THE IMPACT OF COMPUTER TO MODERN BANKING IN NIGERIA (A CASE STUDY OF ZENITH BANK INT’L PLC AND FIRST BANK NIGERIA PLC OWERRI)

THE IMPACT OF COMPUTER TO MODERN BANKING IN NIGERIA (A CASE STUDY OF ZENITH BANK INT’L PLC AND FIRST BANK NIGERIA PLC OWERRI) BY IHEJIRIKA IJEOMA .C. 08H/1663/AC A RESEARCH PROJECT PRESENTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN ACCOUNTANCY TO THE DEPARTMENT OF ACCOUNTANCY, SCHOOL OF BUSINESS AND MANAGEMENT TECHNOLOGY FEDERAL POLYTECHNIC, NEKEDE OWERRI. AUGUST 2010. APPROVAL PAGE This project work was supervised by the undersigned people for meeting part of the requirement for the award of Higher National Diploma (HND) in Accountancy Department. Mr. C.I Nkwocha Date Project Supervisor Chief B.N Okezie Date Head of Department External Examiner Date DEDICATION This project is dedicated to my beloved Parents Mr. and Mrs. Jonathan .I. Ihejirika and my lovely and caring siblings, Kelechi, Chibuikem, Chinonyerem, Udochukwu and Chiedoziem. Finally, to all HND II Accountancy 2010 graduates, I love you all. ACKNOWLEDGEMENT First and foremost, my immeasurable appreciation goes to Almighty God for his faithfulness and protection and also for giving me the strength and wisdom with which the completion of this project work was made a success. My humble thanks go to my supervisor Mr. C.I. Nkwocha, who sacrificed his time and patience to read through my work, gave it constructive criticisms, corrected and guided my step by step till the final stage of this work. I must also appreciate my lecturers, my HOD, Chief B.N. OKezie, Mr. C. Oparaeke (Dean, School of Business and Management Technology), Mr. Maxwell Ekwerike, Chief S.C. Nsofor, Dr. U. Ibeaja, Mr. C. Osondu, Lolo F.A. Anyanwu, and Chief A.A Ojiuko of Banking and Finance Department, Chief C.V Njoku, Mr N.C.N Emerem and Mr. Iwueke Obinna of Business and Management Technology, Dr. Sir Anumihe of Social Science and Humanities Department, who deemed it necessary to transfer their knowledge on me. They are wonderful. Others are my Aunties Mrs. Joy Anosike and our Departmental Secretary Mrs. Nkeiru Ogbueri for their moral encouragement. My profound gratitude must not fail to go to my beloved parents Mr. and Mrs. Jonathan Ihejrika, my siblings, Kelechi, Chibuikem, Chinonyere, Udochukwu, Chiedoziem and the entire Ihejirika’s family for their immeasurable care, love and rightful support both financially, morally and prayers al through the period of my studies. I must also in a special way be grateful to my friends, especially my mentor Mr. Darlington Opara, who stood by me through thick and thin, by encouraging me both financially and morally, to make sure I joined the league of graduate. To him I am highly indebted. Also to so numerous well-wishers who in one way or the other helped me in my academic pursuit. And finally the last but not the least, my bosom friend Miss Onuador Happiness who gave me part of the material for this project work. I thank you all and may the Almighty God keep and abide with you all. Amen IHEJIRIKA IJEOMA C. ABSTRACT This research work is on the Impact of Computer to Modern Banking in Nigeria. A case study of Zenith Int’l Bank Plc and First Bank of Nigeria Plc. In advanced economies, technology has played a significant role since 1060’s. The role of computer in the financial world and other spheres of life cannot be over-looked and this has made it inevitable as the whole world has been turned into a global village. But in developing economies on the other hand, technology has relatively been poorly deployed in computer services. In Nigeria, deregulation of the banking industry in 1986 saw banks deploying technology as the chief competitive weapon to achieve significant market shares in the crowded banking industry. This brings a good decision on the other leas to effective performance of managerial functions, which should in turn lead to the attainment of the organization’s goals. The research used both primary and secondary data from findings. It was observed that about 90% of the banks in Nigeria has improved and agreed that computerization has lead to affective bank performance and have also reduce the cost of running bank services. In trying to state the impact and problems related to computer in the banking industry, the researcher observed that some problems faced by these banks are; inefficient planning, fraud, errors, irregular functioning of telecommunication facilities etc, and recommend that; Proper awareness and orientation should be made with regards to illiterate bank customers who are still novice to computer innovations. The computer department should be manned by people of good integrity and sound knowledge of computer to reduce fraud in the banks. There should be adequate power supply to fasten and improve operation and also reduce cost of running bank services. TABLE OF CONTENT Title Page - - - - - - - - - - i Approval Page- - - - - - - - - - ii Dedication- - - - - - - - - - iii Acknowledgement- - - - - - - - - iv Abstract- - - - - - - - - - - vii Table of Content- - - - - - - - - viii CHAPTER ONE 1.0 Introduction- - - - - - - - - 1 1.1 General Overview- - - - - - - - 1 1.2 Statement of Problems- - - - - - 4 1.3 Objectives of the Study- - - - - - - 5 1.4 Significance of the Study- - - - - - - 5 1.5 Research Questions- - - - - - - - 5 1.6 Statement of Hypothesis- - - - - - - 7 1.7 Scope of the Study- - - - - - - - 7 1.8 Limitations of the study- - - - - - - 8 1.9 Definition of Terms- - - - - - - - 9 CHAPTER TWO 2.0 Literature Review- - - - - - - - 11 2.1 Background of the study- - - - - - - 11 2.2 Evolution of Computer Technology- - - - - 16 2.2.1 Definition of Computer- - - - - - - 18 2.2.2 Types of Computer- - - - - - - - 19 2.3 Evolution and Development of Nigerian Banking System- 20 2.4 Future of Computer in Nigeria Banking System- - 23 2.5 Problems Associated with the use of Computer- - 25 2.6 Computer Related Fraud in the Banking Industry- - 26 2.6.1 What is Computer fraud - - - - - - - 27 2.6.2 Forms of Computer Fraud - - - - - - 28 2.7 Impact of Computer in Nigeria Banking Operation - - 30 2.8 Summary of the Chapter- - - - - - - 35 References- - - - - - - - - 36 CHAPTER THREE 3.0 Research Methodology- - - - - - - 37 3.1 Research Design- - - - - - - - 37 3.2 Sources of Data- - - - - - - - 38 3.3 Method of data Collection- - - - - - 39 3.4 Population Size- - - - - - - - 40 3.5 Sample size- - - - - - - - - 40 3.6 Techniques for Data Analysis- - - - - - 40 CHAPTER FOUR 4.0 Data presentation and Analysis- - - - - 42 4.1 Data presentation- - - - - - - - 42 4.2 Data Analysis- - - - - - - - - 43 4.3 Analysis of Hypothesis- - - - - - - 51 CHAPTER FIVE 5.0 Summary, Conclusion and Recommendations- - - 57 5.1 Summary of findings- - - - - - - 57 5.2 Conclusion- - - - - - - - - 60 5.3 Recommendation- - - - - - - - 61 Bibliography- - - - - - - - - - 63 Appendices - - - - - - - - - - 66 CHAPTER ONE 1.0 INTRODUCTION 1.1 GENERAL OVERVIEW In advanced economies, technology has played a key role since 1960’s. The role of computer in financial world and other spheres of life cannot be over-emphasized or, be over-looked and this has made it inevitable as the whole world has been turned into a global village. But in developing countries on the other hand, technology has relatively been