EFFECT OF COMPUTERIZATION ON THE GROWTH VIABILITY AND PROFITABILITY OF FIRST BANK PLC

1.0 Introduction

1.0.1 History

Since creation, there has been quest by man to improve on the quality of his life and existence. This ever-increasing quest has been necessitated and propelled by the simple need to address the challenges posed by his environment. Borne out of this need, a number of inventions have been made in virtually every field of human endeavour. The computer is one of the most spectacular of such invention. It is a fool specially made for computation.

The development of computer can be traced back to over 5000 years ago when Chinese invented the ‘Abacus’, and the pathgros system of culmination early Egyptian civilization. There after various oother computation were develop. These ranged from manual devices such as the slide rule to purely mechanical device and in most recent time electronic machines. The electronic computer was developed in 19th century.

Today, the computer is prevailing in its effect and use. In combination with telecommunication devices, the computer is functionally reducing the world to a global electronic village in which space is no longer a barrier to the exchange of data and information when computer first came to existence the vast majority of people including educated ones knew little about it. It ease a mysterious tool to many, those who do not take time to find out how it works continue to regard it as a supernatural tool handed to man from above.

Computer has found application in virtually all field of human endeavour including Art, business, Education, Engineering, Medicine, science and in banking sector. Where I have taken a key study on effect of computerization in its operations.

1.1 Background Of The Study

The computer has taken a greater role in financial institution today especially in first Bank of Nigeria Plc.

The first bank of Nigeria Plc which was established since 100 years age, have undergoes some metamorphosis in the system of operation records of the money it received and paid to customer, have been improve into a computerized system.

The system of data collection has been improved through the system of E.F.T networking, E-net work and world wide used information

Today, the first Bank Plc proudly the most effective bank in the country in data information and banking operation.

Although the effect of computerization in firt bank plc can be said to brought reduction in administrative cost and staff level and introduction of positive discipline which has let to increase in efficiency.

Moreover, First bank owned the biggest Assets in the financial institution making its liability very profitable.

1.2 Statement Of The Problem

We tend to ascribe human qualities to computer because they display these qualities more than any other machine. They also manage to give impression that, they put their minds to it.

Research estimated that as many as one third of information workers among professionals and financial managers one “cyberphobes” who resent computer, they mistrust the computer especially when they are told they have to use it in their work.

Another source of problem among the aged worker, is that their unfamiliarity with computer has turned them into the “New illiterate”. They hesitate to take training in computer use because they may be embarrassed to reveal how little they know. Not only do they not know how to work with it, they do not know to it works and a certain social stigma has become attached to not being able to chat easily about bits, bytes and boot programmes.

Although the source of public power supply (NEPA) is improving in its out put generation. The occasional interruption of power supply in the country has been a problem to the operation of computer in first Bank Plc. As a result, computer system are run on generating set with it fuelling problem.

The inadequate tele communication system, unreliable networking system and lack of information, has reduced the productive use of computer in the banking sector. The result of this has been to embark on physical transfer of data from branch to branch, since the remote processing facilities of the computer cannot be put into use especially the lack of infrastructure of local/international Area networking in remote areas.

1.3 Objective Of The Study

1. To know if the introduction of computer in banking operation/services of first bank plc bring about a reduction/increase in administrative cost and staff level of efficiency and discipline.
2. To ascertain the method of data collection and information dissemination to its various branches and its numerous customers nation wide.
3. To verify the customers reaction on the computerization of First bank, if there is a positive reaction on these side as customers of first bank place.
4. To know the problem encountered by the first bank plc on computerization of its operation and a possible means of eradicating and prevent the problem from re-occurring.
5. To know some of the benefit of computerization on first bank plc operations services.
6. To know some of the hindrances to computer application in first bank.

1.4 Significance Of The Study

The computerization of first bank should be seen as necessary tool because of it positive effect on the viability and profitability on its services.

There new electronic technology from the computer with its increasing capabilities through vastly more powerful systems for the storage access analysis and dissemination of information around the world in seconds rather than week is binging about revolution in the commercial banking sector.

The computer system, aside from being used as a network system by way of linking branches to each other to enable quick and prompt services. Also introduce their clients into the use of credit card. This is geared at transaction through creation of credits in the economy. The recent promulgation by the central Bank of Nigeria, makes computer inevitable in Nigeria banks. The Central Bank of Nigeria banks requires bank to resort to “MICR”, a magnetic into character recognition which basically has to do with the face of the cheque, that is the bookshop issued to imprint words and numbers to help machines dictates it from tapes.

