The impact of computer in processing accounting information in Nigeria commercial banks, first bank Nigeria PLC.
Accounting is the language of modern business, a tool for business decision-making and it is used by people associated with business, whether they are managers, owners, bankers, government and accountant, investors etc. it provides financial information to people inside and outside the organization who need and are authorized to have such information.
Accounting information possesses certain qualifiers necessary to satisfy user’s need. Two basic qualifiers for general purpose accounting report supplied to external users are:
- Relevance and
It is important to realize that for the information to be of any use to management of external users, it is to be targeted at specific decision. It is in this sense that the information may said to be relevance or pertinent to the decision.
Relevance of accounting information is judged in relation to the user’s situation. Also accounting information signifies faithfulness, consistency and trustworthiness one way of ensuring reliability in accounting principles. An accounting information system is a group of component, process raw data into financial information to meet the purpose of there internal and external users.
However, when we talk of accounting information system we invariably refer to computer assisted technique in accounting (warren. etal 1997).
The objective of financial information is to provide useful information for making economic decision, the processes of recording, aggregating and summarizing the effect of historical transaction in financial statement under a specific of rules constitute the bulk of financial accounting. Organization such as commercial banks need the accounting information in carrying out their operation and transaction fortunately, the electronic and computer feed into it for calculating or for controlling a various business activities (wavren. etal 1997).
Accounting information is useful in all types of organization especially the banking industry where the survival and growth of such organization depends on a large extent of supplying effective accounting information and internal and external users. The computer organization to satisfy the efficiency concerns of processing vast operation control level, it has proved so effective in the role that virtually no sizeable without using thus tool called computer.
The introduction of macro-computer in the computer literacy at all levels of management and contributed to the development of a new class of protrusive aimed specifically at making the need of strategic management.
The enhancement power of data handling in a complex environment has altered the character of accounting system. The accounting system of the past was a little more than book keeping which relied on electronic device of limited capability and required a great deal of human involvement at almost every step to the process, such as accounting information system was not able to cope with the dynamic challenge of business complexities. Its products were unable to satisfy users need for planning and controlling information.
Thus, the accounting information of the foreseeable future must establish and maintain the capabilities for complex manipulation of vast volume of financial data with higher speed and greater accuracy.
Today’s accounting information system deal with future event as well as historical data. It must produce projected financial statement as well as historical ones. For instance, consider the monthly statement provided to bank customers. These must in corporate detailed information about numbers transaction training from cash to cheque deposit, interest charges, tax charges and withdrawal perfumed a variety of way from a number of location. A bank cannot survive today without providing this level of survival, yet the capability to do so did not exist a few years ago.
In view of the above, the computer contributes to increase outputs by increasing efficiency and its ability to perform personnel determined task faster and more accurately.
Hence, this research study aims at ascertaining the effect of computer in processing accounting information in Nigeria commercial banks.
- Statement of the Problem
The banking industry is one of the major contributors to the economic development of any nation in the world. However, the existing banking facilities in the country at this time cannot effectively cope with the up surge in the business activities. The function of banking has charged into a more complex one, which information at the shortest possible time, used in rendering the financial services. This implies that the use of manual operation which was combined with a little bit of mechanized operation cannot effectively cope with the requirement of modern banking.
The above stated problem have further resulted to sub-problem of slow banking operation, show storage and retrieval system. Time wastage and reduced customers patronage. Therefore, it became very apparent and necessary for banks to search for a better method, would seek to improved and speed up banking operations in the country.
- Purpose of the Study
The purpose of this is to actually identify the impact of the computer has exerted on banking business since introduced into the banking industry.
The researcher carried out the study, and tends to achieve the following.
- To critically analyze computerized is the services of Nigeria commercial banks.
- To find out the extent computerization of commercial bank affected the service rendered by the bank.
- To ascertain the improvement in the information storage when the bank is computerized.
- To see if the on-line real time computer service be a must for commercial banking in Nigeria
- To know of promotion of the computerization of accounting information positively enhances the efficiency of commercial bank services.
