TITLE PAGE

EFFECT OF COMPUTERIZATION ON THE NIGERIAN BANKING INDUSTRY IN

ZENITH BANK BRANCH PLC POTISKUM LGA

BY

KHADIJA MUHAMMAD IDRISS

CS/DCS/20/015

BEING A PROJECT REPORT SUBMITTED TO THECOMPUTER SCIENCE

DEPARTMENT, COLLEGE OF ADMINISTRATION, MANAGEMENT AND
TECHNOLOGY (CAMTECH) POTISKUM IN PARTIAL FULFILLMENT OF
REQUIREMENT FOR THE AWARD OF DIPLOMA IN COMPUTER SCIENCE

i
OCTOBER, 2022.

ii
 APPROVAL PAGE

This project report has been read and approved by the undersigned as meeting the requirement for

the award of Diploma in Computer Science by the Computer Science Department of College of

Administration, Management and Technology (CAMTECH) Potiskum

Project Supervisor

.............................. Sign:........................ Date:……………….

H.O.D Computer

.............................. Sign:........................ Date:………………..

External Examiner

.............................. Sign:..........,............ Date:………………

iii
 DEDICATION
This project work is dedicated to our beloved parents and the entire members of our Families for

their prayers and assistances towards the completion of our studies, May Almighty Allah Merit,

Dignify, elevate their positions where so ever they are and finally reward them with Jannatul

Fardausi, Amen.

iv
 ACKNOWLEDGEMENT
All praises be to Almighty Allah for granting us the privilege, wisdom, opportunities and

the enabling environment to conduct this research work. We also thank him tremendously for the

guidance and protection he gave us throughout the exercise.

Our special thanks to our project supervisor, Malam Fatima Sa’idu Sarduana for his

guidance, truthfulness in reading the manuscript, His patience and readiness towards the success

of this task are highly appreciated. May Allah bless him Ameen.

We also thanks our course lecturers in Computer Science Department as well as our

course mates in general for their contributions, assistances and advices in one way or the other,

may Allah bless and reward them abundantly.

Also our profound gratitude's to our parents for their support both financially and morally

for the success of our studies.

Finally, may Almighty Allah Bless our Certificate. Amen.

v
 ABSTRACT
The purpose of the study is to examine the “Student Attendance Management System” in Yobe
State University, Damaturu, the researcher adopted descriptive survey design. The
questionnaires were distributed to the group of the respondents to fill out, considered to be the
representatives of the entire population. And also, the population size comprised of all Yobe
State University academic staffs which is sixty (60) staff lecturers in Yobe State University,
Damaturu. Therefore, the sample size contained fifty (50) lecturers selected from the entire
population using Random Sampling Techniques in which each member has an equal opportunity
of being chosen. The instrument were used in this study was the questionnaire which contained
(20) items that solicited the respondents opinions on the “Student Attendance Management
System”, and using the (5) Likert Rating Scale of Agreed (A), Strongly Agreed (SA), Disagreed
(D), Strongly Disagreed (SD), and Undecided (U). Furthermore, the date collected for this
research work can be presented and analyzed in a tabular form showing the differences in
numbers and percentages of the respondents that were consulted during this write up. Moreover,
the first table analyzes the respondents based on their Gender, Educational Background, Marital
Status, and Working Experience of the respondents. And the other 12 tables present the number
and percentage of the respondents upon respondents they gave when filling their questionnaires
form. Follow by the formula were used to analyze is No of Respondents Divided b Total No of
Respondents multiply by one Hundred (100). Lastly,, the summarized of majority having made
reasonable attempts to find out the problem and areas of the ineffective use of Online Attendance
the researcher come out with the following findings; the majority of the respondents were
strongly agreed throughout the finding.

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 TABLE OF CONTENTS
Title Page - - - - - - - - - i
Approval Page - - - - - - - - ii
Dedication - - - - - - - - - iii
Acknowledgment - - - - - - - - iv
Abstract - - - - - - - - - v
Table of Contents - - - - - - - - vi
CHAPTER ONE: Introduction
1.1 Background of the Study - - - - - - - 1
1.2 Statement of the Problem- - - - - - - 2
1.3 Research Objectives - - - - - - - 4
1.4 Research Question and/or Research Hypothesis - - - - 5
1.5 Significance of the Study - - - - - - - 5
1.6 Scope and Limitation of the Study - - - - - 6
1.7 Definition of Terms - - - - - - - 6
CHAPTER TWO: Literature Review
2.1 What Is Computer - - - - - - - - 7
2.2 Historical Evolution of Computers - - - - - - 7
2. Classification of Computers - - - - - - - 9
2.4 Computers Generations - - - - - - - - 11
2.5 Characteristics of Computers - - - - - - 12
2.6 Fundamental Computer Systems - - - - - - 12
2.7 Data flow In Banks - - - - - - - 15
2.8 Information System Processing - - - - - - 18

CHAPTER THREE: Research Methodology

3.1 Research Design - - - - - - - - 30
3.2 Population of the Study - - - - - - - 31

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3.3 Sample Size and Sampling Technique(s) - - - - - 31
3.4 Research Instrument - - - - - - - 31
3.5 Method of Data Collection - - - - - - 31
3.6 Data Analysis Technique(s) - - - - - - 32

CHAPTER FOUR: Data Presentation and Analysis

4.1 Data Presentation - - - - - - - - 33

4.2 Data Analysis- - - - - - - - - 35

4.3 Discussion of Results - - - - - - - 40

4.4 Summary of Major Findings - - - - - - 40

CHAPTER FIVE: Summary, Conclusions and Recommendations

5.1 Summary - - - - - - - - - 41
5.2 Conclusions - - - - - - - - 42
5.3 Recommendations- - - - - - - - 43
References - - - - - - - - - 44
Appendix I - - - - - - - - - 45
Appendix II - - - - - - - - - 46

viii
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In an evolving Nigerian banking industry, strategies are being adopted by the major

players in order to achieve their long-term organizational goals- profitability and survival. In the

light of this belief, much emphasis is being laid on the computerization of their banking

operations. Within the last decade, the Nigerian banking industry has been at the forefront of

computerization. This is with the aim of: improving their information system, delivery of

efficient and high quality service to their customers.

In the advent of computerization, old generation banks in the industry were force to wake

up from their slumbers and face reality. The new generation banks came into the industry with

innovation, research and development, in order to push these less competent old ones out of

business. This revolution was aided by computerization. It’s very pertinent to state that

computerization is a very powerful weapon which can be employed to annihilate competitors.

The Nigerian banking industry ensures that their data base is updated as at when due. With the

2004 banking reform in Nigeria, the industry has persistently remained vibrant. The overall aim

of this sanitations effort by Professor Charles Chukwuma Soludo was to achieve some

macroeconomic objectives, which include the following:

To create a world of banking groups through mergers and acquisitions aimed at avoiding bank

distress. To consolidate Nigerian banks to manage the country’s external reserve deposited in

foreign banks. To ensure that there is zero-tolerance in the regulatory framework.