poorly deployed in customer services. Nevertheless, bank even in the strategic role of technology driven services, played in the efficient and cost effective service delivery. Investments in innovative banking technology worldwide have therefore grown exponentially in past decade. In Nigeria, deregulation of the baking industry in 1986 saw banks deploying technology as the chief competitive weapon to achieve significant market shares in the crowded banking industries (Aduba, 1997). This brings a good decision on the other hand leads to effective performance of managerial functions which should in turn lead to the attainment of the organization’s goal. The vital ingredients for effective information apart from accuracy must also include uniformity, timeliness, reliability, clearness and must be promptly transmitted to the recipient and same time must be relevant to the area of specification. Therefore, this presentation reviews the enabling environment for technology driven bank services in making effective planning, organization and implementation of the policies of the organization. Introduction of computer networks similarly created a new banking culture that granted customer flexibility in services delivery through wider choice of transaction outlet give bank’s networks of branches. Electronic banking system was an innovation into the banking industry. It was introduces to ease the problem of; Casting delay in transaction Clearing Transfer of fund Accuracy in information from one location to the other It can be seen that before the introduction of computer in the banking industry, a lot of problems were faced in processing transaction in various sections of the bank, but with computerization, all these problems have been reduced or eased off. The system has been embraced worldwide because it is easier and convenient for both the sender and receiver. This has made banks like Zenith Bank, Intercontinental Bank, Diamond Bank joined suit with First Bank Nigeria Plc in giving Western Union Money Transfer services to people within Nigeria. Computerization or electronic banking has even helped in introducing electronic cards known as pay cards (Credit and Debit Cards). This was introduced to avoid the risk of carrying cash around. This electronic card is loaded with any amount in alternative to physical cash with ease. The electronic pay card has gone a long way in its establishment because people now prefer it to holding physical cash. Infact computer has come to stay and has become a vital part in our society because it has the capacity of extending men’s power to perform mental tasks and provide imagination services. 1.2 STATEMENT OF PROBLEMS Before the introduction of computer in banking operation, the banking industry was faced with a lot of problems that made some people to lost interest and confidence in them (banks). These problems are as follows; Delay in responses and services delivery time Improper handling, storing and keeping of date and records Inaccuracy/errors in data entries and interests computations. Transmission of fund from one place to another. Cash holding movement Delays in clearing cheque Poor monitoring of accounts leading to fraud In order to eradicate or minimize al these problems, and foster confidence in banking industry, computerization was introduced to overcome all these problems and build confidence back into the industry and the people. (Anderson, 1979) 1.3 OBJECTIVE OF THE STUDY The aim of this study is to examine the importance of application of computer to banking operations with regards to efficiency, profitability, effectiveness of computer operation to the realization of the set goals in the banks and economy as a whole. Also this study or research will enable us to know the various problems that have been associated with banking industry and its operation can be averted or reduced through modern technology computerization. 1.4 SIGNIFICANCE OF THE STUDY Computers have replaced the crude mechanical and manual system of recording, analyzing and typing of banking information. New greater qualities of data can be processed at greater speed and accuracy. 1.5 RESEARCH QUESTIONS In order to properly address this issue, the following questions were formulated to investigate and analyze the responses of the people on the impact of computerization in the banking industry. The questions are; To what extent is our society aware of electronic banking? How has electronic banking improved the quality of banking in our society? Do you think the benefit of computer justifies the cost? Do you think that the introduction of computer/electronic banking has rendered some people jobless? What are the reactions of Nigerians to the computerization of banks? Has globalization any impact on the economy and future problem? Has the computerization of banking industry contributed to the increase in banking performances and efficiency in term of profit? Has the computerization of the Nigerian banking industry led to time saving in bank services and transactions? 1.6 STATEMENT OF HYPOTHESES HYPOTHESIS I Ho: The computerization of banking industry has not contributed the increase in banking performances and efficiency in terms of profit. Hi: Computerization of banking industry has contributed to the increase in banking performances and efficiency in terms of profit HYPOTHESIS II Ho: Computerization of Nigerian banking industry has not led to time saving in bank services and transactions. Hi: Computerization of the Nigerian banking industry has led to time saving in banking services and transactions. 1.7 SCOPE OF THE STUDY The Scope of this study is on the assessment of impact of the computer on banking operations. This tends to provide enabling environment for technology driven bank services in making effective planning, organization and implementation of the policies of the organization through computer. Introduction of computer networks similarly created a new banking culture that granted customer flexibility in services delivery through wider choice of transaction outlet given banks networks of branches. However, Zenith Bank Int’l Plc and First Bank Nigeria Plc will be studied to particularly appreciate the performances and problems encountered by these organizations. 1.8 LIMITATION OF THE STUDY An investigation of this kind is faced with several limitations such as; Time Constraints: This pose a serious problem to the research since the project is expected to be completed within a space of time. Poor financing: Financing this project has been a trying experience for the researcher because of the poor economic condition in the country. The researcher was unable to travel to many places of interest in order to get comparable data or information for this research work. Natural Factor such as (Rainfall) hindered the researcher’s movement in her bid to distribute the questionnaires to respondents. Not having access to some relevant data that would promote or improved the existing quality of this work due to poor audience by respondents, unreliable statistics and bias information from respondents. 