- Significance of the Study
The essence of this cannot be over-emphasized, an accounting system can be designed for manual or computerized operation. In either case, the basic structure remains the same.
Nowadays, the accounting system in most business organization are computerized, some organization also have their important sub-system computerized. A computerized system uses software programme to manipulated data entry, edify, updating rewards and periodic closing electronically. It has many advantages, such as a like data ending and inquiring faster manipulation timely report preparation and greater analytical ability, the study will be of great significance to many diverse groups such as director of companies, cooperatives, share holders, bankers, employers, customers, government and academic community.
Furthermore, the study is significant in the sense that it is more of the basic requirement for the award of B.SC. ed degree in accounting.
- Review Related Literature
Evolution of computer
According to Eze (1999) in his lecture monograph, computer system evolve as a response to the problem solving requirement of mankind. The remake able human characteristics of problem solving ability has not only shaped the evolution of the computer out all of civilization problem solving is an integral part of what we may call the creative human process in simple terms the process can be described as follows:
- Firstly, we are confronted with a problem.
- Out of creative thinking comes a tool to solve the problem.
- Finally as knowledge and we of the tool become widespread.
Others improve upon the tool and expand its use the development of computers has followed a similar pallor. Through the history of computing mankind consuming, lections and difficulties in numerical calculations. One of the first medical devices was the abacus, developed by the Chinese as early as 3000 BC.
According to Mbam (2000) John Napier a Scottish mathematician. In 1614, developed a means of calculation called slide rule, used for multiplication and division operation as well as for computing square roots and logarithm. In 1642, Blaise Pascal (19 year old), developed Pascal calculating Machines (Pascal’s ArithMetique) in calculating device that could automatically divide and multiply. Two of the most significant development in mechanical devices was made by Charles Babbage (a professor in mathematic in Cambridge University). He invented the different engine in 1322 and worked on the analytical engine in the 1830s. Although these devices were not built during his life time the principles he developed could be seen in today’s computer system. In 1887, Herman Hollerith developed a tabulating machine that was used to tabulate the 1980 census in US.A later the company formed by Holerith merged with several other companies to form international business machine (IBM). The mark 1 computer in 1944 was the beginning of the computer age. Howard Aiken developed this electronic-mechanical device along eight engineers from IBM in 1937. Other early computation devices include the electronic numerical integrator and calculator (ENIAC) 1946, UNIXAC installed at U.S Barean of census in 1951, and the electronic discrete variation Automatic computer (EDVAC).
First Generation Computer: The first generation computer started in 1951 with the introduction of the universal automatic computer (UNIVAC). This computer like all the computers of the first generation vacuum various tubes and was mostly programmed in machine language. They were large in size, generated a lot of heat failed frequently and has low capacity internal storage, low processing speed and various models were not related.
Second Generation Computer:- The second generation computers using transistors have smaller, faster and more reliable and produce for less heat during operation. The innovation of the second generation computer brought about the user of magnetic tape and disks and the common use of high language such as formular translation (FOR TRAN) developed in 1956, the common business oriented language (COBOL) developed by team including (GRACE MURRAY) Hopper in 1950 and the beginners all purpose symbolic instruction code (BASIC) developed by John kemeny and Thomas Kurtz 1963.
Third Generation:- This brought about the integrated circuit a computer electronic circuit on a situation clip which replaced the transitory circuitry, it brought about multiple-programming and time sharing (people using the same computer simultaneously) and also the production of operation systems a type of system software which increased rapidly by the early 1970’s mini-computer were widely used.
Fourth Generation Computer:- In 1991, the first electronic computer were introduced that used large integrated circuits on a clip for main memory and logic circuitry. This period brought increased of impute devices that allowed data and introduction to be entered directly through the key board.
Firth Generation Computer:- There is micro-computer with faster operation speeds greater processing capacity and virtually unlimited memory, the fifth generation computer are believed to have circuitry based on gallium arsenide. Gallium arsenide offers a fivefold speed increase and uses length of the power silicon users.
