The greatest contribution of computer to education is that it has triggered on educations awareness and thereby serving as a catalyst that pushes education  into the twenty first century.

The Evolution of Computer

The evolution of computer goes thus, Emerson and Frobes (1989) said that the evolution of computer or artificial intelligence started with the design of a model of an intelligent machine using vacuum tubes by John Von Neumann in 1940.

White and Hubbard (1988) in categorizing the evolution of computer, named five generation.

The first generation computers (1945-1955) were those that used vacuum tubes such as the (Electronic Numerical Integrator and Calculator) ENIAC and (Universal Automatic Computer) UNIVAC. The arrival of UNIVA in 1951 marked the advert of first generation computer for the simple reason that the UNIVAC was the first of its kind to make an impact on the society other before it were strictly used either in the government offices or military units or scientific laboratories.

The second generation computers (1955-1964) were those produced with transistors in place of vacuum tubes. They were smaller, faster and more reliable than their predecessors they can execute 100,000 instructions per second.

The third generation computer came between (1964-1971), they used integrates circuits or chips instead of transistors. This development made it possible for more circuits to be packed into the same physical space making the computer component smaller.

The fourth generation (1971-1975) were those known for their use of large scale in integration of circuits. The major emphasis here was on packaging as many circuits as possible as on single silicon chip micro processor.

A micro processor or micro computer is a computer with packed thousands of transistors joined to each other by a microscopic circuit attached to the surface of the silicon chip.

The fifth generation of computer is highly intelligent machine. They are classified as the neural computers or neural networks.

Scope/Delimitation of the Study

The scope of study which is the range or extent of matter being dealt with or studies are the effect of computer in modern banking especially in UBA Plc Enugu Urban.

The research does not in anyway intend to cover the entire UBA banks in Enugu State, nor does it intend to cover every UBA Plc in the whole Enugu Urban. Though it is limited to the investigation of the relevance and negative effect of computer technology in modern banking in some UBA Plc in Enugu  Urban especially Okpara Avenue side.

As a case study, a modern sample of UBA Plc in Enugu is used. The systematic sampling is used to obtain the representative sample.

Research Questions

For the purpose of justification, comprehensive analysis and clear presentation. The researcher used some relevant resreach questions that will help him on the course of the study.

The questions are:

  1. Are there different kinds of computer in modern banking?
  2. Are computer reliable in modern banking?

3        Are computer important to the public as regards banking?

4        Do computers encourage saving and withdrawer of money in the  banks?

  1. DO computers have negative effect in modern bank?

Resreach Hypothesis

The researcher formulated five hypotheses. Onwuzuike says that hypothesis is a useful tool in testing the significance. The hypotheses are as follows:

Ho:    Computers are not reliable in modern banking.

Hi:     Computers are reliable in modern banking

Ho:    Computers are not important to the public as regards banking.

Hi:     Computers are important to the public as regards banking.

Ho:    Computers do not encourage savings and withdrawer of money.

Hi:     Computers encourage savings and withdrawer of money in the banks.

Ho:    Computers do not have negative effect in modern banking.

Hi:     Computers do have negative effect in modern banking.

Effects Of Computer In The Modern Banking (With Reference To Uba Plc Enugu).


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