According to Rob Kling (1996), “when a specialist discusses computerization and work,

they often appeal to a strong implicit image about the transformation of work in the last one

1
hundred years and the role that technology has played in some of these changes.” In view of this,

it’s quite imperative to analyze this information with the Nigerian banking industry, and to take

actions aimed at guiding against the problems associated with computerization.

According the Oxford English dictionary (6th edition), “computerization is an act of

providing computers to do identified operations”. Before the advent of computers, the rule of

thumb adopted in data-handling led to incompetence and huge loss of resources.

According to Rob Kling (1994), “In the early twentieth century, the organization of office

work underwent substantial change-firms began to adopt telephones and typewriters. By 1930s

and 1940s, many manufacturers had devised electromechanical machines to help manipulate,

sort and tally paper records automatically.”

In the early 1960s, business firms such as insurance companies and banks adopted

computer-based information systems on a large scale.

During the 1980s and early 1990s, virtually every business organizations had bought the

personal computer (PC). The PC revolution did not only change the 9 nature of office work but,

also expanded the range of people who used the computer.

In the last decade, many larger organizations that imbibed computerization and saw their

profit rise astronomically concluded that “computerization is the currency to be spent in the new

millennium”.

In the light of this belief, this study probes the pros and cons of computerizing banking

operations, using the Zenith Bank plc as a case study.

1.2 Statement of the Problem

The twenty-first century business-world has been marked by the rise of service job in

such areas as: banking, insurance, advertising, transportation and health. Many of the earliest

2
commercial computers were bought by large service organizations such as: banks and insurance

companies.

One of the basic problems of this research work is to critically look at the banking

industry vis-à-vis the heavy investment made by these institutions in the acquisition of computer

technology. This will be geared towards assessing the effect of this computer technology on the

banking activities in general.

With computerization, jobs that would have taken hours and a lot of manpower, can

conveniently be done by few hands in just a jiffy. The concomitant effect of this will inevitably

be lay-off of workers. In the case study of this research work-United Bank for Africa Plc- about

4000 workers were made redundant as a result of technological innovation. According to

Shankar K. (1997) “as society becomes more dependent on computers, computer crime is

becoming not only more disastrous, but also more attractive to the criminally-minded people: the

disclosure threat, which is the dissemination of information to an individual for whom that

information shouldn’t be seen.

In the context of computer security, the disclosure threat occurs whenever some secret

information that is stored in a computer is divulged to somebody who shouldn’t have seen it.

Fraudulent people have devised a clever way of guessing at people’s passwords. These could

take the following forms: a user’s role model, surname, best movie, spouse’s name, street name,

best drink.

Another major problem associated with computerization is obsolescence. Technology,

which is one of the external threats in the business environment, changes very rapidly. What was

impossible yesterday has been made possible today. With technological changes, huge

3
investments made by banks in the acquisition of contemporary computer devices are lost. This

has a very high cost implication on the resources of these banks.

1.3 Research Objectives

The objective of this study is to carry out a thorough analysis of effect of computerization

on the Nigerian banking Industry. The positive side of it will be fully looking at, and the

problems associated with it will be brought out in details. This study is also aimed at taking a

holistic view of computerized banking operations in order to help identify clearly those

beneficial aspects of computerization on the Nigerian banking industry. Advantages of

computerization such as: Speed, efficiency, reliability and accuracy will be thoroughly analyzed.

The proper management of the computerization process aimed at cushioning its traumatic effect

like job losses will also be delved into. The use of computers in the Nigerian banking Industry

has been necessitated by the large volume of book-keeping and their multifarious scale of

operations. In studying the effect of computerization in the Nigerian banking industry, efforts

will be made towards analyzing issues such as:

i. To find out if computerization increased service delivery in the Nigerian banking

industry

ii. To find out if job-losses is the end-product of computerization in the Nigerian

banking industry in Zenith Bank Plc in Potiskum Local Government Area.

iii. To assess how computerization can affect the internal control system in the banking

industry.

iv. To find out how data can be secure in the computer systems in Zenith Bank Plc in

Potiskum Local Government Area.

4
 Research is also aimed at providing an in-depth analysis of computerized banking

operations in Zenith Bank Plc in Potiskum Local Government Area which will serve as a guide

for any bank that intends to computerize its operations.

1.4 Research Questions

Data analyzed should be able to answer the following questions that will be used in

appraising the effect of computerization in the Nigerian banking industry:

i. Has computerization increased service delivery in the Nigerian banking industry in

Zenith Bank Plc in Potiskum Local Government Area Branch?

ii. Can job-losses be the end-product of computerization in the Nigerian banking industry in

Zenith Bank Plc in Potiskum Local Government Area Branch?

iii. Can computerization affect the internal control system in the banking industry?

iv. Can data be secure in the computer systems in Zenith Bank Plc in Potiskum Local

Government Area Branch?

1.5 Significance of the Study

The significance of the study of the effect of computerization on the Nigerian banking

industry could be established from the point of view that one of the important benefits which a

computer system could bring to an organization is speed and accuracy of information. The study

is further justified by the need to guide the banks in their quest to computerize their operations,

thereby bringing out the cost implication of doing so. The need to take a critical look at the

Nigerian banking industry which is the life-blood of the Nigerian economy makes this study very

important.

5
 In view of the fact that no economy can make headway without a sound and vibrant

financial system makes this study very important.

1.6 Scope and Limitation of the Study

A research on the effect of computerization on the Nigerian banking industry is a very

vast one. It involves an extensive study and understanding of the total effect of computerization

on the Nigerian banking industry, considering its merits and demerits. In view of the large size

and scale of operation, it is a very painstaking and excruciating one. In a bid to keep the work

within a manageable limit in terms of time and financial constraints, the research will be limited

to Zenith Bank Plc.

It’s quite pertinent to state that banks have a discreet nature of not divulging sensitive

information about their scale of operation. And, this has served as a limiting factor. The problem

of bias on the part of the respondents might serve as a limiting factor.

Despite these factors, efforts will be made to obtain the much-needed information to

carry out this research work and the conclusion drawn to be incisive.

1.8 Definition of Terms

Computerization: This is the act of providing computers to perform identified operation.

Data Base: An organized set of data that is stored in a computer and can be accessed and

used in various ways.

Fraud: A crime of deceiving somebody in order to get money or good illegally.

Obsolescence: The state of becoming old-fashioned and no longer modern.

Reform: A change that is made to an organization or a social system in order to improve it.

6
 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

Modern-day business organizations strive to achieve certain goals for the benefit of their

owners and clients, these goals are usually expressed in terms of objectives such as: increase in

turnover, cost reduction, profit maximization and improvements in services. Such objectives will

need to be met within the confines of the available resources.

In order to meet these objectives, an organization should be able to:

a. Plan ahead

b. Control cost

c. Coordinate its activities

Today, large business organizations have discovered that the best means to deliver high quality

service is by embracing computerization.

2.1 What is a Computer?

According to G.B Davies (1978), a computer can be defined as any electronic device that

can accept data, process this data and produce this processed data as output, at a very high speed

and accuracy with little or no human intervention.