The basic element of a computer system
The electronic digital computer system can be divided into hardware and software. The hardware is the physical computers devices which make up the visible computer.
It can be sub-divided into two
- Central processing unit (CPU) and
- The peripherals
The central processing unit (CPU) is responsible for the processing function of the computer while the peripherals are responsible for the feeding data into the system and for collecting information from the system.
The CPU consists of:
- The main storage
- Arithmetic and logical Unit (ALU) and the control Unit (CU).
The control Unit: This Unit sequences the operation of the computer system and this has been described as the nerve centre of the computer. The prime function of this Unit is to interprete instructions stored in the memory and give signals to the rest of the computer system various functions performed. The computer system can monitor the various section of the machine through the medium of console or keyboard
THE CONTROL UNITS
A Brief Overview of Accounting
Accounting was defined by Reynolds (1980) as quoted Ugwoke (2000), as the set of rules and method by which financial and economic data are collected, processed and summarized into report that can be used in decision making. As a practice, its origin dated for back into history. The need to account for holding wealth prompted the development of form of writing refered to a script.
Accounting practice was said to have been performed by the temple priest that brought under their control vast stock of grains, and animals estimates which they accounted for. This happened about 5000 BC which great Egyptian civilization took place, which was marked by huge building projects including the pyramid where workers were based on the work performed. Such activities required the building up of records to get the necessary information for decisions action and control.
Ugwoke (2000), recalled that the earliest records in history standard with the introduction of cuneiform writing in Babylon around 2123-1081 BC, which was during the reign of Human; the great. During this time in Babylon, some forms of accounting was going on in the Babylonian textile mills about 600 BC where some records were on day tablets that indicate the payment, of wages some of the indicated payment some of ways of the earliest English records were compiled by William the conqueror in the eleventh century. These early accounting records include some of the financial activities of the activities of an entity. Systematic recording of an entity developed later in response to the need of merchants who used the Arabic numerical in the recording of business transaction started in the reading of business transaction stared with double entry-system.
Double entry system
Accounting of Heridrikson etal (1992), the basic system of accounting which is still in use today was first codified by Franciscan Friar (MONK) by the name of brother Lucapacioli who spend most of his life time as a teacher and scholar at the universities of Perugia Florence, Pisa, and Babylon. He was a close friend of Leonardo Vinci with whom he collaborated on mathematic book Paciolo wrote the text and a Vinci drew of the illustration. It was the development of double entry system of recording transaction by Lucapacidi that gave impulse to modern accounting. The system was strongly influenced by the financial needs of the Venetian merchants Goethe, the German Poet, Novelist, and scientist described the double entry system as one of the most beautiful inventions of the human spirit and every good business man should use it his economic under takings.
What is so special about the double entry system? Warren Narren et al (1997) stated that it is unique because it record financial activities in such a way that equilibrium is created within the records. For instance, assuming that you borrowed N 1000 from a bank, within the double entry system, the loan is recorded as N 1000 of cash received and at the same vain an obligation is recorded for eventual repayment of the N 1000.
In a complex business environment in which an entity may be involved in thousands of transaction daily, the above balancing is valuable control that ensures the accuracy of the recording process.
EVOLUTION OF COMMERCIAL BANKS & ITS OPERATIONS
Banking is a very old business. A glance at its historical development provides useful background information for our present institutions.
