The Relevance And Challenges Of Computer Networking In Nigeria Banking Industry (A Case Study Of First Bank Nigeria Plc 2007-2013)
With the present banking system in the country the computer network has become important in the banking sector as the banks officers and customers have began to appreciate accessibility, credibility and consistency of the network system in the banking industry. The method should be qualitative and analytical which will involve complication of facts, use of tables, testing of hypothesis, establishing relationship and drawing references based on the information collected.
Moreover, from the analysis through questionnaire, direct interview and observation, this study should be able to prove that fact that despite all problem of the computer network system in the banks that have started the implementation like communication problem from NITEL, software problem, the system is still required in the banking operations like fund transfer, printing of balances, making information to be available from any branch to any other branch when needed etc which ordinary computerization of the bank is not handed.
However, the success of the computer network system in the banking industry shall be however recorded mainly in the area of minimizing the time spent by customers in the bank when carrying out any transaction, increasing the efficiency and effectiveness of the level of performance by the bank officer, increase in the number of branches since the commencement of the programme and in the number of services rendered by these banks.
Furthermore, the study also in the final analysis will make some adequate recommendation to the banking industry, customers and Nigeria telecommunication establishment (NITEL) such that the old and new generation banks should embark upon the computer.
Table Of Contents
- Title Page
- Approval Page
- Table Of Contents
- 1.1 Background Of The Study
- 1.2 Statement Of The Problem
- 1.3 Objectives Of The Study
- 1.4 Statement Of Hypothesis
- 1.5 Research Questions
- 1.6 Significance Of The Study
- 1.7 Scope Of The Study
- 1.8 Limitation Of The Study
- 1.9 Definition Of Terms
2.0 Literature Review
- 2.1 Introduction
- 2.1.2 Various Applications Of Computer
- 2.2 Computer Networking
- 2.2.1 Network Specification
- 2.2.2 Network Systems
- 2.2.3 Importance Of Computer Networking
- 2.2.4 Standard Approach For Networking
- 2.3 Operations Of The Banking Industry In Nigeria
- 2.3.1 Banking Operations
- 2.3.2 Enhancing Banking Industry Performance
- 2.3.3 Automation In The Banking Industry
3.0 Research Design And Methodology
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Area Of Study
- 3.4 Sources/Methods
- 3.5 Population And Sample Size
- 3.6 Sample Technique
- 3.7 Validity And Reliability Of Measuring Instrument
- 3.8 Method Of Data Analysis
4.0 Data Presentation And Analysis
- 4.1 Introduction
- 4.2 Presentation Of Data
- 4.3 Analysis Of Data
- 4.4 Test Of Hypothesis
- 4.5 Interpretation Of Result(s)
5.0 Summary, Conclusion And Recommendation
- 5.1 Introduction
- 5.2 Summary Of Finding
- 5.3 Conclusion
- 5.4 Recommendation
1.1 Background Of The Study
Adewunmiu (1992) the advent of structural adjustment programme in 1996 has not only increased competition in the banking industry but also brought the application of computer by the structural adjustment programme (SAP) has enhanced the introduction of computer in banking industry. But computerization per say has solve some problems in the industry. Some innovative bank have gone into computer network in order to reduce if not eliminating some of these problems. Bank want to achieve the improvement of their services rendered to customers.
But as at 2005, first bank monthly business and economic report (august 2013) opined that, the banking industry has witnessed a rapid transformation due to services delivery with the trend of competition. However some people have argued that the services cannot be significantly improved despite the increase in number.
But within the same class of people, some still believe that banks need radically improve their mode of operations. This means that banks should rely on human labour to perform the routine jobs that tend to consumer worker’s time. This still leads to some of the problems encountered by the majority of the customers in the various degree, such as unbelievable arithmetical errors in cash paid and received over the counter and wrong posting to statements of accounts. Inadequate and untimely information for loan management etc. an affect the relationship customers have banks.
Furthermore, customers will like to operate their account from another branch different from where they maintained their account. Banking industry problems can be removed with the aid of higher degree of computerization, which is computer networking. Not having computers in one branch and forgetting about the other branches. Banks should have computers that will enable them to carry out their operations effectively. The computers have to be linked, how this can be done will be discussed in this project work.
Basically, computerization of branches has to be achieved before this networking is possible.
1.2 Statement Of The Problem
This researcher work is concerned with the relevant and challenge of computer networking in the Nigeria banking industry using first bank of Nigeria plc. As a case study banking industry has continued to live with this problem since its commencement.
This relevant and challenge of computer not working in the Nigerian banking industry is a phenomenon that must be tackled with every amount of vigor by banks in order to minimize undue delay in banking operations.
1.3 Objectives Of The Study
The aim of the study is to find out how computer network system has helped the banking industry in their activities so far. The study will like to identify some of these:
- To identify whether banking earning will increase with the installation of computer network system.