2.2 Historical Evolution of Computers

The existence of computers can be traced to the early days of man. As a matter of fact,

the computer has become known to mankind as early as 7th century BC when the first computer

called the ABACUS came into being. It was made In China and consisted of beads strewn on

7
iron rods. The abacus was used mainly for simple arithmetic calculations such as additions and

subtraction. Since the invention of the Abacus, computer has metamorphosed through different

stages before its present form.

The Adding Machine

According to Omilo Augustine(1996 ),the adding machine was invented in 1962 by a

Frenchman called Blaise Pascal, a nineteen- year- old boy, who was motivated by the need to

reduce the numerical labour involved in his father’s work(the supervision of the tax and

expenditure of public money).

In 1823, a breakthrough was recorded in what is today known as computer. That year, a British

mathematician called Charles Babbage “the father of computer” invented a machine called the

difference Engine, which computed tables rapidly and accurately.

He didn’t receive the expected assistance because his ideas continued to develop beyond

the original concept. In fact, due to lack of fund, he abandoned the project and commenced work

on the second machine called “The Analytical Engine”. However, parts of the difference engine

were made and it can be found in the science museum in south Kensington, England.

The Analytical Engine was patterned towards the modern-day computer. For instance, it

had the processor, input device, output device, main storage and the control unit. The Analytical

Engine could be programmed. It held its programs on punched card. Charles Babbage could not

complete his work on Analytical Engine before he died in 1872.

The punched card was first used for automatic control of the weaving loom in 1801 by

Jacquard. However, it became useful for computational work at the tail-end of the 19th century.

At that time, an American statistician by name Herman Hollerith who was working in the US

8
census department suggested its use to the government. He devised a card-based machine which

he used for the processing of the US census data in 1890.

Herman Hollerith later left the census office in 1896 to form the tabulating machine

company which later became what is today known as international Business machine (IBM) inc.

one of the largest computer manufacturers in the world, and a pioneer in the production of micro-

computers in commercial quantity. In 1944, an automatic calculator called the Automatic

Sequence Controlled Calculator (ASCC) was invented. This later became known as mark-1. This

feat by Howard Aiken of Harvard University was encouraged by the success of the punched card

machine in 1937. He was greatly assisted by IBM which provided all the manufacturing

capabilities. The success of the Mark-1 led to the invention n of both Mark-2 and Mark-3. All of

which used the punched card as input medium. The output device was a card punch and a

typewriter and it operated electro-magnetically. The Second World War propelled a lot of efforts

in the development of electronics. The evidence of this can be found in the design of a machine

called the Electronic Numerical Integrator and Calculator (ENIAC).

Then, the best was yet to come as John Von Neumann led other scientists at Advanced

studies institute at Princeton, to develop EDVAC-Electronic Discrete Variable Computer. This

could be said to have set the stage for the manufacture of today’s computers. As a result of

Neumann’s achievement, a great number of computers were designed in the United States of

America, and elsewhere.

2.3 Classification of Computers

Computers can be classified under two broad categories:

1. By Data processed

2. By Size

9
BY DATA PROCESSED

Considering the manner in which data is represented within the computers, we could have

following classes.

1. Analog Computers: These are computers that operate on values represented in the form of

continuous variables. That is, values those changes frequently within short time interval. In

analog computers, a value is represented by a physical quantity that is proportional to it. The

output from this type of computers is represented in the form of smooth curves or graphs

from which information can be read. A physical quantity used may be current, voltage,

pressures, temperature and length.

2. Digital Computers: These are computers that process data which is represented in the form

of discrete values (e.g. 0,1,2,3) by operating on it in step. Discrete values occur at each step

of operation. Counting on one’s fingers is probably the simplest digital operation we all

know. Today, there are more applications that use digital rather than analog computers.

3. Hybrid Computers: This is a computer that combines the speed of digital computers and the

efficiency of analog computers.

B. BY SIZE

1. Mainframe Computers: This is a set of computer that is large and expensive, which is used

by many people for a variety of purpose.

Features of Mainframe Computers

a. They contain general-purpose processor capable of handling multiple simultaneous functions

b. They support a wide range of peripheral equipment including high speed storage devices.

c. They are normally housed in air-conditioned rooms, surrounded by security devices.

10
2 Mini Computers: These are computers that are smaller in size and have a very low cost of

purchase. Mini-computers are easier to install than mainframe computers.

a. Micro Computer: In physical size, the micro-computer is the smallest. It’s also known as

“Personal Computer” (PC). It’s very cheap to acquire a micro-computer. It’s commonly used

in homes and small offices. It’s portable and can tolerate the normal room or office

temperature. Again, its operations are very simple and therefore require little or no skill. It’s

simple to install,

2.4 Computers Generations

1. The First Generation: The first generation computers were characterized by the presence of

‘vacuum tubes’ which acted as a basic block for building the logical part of the computer. It

consisted of circuits made up of wires and values. Examples of computers in this generation

include UNIVAC1, IBM, 700. The period covered by the first generation computers lasted from

the Mid Nineteen Forties to Mid Nineteen Fifties.

2. The Second Generation: This generation of computers was characterized by the use of

transistors in place of vacuum tubes. This made the computers consume less electricity power

and produces less heat. They were physical smaller and cheaper. The computers in this group

include IBM 7030, NCR 315, UNIVAC 1107 and Honeywell 800. The period of the second

generation computers covered late fifties to about mid Nineteen Sixties.

3. The Third Generation: In this computer generation, the integrated circuits tech neology was

the major characteristics of the computers. This made computers cheaper than the earlier ones

and these computers were also faster as they operated in nano seconds (one billionth of a

second). This generation witnessed the introduction of many mini and mainframe computers.

11
The major companies involved included: IBM, Honeywell amongst others. These computers

were used for more complex data manipulations.

4. The Fourth Generation: This generation witnessed the production of micro –computers. It

was characterized by the use of micro-processors; it came along with software such as

a. DBASE: for datable management.

b. Lotus 1-2-3: for spreadsheet applications.

c. Word-star for word processing.

This generation enhanced the use of computers in communication, especially in terms of

improved networks and electronic mail. The fourth generation covers mid nineteen seventies to

late eighties.

5. The Fifth Generation: Computers in this generation came into the market around 1990. This

era witnessed the introduction of micro-computers. These computers are data-driven.

2.5 Characteristics of Computers

1. Speed: data are processed at a very high speed.

2. Accuracy: data are processed without error.

3. Consistency: A computer, if given the same task, it’ll continue to produce the same result.

4. Automatic: It’s automated with minimum human intervention.

2.6 Fundamental Computer Systems

The main components of the computers system are:

a. Input Devices.

b. Central Processing Unit.

12
c. Primary Storage Unit.

d. Secondary Storage Unit.

e. Output Devices.

a. Input Devices: Are used to capture and enter data into the computer. Before data can be used

within a computer system, it’s usually necessary to convert it into a format that supports

processing by computer. Most data are held in machine-sensible form. We shall briefly discuss

some examples of input devices:

i. The Keyboard: This remains the most common input devices and its basic design has

remained largely the same. A common criticism of the keyboard is that inexperienced users find

it difficult to use.

ii. The Mouse: This is a device held by the user to navigate from one side of the screen to

another. Selections like menu items are made by clicking one of the buttons on the mouse. A

mouse is suitable for controlling programs that make use of icons, menus or buttons.

b. Central Processing Unit: The central processing unit (CPU) performs processing by carrying

out instructions given in the form of computer programs. It’s made up of two components:

i. The control unit

ii. The arithmetic and logic unit.