Kent (1966), state, banking history dates back to ancient civilization. The money chargers of the biblical times were similar figure to all of us. Every bank provided a convenient storage place for valuables, these granted protection against fire and theft somewhat similar to a modern safe-deposit boxen a bank vault. The banker soon learned that it was good to pay interest to his client if they give him permission to use the stored funds so long as they did not need them. Thus, instead of pay a storage fee to the rates. The function of a banker then was not to store money, but to lend it. The development marked the beginning of savings type of banking. Rudolpth (1908), asserts that in commercial banking, that bankers issued storage receipt to their customers for the amount left on deposit. People discovered that payment could be made to other by assigning these receipt to them without actually withdrawing the funds. This new technique was the start of deposit banking. There were houses receipts eventually became bank notes which a banker promises to pay on demand. When a trustworthy banker issued such notes, they were as good as gold unless he went bankrupt. Bankers in a morden sense can be traced bank to Venice and Genoa in the middle ages. Martins bank London was founded in 1563 and continued operation until 1966. Commercial banks are private transferable by cheques. It is their cheque function of monetizing debt, which give them their dominant in an exchange economy.
HISTORICAL DEVELOPMENT OF NIGERIA COMMERCIAL BANKING SYSTEM
Ezigbo, (2001), noted that the first commercial bank in Nigeria (the Africa banking operation) was established in shipping firm. Based in liver pool, England. The establishment of another bank was in Lagos, Nigeria called the British Bank of West Africa (BBWA) in 1894. Other branches of BBWA were opened in Accra, free town and Bathurst all in West Africa. In 1899, the Royal Niger company (Now AUC) established another bank called Anglo African in old Calabar to compete with the British Bank of West Africa. Later, the bank changed its name to Bank of Africa and however, due to competition the bank was sold out to BBWA in 1912.
The Barclays Bank DCO (Dominion Colonial overseas) opened its first branch in Lagos (Nigeria) in 1917 (Now known as union bank of Nigeria PLC). However in 1949 another expatriate bank called the British and French Bank (Now known as UBA) was established.
Ezigbo (2001), also noted in his book that a handful of patriotic Nigerians in 1929 established the industrial and commercial bank an indigenous bank in an effort to break the foreign monopoly in the banking industry. However, the bank folded up in 1930 due to aggressive competition from the expatiation bank, under capitalization and poor management.
There in another indigenous bank called Nigeria mercantile bank was established in 1933 with more courage and planning. It become the first successful indigenous bank in Nigeria next to this was the Aboan maghe bank founded by chief Okupe in 1945. in 1969, the bank was taken over by the western state government and its name was changed to Wema Bank. The African continental bank limited that commenced operation in 1948 was the second successful indigenous bank. Dr. Nnamdi Azikiwe founded. The bank’s failures were partly due to the regulatory measures for the establishment and control of banks at that time.
Ekezie (1995), asserts that the establishment of the central bank of Nigeria in 1958 fostered government effort to harness the activities of the commercial bank for development.
The government control over the activities of these banks and the economy was strengthened further by the banking (Amendment) Act Cap. 19 of 1962, this Act attempted to remove loopholes in the formulation of the previous banking Acts and also promoted the instrument monetary control of the central Bank. It was mandatory for all companies including bank operating in Nigeria to be incorporated in Nigeria through the enactment of company decree of 1968. The Banking decree of supra further strengthened the control by requiring banks to render to the central bank periodic certain retunes. However, the enactment of the Nigeria enterprises promotion decree of 1992 to 1997 supra bank and other financial institution Decree ( BOFID) No. 25, 1991 was amended and the provision SAS and AS 15.
Accounting by Bank and Non-Bank financial institution 1 and 11 respectively, completed the host of banking and other legislation as regards the operations of the banking industry.
Historical Background of First bank of Nigeria PLC
First Bank Nigeria PLC for over a century has distinguished itself as a leading financial institution and a major contributor to the economic advancement and development of Nigeria. The Bank was incorporated as a limited liability company on March 31, 1894, with head office in Liverpool by Sir Alfred Jones, a shipping magnate. It started business in the office of elder Dempster Company in Lagos (BBWA), with a paid up capital of 12,000 pound sterling after absorbing its predecessor, the African banking corporation which was established earlier in 1992. In its early years of operation, the bank recorded an impressive growth and worked closely with the colonial government in performing traditional function of a central bank such as issue of species in the West African, a branch was opened in Accra, Ghana in 1896. And this marked the genesis of the bank’s international banking operation. The second branch of the bank in Nigeria was in the old Calabar in 1900 and two years later services were extended to Northern Nigeria. To reposition and take advantage of opportunities in the changing environment the bank had at various times embalmed or restricting imitative in 1957, it changed its name from bank of British West Africa to Bank to West Africa. In 1969, the bank was incorporated locally as the standard bank of Nigeria limited inline with the company Decree 1979 and 1991, to first bank of Nigeria limited and first bank Nigeria PLC respectively. In 1985, the bank introduced a decentralized structure with five region administration. To further enhance the bank operational efficiency, this was reconfigured into sixteen area offices in 2003.
