THE EFFECT OF COMPUTER APPLICATION IN BANKING INDUSTRY A CASE STUDY OF ALLWORKERS MICROFINANCE BANK LTD OWERRI, IMO STATE

TITLE PAGE THE EFFECT OF COMPUTER APPLICATION IN BANKING INDUSTRY A CASE STUDY OF ALLWORKERS MICROFINANCE BANK LTD OWERRI, IMO STATE BY ONYEMAUWA CHINONSO STANLEY 2012HWP/0032/AC A RESEARCH PROJECT PRESENTED TO THE DEPARTMENT OF ACCOUNTANCY, SCHOOL OF BUSINESS AND MANAGEMENT TECHNOLOGY, FEDERAL POLYTECHNIC NEKEDE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN ACCOUNTING DECEMBER 2014 APPROVAL PAGE This project work has been supervised and approved by the department of accountancy as worthy for partial fulfillment of requirement of the award of high national diploma (HND) in accounting. Mr. Osundu Chris ………………… Head of Department Signature & Date MR OPARAUGO …………………. (Coordinator) Signature & Date MR OPARAUGO ………………… (Project Supervisor) Signature& Date DEDICATION This project is dedicated to Almighty God the prince of peace, who made it possible to pass through all difficulties encountered during my years in the polytechnic and my parents and well wisher. And also to my lecturer, accountancy department coordinator, and project supervisors, Mr. OPRAUGO for his advice. To God be the Glory ACKNOWLEDGEMENT I wish to express my profound gratitude to God Almighty for his Grace, guidance, his divine knowledge and understanding throughout my years in school. My gratitude also goes to my parents, sibling, friends, church members, colleagues for their advice, encouragement. I also not forgetting my lecturer, coordinator, and project supervisors, MR OPRAUGO for his time, efforts in reading and making the necessary corrections in order to see that this project come to reality. I am grateful ABSTRACT This study (The effort of computer application in banking industries and its application) was designed to examine general usefulness of computer (application) in the activities of banking industries In this case, a financial institution such as All workers Micro finance Bank was used in the writing. In carrying out this project, a research question were formulated and used. Descriptive method was used and the questionnaire technique was used in analyzing the data. Several finding were made among which are; lack of utilization of the computer equipment in rendering service, which leads to poor customer service rendition. The recommendations were made and suggestions for further research were made. TABLE OF CONTENT Preliminary page Title page Approval page Dedication Acknowledgement Abstract Table of content CHAPTER ONE 1.0 Introduction-------------------------------- --1 1.1 Background of the study------------------- --4 1.2 Statement of the problem--------------------5 1.3 Objective of the study------------------------5 1.4 Research Question---------------------------6 1.5 Statement of hypothesis---------------------7 1.6 Significance of the study----------------------7 1.7 Scope of the study----------------------------8 1.8 Limitation of the study------------------------9 1.9 Definition of terms----------------------------10 CHAPTER TWO 2.0 Literature review------------------------------11 2.1 Introduction-----------------------------------11 2.2 Types of Computer ----------------------------12 2.3 Classification of Computers----------------- - 14 2.4 What does a computer do in the banking industry or the uses of computer in the banking operation/Industry --------------------------------17 2.5 How does a computer know what to do in the banking operation ------------------------------------------18 2.6 Advantages and Disadvantages of Computer operation ------------------------------------------25 2.7 What is Banking and Banking Industry --------27 CHAPTER THREE 3.0 Research design and methodology------------ 29 3.1 Introduction----------------------------------- 29 3.2 Research design------------------------------- 30 3.3 Source/methodology of data collection-------- 31 3.4 Population and sample size-------------------- 31 3.5 Sample technique ------------------------------32 3.6 Validity and reliability of measuring instrument33 3.7 Method of data analysis------------------------33 CHAPTER FOUR 4.0 Presentation and analysis of datA 4.1 Introduction------------------------------------ 34 4.2 Presentation of data----------------------------34 4.3 Analysis of data-------------------------------- 34 4.4 Test of hypothesis ----------------------------- 41 4.5 Interpretation of result-------------------------41 CHAPTER FIVE 5.0 Summary, conclusion and Recommendation---42 5.1 Introduction------------------------------------ 42 5.2 Summary of findings------------------------- --42 5.3 Conclusion--------------------------------------46 5.4 Recommendations------------------------------47 References------------------------------------------48 Appendix--------------------------------------------49 CHAPTER ONE 1.0 INTODUCTION No single person invented computer. The