The control unit fetches commands from memory, decodes them and then executes them.

It controls the operations of all hardware, including all input/output operations. The arithmetic

and logical unit carries out arithmetical calculations.

c. Primary Storage or Main Memory: This is the memory that store and load data and

instructions temporarily. Such memory is said to be a volatile memory and it is:

13
i. Random Access Memory(RAM): The content of this type of memory are lost when the power

to the device is switched off.

d. Secondary Storage Devices: They provide a means of storing data and programs until they

are required. Secondary storage devices include the following:

i. Floppy disk drive: It uses plastic disk, coated with a magnetic covering and enclosed within a

rigid plastic base. They come in different sizes. At present, the most common type is the high

density 3.5” floppy disk.

ii. Hard disk drive: This is a standard feature of a modern computer. It is used in storing the

computer’s operating system, application software and data. It stores data on a number of rigid

patterns that are rotated at high speed.

iii. The CD-Rom Drive: This arose from the audio compact disc player and began to gain

popularity in the late ’80s. The acronym ‘CD-Rom’ stands for Compact Disc-Read Only

Memory. Data cannot be written to a CD-Rom by a conventional player. The digital versatile

Disc(DVD), although, this is similar to a CD-Rom, two significant benefits to users are:

d. Output Devices: This translates the result of processing into a human-readable form. The

results of a calculation, for example, can be displayed on a screen or sent to a printer. Output

devices include:

i. Video Display Unit (VDU): This is the most common output device, also known as the

monitor. Here, information can be shown instantly, and the cost of using the monitor as an input

device is very low.

ii. The Printer: The printer is a very common output device and thus, it’s considered an

essential part of a computer based management information system.

14
iii. Laser printer: This is a type of printer that makes use of the toner powder it’s usually

described as page printers. It has a high quality printing ability, and it’s almost completely silent

in operation.

2.7 Data flow In Banks

The effective operation of banks is dependent on the efficiently flow of data, both

internally and externally. Accurate, prompt and complete data is essential for quick customer

services and operation of the various banking activities. Bank managers and officers alike, must

have adequate data to properly direct the operations of their banks.

The operation department is usually at the centre of the data-generation and

dissemination units of banks. This is why banks computerize their operations to enable

operations to be carried out effectively and efficiently. For computerization to be of optimum

value to a bank’s operation, certain data must be available at specific point in time in the banking

cycle. A system of processing data must take the element of time into account. Because, the

efficiency and effectiveness of any good service delivery must be timely.

The storage and retrieval of information is an important function of data-processing. The

accuracy and thoroughness of any effective data-processing is measured in terms of quality and

timelessness, at the right place.

2.8 Facilities for the Development of a Management Information System (MIS) in

Banks

There are several facilities needed for the development of an efficient information system

in banks. The facilities are generally compliant, and they include:

1. Self-service terminal

2. Point of sale terminal

15
 3. On-line network

4. Data base

2.8.1 Self Service Terminal (SST)

Self-service terminal (SST) is an electronic device that facilitates a wide range of banking

activities, but doesn’t accept cash deposits. They are accessible, easy to use and more cost-

effective, and helps one avoid long queues. The following transactions can be performed on an

SST.

a. Make payment to third-party beneficiaries.

b. Obtain information in foreign exchange rates.

2.8.2 Point of Sale Terminal (POS)

This is a computerized replacement for the manual cash register. It includes the ability to

record and track customers’ orders, process debit and credit cards and mange inventory. A pos

terminal system for a restaurant, for example, is likely to have all menu items stored in a

database that can be relied upon.

2.8.3 On-Line Network

This is a system of competently linking workstation in order to eschew the problem of

congestion. The on-line network is very advantageous in the following ways:

a. It enables serial devices without changing software and hard ware.

b. It enables real-time data analysis.

c. It enables remote access monitoring and control.

16
2.8.4 Database

A database is a well-structured repository for data. The overall purpose of such a

repository is to maintain data for some set of organizational objectives. Most database systems

are built to retain the data required for the running of the day-to-day activities of an organization.

Hence, in a university, a database system will be needed for such activity as recording the

continuous assessment of students.

Properties of a Good Database

(a) Data Sharing: Data stored in a database is not usually held solely for the use of one person.

A data base is normally expected to be accessible to more than one authorized persons.

Hence, a student’s database might be accessible to members of academic and administrative

staff.

(b) Data Integration: Shared data brings numerous advantages to the organization. Such

advantages, however, only result if database is treated responsibly. One major responsibility of

database usage is to ensure that data is integrated.

(c) Data Integrity: Another responsibility arising as a result of shared data is that a database

should display integrity. In other words, a database should accurately reflect the universe of

discourse that it is attempting to model.

(d) Date Security: One of the ways of ensuring data security is by restricting access to the

database. The main way this is done in contemporary database systems is by defining in some

detail a set of authorized users of the database. For instance, a secure system would be one where

the finance department has access to information used for collection of students’ fees, but is

prohibited from changing the fee levels of given students.

17
2.9 Information System Processing

(a) Batch Processing: With the increase in number of data to be processed, it makes more sense

to gather and store individual data (of the same type) in batches, so that when the data have

accumulated to a certain number, they are sorted and processed at once. The processing time is

predetermined by the designer of the application and depends mainly on the operational role of

the batch within the organization. Processing may be periodically i.e. hourly, weekly, monthly,

or after a specific number of data is attained.

Batch processing was the earliest mode used in commercial data processing and it is currently

used in some situations where the transaction data comes on paper such as processing of cheques

and credit card slips.

Advantage

1. Efficient and cost-effective use of the computer resources

Disadvantages

1. The gap between data capture and information generation renders this mode of processing

unacceptable in an organization that requires immediate results or information to influence other

operations or decisions.

2. This mode allows for delay in the operational system, because errors detected after batch

processing may take some additional time to correct.

b. Real-time Processing

The expression “real-time” is applied to any system, which produces almost immediate

responses as a result of information input. The essential feature of this information processing is

that the input information is processed quickly enough so that action can then be promptly taken

on the results.

18
 Real-time processing forms the basis for a type of information system called ‘Decision

Support System’. This is because the system depends upon immediate access to information

stored in the computer system. In this mode of information processing, a dual-purpose input and

output devices, such as terminals and VDU’s are required. Communication front-end is

necessary to interface lines connecting remote terminals to the CPU.

Advantages

1. Immediate response is given to all inquiries

2. It is often interactive

3. The amount of paper circulated between departments is reduced as information can be

displayed on the user terminal.

Disadvantages

1. The systems that operate in real-time are often complicated and relatively expensive: initial

costs include programming, testing higher skilled personnel, file protection, and back-up

equipment.