In view of the foregoing, it was therefore, a natural progression when in 2001 the bank began the process of transforming its corporate identities to reflect is rejuvenated focus. The transformation process which began in earnest in 2001 gained momentum in 2003 and was launched on Tuesday, April 27, 2004 within the introduction of new corporate identity.
Performance Appraisal of FBN PLC
As at 31st March, 2006, first bank has distinguished itself as Nigeria leading and a major contributor to economic development with 394 business locations, the bank has one of the largest domestic sales net works in Nigeria and probably, the authorized capital of first bank PLC, stood at above N 3 billion above (US$ 233 million) of which N 619 billion US $ 23. 3 million) was issued and fully paid. First bank ownership is spread over 300,00 Nigerian citizen and associations, with its 15 member board of directors jointly controlling 46% equity. First dependent Nigeria, its limited erstwhile managers of the bank staff person fund prior to full implementation of the pension reforms Act (2004) accounts for 66%. In the years ended March 2006, first banks core capital and total assets stood at N 566 billion (US$ 438.gmillion and 538. 15 billion (US$4.17 billion respectively. Share holder funds and gross earning for the period stood at US $15.3 million and N 16.2 billion (US$ 47 million) in that order with pre-tax profit of N 19.85 billion (US$ 153.7 billion) for the year ended March 2006. First bank remain the most profitable Nigeria bank.
First bank’s commitment to retuning value to share holder is reflected in its ability to consistently maintain its returns on equit (currently 27.21%) above industry average at 18.43% is capital adequate ratio is above the regulatory minimum of 0%. The bank return in asset (ROA) is 2. 98% and its local currently deposits stand at N 390.85 billion (US$3.03 billion) earning per share for bank in 2006 was N 3.06 while per share dividend stood at N 1.00 in the last decade. First bank growth strategy incorporate in all inclusive understanding of customer services realities, climate of impediment of effective service delivery through conserved network expansion, product development manager and acquisition strengthens its global foot print of this strategy and in line with imperative, of including consolidation. The bank acquired investment banking subsidiary. First bank of Nigeria (merchant bankers) limited and MBC international bank limited,a while sale commercial bank.
More so, the bank is currently excluding a business combination with Eco Bank trans-national incorporated (ETI) a pan African Banking group. The emergent entity would by the largest bank in west African and one of the largest in African.
Source: First bank annual report of 2006 of page 8.
According to Laura, the senior president macro vision, the managements of FBN is one of the foremost bank, in the counting, FBN was said that the unanimous endorsement of the bank proposed N100 billion right issue and public offer of ordinary share is assign that buyer of the share would receive better return on their investments. At the bank Annual general meeting (AGM) held in Lagos last time the share holder reportedly voted in favour of the offer.
Shareholders were quoted at the meeting to have commended the board of the bank for coming up with the offer and made suggestion on how it would maintain its leadership position in the banking industry.
Subsidiaries of first bank of Nigeria PLC
First bank has developed into the largest financial supermarket in the country with viable subsidiaries specializing in merchant banking mortgages, insurance, trusteeship, stock backing and each of them has now stepped its foots in the relevant sub-sectors. They have fully grown up and are contributing substantially to the group gross carryings, it also has investment in consolidation discount houses is a major shareholders in valve card (Nigerian) PLC.
