THE USEFULNESS OF DATA BASE IN FINANCIAL INSTITUTION
Financial institutions are institution which transaction is based on money transaction. They are those that provide finance for the hire-purchase, sale and saves money potential customers give loan and record any necessary services to the public as far as money is concerned.
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As an economy develop, there will also be growth in the financial system. In income and second structural changes occur in the financial system. Itself evidences in respect of the relationship between financial and real development abounds in some of the studies reviewed later (inter alia, those by Goldsmith and Gurley and Show) although there are methodological problem about making the necessary statistical analysis, especially for developing countries. The first approach to ascertaining the relationship between the growth in the financial system and real development is to make a statistical analysis in a particular country over a period of time (Ade T. Ojo and Wole Adewunmi 1982).
- TYPES OF FINANCIAL INSTITUTION:
Financial institution can be classified into:
- Banking type financial institution and
- Non banking type financial institution.
BANKING TYPE FINANCIAL INSTITUTION:
These institutions control and manage the volume of money in circulation directly. They are responsible for the printing, minting and creation of credit of money. Banking type financial institution can also be called the deposit type financial institution deposited in the sense that they accept money deposit from their customers which may either be individual or other financial institution intermediate between the saving surplus unit and the saving deficit units thereby increasing the volume of money in circulation through credit creation.
TYPES OF BANKING TYPE OF FINANCIAL INSTITUTION:
- Central Bank
- Commercial Banks
- Merchant banks
- Development banks
- People’s bank
- Community banks
NON-BANKING TYPE FINANCIAL INSTITUTION:
As the name suggests, non banking financial institution do not control money supply directly as the banking type do however, the non-banking institution still control money supply although indirectly. Example of institution under this category include insurance companies, co-operative societies, building society, provident funds etc.
- DEFINITION OF DATABASE:
Database is a large group of stored inter-related (cross-referenced) data element that can be retrieved and manipulated (usually form a micro computer for a mainframe) with great flexibility to produce information.
A computer database uses an electronic filling system with many cross-references that gives one a tremendous number of ways to reorganize and retrieve data often a data is designed to operate with a programe called database management system (DBMS).
- WHAT IS DATABASE MANAGEMENT SYSTEM?
Database management system (DBMS) is a comprehensive software tool that allow user to create, maintain and manipulate an integrated base on business data to produce relevant management information. By inter-related to one another so that all data on a topic can be retrieved by simple representing the interface between the user database. Example of database management system are database, Microsoft access lotus approach, fox pro, oracle, etc. It is repository of information that is required for the operation of organization. Business organizations, banks, government establishments, schools, hospitals, hostels, etc maintain and rely on database in one form of the other for their operation, as individual we also use various database in one form or the other almost every day. For instance, every time you make reference to telephone directing, an address book or a catalogue, you are actually using a database.
DATABASE MANAGEMENT SYSTEM INTENDED TO:
- Make data independent of the application programs being used that it is easily to access and change say for instance you have created a student data base file, with many students record. After some time, you change the database structure, because of the program being used.
- Establish relationship among records in different files. The user can obtain all data related to important data element.
- Eliminate data redundancy because data is independent of the application program being used. It can store in a single time in a file that can be accessed, for example by the student billing application program or the grade-averaging program.
- Define the characteristic of data. The user can create a database that has data stored in it based on particular information needed.
- Manage file access for example the DBMS can “examine” user requests and clear them for access to retrieve data, thus maintaining data safe from unauthorized access.
- ADVANTAGES OF DATABASE MANAGEMENT SYSTEM:
- It can be edited with eases.
- Records are kept and organized in a very systematic way.
- Information in the database can be displayed in various system.
- The items could be stored in ascending or descending order.
- It is very easy to find specific information from a large volume of records.
- MODEL FOR ORGANIZING A DATABASE:
(a) Hierarchical Model: Is database model, data are organized into related groups much like family trees. The model comprise two types of records which are parent and child record.
(b) Relational Model: It’s made up of many table called relation, in which relayed data element are stored.
(c) Network Model: This is somewhat similar to the hierarchical model but each record can have more than one parent. This model overcomes the principal limitation of the hierarchical model because it establishes relationship between records in different group and record can be related to any other data element.
- DESIGNING A DATABASE:
Matching the design to the organization: The information processing needs of the entire corporation must be considered and viewed in terms of a corporate database that facilitates the collection, maintenance and sharing of data among all the companies in organizational unit. The process usually comprises two distinct phases of activity.
The logical design phase and the physical design phase.
Uses of database in financial department. Financial application of database are in the following ways (1) General accounting which include payrolling, account receivable and payable inventory and management accounting general ledger functions include the trial balances and financial accounting. Computer database has enhanced the above accounting records in the following speed, accuracy, reliability and storage.
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