computer started over hundreds of years. Before machine existed, people found ways of calculating with (e.g. finger, arrange stones in piles or rows) scratch on the ground. As the need for mechanical aid for calculation was invented by Egyptian man called Abacus. the abacus is a portable device that consists of beads string wires or wooden rods. With it one can rapidly and accurately add and subtracts, multiply or divide large number. The Abacus is the still used in comes parts of the world today such as Chile, etc. While Banks, in its own origins or world is a major player in the process of economic growth and development of a country, in Nigeria, the financial system/institution (e.g. Bank) has undergone remarkable changes in term of ownership structure, the depth and breadth of instrument employed, the number of institutions established, the economic environment and the regulatory frame work within which the system operates. The system has witnessed remarkable evolution over the past two decades. The financial institutions such as banks use computers for record keeping, communication, according planning, etc Computers are used to prepare a weekly report for use by top bank executives. In addition to weekly planning report, computation can be used to forecast deposit and loan flours and to estimate bank profitability. Computers can be used in the central cheque clearing house to aid in selection and sorting of cheques. This is normally done by electro-mechanical machine, which can select and sort the cheque by bank and branch. These machines read information printed on the face of the cheque itself. The essential information (Bank, Branch, Account number, and Account) is sent to the central computer of each bank where all the customer accounts are kept. These accounts are in machine readable forum, and computer may access them at any time. The method of processing usually employs by bank for this kind of job is batch data processing. Any branch can find out about any bank’s customer will in a few minutes. Besides, with computer networking, branches have terminals which can communicate directly with the main computer in case any inquiry is need from the mains computer. Customers are supplied with a detailed statement of account at intervals. These statements are prepared using computer system and are made available to the customer, of which some customer may be reached online. Some modern banking has witnessed the use of machine- readable plastic cards, fingerprint, voice print and identification of a signature, using computers. With applications of computer to banks, it has helped to ensure increase in productivity, service efficiency and timely decision making. 1.1 BACKGROUND OF THE STUDY The study was carried out to find the efficiency of banking activities with the application of computer attention was directed on the relationship between the contribution of computer application towards banking activities in economy. The scope of the work was not all that wide, but the study was able to come up with facts that the banking sector improves tremendously with the computer. It is of great importance to both the ministries and the researcher. Since it helps to find whether the area that is the banking sector can go far with the help of computer. likewise it helped to broaden the mind or the researcher on the problem that computer specialist in the banks can fare in the course of their banking activities. 1.2 STATEMENT OF THE PROBLEM The use of computer in banking industries has created high rate of unemployment in the society which could result to serious social problem for the society for Example, a work that can take 10 men to do, can take only 1 man in doing with a computer. Also it could be destructive if used wrongly watching bad, and pornographic movies, picture etc on the internet, launching missiles during wars. 1.3 OBJECTIVE OF THE STUDY 1. The objective of the study are to determine: 2. The need of computer to banking industries 3. The effect of computer to banking industries 4. How computers are been used for effective customer service / rendiction 5. Some necessary recommendations of computer that will fit-in in the banking. 1.4 RESEARCH QUESTION 1. What is computer? 2. What is banking/ bank? 3. Who is a banker? 4. What are the effect of computer to banking industries? 5. What are the use of computer in banking industries? 6. Can computers be used in computing and printing out customer’s statement? 1.5 STATEMENT OF HYPOTHESIS Hypothesis one H0! The bank does not have a well designed corporate governance structure H1! The bank has a well designed corporate governance structured. Hypothesis two H0! The staff does not have the skills and knowledge to attend to customers with computer H1! The staff has the skills and knowledge to attend to customers with computer. 