PROCESS OF INNOVATION IN THE BANKING INDUSTRY (A CRITICAL STUDY ON THE IMPACT OF COMPUTER APPLICATION ON THE COMMERCIAL BANKS IN NIGERIA).

CHAPTER ONE

INTRODUCTION

1.1 STATEMENT OF THE PROBLEM
This research work is designed to study the impact of computer Application on the commercial banks in Nigeria.
One of the technologies that have the greatest impact on our commercial banks now is the computer power with its attendant daily operations.

The computer is designed to help the banks in many ways which include:

Speedy services

Reduction of work load manually

Helping banks detect fraud

Helping banks to go on-line or to practice on-line banking
Helping the banks to retain their customers and gain new one’s

This research will study

The impact of computer on speedy services

How computer helps or will help the banks in reduction of work load.

Computer in the application of on-line banking system in banks.

1.1 STATEMENT OF THE PROBLEM

This research work is designed to study the impact of computer Application on the commercial banks in Nigeria.

One of the technologies that has the greatest impact on our commercial banks now is the computer power with its attendant daily operations.

The computer is designed to help the banks in many ways which includes:

1. Speedy services

2. reduction of work load manually

3. Helping banks detect fraud

4. Helping banks to go on-line or to practice on-line banking.

5. Due to speedy services it will also help banks to reduce gueve.

6. Helping the banks to retain their customers and gain new ones.

This research will study
The impact of computer on speedy services.
How computer helps or will help the banks in reduction of work load.
Computer in the application of on-line banking system in banks

1.2 THE RATIONALE OF THE STUDY

The primary function of commercial banks in the extension of credit to worthy borrowers Adewunmi (1996). In making credit available commercial banks are rendering a great social service through their actions, production is increased capital investment are expended aid in a high standard living is realised. Process of innovation in the banking industry is very important to the commercial banks because it aids increased finance of commercial banks in banking sector. Although the investment activities of commercial banks are usually considered separately from lending. Temporal borrowings from commercial banks are not always recovered and this does not provided for smooth development in innovation in banking industry.

It is pertinent to research into the impact of these innovation by installing in computers and suggest possible means of mitigating them.

1.3 SIGNIFICANCE OF THE STUDY

This study is very important to the commercial banks because all innovations through electronic banking will be the key of success of commercial banks.

Computer will help to facilitate early discovery to fraud, misappropriation of funds forgery and any malpractice carried out, banks staff as well as provide quick information for management decision.

The research work in highlighting the benefits derived from use of computer will encourage commercial banks in Nigeria to embrace such benefits by installing in computer’s in their banks.

It will equally serve as a reference material to potential users in information in computer science and technology.

1.4 BACKGROUND OF STUDY

Today, commercial banks are undergoing a far reaching but

fortunately bloodless revolution due to advancement of technology.

Everybody can now readily see the indelible impact modern technology is using on people lives.

One of the technologies that has the greatest impact on our commercial banks now is the computer power with its attendant daily operation

Commercial banks are constantly facing competition in the financial markets so they have to be structure in such way to be constantly informed on the relevant changes. These markets, it effects on their competition:-

They would react to the changes.

To properly analyse every but of information the organisation needs to employ a system that can constantly be used to process, up dates and refract input stored must in it while this is going on the system must also be capable of correcting and rejecting inputs in line with the requirements.

Fortunately, information processing technology make a break through in the invention and development of the computer, a computer is an electronic device which stores information on magnetic tape, analyse it and produces information required from the data on the tapes.

As a result of the slow pace of development in Nigeria, it has been very slow to make a change form the practitional manual to machine issued automation or electronic automation, known as computer system.

However, the development so far has shown some fairly wide-spread use of mechanized and electronic automation of banking information system processing in this country whether at low or high efficiently level. A point of happiness is that many commercial banks in Nigeria are now making table slides in the introduction of technology that will aid their efficiency.

The first bank of Nigeria PLC, for examples operates one of the most extensive computer banking in Nigeria and still strenuously continue to up grade it. The experience of the Nigeria international bank Plc in the use of NIB in starting operation in 1984, was full automation but the problems associated with import licensing made it impossible.

Skeleton use of computer started in the mid 1986 and limited to word processing and telex. By the time NIB advanced its use of computer in January 1987, the bank’s accounting system.

In an advertisement by the Africa continental bank (ACB) on the opening of its Port Harcourt branch, the bank’s claim at the end of advertisement was that the branch would be computerized. The only reason why ACB put the claim is because of its awareness of the power of computerization. The bank of credit commerce and industry international is presently providing computer issue services information in all its branches. United Bank for Africa has computerized all its Lagos branches on its road to providing management information system for the entire bank.

Society general bank, has claimed to be computer bank and its corporate strategy, has been built around the use of computer in every branch. The bank has one of the most modern on line and interactive, real time computer banking system in Algeria today.

Other commercial bank such as union Bank, Afri-Bank, etc are not left behind in the rush for the automation of their business.

The application of computer has significant impact on the commercial banks in Nigeria. The computer with its speed accuracy efficiency in the banks operations of the commercial banks in Nigeria.

1.5 DEFINITION OF TERMS

CONCEPTUAL AND OPERATION DEFINITION COMPUTERIZED

To store information in a computer or to use a computer to control an operations.

In its operational meaning it is a process above where computer employed to carry out certain operations which might as well as the been done by man. Such operation are the collection of data the analysis of this data and the conversion of such into information which could be used in banking and so many other relevant fields.

OPERATIONS: The way anything work or the way it becomes effective. It operational meaning the study of how best to build and use machine or plan organisation.

BANKING: The business of a bank or banker its operational meaning; means the business of accepting of deposit from outside sources irrespective of payment of interest and also means the granting of money loan and the acceptance of credit or the purchase and sell of security. For the account of acquire in respect of loans prior to the maturity or might mean the assumption of guarantees and warranties for other or the effecting of transfer and cleaning and such other transactions that might be incidental to a bank or banker.

LOW-LEVEL LANGUAGES: Computer language that are machinery based.

HIGH – LEVEL LANGUAGES:- Computer language that are oriented towards the problems to be solved.