ABSTRACT

The importance of banking industry to every economy cannot be ignored. Bank is a place where all financial transaction of an economy impinges on.
On the other hand, the impact of computers in alleviating some of the problems encountered by banks cannot be over-emphasized.
Computer is seen as the most needed tools of improving banking transaction has not been well adopted by all banks in the Nigerian economy. Some banks see it as a means of upgrading their chequering up, transactions and keeping necessary data for customers for loans, advances and other services. Banks, which have gone into computerization, have observed that the positive prospect surpasses its negative prospects.
This research therefore aims at showing the actual contributions of computer to the banking industry and the negative effects experienced by the banks that are yet to go into computerization.
However, in case of the prospects and problems relating to computers, the researcher used both primary and secondary data and other related literature on the study topic in addition to this research being a case study, the researcher used a sample size drawn from UBA Plc in both their accounts and computer departments.
The recommendations and conclusions were based on advising banks and other financial institutions to introduce the use of computer in their transactions.
A general summary showed whether its contributions has actually led to the development in this industry and also indicated that computers use increased the efficiency and effectiveness of operations.

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF STUDY
The first wave of agricultural revolution and the second wave of industrial revolution developments in world all over, and now being superceded by a third socio-economic wave, even though the industrial revolution is still in progress in most part of the third world countries.
This new secio-economic shift termed “third wave is the arrival of computer revolution”.
This means that humanity faces a quantum leap forward as we engage in building a remarkable new civilization from ground up.
Adegbony (2000:3) on his emphasizes on computer revolution indicated that the first computer was manufactured at the “Hakiard University in USA in the year 1944 by Charles Babage computer is an advanced technological innovation, which ahs involved as product of our modern day society. He heralded that it would make life easy.
The above statement not withstanding, the public still approach the course with apprehension and in some cases develops absolute fears for the device. The reason being that the computer came upon the world so quickly that it now affects our various lives in so many ways. This coupled with the general lack of knowledge of what computer is, has given rise to the wave of anti-computer feelings.
It is note that Nigerian industries and businesses are growing bigger and more complex everyday. Manual recording and filling system of financial transaction is no longer coping with the rate of sophistication and competition in these modern businesses.
Management needs timely information for planning and it is only through computerized accounting methods and control system that can give out the needed financial data immediately at the close of the banking period.
Banks and other private and commercial institutions are finding it increasingly difficult to carry out its financial data speedily and accurately enough to satisfy their numerous time conscious customers. The volume of service being offered by banks have increased during the years and at the same time the number of people asking for these services has also increased during the last decade.
It has been said that horse riding was replaced by the motor vehicle just because the horse is inefficient from economic point of view. 
Also manual operations involving the processing of information on two thousand salaried people. The cost involved in this type of operation is numerous like personnel costs, training cost, benefits, leave allowances, retirement costs etc. Then comes the computer, which will not involve much cost. The only cost might be training of personnel, while the work will be done in a speedily time than manual operation. 
Computer has more than immense capacity of solving most of the tedious boredom problems facing accounting system we have in government ministries, government parastata and private business institutions. They store information and make the data more available when needed. They operate with high speed, they are accurate to the points of their activities, and they are reliable, automatic and versatility. Banks therefore saw this as need to go into computerization.
Nevertheless, the advent of computer has some problems. These problems are training of personnel and financial costs. They are very necessary before any bank could go into computerization. Training of personnel is very necessary for the effective running and operations of any computer. The human being is the only thing that can operate a machine like computer, therefore without an effective personnel, the computer cannot be very efficient.
Computer is an intellectual tool, which contributes to output, by increasing effective efficiency, and it is also a tool that is capable of performing pre-determined tasks faster and more accurate.

1.2 STATEMENT OF PROBLEMS
The problems encountered are:
1. The problem of inadequate data and information storage by the banks.
2. The problem of time wastage during the course of the banking activities.
3. The problem encountered during installation of computerized system.
4. Problem encountered in training of personnel.

1.3 THE OBJECTIVE OF THE RESEARCH
The purpose of this research is to identify:
(a) The prospect computerization has put forth on the banking industry.
(b) Identify the uses to which computer would be put, into so as to maximize efficiency on effectiveness of the bank operation.
(c) The study would bring into account on over view of computer application to the numerous services being rendered in our banks as an electronic storage facility.
(d) The study will also identify the various factors hindering the adoption of computer in the business factors.
(e) This study will bring to light the public misconception about computers and how these misconceptions would be corrected.