- To find out whether computer improve the rate of performing bank operations.
- To find out whether customers prefer this network system to manually.
- To find out whether the overall profitability of the bank increase since the commencement of networking.
1.4 Research Questions
- What is the extent of safety and speed deli9very of services by computer network in the banks?
- How do you identify whether bank introduce net technique in their operation?
- Is there any problem encountered by the use of computer networking in the bank?
1.5 Statement Of Hypothesis
- H1: computer network has improved the rate of performing bank operations.
- H2: computer network has been increasing bank earnings since the installation.
1.6 Significance Of The Study
This research work obviously is a novel in our banking sector. However computer networking is not completely new in the oil sector and some well established co-operate bodies. The banking industry and customers will derive a lot of benefit from this study as well as the government economically. Some of the benefits that will be seen from the study are as follows the time spent in searching and updating required information can be reached customers can operate their account from another branch with the aid of the network, what many customers want to achieve in a bank.
Also that wastage of time for customers to achieve what they want in a bank can be reduced. Moreover, the end of the days report can be accessed easily by their headquarter with the network system that is, with the aid of management information system, the information can be made available whenever it is needed by the branch of the bank. The result of this research will be immense value to the banking industry generally.
1.7 Scope, Limitation And Delimitations
Computer networking can be applicable to many sector in the sectors like airline medical centers, oil refined industry, banking industry, education centers, oil refined industry, banking industry, education etc but this study is confined to the banking industry.
In Nigeria, the banking system has three categories of financial institutions namely: central bank, the commercial bank. The research work will concentrate on the services performed in the network system. Due to the large expenses that will be involved and the time constraint the study scope will be limited to Owerri. It is hoped that the result collected is from first bank of Nigeria Plc.
1.8 Definition Of Terms
It is an electronic device (machine), which under programme control has the ability to accept inputs and process the inputs store them and produce the result known as output. It can also be seen as electronic device which is capable of receiving information (data) and performing a sequence of logical operations in accordance with a predetermined but variable set of procedural instructions (program) to produce a result in the form of information for signals.
2. Computer Network:
This is the connection of two or more computers together for the purpose of sharing resources and to exchange information and develop useful contacts for the simultaneous broadcast of a programme.
Is a process of using computer to solve problems that may or may not otherwise be solved manually. It is also a process of converting to a system or form which is controlled, stored, or processed by computer.
This is a comprehensive term for a number of institution that carryout certain kinds of financial business. It is an institution that control and management the volume of in circulation, they accept money deposits from their customers and other valuable items for safekeeping.
This is the coming together of firms that engaged in the same line of business operations. An industry therefore can not be formed without firms coming together. It can be seen as an economic activity concerned with the processing of raw materials and manufacture of goods in factories.
This means modern techniques that are newly introduced, i.e. new and important things that is closely connected or appropriate to the matter happening in the banking like computer networks.
7. First Bank Of Nigeria Plc:
First Bank of Nigeria plc is a commercial bank, it is also one of the foremost banks that started operations in Nigeria in 1894. This bank has enjoyed depositors’ confidence for a long time due to its strong asset base and good management practices adopted by the bank over the years.
8. Computer File:
A computer file can be defined as a set of data or collection of related records organized according to some common characteristics and often stored in the secondary memory of the computer system electronically or stored under a single identifying name
Is the art of writing instructions or codes in a particular programming language for processing data to attain to attain the purpose and objects of a particular application.
Data can be define as any fact, figure, text, chart or symbol that represent an idea, object, conditions or symbol that represent an idea object, conditions or situation which is yet to be processed and when processed it becomes information to the recipients.
This consist of facts providing knowledge relations to a specific situation which may be used as a basis for making a decision to modify a cause of action which could otherwise not be implemented
This is a process of conducting an investigation or a view of finding out something, studying of materials or sourcing a particular article in order to establish facts and reach new conclusions.
A customer is a person who buys feeds or who services is being rendered to by a business man or a ship attendant. He is also a specified or special person whom one has o deal with, because without the customer most business would not move forward.
14. Co-Operative Organization:
This is a firm or a business owned and run jointly by group of people or members of the organization, who share the profits or benefits that is achieved from the business.
This is an act of a company yielding profit or financial gain. It is also the difference between an initial outlay of a company and the subsequent amount earned.
This is the use of electronic channels such as internet or communication and email to conduct business transactions. It can also serve as a means of transferring information from one bank to another.
This is the provision of banking products and services through electronic delivery channels such as internet banking, telephone banking and other electronic delivery channels. It provides enormous benefits to customers in terms of the ease and cost of transactions. It involves the use of computer in dispensing cash and transfer of funds.