The Application of Computer to Banking Operation
The introduction of the computer base system in banking in a recent development; which evolves a system that gathers, analyze and processes information using electronic data processing equipment. The issue of the computer based cannot be dealt with in isolation without mentioning information technology.
Information technology (IT) can be defined as the modern way of handling information by electronic means which involves its access storage, processing transportation transfer and delivering of information (Ige 1995).
Hindrances to computer information technology Application in Nigeria commercial bank.
The introduction of any new system or development anywhere in the world is faced with myriads of problem likewise; the introduction of computer into our banking system has lot of industries. The major problem to the use of computer in the Nigeria banking industry is inadequate electrical power supply. Electrical supply is not regular because of the limitation of the machine that supplies it in Nigeria.
Furthermore, the Nigeria government is finding it difficult to equip the power holding company of Nigeria (PHCN), while the demand of electricity increase daily. Thus, the first situation will continue to worsen until the Nigeria government fund (PHCN) appropriately or provides other alternatives. Most banks therefore use the computer primarily on alternative sources of energy (generating plant) to ensure interrupted to their computer systems. In some cases of breakdown to avoid loss of information “hence” the introduction of interrupted power Supply (UPS) system should be initiated and installed by banks to interface between electrical supply from (PHCN)and the computer with the aim that power failure, the interrupted system keeps the computer running until power generating alternative is activated.
Another major problem of computerization by banks is the fact that electrical parts are subjected to break down in spite of the routine maintenance and further aggravated and warranting. There is also problem of inadequate expertise of maintenance staff of the service companies. Nigeria also lacks the necessary telecommunication infrastructure and information. The inadequate knowledge and use of data bank initial to reduce the productivity of computers. The result is often to embark on physical transfer of data from one branch to another since the remote processing facilities of the computer cannot be put into use.
1.5 Empirical Studies
A few studies have been conducted in the area of the current study.
The following empirical studies were related to the impact of incorporating computer into accounting processes in commercial banks.
Nwosu (1969) writing for the popular bank New Slelter African continental Bank Ltd. The greatest innovation that many banks have taken in this century is the introduction of computer what could be regarded as computer revolution in banking industry.
Ray vim (1984), quiet revolution, that by the end of the century, new technology would have brought to branch net work system in the United Kingdom as we know it today, this new technology is called the computer.
So many utility have attributed the quiet revolution to it’s in efficiency manual operation, its complexity involved the use of manual information storage of paper work.
Clifford (1984)” stated that the rigging cost, ever increasing nature of paper work have furled banks in the wealth country of the world to machinery to try and replace the old style to many banks the clerical work locally are boring and monotonous in nature. And therefore become a labour of administrative drudge ring when automation and computer were first introduced into banking industry. It has gradually developed a momentum of its own and banks are not struggling to meet with automated banking destroy the individual of the banks or their relationship with their customers.
In analyzing the impact of computer to our bank an economist, Akinsaya (1998) stated” computer has started having a positive impact on the economic development of Nigeria: similarly, Nwosu (1969), uniting on the impact of computer asserts, computer asserts, computer has the ability to increase transmission, processing and reproduction speeds, it is therefore obvious that computer5 in relevant to the development of Nigeria economy. The computer has the ability to reduce the need of manpower in our banks, reduces storage space require and automatically handle intermediate steps in date processing with no manual interference.
The major problem of computerization in banking industries is the perceptive of the idea by the staff, the introduction of new system into an organization, which brings the prospect banks
any sort, would seldom be received with enthusiasm by the staff.
The reaction of staff will generally to a mixed one. In the work of Olukoade (1992), there was much fear nationally among the staff of bank when the idea of computerization of that sector of the economy was initially introduced however this Dear among members of staff might have arisen out of the misconception that new system will streamline the existing activities. Mbam (200), and thus present an implied threat of redundancy what is however not observed is that computer will take our much routes and respective work previously performed with the banking industry. The consequences in administrative costs and staff level.