1.6 SIGNICANCE OF THE STUDY When the study is concluded, the entire public will find this study useful by knowing the impact or the effect of computer application in banking industry and its operation. Future researchers who may need secondary data for other research work in related topics will find this research work useful. This is because a perusal through the finding and recommendation will reveal that a computer has a huge impact/effect in the banking system. this research work will also be of immense help to bank costumers, government, etc. That may be interested to know how lack of effective use of computer application can lead to bank distress liquidation folding etc. 1.7 SCOPE OF STUDY This research work tends or aimed at examine the effective of computer application in banking industries and application. This study tries to covey the way\ways or the important role the computer plays in bank merging, cleaning of cheques, computing and presentation of statement of account, rendiction of monthly returns to Central Bank of Nigeria[CBN]through e-mail etc. Therefore the researcher thought it is wise to write on the effect of computer application in every aspect of bank folusing on all workers Microfinance Bank Ltd Orji Branch as a case study. 1.8 LIMITATION OF THE STUDY Some problem were encountered during this research\ project work such as: 1. TIME CONTRAINT; The researcher has no sufficient time to frequent the area of study due to compiled academic works facing him. he also has limited time in fixing the facts collected during the research work. 2. INFORMATION CONSTRAINTS The research encountered high compliance from the case study (all workers microfinance bank LTD) due to secrecy of some information. 3. FINANCIAL CONSTRAINT The researcher has problem financing this work. This was due to the fact that during this work, there was drastic increase in the cost of living, transport, printing and binding of project. However, I thank God for making me (researcher) to finish the work and present it fairly. 4. Another problem the researcher has was getting the recent three –five financial statements (annual report) of the company to aid this work. 1.9 DEFINITION OF TERMS A. Computer: Computer is an electronic device that is capable of solving problems by accepting data, performing prescribed operations on the data accepted and supplying the result of the operations. B. Bank: Bank is a financial establishment that invest money deposited by customers , pays it out when required, make loans at interest and exchange currency. C. Banking: the business conducted or service offered by a bank. D. Record Keeping: Systematic procedure by which the records of an organization are created, captured, maintained, and disposed of. CHAPTER TWO 2.0 LITERATURE REVIEW This chapter deals with the review of books, article and hand bills, and financial statement written by the organization (Allworkers Microfinance bank). It will enable the researcher to know what they have written, what is left to be written in order to improve the work. 2.1 INTRODUCTION In 1642, Blaise pascal a French philosophy inverted the first mechanical calculating machine called Pascal’s adding machine. The machine was made of a combination of inter locking wheel and gear. The number was from 0-9 and it was printed on the wheels. When the first wheel made a complete turn from 0-9 it automatically caused the second wheel to advance to the next number, when the second wheel move past 9, it caused the third wheel to turn and so on. This machine was used why to add or subtract. Abacus and Pascal adding machines were limited in capability. They were not as reliable as today’s electronic computer. In August 1981, IBM announced the availability of the first commercially-viable micro computer that is more powerful than the room-sized ENIAC. MEANING The most obvious question related to understanding computer is, what is computer? or the meaning of computer. Computer is an electronic device or a machine which can accept data as input, process the data, store data/information to give accurate information called output i.e a computer could be viewed as an IPSO machine (input, process, storage and output). 2.2 TYPES OF COMPUTER There are three types of computer namely; 1. Analog computer 2. Digital computer 3. Hybrid computer 1. ANALOG COMPUTER: They represent numbers by a physical quantity. That is, they assign numeric values by physically measuring some actual property such as length, angle, electric voltage etc. Analog computer derive all their data from some form of measurement. They measure continues values. The analog computers have their limitation, on accuracy of data measured since the accuracy is directly related to the precision with which the measurements are made. 2. DIGITAL COMPUTERS: They represent their data using discrete values. They count rather than measure data as in the case of analog computers. they are highly accurate. the use Vacuum tubes in controlling the flow of voltage 3. HYBRID