1.9 DEFINITION OF TERMS COMPUTER: According to Opara et al (2006:66), computer is an electronic device that is capable of solving problems by accepting data, performing prescribed operations on the data accepted and supplies the results of those operations. AUTOMATED TELLER MACHINE (ATM): Is cash disposer that is designed to enable customer enjoy banking services without necessarily going into contact with bank cash teller. BANK: Is a financial institution where money and other valuable items are kept for safe custody. BOOK KEEPING: This involves keeping records of all financial transactions E-BANKING: This is a natural fall out of intense competition to the financial markets. It also poses new challenges for country authorities in regulating and supervising financial system and in designing and implementing microeconomic policy. CUSTOMER SERVICES: This unit is always at the entrance as not to course inefficiency. Its main function is to open records and guide the customers on their enquiry. FRUAD: A method of illegally getting money from someone often by using clever and complicated methods. HARDWARE: This is the computer components, that is the computer itself and other devices. MANAGEMENT: The act or skill of directing and organizing the work of a company or organization. PROGRAM: A set of instruction given to a computer to make it perform an operation. CHAPTER TWO 2.0 LITERATURE REVIEW 2.1 BRIEF HISTORY OF THE ZENITH BANK AND FIRST BANK ZENITH BANK INT’L PLC Zenith Bank Int’l Plc is a Nigerian bank based in Victoria Island, Lagos. It was established in May 1990. It became a PLC in July 2004 and had an initial public offering on the Nigerian Stock Exchange on October 21st 2004. Also in 2004, it had a credit Rating Agency; Fitch ratings identified its credit as AA on their long term scale. As of November 2007, it was the largest company in the country and in all of West Africa with total Assets of 2.1 billion Dollars according to the bank’s advert in CNN. In addition to Nigeria, the bank has branches in Gambia, Sierra Leone, South Africa and United Kingdom. It has revenue of N89.2 billion, Net income of N17.2 billion and total assets of N1.2 trillion. Its subsidiaries are Zenith Insurance, Zenith Pension Custodian, Zenith Securities, Zenith Bank Ghana, Zenith Bank United Kingdom, Zenith Trust Company, Cyberspace Networks. DIRECTORS Jim Ovia is the company’s Chief Executive Officer, Godwin Emefiele is Deputy Managing Director, Peter Amangbo, Apollos Ikpobe, Elias Igbin-Akenzua and Udom Emmanuel, are Executive Directors of the bank. Macaulay Pepple is the Chairman of the board. The company has a total of 3911 employees. In January 2010, the Board of Directors of the bank announced a change; they appoint Godwin Emefiele as the Managing Director/Chief Executive Officer designated of the Zenith Bank. The appointment, which is subject to CBN confirmation, takes effect from August 1st 2010. FIRST BANK NIGERIA PLC First Bank Nigeria Plc is a Nigerian bank and financial services firm. It traces its ancestry back to the first major financial institution founded in Nigeria hence the name. The current Chairman is Dr. Ayoola Oba Otudeko (OFR). The bank is the largest retail lender in the nation. At the end of August 2006, the bank has asset totaling N650 billion or $5billion, it was also the most highly capitalized stock on the Nigerian Stock Exchange and had about 10 billion outstanding shares, it has a subsidiary in United Kingdom FBN (United Kingdom), which has a branch in Paris, and also a representative offices in South Africa and Chine. The First Bank of Nigeria traces its history back to 1894 and was the bank of British West Africa. The founder was Alfred Lewis Jones, a shipping magnate. In 1957, the bank of British West Africa changed its name to Bank of West Africa (BWA). After Nigeria’s independent in 1960, the bank began to extend more credit to indigenous Nigerians. In 1965, Standard Bank of South Africa acquired BWA and changed it acquisition name to Standard Bank of West Africa in 1969. Standard Bank of Nigeria listed its shares on the Nigerian Stock Exchange and places 13% of its share capital with Nigeria investors. At the end of the Nigeria civil war, Nigeria military government sought to increase local control of the retail banking sector, in response, Standard Chartered Bank reduced its share in Standard Bank of Nigeria to 38%. Once it had lost majority control, Standard Chartered wished to signal that it was no longer responsible for the bank, and the bank changed its name to First Bank of Nigeria in 1979, by then, the bank had Nigeria directors that ever. In 1982, the bank opened a branch in London, in 2004, it had a representative office in Johannesburg South Africa, and in 2004 it acquired MBC Int’l Bank Ltd. The products of the bank are; E-banking, Consumer Banking, Wholesale Banking, Agricultural Financing, Payments and Collections, Western Union money Transfer. Their subsidiaries are; Pension Custodian, Offshore Subsidiary, Capital Market, SME Funding, Insurance, Foreign Exchange, Microfinance, Trustees and Registrars. DIRECTORS In 2009, Stephen Olabisis Onasanya was appointed Group Managing Director (CEO), replacing Sanusi Lamido Sanusi, who had been appointed Governor of CBN. Onasanya was formally Executive Director of Banking Operations and Services. Kehinde Lawanson, Executive Director West Directorate, Alex C. Otti, Executive Director South Directorate, Dr. Yerima Lawan Ngam, Executive Director North Directorate, Remilekun A. Odunlami, Chief Risk Officer. According to Komolade (2009:16), under the newly proposed structure of First Bank, all the managing directors of the five group would be board members of the holding company, and would therefore no longer report directly to the Group Managing Director but to the Holding company, which is likely to be chaired by Oba Otudeko, who is currently the Chairman of the bank. Going by the proposed configuration, which may ultimately lead to redeployment of some of the managing directors of its subsidiary, First Bank intends to collapse all its subsidiary into five groups namely First Bank of Nigeria Emerging Business, Insurance Group, Offshore Banking and First Bank of Nigeria Limited, which will stand alone. 2.2 EVOLUTION OF COMPUTER TECHNOLOGY An attempt to automatic computer dated back to the beginning of recorded history but the basic conceptual breakthrough in the design of computers coursed at least hundred years before the necessary technology advances were made. (Ohimia: 1995). The first true calculating machine was devised by Blaise Paschal, a French mathematician in 1642, the machine was only performing multiplication by repeated additions, and division by repeated subtractions. The further development to this was made by Professor Niken Wirth in Zurich and the programming language used was called Paschal. In 1822 Charles Babbage constructed a machine called Difference Machine. And in 1932, he further designed what he called Analytical Engine. This analytical engine was mechanical equipment which had the ability to store date and perform extensive arithmetic operation on the date. It was not until the early 1940’s that the time electronic computer appeared. This was the ABC (Atlan Soft Being Computer) built by U.S Mathematician John U. Atlan Soft. The development of the present age computer technology growth is in five phases called the generations of computer. The ENIAC computer (Electronic Numerator Integrator