2. A breakdown in the system may be disastrous if no back-up facility is available.

C. Centralized Processing

Centralized processing is a processing mode that is accomplished either by having all the

computers in the organization in a centralized computer center or by giving one large central

computer, with telecommunications links to other micro-computers at other locations. This mode

of information processing is often more efficient because it tends to eliminate redundant

resources and duplication of effort, since all data or information are processed at the central point

department.

19
2.10 Prerequisite for the Development of a Computer-Based Management Information

System (MIS).

Good planning is a prerequisite of any business activity, and computer data processing is

no exception. A properly planned computer-base management information system would offer

significant improvement in management information reporting. All plans should be thorough and

would as much as possible be close to reality. The planning for the introduction of computerized

management information system in the banks requires all level of planning (strategic, tactical and

operational). And should cover all areas of information needs within the bank’s top management:

head office admin, regional or area administration.

A. Strategic Planning

This phase would come about as a manifestation of policy decision of the top

management of the bank. The policy should define the long-term objective of the bank, and

strategic planning would form part of the overall corporate plan.

The strategic plan would help keep the banks as a going concern and would span over

several years usually between 5 years and 10 years. This phase would consider units and the

entire contribution of computers to the overall corporate objective of the banks, not only in terms

of information processing but also on other physical matters.

The financial implication would also need to be considered at this stage.

Generally, strategic planning when concluded would satisfy the following needs:

(i) Amplify the objectives and key tasks to be achieved by the computer-based MIS when

introduced.

(ii) Determination of those who would be responsible for the project or random phases of it.

20
B. Tactical

This phase commences after the approval of the recommendations agreed during strategic

planning phase. The tactical phase would consider the earlier various resources on short-term

basis. It is also at this phase that planning is done on how policy decision could actually be

translated into action.

1. Defining process pattern: This will include:

- The organizational structure, the location of the various branches, department and area offices.

- The existing mode of interaction between personnel department.

2. Selecting the equipment: This will include decision on:

- Micro and mini-computer

- Mainframe computer

- The site(s)

- Software selection

C The Operating Plan

The operating plan covers the day-to-day progress of the project and usually gets time-

scale in terms of weeks or months. The aim of operational planning would be to assess the direct

effect of the strategic and tactical phases on the available resources. The plan would concentrate

on the focal point of all the earlier plans and ensure that hitches at the operational level are

identified and remedial action taken. In the planning of this phase, consideration must be given

to the following:

(a) Equipment (size, operation, maintenance)

(b) Personnel (quality, number required, calibre)

21
(c) Software (type, source implementation, assuage)

(d) Infrastructure (space, nature, control)

(e) Finance (source, disbursement, control)

With the satisfaction of these pre-requisites, it becomes relatively easy to implement the

computer-based MIS.

2:11 Internal Control in a Computerized Accounting System –Electronic Data Processing

(EDP)

With the knowledge of the development and implementation of a computerized MIS, we

can now look at internal control in a computer-based information system. Internal control is a

sine-qua-non for effective accountability, and with the system being computerized, it stands to

pose new challenges to the operations of the computer system by internal control, we mean not

only internal check and internal audit, but the whole system of control, financial and otherwise,

established by the management in order to carry on the business of the company in an orderly

manner and to safeguard its assets.

According to J. Santock (1978, page 11), internal control is an umbrella beneath which

are financial controls, internal check and audit. Spicer and Pegler (1985, pg 102), believe that

where a system is computerized, general controls are needed to ensure proper development and

implementation of applications and the integrity of program and data file.

According to Olusanya T (2002),Computer systems have features which differentiate

them from non-EDP systems and which, potentially, can create internal control problems. Some

of these features and their potential problems are as follows:

(a) Computer systems are more complex than conventional systems.

22
(b) Computer systems are usually highly integrated. This often results in the concentration of

previously separate data processing functions in the EDP department. This development

increases the risk of irregularities within the EDP department as the quality of internal check is

thereby reduced.

(c) In a computer environment, control procedures which were previously exercised clerically

are included in the program logic and are autonomously executed by the computer during

processing. The computer will often not leave any documentary evidence of complying with

these controls. .

Internal Controls in an EDP Environment

It can be seen from the above that while EDP systems offer significance advantages and

advancement on data processing, they are fraught with potential dangers. As a result,

management should, when setting up an EDP system, carefully consider and establish adequate

internal control over the EDP operations.

There should be procedures also to ensure that EDP controls are reviewed regularly for

effectiveness and efficiency. The broad objectives of the controls will include:

(a) To ensure that EDP operations are carried out in an orderly and efficient manner.

(b) To safeguard the EDP facilities including the central processing, the computer files and the

computer peripherals.

(c) To ensure that polices relating to the EDP department are adhered to

23
Division Internal Controls in an EDP Environment:

Organizational Controls

These controls relate to the environment within which application and programs are developed,

maintained, and they are:

1. Administrative Controls which can be subdivided into:

(a) Segregation of duties

(b) Control over computer operators

(c) File controls

(d) Fire precaution and standby arrangements.

2. Systems development controls.

a. Hardware.

b. Software.

Administrative Controls

a. Segregation of duties: This implies that the main function in a transaction is carried out by

separate individuals or group of persons. It is aimed at minimizing the risk of errors and fraud

inherent in the system. In an EDP environment, the following control relating to the segregation

of duties should be established:

1. There should be separation of duties between the user department function and the EDP

function.

24
2. The main functions within the EDP department should be carried out by separate persons. The

functions include: An organizational chart should be prepared and the principal tasks in the

department should be defined and allocated to separate individuals and group of individuals.

The following restrictions should apply within the EDP department whenever practicable:

1. Only the control and data preparation section should have access to the documents

containing the original data to be processed by the computer.

2. Access to the computer room should be restricted to authorized person at authorized

times.

b. Control Over Computer Operators: The computer operators are responsible for operating the

equipment. This should be in accordance with operating rules of the enterprise. The work of

computer operators includes:

(a) Setting up the equipment for each run (i.e. loading the input devices, setting up the magnetic

storage devices and loading the correct stationery into the printer);

(b) Running programs on the computer system;

The objectives of control over operators are:

 To ensure that the computer is used for bona fide businesses only.

 To ensure that the computer is used effectively and efficiently

 To ensure that transactions are processed on timely basis.

 To minimize the risk of operators’ errors and fraud.

 Operating instructions for each program;

c. File Control: Modern computer files are maintained in a magnetic backing storage device

such as magnetic tapes and disks. In view of the large number of records and programs held on

25
magnetic backing storage devices in most EDP systems, it is necessary to provide adequate

controls to ensure that:

 Only the correct file can be used for processing

 No file can be used for an unauthorized purpose

 That files are not unintentionally overwritten

 That files can be reconstructed if they are lost or their content are corrupt.

Controls that may be established to achieve the above objectives include:

 Maintaining computer files and programs in a secure manner, for example, by the use of locks

and keys.

 Maintaining computer files and programs under a conducive atmospheric condition. For

example, the file library should be properly air-conditioned, equipped with smoke and dust

detectors, humidity and temperature recorders and firefighting facilities.

