The Prospect Of Computerization In The Banking Industry

THE PROSPECT OF COMPUTERIZATION IN THE BANKING INDUSTRY {A CASE STUDY OF UNITED BANK FOR AFRICAN PLC)

The computer today is one of the greatest technology changes of our time computer is increasingly finding its route in every facet of human endeavors owing to its versatility.  It has made notable insertion into many fields of learning and more recently into the banking industries and other areas.

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Computer industry since the first commercially available computers were produced in the early 1950’s, computer has grown very rapidly and by 1976, it had become one of the greatest and most important industries in the United States, accounting for more than two percent of the exports, Collier’s Encyclopedia Volume 7 (1980:129).

The unaided human mind alone is unable to cope with the complex natures of today’s decision making.  Planning, controlling and operational processes in fields of endeavour need more than human thinking ability – thinking computer to cope with tedious works.

The capabilities and attributes of computers have been making notable strides towards ensuring an effective and efficient computerization of their operations and as such cope with strenuous demands of the information age.

By this review, the researcher intends to conduct a survey of ideas existing in literature that will aid in preparing the theoretical frame work on which this research will be based on.

 

2.1     INTRODUCTION TO ORGANISATIONAL CONCEPTS

Many concepts have been applied to explain the nature of business organizations in the past, what was seen was its concern.  However, analysis of today’s organizational components and their mode of interactions and effects are used instead of its functional approach, which s subjective in understanding business situation.

An organisation is necessarily a technical arrangement of parts that are made to interact in one way or the other.  During such interactions, a social organization emerges out of day to day interactions within the organisation, such organisation is made up of relation that isolate individuals and which make room for harmony and conflicts.

Inter-organizational networks are also widening the scope of data base management.  Hence managers can now tap into a multitude of data bases without leaving the office with the aid of computer, Akuwudike and Ugwu (2002:177).

 

2.2     THE EVOLUTION OF COMPUTER

Involved in the evolution was the scientific findings of the seventeenth century which brought a step forward in the development of mechanized calculating devices.

In 1642, an “Arithmetic machine” a mechanism with greased wheels constructed by Blacse Pascal, the noted mathematician and philosopher.  He built thro device to aid him in calculations which working in his father’s tax office.  This device is still in use today in paper tape, Unaka and Aroh (1997:21).

Still in seventieth century another scientist ranked with Isaac Newton the Mathematician improved on calculating devices of B. Paschal.  In 1673, Gottfied Von leibnitz, a Germany expanded the work of B. Paschal to perform task like multiplication, division and extraction of  square roots.  However, leibnix device like Uke Pashal was not a practical one.  Inspite of such Paschals device throughout the seventeenth and eighteenth centuries, until the nineteenth when in 1807, a French textile manufacturer names Joseph Jacquare invented a punched card system for controlling threats in his wearing room.  In 1822, Charles Babbage born in December, 1792 saw in Jacquard’s punch cards a means of controlling strong numbers for his analytical engine.

Thus, the analytical engine was invented.  The store and the mill.  This analytical engine is said to be the first digital computer ever known that is (machine that performs calculation with numbers).  Peter Schemists modernized it I 1834 which fetched him a gold Medal.  Between 1847 and 1854, George Boole an English logician devised and projected an algebraic system now called the “Boolen Algebra”.

Babbage’s analytical engine and the “Boolen algebra” were not improved upon and no significant automatic computing development took place until twentieth century.  However, some important electronically device were invented, the first was telegraph of 1884 and that of telephone of 1876

The American census of 1880 encountered some problems in teams of compilation, in 1884, Herman Hollerith with Herimes Power invented the first key driver machine.  These discoveries were because of development in Jacquard’s cards.  The machine was however operated by electronic magnetic means.  The effect of sixty three million people that took only three years to compile, Ubaka and Aroh (1997:22-23).

 

2.3     THE ROLE OF COMPUTER SYSTEM IN MODERN BANKING OPERATION

Computer is known for its speed, accuracy and timely information processing ability.  If the complexities can be programmed computer has the ability to follow intricate instructions, effortless and consistently and to perform tasks and to perform tasks with accuracy, Rowan (1982:171).  Its storage and retrieval facilities have appeared as the most modern means of accumulating information storage more efficiently, but it also makes harder works possible and gives rise to a new range of technologies that innovated the banking system.

Also, the introductions of computer have a few reaching effect on an organisation, its management and staff, Rowan (1982:111-112).

An example is (MICR) magnetic Inc. character recognition code line on all monetary instruments whose introduction is now in progress in the central banks of Nigeria (CBN) and other financial institution in the country to make all in automatic clearing house.

This system shows not only the balances of an account on a dice, but, equally brings to individuals the automatic teller machines that are now accepted as part of banking tools of the banks in Nigeria.

In order for us to use computers, we must have some way of getting data into and out of the computers.  Input and output devices perform these functions, Aba and Ngene (2000:4).

However, the most important aim of computerizing banking transactions are to reduce costs, to improve customer’s services and to increase accuracy and time lines of traditional accounting and reporting operations so as to bring efficiency and effectiveness Haro (1975:105)

In addition, one of the most significant achievements of the total organization was the establishment of a “nerve center” as some called it.  The real issue becomes one of staying abreast with the state of practice infusing technology and training as needed to keep the organisation at its peak and continuing coordinated investment in the appropriate software tools and engineering environment, Lewsis (1993:339).

 

2.4     THE STRUCTURE OF A COMPUTER SYSTEM

The Hardware’s components of a computer

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