and Calculator) designed and build in 1946 by Prosper J. Eckert and John W. Manchleys indeed ushered in the first generation of modern day computer, which utilized the vacuum tube for the storage of data. However, the vacuum caused tremendous heat problem and was never completely reliable; programming was principally done in machine language. The second generation saw the replacement of the vacuum tube with transistor. These set of computers were introduced around late 1950’s. They used transistors and were smaller, faster, cheaper, reliable and vitally free from heat problems unlike the first generation computers. Programming was done using both machine and symbolic coding. The third generation computers were produced around 1946 and their main components were integrated circuits. These generations of computers were faster, smaller and cheaper than the first and second generation computers. The use of high level language and wide range of optional peripherals were also introduced. Fourth generation computer were produced during the 1970’s. They have large scale of integrated circuits called silicon chips. (Okezie: 2004, 358). Fifth generation computers are micro computers, which are small, cheap, handy and simple to operate. The use of pitman typewriters keyboard was introduced. This is known as enhanced keyboard because it incorporated functional keys (F1-F12) and other special characters which are not part of the typewriter keyboard. 2.2.1 DEFINITION OF COMPUTER Computer is defined according to (Oparah:2003,1) as an electronic device that is capable of solving problems by accepting data, performed prescribed operations on the data accepted and supplying the results of those operations. That is to say that computer is an electronic device, which can accept data, process the data and produce result/information automatically under program control. It is viewed also as an instrument which possesses analytical intelligence. Finally, it can be said to be a calculator or machine or apparatus, mechanical, electrical or electronic for carrying out most special complex calculations dealing with numeric data or which store item of the information in a large organization. 2.2.2 TYPES OF COMPUTER Computers can be grouped according to Okezie (2004:357) into different types based on their used and constructions. They include; ANALOG Analog computers operate on data which continuously change physical qualities such as electrical voltage, electrical resistance, notations and temperatures by performing physical processes on them. Thermostat is a good example of analog function. DIGITAL Digital computers operate on discrete data by performing arithmetical and logical operations on them. Such computers are used for accounting, forecasting, pay-rolling, sales analysis and other normal general business applications. HYBRID These are computers that have qualities and features of both analog and digital computers, and can perform operations of both types of computers. They receive data in analog form and convert them to digital qualities or operations and viz versa. 2.3 EVOLUTION AND DEVELOPMENT OF NIGERIAN BANKING SYSTEM The Nigerian Banking system is within the broader financial system of the country. It is the hub of the entire financial system and has undergone remarkable changes in terms of ownership structure, regulations, department and breath of operations as well as instruments employed since the first survived banking institution was established in 1894. (Kanu: 2005, 227). Kanu further stated that the banking system mobilizes savings from the surplus units and channels them to the deficit units of the economy for productive investment thereby enhancing the process of economic development. According to Kanu (2005: 246), commercial banking was the oldest of all the baking institutions in Nigeria with the first commercial bank being established in 1892, when the African Banking Corporation was established in Lagos. Probably due to the good performance of the African Baking Corporation, another bank opened its branch office in Lagos in 1894. The Bank of British West Africa Limited now First Bank of Nigeria PLC absorbed the banking business of both Elder Dumpster Company and Africa Banking Corporation until 1916. In 1917, the Barclay Bank (Dominion Colonel and Overseas) DOC now Union Bank was established. Other expatriate owned banks were later introduced in Nigeria such as United Bank for Africa UBA etc. the rise of indigenous bank in Nigeria was as a result of unsatisfactory banking facilities and services which Nigerians received from the expatriate bank. Their operations were against Nigerians both in terms of personal icon receipt from the banks and in respect of the development of the Nigeria economy. However, between 1954 and 1960, a total of 25 indigenous banks were established and many of them had either failed or surrendered their license. The increase educational awareness and the alarming rate of bank failure of the early 1950’s brought about the growing need for Central Bank. A Central Bank is very different in both organization and functions when compared to other types of banking institutions. It is a government owned bank and each country owns only one Central Bank which is the government representative in the banking system. Any country’s Central Bank performs major functions and activities, which are aimed at achieving the main objective for which is was established. It also works in collaboration with other institutions in implementing macro-economic policy measures designed to facilitate efficient management of the economy. Kanu (2005:228). The Central Bank of Nigeria was established in 1958, it did not start full operation until July 1959. Nigerian Banking industry has witnessed the greatest expansion since mid-eighties; there were a total of 81 insured banks, 47 commercial and 34 Merchant banks operating in the country in 1989 to 1996. The level of distress in the financial sector led to restructuring the financial sector. The restructuring exercise began with the increase in the minimum paid-up capital of both Merchant and Commercial banks amendment of the CBN Decree No 24 and Bank and Other Financial Institutions Decree 25 (BOFID), both of 1991 were amended in 1997, 1998 and 1999. 2.5 FUTURE OF COMPUTER IN NIGERIAN BANKING SYSTEM The size and complexity of the present day business environment has called for a change in banking industry. The cove of bank has been bordered to include not only a function of not gathering information but also considered high level of responsibility of participating with management in making business decision. Nigerian banks are yet to fully exploit the potentials in computer banking. Apart from the products that have been mentions which are currently in the market, other products have been developed in advance economies, such as Electronic Fund Transfer of the point scale, Electronic Cards products etc. It is obvious that computer banking is the solution to the constant congestion motion often seen at bank counters. The number of cheque handled by banks will equally reduce substantially. Banks that introduced (ATM) should be cautious of whom to entrust with ATM cards. Since this is a high risk product that can cause unauthorized overdraft, banks are advised to exercise due diligence when processing debits emanating from ATM and EFT in order to avoid future legal tussle. A great potential exists for computer banking in Nigeria, a situation where more banks will acquire ATM and other products will enhance computer banks for customers to have access to the ATM; however, branches must be made to enjoy uninterrupted power supply. Also, customers must be tutored on the effective use of their cards and the need to ensure confidentiality of their Personal Identification Number (PIN). Finally, electronic/computer banking products requires the erection of sound internal control so as to avoid widespread of fraud. 