2.12 Computer Fraud in Banks

The computer system, being an electronic device, though very intelligent, relies upon

data input and stored in it to produce relevant and incisive information. Hence, the slogan

“Garbage in, Garbage out”. In essence, the computer is not in a position to detect whether the

data it receives is fraudulent or not. As a result, dubious staff of banks capitalize on this

weakness of the computer system to defraud their organization and cause them to lose a lot of

money.

Another disadvantage is that, once an unauthorized access is gained to the database all

that is required is a single command to debit all account or a particular account, and fraudulently

withdraw the money. To preclude the occurrence of fraud, banks will need to set up a high

standard internal control mechanism, which will be proficient in detecting and preventing fraud.

26
Measures to Adopt in Checkmating Computer in Banks

In this aspect, no one person should be in charge of a particular process. That is, where

one person’s duty ends, the other’s duty begins. This menace can be curtailed if the management

strives:

a) To ensure that the computer is used for bona fide businesses only.

b) To ensure that transactions are processed on a timely basis.

c) To ensure that works to be carried out on a computer is scheduled.

d) To ensure that the duties of the operations should be rotated.

e) To ensure that there is a minimum of two computer operators per shift.

2.13 The Problem of Obsolescence of Systems

This problem could be seen from the history of the united bank for Africa plc, which,

over its many years of experience, has changed from centralized system prior to 1970 to Branch

accounting system in the mid-1970s, with its concentrations of information system at it head

office, from where printout and the information output are produced and distributed to its various

branches in a centralized manner. Subsequently, UBA Plc started to decentralize its operations

on a stand-alone basis in 1986 . In 1992, the bank started full computerization of its branch

network, making each branch to be fully on-line and independent of both the Head Office and

other branches, in the generation and processing of data, based on “Branch Accounting

Information System (BRAINS) software. The bank has also made inter-branch communication

very easy through its “very small Aperture Terminal” (VSAT) satellite. This is the means

27
through which customers can transact businesses with branches other than that where they

maintain their account.

2.14 The Literature on Computerization

According to Rob Kling (1996), “when specialists discuss computerization and work,

they often appeal to a strong implicit image about the transformation of work in the last one

hundred years, and the role that technologies have played in some of those changes. In the

nineteenth-century North America, there was a major shift from farms to the offices as the

primary workplaces. Those shifts often associated with the industrial revolution-continued well

into the early twentieth century. Industrial technologies such as the steam engine played a key

role in the rise of industrialization.

Our twentieth-century economy has been marked by the rise of human service jobs, in

area such as banking, insurance, travel, education, and health. And many of the earliest

commercial computer system were bought by large service organization such as banks and

insurance companies. By some estimates, the finance industries bought about 30% of the

computer hardware in the United States in 1980s. During the last three decades, computer use

has spread to virtually every kind of workplace, although large firms are still the dominant

investors in computer-based system. Since offices are the predominant site of computerization, it

is helpful to focus on offices in examining the role that these systems play in altering work.

In the early twentieth century, the technologies and organization of office work

underwent substantial change. Firms began to adopt telephones and typewriters, both of which

had been recently invented. By the 1930s and 1940s, many manufacturers devised

electromechanical machines to help manipulate, sort, and tally specialized paper records

automatically. Some of the more expensive pieces of equipment, such as specialized card-

28
accounting machines, were much more affordable and justifiable in organizations that centralized

their key office activities.

29
 CHAPTER THREE

RESEARCH METHODOLOGY

This chapter presents method and procedure used in carrying out the study under the

following sub-headings: research design, population of the design, sample size and sampling

techniques, research instrument, method of data collection, and method of data analysis.

3.1 Research Design

The researcher made use of field study or survey approach. This was based on the use of

personal interview and administration of questionnaire. The questionnaire was designed in such a

way that it contained a blend of fixed alternative questions which were meant to limit the

responses of respondents to stated alternative and open- ended questions which offered the

respondents opportunities of expressing their opinions.

The questionnaire consists of three parts. The first part contained background

information, compromising questions on general operation of computer department and it

acceptability to the entire staff and management of Zenith Bank Plc. The second part comprised

questions which helped to find out the application and usage of computer including types and

availability of hardware and software in Zenith Bank Plc.

The third part generally tries to find out the positive impact of computer application on

the selected bank and short-comings of computerization as well. Personal interview were used

mainly where the questions are of such technical nature that only a specialist could deal with.

This helped the researcher in his search for objectivity and increased validity of his findings and

conclusion.

30
 The researcher considered a judicious mix of personal interview, free response questions

and fixed alternative questions more desirable in producing a thorough description of the other

processes occurring in the organization.

3.2 Population of the Study

This research project is aimed at making a definite statement on the effect of

computerization on the Nigerian banking industry. And, in an attempt to do this effectively, the

population of this study is Zenith Bank and the total number of staff in Zenith Bank Plc.

Potiskum Branch are forty staff (60 staff), which he believes will be representative of the

Nigerian banking industry. The sample was selected bearing in mind how unwieldy it will be to

study the entire Nigerian banking industry, and the need to come out with a reliable research

finding.

3.3 Sample Size and Sampling Techniques

The sample size contained fifty (40) staff selected from the entire population using

Random Sampling Techniques in which each member has an equal opportunity of being chosen.

It is known to be unbiased representation of the total population

3.4 Research Instruments

Structured questionnaire and interview was the major instrument to collect data for this

study. The questionnaire was designed to elicit information on the assessment of the impact of

computerization on the Productivity of Nigerian banking industry in Zenith Bank Plc Potiskum

Branch, using the five Likert Rating scale of Agreed (A), Strongly Agreed (SA), Disagreed (D),

Strongly Disagreed (SD) & undecided (U).

3.5 Method Data Collection

The researcher collected the necessary data by personally administering the questionnaire

prepare for this purpose, on the respondent. The researcher also interviewed some members of

31
staff of the bank (mostly top and technical officers) on some important issues. In all, the

researcher administered thirty four questionnaires to the bank and respondents were given two

working days to read and fill them. At the end of the period, the researcher went personally to

collect the completed questionnaire. Therefore, the researcher tested the completed questionnaire

for validity and reliability.

3.6 Methods of Data Analysis

The procedures for data analysis utilized by the researcher include the following:

(1). Placing each items in its appropriate category reflective of the hypothesis to be tested.

(2). Tabulation of data.

(3). Performing Statistical Computation: The statistical computations used by the researcher

included percentage analysis and empirical test of general characteristics of the respondents.

Also, the responses to key questions and statements in the questionnaire will be analyzed using

percentage (%). The purpose of this is to simplify the problem of comparisons.

32
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation

This chapter presents the analysis of data collected and their interpretation in statistical

form.

4.1 Data Presentation

Table 4.1.1: Gender

DESCRIPTION FREQUENCY PERCENTAGE

Male 30 75%
Female 10 25%
Total 40 100%
Source: Fieldwork, (2022)
The above table shows that 30 respondents which constitute 75% are male while 25% of

the respondents are female which constitute minority of the respondents.

Findings: This show indicates that majority of the respondents are male.