1.4 SCOPE AND DELIMITATION OF STUDY
The major aim is to highlight the impact of computerization on the banking industries and the scope would be restricted to the United Bank for Africa Plc, where almost the departments of its accounting system has been computerized.
The researcher wishes to choose this aspect of computer on banking industry alone and not the entire work of computer because of time factor and some prevailing obligations that contributed to inadequacies in this research.
The work was also limited by the non-availability of adequate data on the work, “computer in banking industries” or any other related work. Respondents from the bank would feel that releasing all data was like leaking the secret of the banks.
Finally, because of financial predicament as student of the researcher may be unable to carryout this work as may be expected. But these limitation notwithstanding, the researcher has ensured that this research work will hopefully not only meet the deceived academic requirements but also meet the needs of the case study of the bank where it was carried out.

1.5 RESEARCH QUESTIONS
(1) Has computerization of UBA Plc fastened banking services?
(2) To what extent has computerization increased the volume of deposits?
(3) Has computerization increased or reduced the efficiency and effectiveness of the bank?
(4) Has computerization been of help to cost reduction in banking industries?
(5) What of the workload of UBA Plc has computerization reduced it?
(6) Is the performance of computer in banking industries move reliable to customers than manual implementation being used before?
(7) Is computerization of confidential and to point for customers in teams of accounting than the crude system of then accounting?
(8) Has there been recorded any profit increment in annual statement of account of the banking industries since inception of computer?

1.6 SIGNIFICANCE OF THE STUDY
At the end of this research, we will be able to appreciate the fact that this study will enable to make use of the work in both their academic and research work.
It will also be made clear that various banking industries to day need computers for effective banking operations.

1.7 DEFINITION OF TERMS
COMPUTER
Chambers Universal learners Dictionary, edited by Kire Patrick (2001, 130) defined computer as a large electronic machine capable of storing large amounts of information and of performing calculations”.
The Oxford Advanced learners dictionary 6th edition page 231 that computer is an electronic machine that can store, organize and control other machines”.
Also the American Heritage dictionary of English language defined it as “a device that performs high speed mathematical and logical calculations or that assembles, stores processes or prints information derived from coded data in accordance with a pre-determined program.
This implies that although computer has no brain of its own to reason like human beings, it performs complete mathematical problems as fast as possible even faster than the human brain.
COMPUTERIZE
It is a process whereby computers employed to carry out certain operations, which might as well have done by man. Such operations are the collection of data, the analyzing of the data and conversion of such information, which could be used in banking and many other relevant fields.
IMPACT/PROSPECT
By Oxford Advanced Dictionary, it means storing impression or effect produced in the mind of a spectator, reader etc.
Operationally, it means where some thing is being brought into operation or is in use, the effect or result or which is that it has the whole operation.

BANKING
Oxford Advanced Dictionary defines banking as the business of recurring money from outside sources as deposits irrespective of payment of interest and granting of money, loans and acceptance of codices or the purchase of bills and cheques or the sales of securities for the account of others or the carrying in of the obligation to acquire claims in respect of banks prior to their maturity.
In operational context, persons, groups, organizations, corporate body or government that do banking business as defined above can be called a bank.
HARDWARE
This refers to the actual components that can make up an installation; it comprises the external or the physical components of a computer.
SOFTWARE
A general definition for all terms of programme instruction and supplementary materials used by personnel to the computer its instructions.
DATA
These are unprocessed items or raw information that make no meaning on its own and are usually fed into the such as date, account opened, name and address, accounting number, etc. In data processing systems Ubaka Aroh (1997, 4) defined data as an observation that does not convey any meaning.
INPUT
The process of sending data or instructions into the computer.
OUTPUT
The presentation of the answer after the processing has been completed it can be in the form of printed reports or printouts.
OFFLINE
A computer system where the branch is not connected directly to the computer center in such a situation, the branch will use diskettes for transmission before report could be produced.
ONLINE
A computer system the branch is limited electronically with computer, center.
MAGNETIC TAPE
This is widely used method of recoding computer data by means of tape. It has three important advantages, which are speed, compactness and readability.