2.5 PROBLEMS ASSOCIATED WITH THE USE OF COMPUTER Inefficient Planning: Quality and efficient of banking services are now so dependent on computer system that any failure in planning may have significant consequences in the banking operations. Failure in implementing new systems and proving services quickly enough may pose serious problem with respect to its competitors. Fraud: Fraud involves all acts of dishonesty and deceitful manner to obtain or deprive a person or corporation of its property without the knowledge or consent of that person or the corporation. Successful fraud will not only result in a direct financial loss for the institution but will also reduce confidence in the institution and in the banking system in general when reported to the media. Errors: This usually occurs during entry of data in the system, which is often caused by human failure. It is rare for errors to be caused by failure of internal electronic or mechanical components. Total dependence on the technology of computer which pose previous problem because of power failure of the computer could constitute a disaster and loss of confidence in banking industry. Computerization in banking industry requires adequate security but while this is lacking, may pose a serious problem for the banks in a developing country. Irregular functioning of telecommunication facilities have not provide the level of support required to sustained computerization and computer networking. 2.6 COMPUTER RELATED FRAUD IN THE BANKING INDUSTRY The increasing complexities and abrasiveness of the business environment that characterized the late 80’s coupled with the declining markets and the recognition of information as an important marketing asset have accelerated the urgency for information management. Consequently, the modern banking industry is becoming more and more dependent. An important aspect of the impact of computer revolution on the banking industries has experience tremendous upswing since the early 70’s. This view is supported by existing statistics on computer frauds in 1950’s, 63 cases in the 1960’s and 569 cases in the 1970-75. (Parker: 1976). In Nigeria cases of large scale computer frauds has been recorded in the bank of credit and commerce international (Donwa: 1991). Given the authentic nature of fraudulent practices at both the public and private sectors of this economy and the quantum leap in acquisition of computer system by banks, it has become necessary examine the issue of computer fraud in the banking industry and the possible remedies. 2.6.1 WHAT IS COMPUTER FRAUD Hornby (1974), defined fraud as criminal deception. Longman (2000) defined fraud as a method of illegally getting or obtaining money from someone, often by using clever and complicated methods. Computer fraud is invariably committed for financial gain but unlike some forms of fraud, the perpetrators will make considerable efforts to prevent discovering of any loss by the victim. The rewards for such efforts may be complete freedom from prosecution at least a delay in discovery of the fraud and consequent chance of escape. 2.6.2 FORMS OF COMPUTER FRAUD The essence of the complex internal procedures is to ensure that fraud or manipulation or error did not occur or is reduced to a manageable level. Computer fraud may take some or all the following forms; Manipulation of Input: Here input date may be altered or corrupted with a view to altering computer records and may be with an intention to defraud the organization. Fraudulent data also known as “Data diddling” may be introduced into the computer system or processing. It involves changing data before or during their input to the computer. Manipulation of input data may be averted by ensuring that there are effective administrative and general controls. All input data should be appropriately authorized and segregation of duties strictly followed. Manipulation of Computer time/Assess for instance by working late: Here computer time is manipulated with the intention to use the computer for personal advantage at the expense of the organization. Data in the system memory may be altered or certain unauthorized operations may be carried out. To check this, there should be an approved plan for computer operation and nobody should work outside this plan without prior approval. 3. Alteration of Master File Standing Data: Here data in master file is altered to help the unauthorized person to achieve his purpose. This is mainly done on the standing data (i.e. data that is not in constant use). To curb this type of fraud, there should be an effective back-up routine which ensures that a copy of master file is kept in “off computer locations”. 4. Program Patching: Here an attachment is made to the computer program so that it can jump function or perform unauthorized functions which the unauthorized person wants it to perform to his own advantage. To check this, program should be logged and the use of pass-word is restricted to the authorized operators only. 5. Interception of Transaction: This is normally seen where on-line system is in operation and can be intercepted between the terminal and the central processing unit. In one of the noticed computer fraud, a person intercepted computer operation in a bank to transfer millions of pounds to his account by connecting his computer line to that of the bank and operate on the CPU of the bank’s computer from his house. To curb this type of fraud, there should be a well monitored and dedicated line to and from the CPU especially where on-line system is in operation. Okezie (1995, 2004: 397). 