COMPUTER: They are digital computers that have communication with the analog device. They combine the features of analog and digital computer. They possess the speed of analog computers and the accuracy of digital computers. They are usually applied to specialized problems in which input data is derived through a series of measurement, converted into a digital format by an analog to digital converter and processed into a digital useful output using a computer program. hybrid computers are used in computer controlled manufacturing process, production facilities and process control 2.3 CLASSIFICATION OF COMPUTER The computer systems are generally classified into three basic categories namely: 1. Mainframe computers 2. Mini computers 3. Microcomputers The above classification was based mainly size and their associated processing capabilities .but because of the rapid development in the semi conductor technology there arose further classification as 4. Super computer 5. Super microcomputer. 1. Mainframe computer- Mainframe computers are large and powerful with fast processing and access to billions of characters of data. these computers usually occupy a large space area than either the mini or micro computers. 2. Mini Computer – These are machines sized computers used when a desk top computers is not powerful enough to do the job . they are appropriate and economical for simple specialized application. 3. Micro computer- There are also known as personal computers [PCs] .they have micro processor as their CPU. The are the smallest of the three basic classes of computer. because of the small size; microcomputers can be more from one location to another. That is; they are easily relocated they can be accommodated on a small table or desk . they require minimal power and cooling. it has small memory size and processing power . 4. Super computer – The physical size of the super computer is usually not larger than the mainframe computers .some have physical size; smaller than most classical Mainframe computers. they are this most expensive computers systems . The instruction word length of some super computers is very long. There is no fixed word length that refines a super computer, but a before bit word is usually common. Super computers have much faster processing capability than mainframes ,due to of some factors like the use of multiple CPs or processing elements, distributed memory, faster logic and switching elements , and long instruction word. Their memory is much longer than that of the mainframe. In fact ,super computers are improvements on the classical mainframes . examples include, CDC Cyber 7600 and CRAY etc. 5. Super Microcomputers- Due to the advancement in semi-conductor technology, the gap between the micro computers and the classical minicomputers are narrowed. Same current microcomputers systems now process instruction word length longer than 16bits, which used to be that of the classical minicomputer .There are microcomputer that has memory supports larger than that of the classical minicomputer in to their speed of processing and size. example are most recent PCs having word length more than 8bits we can now see PCs with instruction words of 16, 32, 64bits etc like notebook ,desktop, laptop, palmtop, computer etc. 2.4 WHAT DOES A COMPUTER DO IN THE BANKING OPERATION /USES OF COMPUTER IN THE BANKING OPERATION? A. With the help of computer networking, braches have terminals which can communicate directly with the main computer in case any, enquire or information needed from the main computer B. Computers are used to prepare a detailed statement of account of the customer. C. It is used for record keeping in the bank. Example list of loan customers etc D. It is used to communicate from one branch to the other. E. Computers are used in central cheque-clearing house to aid in selection and sorting of cheque. F. It is used to render monthly returns to CBN G. With the application of computer to banks it has helped reinsure increase in productivity, service, efficiently and timely decision-making. 2.5 HOW DOES A COMPUTER KNOW WHAT TO DO IN THE BANKING OPERATION For a computer to perform any operation, it must be given a detail set of instruction that tells it exactly what to do (i.e GIGO meaning Garbage-in garbage-out) These instructions are called computer programmes, or software. Before processing any specific job, the computer program corresponding to that job is stored, the in the computer. Once the program is stored, the computer can begin to operate by executing the program’s first instruction. The computer executes one program instruction after another until the job is completed. COMPUTER PROGRAM/SOFTWARE Computer software is a set of instructions given to the computer in order to perform a specific task or solve a particle problem. The term software is applied to the programs, which must be placed in the hardware before the hardware/software combination can do useful work. therefore, without the software, computer is a dummy. TYPES OF SOFTWARE COMPUTER There are two types of software namely: The system software and the application software. 