This means the ability of the banks to store enough funds and raise funds quickly from the markets to satisfy depositors, loan customers and other parties with a view to maintaining public confidence. It is also the ability of the banks to meet its short-term obligation in terms of cash and cash equipment.
This is a continuous/integrated operation of production system that uses computers or related equipment to regulate, co-ordinate the quantity an quality of what is produced. It is also an equipment used to measure the size and pattern of a particular product.
This is an automated teller machine used in the bank to withdraw, transfer, inquire and view balances of one’s account. It is an electronic device that operates on its own, without the help of a man. This device is a machine which enables a customer’s account to be debited instantly with the cost of purchase in an outlet.
21. Smart Card:
This is a plastic card with a built in microprocessor, used for electronic processes such as financial transactions and personal identification. The merit of smart cards over other debit cards is that the micro-chips contain additional information on bio-data and financial position on the holder.
22. Pass Book;
This is a book issued by a bank or a building society to an account holder, in recording transitions. When a customer opens an account in a bank, the pass book is being processed in an IBM machine (international business machines) either by debiting a customers bank account or by taking credit from the store.
23. Home Link:
This is a product that allows bank customer to transact banking business at home. A pre-requisite for the use of this product is that the customers must have a television set at home. The banks on its part will provide a home deck console through which the customer carries out his transactions. Home link facility provides the customer the opportunity to settle his purchases through an electronic instruction to the bank and this in turn reduces the use of cheques.
This is one of the most commonly used forms of internet. This means electronic mail. E-mail accounts are usually provided by ISP (internet service provider, it is the company that gives access to the internet). Emails can be received within minutes after a mail has been sent and usually cost for free making e-mail a popular choice for people who need to send a lot of mails. E-mail is a system of sending message electronically from one computer user to one or more recipients via a network.
This is the provision of financial services through electronic channels such as ATM, pass card, Smart card and home link. This electronic devices can only be use when there is electricity available in that area of organization. It is also the management at large amounts of money, especially by governments or large companies through electronic channels.
5.0 Summary, Conclusion And Recommendations
This section of this topic will lead to the main point of the topic by dispensing with needless details as formalities the end of it and as well suggesting or proposing to the best course of the nations involve in it.
5.2 Summary Of Findings
The present study dealt with the computer networking to know its relevance in the performance of banking industry.
The finding based on the data is analyzed below:
- Computer network programme is better than just computerization of the industry. Customer and bank offices prefer the network system.
- Computer networking has enabled banks to transfer funds between branches. This is not possible in a computerized bank.
- New techniques and product have been established since the commencement of the network programme.
- Computer networking is the best thing that has happened in the banking industry.
- The bank i.e. (First Bank of Nigeria plc) is effective and efficient in their performance of their banking operations.
- The major problems encountered by the banks were the communication problems from NITEl, breakdown of equipment and inadequate power supply.
- The comparison between the profitability of the bank and the other computerized banks was not advisable because along the line, it was seen that these networking banking re old generation banks which have a wide branch network and there figure was too much unlike the new generation banks that just started recently.
Actually, the study shows that today more than ever the Nigerian banking system has witnessed a higher degree of computerization but mainly in the old generation banks even though the new ones are following suite. The future direction of competing is now networking. This has helped to solve the major problems encountered by bank staff and customers as listed in the previous chapters (one and two). Computer networking is the type of system customers watch out for from all indicators.
Finally the relevance and challenges of computer networking in the banking industry cannot be over emphasized despite the problem one encounters from the system. By the time its benefits are felt by organizations, especially banks and finance houses there will be a mass diversion to the computer network programme. The computer network system is very encouraging to the banks and companies that have it.
There are things I would like to recommend to the Nigerian banking industry, customers and the Nigerian telecommunication establishment (NITEL).
The recommendation should be taken seriously so that there will be a great chance in the banking industry. They are as follows:
- Nigerian banks should continue to improve on their services in the area of technology and better response to customers needs.
- The banks should be more efficient and reliable to improve their credibility.
- All the banks should advice means of guarding fraud.
- Nigerian banks should plough back some of their profits into researcher, computerization and improved personnel management. These would boost customers’ confidence.
- The banks should have a good quality of management and staff (smart workers). This is very important to their services.
- Nigerian banks should stick to the fundamental principles of the bank, do not let it fade into significance, a sum success is attained, yet greater heights can be attained than anything you have seen.
- All old and new generation banks should endeavour to adopt the computer network programme for baking operation/services, then should be a follow up on the system, if the system has to be maintained to avoid frequent breakdown.
- Of course, it is already know that questions and clients are very important to banks but must be emphasized that clients are veritable instruments for banking operations and so much not handed with utmost importance. Banks should be much more amendable to customers/clients criticism. This implies that customers and clients should be free to eir their views to bank officers when necessary.
The Nigerian telecommunication system should be over valued and its equipment improved. It will help these banks on the computer network system.
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