2.7 IMPACT OF COMPUTER IN NIGERIAN BANKING OPERATIONS Operation is the first point of contact after customer or his transaction has arrived the bank. It can be seen that before the introduction of computer in the banking industry, a lot of problems were faced in processing transaction in various sections of the banks, but with computerization, all these problems have been reduced or eased off. The system has been embraced worldwide because it is easier and convenient for both the sender and the receiver. Introduction of computer networks similarly created new banking culture that granted customer flexibility in services delivery through wider choice of transaction outlet given bank network of branches. Therefore some of the impacts can be discussed below; Management Planning: Computer has for more than years now been used for financial planning in the commercial banks. Steps involved in planning are objective definition, target decision, forecasting, calculation, defining constraints and means. In general, it can be said that computer usage impulse planning by proving effective information for efficient management which leads to problem awareness, support problem analysis, select alternatives, influence the choice of the most appropriate option and permits feedbacks on the implementation. Introduction of computer has increased competition among banks and this has made the existing banks to engage on research to find out ways or strategies in marketing their products as to conform to the world of competitive environment. Computerization or electronic banking has helped in introducing electronic cards known as Pay Cards (Credit and Debit Cards). This was introduced to avoid the risk in carrying cash around. This electronic card is loaded with any amount in alternative to physical cash and any transaction can be made through this plastic card with ease. On-Line Real Time: This is a new technology which Zenith International Bank and First Bank Nigeria Plc have made available to all customers. This enable them access the balance of their account in various branches of the banks to effect deposits and withdrawal irrespective of where the account is domiciled in the bank. On-line Real Time have relief bank on delay in banking industry from the first commercial application of computer, which was batch-processing systems. Tradition batch system gathered all data of the day’s activities from later processing but on-line real time have made such transactions of the bank easy because of the use of computer. Internet Banking: Internet is a networking computer connected by a communication protocol that spreads across most countries of the world. Many banks use the internet to showcase their products and services etc. Computerization has also geared- up the responsibilities of the CBN in ensuring that processing of documents and other banking activities are being geared up for control purpose, for instance, this has led to the introduction by CBN on Electronic Clearing System, which when fully or finally implemented in the clearing house would help the banking industry in various activities like clearing inter-bank settlement, accuracy of transaction and less documentation and reduction of incidence of fraud etc. Akintada (1988). Computerization has also introduced the use of Automated Teller Machine (ATM). This is a cash dispenser, which is designed to enable customers enjoy banking services without coming in contact with bank tellers. It is an electronic device employed to withdraw cash automatically without the need to complete withdrawal documents. Access to Automated Teller Machine (ATM) is through the use of Personal Identification Number (PIN) and a plastic card that contains magnetic strips with which the customer is identified. Banks usually handover the Personal Identification Number and is usually instructed not to disclose the number to any third party. (Kanu: 2005, 119). Telephone-Banking: the introduction of computer has led to the need for phone banking which offers customers safe and easy access to their accounts 24 hours a day, seven days a week. This is method by which a customer can access his account or get information on his account through his phone. The customer will also receive confirmation messages when transactions have been executed. Also when customers access their accounts from the ATM’s or internet banking deliver channels, they will receive alert through their phones. 2.8 SUMMARY OF THE CHAPTER In this chapter, the researcher made effort to review previous literature, which is the background of the study, the evolution of computer system, classification and components of a computer system. The chapter went further to discuss about the traditional banking, future of computer in Nigerian banking system, the problem associated with the use of computer which is inefficient planning, errors among other. The chapter also discussed about the computer related frauds in the banking industry, the various forms of fraud and their control. Finally, the impact of computer in Nigerian banking operations. REFERENCES Ohimia E. “Computer Application Hand Book Series”, Volume 2, Number 3, 1995 pg 5. Okezie B.N (2004), Auditing and Investigation with Emphasis on Special Classes of Audit. Bon Publication Owerri, Imo State. Opara C.C (2003), Genesis of Computer Science. Print Master Uyo, Akwa Ibom State. Kanu N.O.N (2005), Money and Banking Concept, Principles and Practices. Bone Associate HRDC Owerri, Imo State. Hornby (1974), Oxford Advanced Learners Dictionary of Current English. Oxford University Press, New York. Longman (2000), Longman Dictionary of Contemporary English. Pearson Education Limited Edinburgh Gate, England. Zenith Int’l Bank Website (www.zenithbank.com) First Bank of Nigeria Plc (www.firstbanknig.com) Komolade B. “Anxiety Grips Banks over Proposed Niche Banking, Begin sale of Subsidiary” Vanguard Newspapers, March 2009, pg 16. CHAPTER THREE 3.0 RESEARCH METHODOLOGY 3.1 RESEARCH DESIGN According to Ezirim et al (2004: 302), Research design does not mean the specified method of collecting data e.g. direct questionnaire and personal interviews, but the more fundamental questions of how the study subjects will be brought into the scope of the research. Anyanwu (2000; 39) said that research design has to do with the development of strategies for finding out some thing, which is a missing link which when discovered will help in the solution of identified problems. There are three types of research design namely, Survey, Experimental and Ex-post facto. The survey research is the most appropriate because the researcher will investigate the behavior, opinion or rather manifestation of a group of staff, shareholders of the banks by questioning them individually. The choice of this type of research method is therefore justifiable due to the fact that it allows wider coverage of accessible population. 3.2 SOURCES OF DATA The two major sources used for the collection of data of this research work are primary and secondary sources. Primary Sources: this is the type originated by the researcher for the purpose of her project, which include direct observation, interview and questionnaires administration. The observation method was used to discover the reaction of customers to the services rendered to them as compared to where computerized system of banking is not readily in use. While the personal interview method was used to collect certain information from knowledgeable individuals and their reactions to innovation which could not be achieved using questionnaires. The questionnaires were also used to know how best this computerized banking system has been welcomes and embraced by the staff of Zenith and First Banks Plc. The rational for the choice of this type of variable is that it helps in gathering the view of the required cased in concise terms. Secondary Sources: Apart from the primary source, the researcher also got her data from already written materials on the topic related to the research work. This includes both published and unpublished works of some authors e.g. newspapers, journals, libraries, financial reports, internet etc. 3.3 METHOD OF DATA COLLECTION This aspect of the study present the method used in carrying out the research study and also the different ways, designs and system the researcher used in administering and collecting data for the research work. The data used for this research work was obtained from primary and secondary sources. The method used to obtain the primary data includes personal interview, questionnaires and observation. While the secondary data were obtained from textbooks, journals, newspapers, financial reports, internets etc. 3.4 POPULATION SIZE The population size of this study is obtained from the Owerri branch of Zenith Bank and First bank respectively, staff especially their key staff were the Accountants, Internal Auditors, Managers, Cashiers and Marketers. 