1. SYSTEM SOFTWARE They are instruction, written by the computer manufacturers to control the operation of the computer system. There are programs that contribute to the control and performance of the computer system. 2. APPLICATION SOFTWARE They are programs written by computer users for a specific purpose. They are programs that control the actual work. COMPUTER HARDWARE Computer hardware’s are those physical parts of computer that can be seen and touch. E.G. key board, mouse, printer etc. The computer hardware include: 1. The central processing unit (CPU) 2. The peripheral units 3. Memory units. 1. THE CENTRAL PROCESSING UNIT (CPU):- This unit is also known as the brain of the computer. It contains the Arithmetic-Logical Unit (ALU), the central units, and a group of registers performing specific functions. It is in this that all the computation (both arithmetic and logical operations) are performing within the computers. CENTRAL UNITS: The central units direct the sequence of the operations in all other units of computer. It co-ordinates all the activities going on within the computer system. Like timing which component (device) will be accessed at which times, the synchronization of process events, the destroy of instructions, etc. 2. THE PREPHIRAL UNITS: The peripheral units provides the input and output channels through which data and instruction can be inputted into the computer and the channels through which results and information produced by the computer can be outputted. That is to say that, the peripheral units is one tip of input and output. The input peripherals are physical devices and equipment through which the computer users communicate with the computer. They are the device through which data and instructions from the computer user can be sent to the computer e.g keyboard, mouse, joystick etc. The output peripherals are physical devices computer uses. The are those device which the computer uses to send back result to the user after processing the input data Examples include card punches, visual display tapes, paper tape punches, voice synthesizer, speakers etc. 3. MEMORY UNIT:- This is where the computer retains what has been slotted into it. There are two levels of memory namely: The primary memory and the secondary memory. i. PRIMARY MEMORY: The primary memory is known as the core storage or main memory or fast access memory. It is resident inside the computer and not detachable. consist of RAM and ROM a. RAM (RANDOM ACCESS MEMORY) : Random access memory is the computer main memory use as its workable. One can write and read from RAM. It is volatile, in that its content go off as soon as power is switched off. That is, its contents clear. b. READ ONLY MEMORY (ROM): ROM is the computer main memory use as its permanent store. Unlike RAM, one can only read from ROM. Programmes are stored in the ROM during the manufacturing process, afterwards, it is connected in the computer hardware nothing can be added to it. So, one can only read from it and not to write to it. ROM is not volatile, whether power or not; its content cannot be over written or clear. ii. SECONDARY MEMORY It is also known as the auxiliary or backing store. It is not permanently fixed into the computer. It can be switched into the computer for some work, after which it is removed (it is detachable). It is slower than the primary memory in operation. Thus is because while the main memory is accessed directly by the processor, the information stored in the auxiliary memory must be brought into the main memory before it can be accessed by the processor (CPU). Examples are floppy Disk, Hard Disk, CD-ROMS, (compact Disk), DVD (digital video discs) etc. 2.6 ADVANTAGES AND DISAVANTAGES OF COMPUTER APPLICATION IN BANKING OPERATION ADVANTAGES OF COMPUTER APPLICATION IN BANKING OPERATION 1. EFFICIENCY: Computer gives the same output for any data/program given to it (i.e) for every consisted output you get a consistent output. 2. SPEED: With computer, unlike the days when banks make use of ledger cards, before the could check one customers balance, it takes not less than 10mins or more than, compared to the modern period (computer) customer balances can be checked under. 3. ACCURACY AND RELIABILITY: It evaluates, keeps accurate and reliable records for banks 4. COMPLEX COMPUTATION: The use of computation in banking operation, the customers interest can be calculated within 2mins and capable of solving scientific equation easily. 5. STORAGE: Computer is capable of storing enormous volume of banks information. 6. FLEXIBILITY: With the right software, it could be made roper form different tasks and it can also carry out multiple operation and do different tasks at a time. DISAVANTAGES OF COMPUTER APPLICATION IN BANKING OPERATION 1. Computer operation is prone to fraudulent practices. 