Efficiency is another aspect of banking which would be improved by the generally held by specialist that in general cost involved in rendering service would reduce considerably.
A reduction in cost lead to an increase in efficiency and this also affects the quality of service to customers.
Jellery Collins (1996), assert that computerization has increased the efficiency of running bank improved.
Another aspect which bank has been affected positively by the introduction of computer is the reductive of work load. In this aspect, the work load usually handled by the staff of the bank is generally reduced.
Routine and monotonous aspects of the work are eliminated. It has been argued that this reduction of work load makes the staff lazy. The argument is based on the fact that the computer introduces a kind of leisure (Mbam, 2000).
- Information and communication technology (ICT) in first bank of Nigeria PLC.
As a result of increase demand for customers deposits, Nigeria banks, have realized the importance of good and the fact that some customers cost their deposits in the rest while technically insolvent or distress. Bank customers have now become wiser, more discerning, alert and supplicated with regards to choosing where it is safe to put their money and where pleasant courteous and friendly environment. This they have started to look at level of service and professionalism of the banks before depositing their funds. Proximity to the banks is no longer the issue, safety and level of service with regard to qualify, speed and efficiency have become the major imperative (Alu 2002)
Idowu (2000) asserted that on the part of the bank, they have observed that one way in which they can provide quality service is through the use of technology. Hence, there is a growing a rate of adopting new technology in Nigeria banking operation.
The organization, first bank of Nigeria PLC, believes that with the innovation approach of the bank management, the extensive and unalloyed loyalty of staff would propel the organization to higher pedestal. Given the magnitude of business solution gap in the information technology (IT) plat form and the desire to procure the state of the art software, the bank selected robust banking application software “flex cube” with the sophistication of the bank communication net work and using the “flex cube software as the bank bone, new electronic product such as first E. line” and “TELEPHONE BANKING” are currently being enjoyed by customers and the bank is a lending investor in the value and consumption of our 30 banks.
Furthermore, the 2004 annual report and accounts showed that more 110 branches and clearing centers on-line net work which run on the new version of the flex cube banking application software. In these branches on-line, rent time banking services are provide for their customers, the bank has currently deployed to ATMS (automatic teller machines ) its branches across the country, which will not only consolidate, but also help the bank to maintain its position in the provision of this self services solution.
During the 2004 financial year of the bank, the inspection Department acquired installed the audit for on-line auditing of branches.
Indubitably, if the first bank of Nigeria can afford to provide all the above its service, then a it can be able to accomplish its vision and mission. The banks vision is to be the best among the banks while its mission statement is simply “to be the fore most financial institution with the most satisfied customers” (Obi 2004.
1.6 Theoretical Foundations
The theoretical foundation for this study is based on two popular business education theories. The theories used are the theory of work motivation and competency based theory of employment.
Theory of Work Motivation
According to Onye halu (1988) “motivation has to do with seriousness considering the goal and motives they produce observed human behaviour.
It is importantly internal urge or drive into action. This urge is a need which pushes one towards achieving a goal.
Macdonadu (1972); had it that work motivation is an energy within the person characterized by affective aroused and anticipatory goal relation”
The proponder of this theory belief that the responsibility of any sector is of achieving maximum objective and assist in development of additional motive through computer application.
- Competency base theory of employment according to Mothim (19821) dexites competency base theory of employment as a means through which employee get instruction what skills or knowledge he/she will be asked to demonstrate and at what level it will be performed in order to get or dodge competent.
1.7 Delimitation of the Study
The study is delimited to first bank Nigeria PLC Abakaliki branched.
1.8 Research Question
For the purpose of this study, the under listed questions were carried out by the researcher
- How computerized is the service of Nigerian commercial banks?
- Has the computerization of commercial banks affected the services rendered by the banks?
- Would there be an improvement in the information storage when the bank is computerized?
- Should on-line real time computer services be a must for commercial banking in Nigeria?
- How can the computerization of the accounting information positively enhance the efficiency of commercial bank services?