3.6 SAMPLE SIZE This is a fairly true representation of the population, in the sampling of Owerri branch of Zenith Bank and First Bank Plc, decision was based on the principle of basic statistical law, staffs from the banks were selected to generalize the opinion of the general staff of Zenith and First Bank Plc who are in one way or the other connected with the use of computer. 3.7 TECHNIQUES FOR DATA ANALYSIS The statistical methods and tools such as tables and percentages are extensively used for analyzing and presenting of data generated from this study. Since this research work will be comparing observed and expected frequencies, the Chi-square techniques will be used in testing the hypotheses formulated in this study. The Chi-square is a simple statistic and is computed using the formula; X2 = E (Q- E) 2 ∑ Where X2 = Chi-square Q = Observed Frequency E = Expected Frequency ∑ = Summation sign The computed X2 will then be compared with the critical value. (Critical X2) at 95% confidence, which is (R-1) (C-1). Where R = Number of Rows C = Number of Columns DECISION RULE Accept the null hypothesis if the value of the Chi-square calculated is less than the null hypothesis and otherwise accept the alternative hypothesis if the value of the Chi-Square calculated is greater that the Chi-square table value. Accept Ho if X2 (cal) < X2 (Tab) Accept Hi if X2 (cal) > X2 (Tab) CHAPTER FOUR 4.0 DATA PRESENTATION AND ANALYSIS 4.1 DATA PRESENTATION This chapter is aimed at analyzing the date generated from the questionnaire and comparing the results obtained with the set of objectives and hypothesis formulated. The tabular method of data presentation will be used with a view of presenting the result obtained in the simplest form. The hypotheses formulated during the course of this research work will also be tested, a view of obtaining a factual result in the subject under the study. The presentation of data was done in a way that the responses were tabulated and converted into percentages. No of Filled Unfilled Total Zenith Bank 18 2 20 First Bank 12 8 20 Total 30 10 40 Out of the 40 questionnaires administered to both banks in Owerri, 30 were returned and were used while the balance of 10 was either returned unfilled or not returned at all. 4.2 DATA ANALYSIS In the introductory chapter of this work, some hypotheses were formulated to determined the acceptability or otherwise. If any hypothesis is found to valid, it will be accepted, but where the reverse is the case, that particular hypothesis will be rejected. The data collected from the questionnaires will be evaluated based on the statistical tools. The accepted or rejected will help in drawing up findings as well as making recommendation where necessary QUESTION 1 To what extent is our society aware of electronic banking? Options No of Respondents Percentages To a large extent 25 85 To a little extent 5 15 Total 30 100 From the above table, it can be seen that 25 (85%) of the respondents agreed that to a large extent our society is aware of electronic banking, while 5 (15%) think otherwise. QUESTION 2 Has electronic banking improve the quality of banking operation in our society? Options No of Respondents Percentages Yes 30 100 No - - Total 30 100 The above table shows that 100% of respondents agreed that electronic bank has improved the quality of banking operation in society. QUESTION 3 Has computerization helped to reduce the cost of running bank services in Nigeria? Options No of Respondents Percentages Yes 24 80 No 6 20 Total 30 100 The above table reflected that 24 (80%) agreed that computerization has helped to reduce the cost of running bank services while 6(20%) disagreed. QUESTION 4 Do you think the benefits of computer justify the cost? Options No of Respondents Percentages Greatly 24 80 Partially 3 10 Not at all 3 10 Total 30 100 The above table shows that 24(80%) of the respondents agreed that the benefits of computer justifies the cost, 3 (10%) of the respondents said that it has partially justifies the cost while the remaining 3(10%) said that the benefits have not justified the cost at all. QUESTION 5 Do you have difficulty in maintaining your computer and powering spare parts locally? Options No of Respondents Percentages Yes 4 13.3 No 26 86.7 Total 30 100 The table disclosed that 4(13.3) agreed that they have difficulty in maintaining their computer system while 26(86.7) disagreed. QUESTION 6 Has computerization made work at your banks less burdensome? Options No of Respondents Percentages Yes 30 100 No - - Total 30 100 The above table shows that the entire respondents agreed that computer has made work at their banks less burdensome. QUESTION 7 If yes, in what ways? Options No of Respondents Percentages Payment system - - Fund Transfer Locally - - And Internationally - - Record enquiry - - All of the above 30 100 Non of the above - - Total 30 100 The above table revealed that computer has made work less burdensome in both payment system, fund transfer locally and internationally and finally record enquiry of the customer. QUESTION 8 Do you think that the introduction of computer/electronic banking has rendered some people jobless? Options No of Respondents Percentages Yes 3 10 No 27 90 Total 30 100 The answers above show that 10% of the respondents agreed that the introduction of computer/electronic banking has rendered some people jobless while the remaining 90% disagreed. Has computerization of banking industry led to time saving on bank services in all areas of banking transactions? Options No of Respondents Percentages Yes 27 90 No 3 10 Total 30 100 The above table revealed that 27(90%) agreed that computerization of banking industry has led to time saving on bank services in all area of banking transactions while 3(10%) disagreed to that. QUESTION 10 Does the problem of electricity leads to increase in cost of bank services? Options No of Respondents Percentages Yes 30 100 No - - Total 30 100 The above answer on the table revealed that the problem of electricity has led to increase in cost of bank services. QUESTION 11 Has globalization any impact on the economy and future problem? Options No of Respondents Percentages Yes 25 85 No 5 15 Total 30 100 The above table revealed that 25(85%) of the respondents agreed that globalization has impact on the economy and future problem, while 5 (15%) disagreed. QUESTION 12 Has computerization of banking industry contributed to the increase in banking performances and efficiency in terms of profit? Options No of Respondents Percentages Yes 21 70 No 6 20 No idea 3 10 Total 30 100 The answers in the table above reveals that 21(70%) of the respondents agreed that computerization of the