2. The cost of installation and main tenancy is high. 3. introduction of computer in banking operation, has led to high rate of unemployment 4. Introduction of computers in banking, has led to high rate of immoralities. 2.7 WHAT IS THE BANKING INDUSTRY The banking industry is an enormous sector of business and finance that has existed in human civilization in some form for thousands of years. In the modern world, the banking industry plays a large part in financial dealings, as it is a major and popular means for investing, borrowing, and storing money. Banks exist all over the world governments usually heavily regulated corruption and protect money of the general public. CHANGES/RECENT DEVELOPMENT IN THE USE OF COMPUTER IN THE BANKING OPERATION Recent development in science technology and computerization has enable accounting environment to achieve speed, storage facility through memory, Accuracy etc. We can use computer to do those in the banking industries. 1. BANK RECONCILATION: Computer could be used to hasten reconciliation between cash book and bank account. 2. PAYROLE SYSTEM: Computer can be easily used to prepare the pay role of banks staff so as to know salaries, wages, tax, pension contributed etc. 3. BANKS USE COMPTERS FOR NUMEROUS Things, as checking balances of depositors and those who wants to withdraw and effect the transactions accordingly without going through the old/ tradition method of signature card, ledger card, signing and counter signing etc. 4. Clearing of cheques are been done through computer. CHAPTER THREE 3.0 RESAERCH DESIGN AND METHODOLOGY This chapter focused on the procedures adopted by the researcher in carrying out the study. it includes; research design, source/methodology of data collection, population and sample size, sample techniques, validity and reliability of measuring instruments and method of data analysis. 3.1 INTRODUCTION The study examines the effect of computer applications in banking industry and its operation. The research is centralized on all workers micro-finance bank LTD. All workers MFB was established on 1st march 2002 and was incorporated on December 2007. and has Prof. I.B. Onukogu as the chairman BOD, Prof. Uwazuruike, Rev. Merg. K.C. Akagha, Engr. Offurum and Mrs. G.M.G Onukogu as the Board members. Mr Elekwa Amah Anya as managing Director, Onukogu Uzoma (mr) as business development manager (BDM), Udiong Joseph as the accountant/HOP, Kalu stella as internal auditor, Nwaozuzu Vivian as secretary, Mrs Ukanwa Zita M. as manager (Egbeada branch), Onukogu Ugochinyere (mrs) as manager (Orji Branch), Mr. Kizito Godwin manager (Naze branch) etc. All workers microfinance bank LTD has 4 branches intending to open extra two (2) by next year (2015). The researcher selected all workers micro finance bank to draw a sample for the investigation into the effect of computer application in banking industry and its application. 3.2 RESEACH DESIGN A description survey types is used in this research work because it is descriptive in nature and attempt to describe, interpret, and explain the effect of computer application in banking industry and its application in Allworkers MFB LTD 3.3 SOURCE /METHODOLOGY OF DATA COLLECTION The questionnaires were distributed by hand and collected immediately from the respondents 3.4 POPULATION AND SAMPLE SIZE The population of this study was made up of all staff selected in the four (4) braches. Sample size of 70 staff was used during this research. S/N Branches Population 1 Mbari (Head office) 40 2 Egbeada branch 20 3 Orji branch 30 4 Naze branch Total 19 109 3.5 SAMPLE TECHNIQUES A sample of four (4) branches of Allworkers MFB was used, Mbari branch, Egbeada branch, Orji branch, and Naze branch with total population of 109 staff. Branches from Allworkers MFBank are represented in this number. S/n Name of branch Population Sample 1 Mbari 40 25 2 Egbeada 20 14 3 Orji 30 21 4 Naze 19 10 Total Total 109 70 3.6 VALIDITY AND RELIABILITY OF MEASURING INSTRUMENT. The information was vetted by the research supervisor and one other lecturer in measurement and evaluation for content validity and reliability. 3.7 METHOD OF DATA ANALYSIS The method of data analysis that was used will be presented in tabular form and analyzised in percentage using F÷N×100÷1 F= means frequency /or number of response N= is the total number of response. CHAPTER FOUR 4.0 PRESENTATION AND ANALYSIS OF DATA 4.1 INTRODUCTION In chapter three, we explained the method of by which the data collected would be analyzed to produce the results on this statement, we collected the required data and with the use of sample percentage as were analyzed based on their subject to the research question. 