Table 4.1.2: Educational Background

DESCRIPTION FREQUENCY PERCENTAGE

Degree 15 37.5%
Masters 13 32.5%
PhD 07 17.5%
Professor 05 12.5%
Total 40 100%
Source: Fieldwork, (2022)

33
 The above table shows that 15 (37.5%) of the respondents are Degree holders, while 13

respondents representing (32.5%) have Masters, 07 (17.5%) are PhD holders, and finally 05

(12.5%) are Professors.

Findings: This show indicates that majority of the respondents are degree holders.

Table 4.1.3: Marital Status

DESCRIPTION FREQUENCY PERCENTAGE

Married 25 62.5%
Single 15 375%
Total 40 100%
Source: Fieldwork, (2022)
The above table shows that 25 respondents which constitute 62.5% are married while

15% of the respondents are single which constitute minority of the respondents.

Findings: This show indicates that majority of the respondents are married.

Table 4.1.4: Analyses of General Characteristics of Respondents.

DISTRIBUTION NUMBER PERCENTAGE (%)

Questionnaire Returned 34 42.5%
Questionnaire not Returned 6 15%

TOTAL 40 100
Source: Fieldwork (2022)

From the table 4.1 above, a total of 40 questionnaires were administered. A total of 34

which represents 42.5% of the total questionnaires administered were returned. Only 6 which

represent 15% of the questionnaires were not returned.

34
Table 4.1.5: Department of Respondents

DEPARTMENT NUMBER PERCENTAGE (%)

Computer 15 37.5%
Account 14 35%
Marketing 11 27.5%
TOTAL 40 100
Source: Fieldwork (2022)

From the table 4.2 above, 15 respondents representing 37.5% work in the computer

department of the bank. While 14 respondents representing 35% work in the Account

department. And, 11 of the respondents representing 27.5% work in the Marketing department.

4.2 Data Analysis

The analysis of the tables of this section shows the respondent or option of respondent

based on the question contained in the questionnaire as an instrument used by the researcher.

Table 4.2.1: Evaluation of Whether the Bank is computerized

VARIABLE RESPONDENTS PERCENTAGE

Strongly Agreed 20 50%
Agreed 5 12.5%

Strongly Disagreed 5 12.5%

Disagreed 5 12.5%
Undecided 5 12.5%
Total 40 100%
Source: Fieldwork, (2022)
The above table shows that majority of respondents 20 in number with a response rate of

50% strongly agreed, and another 5 numbers of respondents (12.5%) agreed with the same

35
opinion. While 5 respondents (12.5%) strongly disagreed, and 5 respondents (12.5%) disagreed,

as none of the respondents was undecided.

Findings: This show indicates that majority of the respondents are strongly agreed.
Table 4.2.2: Evaluation of whether Computerization has Brought Efficient Service Delivery in

the Bank

VARIABLE RESPONDENTS PERCENTAGE

Strongly Agreed 12 30%
Agreed 10 25%
Strongly Disagreed 6 15%
Disagreed 8 20%
Undecided 4 10%
Total 40 100%
Source: Fieldwork, (2022)

The above table shows that majority of respondents 12 in number with a response rate of

30% strongly agreed, and another 10 numbers of respondents agreed with the same opinion.

While 6 respondents (15%) strongly disagreed and 8 respondents (20%) disagreed, as none of

the respondents was undecided.

Findings: This show indicates that majority of the respondents are agreed.

Table 4.2.3: Evaluation of Whether Computerization Can Lead to Job-Loss in the Bank

VARIABLE RESPONDENTS PERCENTAGE

Strongly agreed 14 35%
Agreed 8 20%
Strongly disagreed 7 17.5%
Disagreed 6 15%
Undecided 5 12.5%
Total 40 100%
Source: Fieldwork, (2022)

36
 The above table shows that majority of respondents 14 in number with a response rate of

35% strongly agreed, and another 8 numbers of respondents agreed with the same opinion.

While 7 respondents (17.5%) strongly disagreed and 6 respondents (15%) disagreed, as none

of the respondents was undecided.

Findings: This show indicates that majority of the respondents are strongly agreed.

Table 4.2.4: Evaluation Of Whether Computerization Has Increased The Incidence Of Fraud In

The Bank.

VARIABLE RESPONDENTS PERCENTAGE

Strongly Agreed 20 50%
Agreed 10 25%
Strongly Disagreed 4 10%
Disagreed 1 2.5%
Undecided 5 12.5%
Total 40 100%
Source: Fieldwork, (2022)

The above table shows that majority of respondents 20 in number with a response rate of

50% strongly agreed, and another 10 numbers of respondents (25%) agreed with the same

opinion. While 5 respondents (10%) strongly disagreed, and 1 respondent (12.5%) disagreed,

as none of the respondents was undecided.

Findings: This show indicates that majority of the respondents are strongly agreed.

Table 4.2.5: Evaluation of the Effect Of computerization on the Bank’s Internal Control System

EFFECT NUMBER PERCENTAGE (%)

Positive 33 97.06
Negative 1 2.94
TOTAL 34 100

37
 From the table 4.7 above, 33 respondents representing 97.06% agreed that

computerization has had a positive effect on the bank’s internal control system. While 1

respondent representing 2.94% of the respondents was of the opinion that computerization has

had a negative effect on the bank’s internal control system. This means that computerization has

a positive impact on the bank’s internal control system.

Table 4.2.6 Evaluation of Whether the Staffing of the Bank’s Computer Department is Adequate

VARIABLE RESPONDENTS PERCENTAGE

Strongly Agreed 15 37.5%
Agreed 10 25%
Strongly Disagreed 8 20%
Disagreed 5 12.5%
Undecided 2 5%
Total 40 100%
Source: Fieldwork, (2022)

The above table shows that majority of respondents 15 in number with a response rate of

37.5% strongly agreed, and another 10 numbers of respondents (25%) agreed with the same

opinion. While 8 respondents (20%) strongly disagreed, and 5 respondents (12.5%)

disagreed, as none of the respondents was undecided.

Findings: This show indicates that majority of the respondents are strongly agreed

38
Table 4.2.7: Evaluation Of Whether The Computer Hardware And Software Of The Bank Is

Reliable.

VARIABLE RESPONDENTS PERCENTAGE

Strongly Agreed 20 50%
Agreed 10 25%
Strongly Disagreed 4 10%
Disagreed 5 12.5%
Undecided 1 2.5%
Total 40 100%
Source: Fieldwork, (2022)

The above table shows that majority of respondents 20 in number with a response rate of

50% strongly agreed, and another 10 numbers of respondents (25%) agreed with the same

opinion. While 4 respondents (10%) strongly disagreed, and 5 respondents (12.5%)

disagreed, as none of the respondents was undecided.

Findings: This show indicates that majority of the respondents are strongly agreed.

Table 4.2.8: Evaluation of Whether Computerization Should be Encouraged in the Bank.

VARIABLE RESPONDENTS PERCENTAGE

Strongly Agreed 20 50%
Agreed 10 25%
Strongly Disagreed 5 12.5%
Disagreed 3 7.5%
Undecided 5 12.5%
Total 40 100%
Source: Fieldwork, (2022)

The above table shows that majority of respondents 20 in number with a response rate of

50% strongly agreed, and another 10 numbers of respondents (25%) agreed with the same

39
 opinion. While 5 respondents (12.5%) strongly disagreed, and 3 respondents (7.5%)

disagreed, as none of the respondents was undecided.