Also banks cheques are to have a code number which will be known for the particular banks, unlike before where it was first the cheque number the serial cheque slip written on it. Apparently first bank introduced (E.F.T) electronic fund transfer, which is to recruit money through fax facilities from one branch to another. All these are possible through local area networking of the various computer systems.

The significant of the effect of computization growth, viability and profitability of First Bank can be said to brought reduction in administrative cost and staff level and introduction of positive discipline which has to increase its efficiency and this also effects the quality of services rendered to bank customers.

The computer has ability to reduce the need for manpower, educe storage space requirement and automatically handle intermediate steps in data processing, more flexibility in preparing reports also at the same time increasing accuracy and speed.

The computerization of Fist bank should be seen as necessary tool because of its positive effect on he growth, viability and profitability on its banking services.

1.5 Limitation Of The Study

Despite the variety of task undertaking by computer, there are certain limitations attached to its performance which makes the effect of computerization, on the growth, viability and profitability of first bank plc more oriented. These limitation are the area of computer system error and human were effect.

a. Computer System Error

The research of computer error on banking system indicates that more of the frequent system errors was caused by computer hardware. These errors were caused in some way by the human personnel associated with the system.

They may have been the result of programming errors, operating errors, or of wrong data fed to the system.
However, when computer system do cause errors, they can cause spectacular ones. Sometimes more spectacular than errors likely to be generated by humans. The unsupervised computer system lacks the sense of the absurd possessed by the operators.

An accountant, cashier or clerks adding up figures in ledger, maintaining customers accounts/interest, or updating stock-invetory manual is going o make far more mistake than a correctly designed computer. The computer system error limites ther growth, viability and profitability fo banking system, with some contributing factors to the computer system errors. These factors are

• Hardware errors,
• Software errors
• Errors in application programs.
• Operator errors.
• In appropriate programe design
• Questionable system philosophy

These errors compounding together, limited the efficiency of the operations of a computer thereby effect negatively on the growth, viability and profitability of banking services.

b. Human Ware Effect

Another limitation of the study is the human ware effect.

Human ware simply means human intervention with the computer system we can assume that a machine is automatic if it works by itself without human intervention. But this is non entirely true, computer are machines they have no will of their own, and they cannot start themselves, they cannot go out and find their won problem and how to solve them. They have to be instructed and maintained by man. So the human relationship with computer system is an indispensable factor in all levels of computer technology associated with banking/financial operations.

The most logical question that deserves logical answer since the computer machine came into being.
If computer are capable of solving every problems as human brain does, what then is the difference(s) between the computer machine and the human brain. As there is wider difference between a computer system and a human brain so as there is a closer relationship between the operation of a computers and a human brain.

A potentially serious institution is one in which the human effect and the computer system is questionable. The system may for instance, be insufficiently flexible to handle unanticipated events property. This has been the case in financial/accounting operating control system, the computer laid down a schedule which became difficult to maintain when unforeseen circumstances arose, for instance, the credit/ debt and internet computation of a given period may be laid down in a system account for a particular customers. During normal banking service the system may be ignored by a cashier, due to incorrect relationship with the accounting system resulting in miscomputation of the account.

In this case the entire scheme is at fault, and no amount of turning would make it sufficiently adaptable and error in accounting is always a re-occurrence error.

Definition Of Terms

Electronic Fund Transfer (e.f.t)

Application of computer technology to banking especially the payments (deposit transfer) aspect of banking.

Central Processing Unit (CPU)

It is part of a computer that controls all the other parts of the system. And it is divided into three main section. The control unit, the arithmetic and lng unit (ALU) and main memory.

Software:

The programmes, routine or instructions that makes the computer to perform tasks.

Computer:

It is an electronic device capable of accepting data, process it and retrieve the information.

Bank

Is an institution authorized by law to accept deposit of money and there valuables from customers and paying susch on demand including certificates.

Payroll:

It is a lit of people employed by a company showing the amount of money to be paid to each to them.

Computerization:

An act or the process where by a data is accepted processed and retrieved an information by a network of electronic device.

Electronic Device:

An object or a piece of equipment that has been designed to do a particular job.

Personnel Management

Deals with the bringing of a person into an organization, tuning his behaviour in net work situation, interest and relationships both with his fellow workers and the organization.