4.3 DATA ANALYSIS The data collected was carried out with instrument which is the questionnaire. The analysis on the questionnaire was one part in line with the research question they intend to answer. The questionnaire contains 10 items for clear understanding of the result the data are presented in table. Research Question One: What is computer? A computer system is a group of electronics devices that accept data as Input performs series of logical operations on the data (processing) and produces the result as output (information) in a required format. A computer is an electronic device that is capable of solving problems by accepting data, performing prescribed operations on the data accepted and supplying the result of those operations. Research Question Two: Does computer give accurate information? Table 4.1 Analyzing the response to test the hypothesis Option No. of response Percentage Agreed 90 83% Disagreed 10 9% Both 5 5% No answer 4 3% Total 109 100% From the above analysis, 83% agreed, 9% disagreed, 5% said both, while 3% said no answer. RESEARCH QUESTION 3 TABLE 4.2 Is computer a negative influence on the banking system? Option No of response Response in % Agreed 60 55% Disagreed 40 37% Both 9 8% No answer - - Total 109 100% From the above response 55% agreed that computer is a negative influence, which 37% disagreed and 8% said computer is both. RESEARCH QUESTION 4 Does computer add value to the modern banking system? Table 4.3 Option No of respondent Percentage Agreed 60 55% Disagreed 30 28% Both 10 9% No answer 9 8% Total 109 100% Table 4.3 shows that 55% agreed, that computer adds value to the modern banking, while 28% disagreed, 9% said both while 8% said no idea. QUESTION 5 Can computer be used in computing statement Table 4.4 Option No of respondent Percentage Agreed 90 83% Disagreed 5 4% Both 2 2% No ideal 12 11% Total 109 100% QUESTION 6 Can computer be used in printing out statement of account? Option No of respondent Percentage Agreed 85 78% Disagreed 10 9% Both 5 5% No ideal 9 8% Total 109 100% Table 4.5 shows that 75% agreed that computer can be used in printing out statement of account, while 9% disagreed, 5% said both while 8% said no idea.\ QUESTION 7 Manual banking (ledger cards) is it more fraudulent than the use of computer? Option No of respondent Percentage Agreed 30 28% Disagreed 70 64% Both 9 8% No idea - - Total 109 100% From the above table 4.6 28% of the staff said that manual banking is less fraudulent than the computer age banking, when 64% said it is more safe to make us of the manual banking than computer age which 8% said both. QUESTION 8 Does computer age banking provide more security to customer details than the manual banking (ledger cards). Table 4.7 Option No of respondent Percentage Agreed 70 64% Disagreed 39 36% Both - - No idea - - Total 109 100% Table 4.7 shows that 64% agreed while 36% disagreed with the motion. QUESTION 9 Can the use of computer in banks lead to unemployment in banks? Table 4.8 Option No of respondent Percentage Agreed 60 55% Disagreed 40 37% Both 9 8% No idea - - Total 109 100% 4.4 TESTING OF HYPOTHESIS In the section the hypothesis earlier formulated in chapter one will be tested. Each test enables the research to make inf about the unknown population. HYPOTHESIS ONE H0: Improper maintainers of their computer system H1: Proper maintainers of computer systems HYPOTHESIS TWO H0: Poor managerial decision H1: Adequate and good managerial decision HYPOTHESIS THREE H0: Staff lacks interpersonal communication skill H1: Good interpersonal communication skill. CHAPTER FIVE 5.O SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 INTRODUCTION This chapter deals with the summary, conclusion and recommendation, bibliography and appendix written by the research about the effect of computer application in banking industry and its application. 5.2 SUMMARY OF FINDING Based on the responses given by the respondents the following observations were made from the analysis that was carried out in chapter 4. 1. Does computer give accurate information? It was found out that large number of people agreed with that, because it’s a computer and the something GIGO(garbage in garbage out) which means what you give your, is what it will produce. In other words, if what you gives, is what it produces, so it does not make mistakes. 2. Is computer a negative influence on the banking system? It was also observed that large number of people belong to this, because they think through the computer banks now imposed heavy changes and withdraw some amount of money from the account. 3. Does computer add values to the modern banking system? From my observation, it said that computer has done a lot or added values in the modern banking system, because with the help of computer, customer balance that takes a lot of time to check, has become very easy to check now. That with the help of computer, you can point your statement of account at home at home, you can check your balance, request for anything at the bank without going their etc. 4. Can computer be used to computer statement of account? Computer can be used to compute and print statement of account even with your own personal computer at home. 5. Manual banking (ledger cards) is it more fraudulent than the use of computer? From the findings, high number of people believe that the fraudulent recorded now in banking system has become imaginable than the ledger card edge. Because someone can be at home and hack your account password and signature and make withdrawals without your notice. 