Findings: This show indicates that majority of the respondents are strongly agreed.

4.3 Discussion of Results

There of this research is to determine the effect of computerization on the Nigerian

banking Industry in Zenith Bank Branch, Potiskum. Fouty (40) questionnaires were retrieved

at a later for data analysis.

The Bank need to prepare workshop for staff to learn how to handle such kind of

Computerization, also staff of the banking should train on.

4.4 Summary of Major Findings

Having made reasonable attempts to find out the problem and areas of the ineffective use

of computerization the researcher come out with the following findings: The majority of

respondents strongly agreed with Evaluation of whether Computerization has Brought

Efficient Service Delivery in the Bank.

40
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary

The research was focused on the effect of computerization on the Nigerian banking

industry, with particular interest in the Zenith Bank Plc, which is considered representative of the

happenings in the industry.

In order to make an informed inference, on the study, various relevant literatures were

consulted and field study carried out to obtain relevant data. The data collected were analyzed

and various hypotheses formulated were subjected to test and verification. The study revealed the

following:

1. Zenith Bank Plc is fully computerized.

2. Computerization fully and effective supports the operation of the Zenith Bank Plc, and

enables the bank to meet its customers’ demand.

3. The study revealed that a good percentage of the staff of Zenith Bank Plc is computer

literate, while others need further training.

4. The staff appreciates computerization and see computer as a device meant to assist them

in carrying out their job effectively, as against seeing it as a replacement for manpower.

5. Computerization is fully embraced by the entire staff and management of the bank.

6. The study revealed that the bank uses on-line and real-time instead of batch processing.

7. The computer hardware and software being used by the bank are highly reliable.

8. The study revealed that the computer department of the bank requires further staffing.

9. The level of training given to computer users and operators is just adequate with equal

room for further improvement.

41
 10. The respondents were fully of the opinion that computerization has greatly improved

service delivery in the bank.

11. With computerization, the services of the bank have been quite timely, efficient and

effective.

12. The study revealed that internal control has not been negatively affected by

computerization.

13. The study revealed that computerization has greatly reduced the incidence of fraud in the

bank.

14. The respondents want computerization encouraged in the Nigerian banking industry.

15. The study revealed that the major set-back of computerization is the heavy cost

implication of the process, and the need for adequate and continuous training of staff

which is quite expensive.

16. Computerization has reduced the transaction-processing time in the Nigerian banking

industry.

5.2 Conclusion

The introduction of computers into the Nigerian banking industry, though spanning over

a relatively short period of time have had a great and beneficial impact on the industry.

Transactions now take very short time to be processed, customers’ expectations are being met,

and volume of business transaction has increased tremendously, both for the banks and its

customers.

Considering the above positive scenario, the researcher is of the opinion that

computerization should be encouraged and advises that banks go the computer way. Government

42
should monitor development in the industry to avoid dumping of outdated computers in the

banking industry.

Furthermore, the researcher is of the opinion that further researcher work should be encouraged

in this direction using the work already done as a basis and a guide.

5.3 Recommendations

Having carried out the research on the effect of computerization on the Nigerian banking

industry diligently, the researcher hereby recommends that:

i. Banks should embrace computerization fully, considering the immense benefits that

accrue from its use.

ii. Banks should study extensively the systems available before choosing the one to adopt in

order to avoid the huge cost implication of changing from one computerization system to

another.

iii. Banks should map out a good training program for their staff to help them keep abreast of

developments in computer technology, as it relates to banking operations

iv. Banks should ensure availability of trained personnel to man their computer departments.

v. Banks should ensure adequate back-up procedures as regards the availability of computer

spare parts, hardware and software.

43
 REFERENCES

Dixon-Ogbechi,B.N (2002), Research Methods and Elementary Statistics in Practice, Lagos: Phil
Glad Nigeria Ltd (Page 180-181).
Edward ,Amoroso (1994), Fundamentals of Computer Security Technology, New Jersey:
Prentice- Hall PTR (Page 1-8).
Edward, Amoroso (1994), Fundamentals of computer security technology security, New Jersey:
prentice-hall ptr (page1-8).
Olowe, R.A (2008), Financial Management Concepts, Financial Systems and Business Finance
Lagos: Bierly Jones Nig. Ltd (Page 22-26)
Olusanya, T (2001), Auditing and investigation, Lagos: Negro ltd (172-201).
Omilo, A (1996), computer skills at a glance, Lagos: Phil glad publishing.
Oxford Advanced Learners’ Dictionary
Oxford English dictionary, (sixth edition).
Paul, b. (1996), database systems, London: Macmillan press ltd (page11-15)
Rob, Kling (1994), Computerization and Controversy, California: Academic Press (Page 278-
280)
Rob, Kling (1994), computerization and controversy, California: academic press. (Page278-302).

44
 APPENDIX I

Department of Computer Science,

College of Administration,
Management and Technology,
P.M.B. 1001, Potiskum,
Yobe State.
Dear Respondent;
Letter for Requesting Filling of Questionnaire
I am a final year student of the above mentioned institution conducting a research work

titled “Effect of Computerization on the Nigerian Banking Industry in Zenith Bank Branch Plc

Potiskum LGA”.

I hereby solicit for your cooperation in responding to the questionnaire by simply ticking

options that best suite choice.

All the information given will be treated with confidentiality and used for the purpose of

this research work only.

Thanks you.

Yours Faithfully

KHADIJA MUHAMMAD IDRISS

(Researcher)

45
 APPENDIX II
QUESTIONNAIRE

SECTION A

Personal Data

1. GENDER

Male ( ) Female( )

2. EDUCATIONAL BACKGROUND

Degree ( ) Masters ( ) PhD ( )

Professor ( )

3. MARITAL STATUS

Married ( ) Single ( )

SECTION B

1. Evaluation of Whether the Bank is computerized

Strongly Agreed ( )

Agreed ( )

Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

2. Evaluation of whether Computerization has Brought Efficient Service Delivery in

the Bank

Strongly Agreed ( )

Agreed ( )

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 Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

3. Evaluation of Whether Computerization Can Lead to Job-Loss in the Bank

Strongly Agreed ( )

Agreed ( )

Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

4. Evaluation of Whether Computerization Has Increased The Incidence Of Fraud In

The Bank.

Strongly Agreed ( )

Agreed ( )

Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

5. Evaluation of the Effect Of computerization on the Bank’s Internal Control System

Strongly Agreed ( )

Agreed ( )

Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

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6. Evaluation of Whether the Staffing of the Bank’s Computer Department is

Adequate

Strongly Agreed ( )

Agreed ( )

Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

7. Evaluation Of Whether The Computer Hardware And Software Of The Bank Is

Reliable.

Strongly Agreed ( )

Agreed ( )

Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

8. Evaluation of Whether Computerization Should be Encouraged in the Bank.

Strongly Agreed ( )

Agreed ( )

Strongly Disagreed ( )

Disagreed ( )

Undecided ( )

48