6. Does computer edge banking provide more security to customer details than the manual banking? From the information gathered, people agreed with that, because before someone can be paid, the bank will first check your account details, such as mandate (photo card), your signature, last withdrawal, etc before making payment. 7. Can the use of computer in banks lead to unemployment in bank? From my observation, some may agreed with that, during the time of ledger cards there were as much high rate of unemployment in country. This is so because of work that will take up to 20 people in doing without computer can be done by 2 people with computer. So when you minus 2 out of 20 it will be remaining 18, what will the 18 people be doing? 5.3 CONCLUSION Banks use computer to take care of many tasks, such as processing customer cheques, keeping track of customer amount, processing deposits and withdrawal through transfer of money from one account or bank to another, preparing a weekly financial report for use by the bank executives. Such financial reports helps in decision making regarding assists, management performance of other banks, forecasting profits. Besides, with computer networking, braches have terminals which can communicate directly with the main computer in case inquiry is needed from the main computer (server). 5.4. RECOMMENDATION From the above summary and conclusion reached, the following recommendation were drawn, 1. Management of each bank should make sure that there banks are well equipped with computer. 2. Management should ensure that their computers are full functioning and are in good shape for adequate service to its customer. 3. computer should be looked at something that has come to ease out some stress and not to look at it as a hindrance to employment. 4. Customers should make sure they keep their bank details carefully and safe to avoid impercination to their account by a third party. 5. Customer should see bank charges as a way by which the bank use to serve them better because the bank staffs has to be paid. REFERENCE 1. Dr. Ezekiel Chukwu mep [2005] pratical computer text book.Bussiness fourm publication’s Aba Abia State. 2. Mrs.Chidiebere C.Opara[2003] Genesis of computer science. pradeses Books and Press Akwa Ibom State 3. Mr Okey Ogbuka[2000] Funtamentalof computer operation.Sam-Okey Publication Owerri. 4. Okezie Ihugba A [2008] Fundamental Institution and the theory of money chyzou concept Owerri. 5. Nzolta S.M[2002] computer financial Decision Gold Denis Association Press Owerri UNLIMITED APPENDIX Business and Management technology Department of Accountancy, Federal Polytechnic Nekede, PMB 1036 owerri, Imo State. Dear, Respondents, I am a student of the above school mentioned carrying out a research on the effect of computer application in Banking Industry and its application of a firm in Imo state: a case study of all workers micro-finance bank Ltd Owerri. You are kindly requested to supply this information to the best of your knowledge. Your responds will be treated in a confidential way. Thanks for your co-operation. ONYEMAUWA STANLEY CHINONSO. QUESTIONNAIRE SECTION A PLEASE TICK [ ] Where applicable and full the blank space as provided below: NAME:……………………………………………………………….. AGE:………………………… SEX……………………… (MALE) (FEMALE) …………………………. FACULTY……………………………………… DEPARTMENT……………………………….. SECTION B SA=Strongly Agreed, A=Agreed D=Disagreed SD=Strongly disagree 1 Does computer give account information? a)strongly agreed b)agreed c)disagreed d)strongly disagreed. 2 Is computer a negative influence on the banking system? a) strongly agreed b) agreed c)dis agreed d)strongly disagreed 3 Does computer add value to their modern banking? a) Strongly agreed b)agreed c)disagreed d)strongly Disagreed 4) Can computer be used in computing statement account? a) Strongly agreed b) agreed c)disagreed d)strongly disagreed 5). Can computing be used in printing out statement of accounts? a) Strongly agreed b) agreed c) disagreed d) strongly disagreed 6). Manual banking (ledger cards) is it more fraudulent than the use of computer? A) Strongly agreed b) agreed c) disagreed d) Strongly disagreed (7).Does computer edge banking provide more security to customer details than the manual banking (ledger card). a) Strongly agreed b) Agreed c) Disagreed d) Strongly disagreed 8. Can the use of computers in banks lead to unemployment in banks? a) Strongly agreed b) Agreed c)Disagreed d)Strongly Disagreed