banking industry has contributed to the increase in bank efficiency and performances in terms of profit, while 6 (20%) disagreed to that and 3(10%) had no idea. 4.3 ANALYSIS The first hypothesis stated that computerization of the banking industry has contributed to the increase in banks’ efficiency and performances in terms of profit. While the second hypothesis states that computerization of the banking industry has led to time saving on the bank services in all area of banking transactions. By Chi-square formula; X2 = (Oi - Ei)2 Where X2 = Chi-square Oi = Observed frequency Ei = Expected frequency ∑ = Summation Also the following notation shall be used in computation X2 = Table value X21 = Calculated value Df = Degree of freedom (df – (r-1)(c-1) DECSION RULE The table X2 shall be compared with the calculated value X21 if the calculated Chi-square is greater than or equal the table Chi-square, the actual null hypothesis will be rejected at, between 5% or 0.05 level of significance. If X21 > X21, reject null hypothesis Accept alternative hypothesis If X2t null hypothesis Reject alternative hypothesis HYPOTHESIS I The first hypothesis stated that computerization of banking industry has contributed to the increase in banking performances and efficiency in terms of profit. To test the hypothesis, it is important to find out whether the defense opinion is significant enough to draw a conclusion. Ho is the null hypothesis Hi is the alternative hypothesis Ho: Computerization of banking industry has not contributed to the increase in bank performances and efficiency in terms of profit. Hi: Computerization of banking industry has contributed to the increase in bank performance and efficiency in terms of profit. Options No of Respondents Percentages Yes 21 70 No 6 20 No idea 3 10 Total 30 100 Responses Oi Ei Oi-Ei (Oi-Ei)2 (Oi-Ei)2/Ei Yes 21 10 11 121 12.1 No 6 10 -4 16 1.6 No idea 3 10 -7 49 4.9 Total 30 30 18.6 Expected Frequency = 30/3 = 10 X2 = 18.6 X2 = (r-1) (c-1) Where r = row Level of significance 0.05 X2 = 5.99 DECISION RULE Since Chi-square is 18.6 and critical value is 5.99, therefore we reject the null hypothesis (Ho) and accept the alternative hypothesis (Hi) because Chi-square is greater that the critical value. HYPOTHESIS II Ho: Computerization of banking has not led to time savings on bank services in all area of banking transactions. Hi: Computerization of banking has led to time saving on bank services in all area of transactions. Options No of Respondents Percentages Yes 27 90 No 3 10 Total 30 100 Responses Oi Ei Oi-Ei (Oi-Ei)2 (Oi-Ei)2/Ei Yes 27 15 12 114 7.6 No 3 15 -12 114 7.6 Total 30 15.2 Expected frequency = 30/2 = 15 X2 = 15.2 Level of significance = 0.05 X2t = 5.99 DECISION RULE Since Chi-square is 15.2 and critical value is 5.99, therefore we reject the null hypothesis (Ho) and accept the alternative hypothesis (Hi) because Chi-square is greater than the critical value. FINDINGS At the end of this hypothesis, the researcher observed that computerization of banking industry has contributed to increase in bank efficiency and performance in terms of profit and also has led to time saving and cost of running bank services which also led to increase in profitability. CHAPTER FIVE 5.0 SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 SUMMARY OF FINDINGS This study was able to examine how the volume of banking transaction increases with growing need for more management decisions and that the manual system method of data processing is too slow and expensive, thereby demanding for a more refined method and then the advent of the computer. This study has tries to focus on the influence of computerization on banking industry in Nigeria because banks and other organizations throughout the world are growing increasingly dependent on computer and communication technologies in order to improve efficiency, productivity and competitiveness. The banks are paying careful attention towards the implementation of terminal systems. They are determining to arrive at an agreement on EFT (Electronic Fund Transfer) system that will be acceptable entirely by themselves and the public in general. Chapter one of this study tries to feature the introduction of the subject matter, with reference on the major roles of Nigeria financial services as it talked about the reasons and the implementation of computer in banking Industry. In chapter two, the researcher made effort to view previous literature, which is the background of the study, the evolution of computer system, classification and components of a computer system. The chapter also discussed about the traditional banking, the need and uses of computer in the Nigerian banking industry, future of computer in Nigeria banking system, problems associated with the use of computer, computer fraud and finally the impact of computer in the banking industry. Chapter three discussed the various methods through which data was sourced and also analyzed. From the survey, it was observed that a proportion of the respondent banks are partially computerized in this operation in order to meet customers’ demands. From the analysis of findings, the researcher discovered that few have gone full or completely computerized, while most are in the making. Although these computerized banks still need information security so as to continue being in the system. It is clear that the uses of computer for baking operations have revolutionalized and improved profitability, efficiency and effectiveness in bank services. The findings vindicate the followings; Computerization has led to effective bank performances in Nigeria; also have reduces the cost of running bank services. It has helped to speed up services to customers thereby saving time. It has made work less burdensome And finally, the benefits of computer has justifies the cost. 5.2 CONCLUSION The aim of this research work is to find out whether those banks using computer offer better services to their customers that those that are not using computers. And the responses gathered proved that those that are computerized offer better services to their customers than non-computerized banks. From the study, it was observed that the introduction of data processing system in financial institutions especially banks, has resulted to increase in efficiency, effectiveness and productivity. However, the advent of computer in banking industry had its problems. Fraud and forgery that had been linked only to manual system have become widespread in the automated process. It may be advisable to begin to plan now, in order to adequately anticipate its impact and implication for policy formation. With the discovered finding, the researcher has concluded that computerization has brought about new innovations and greater efficiency in banking profession. 5.3 RECOMMENDATIONS With regards to the result of the study, the following recommendations are suggested. Proper awareness and orientation should be made with regards to illiterate bank customers who are still novice to computer innovations. There should be arrangement of workshop and seminars for bank staff that are using computers to upgrade their systems and acquire the most recent discoveries in computer technologies. There should be adequate power supply to fasten and improve operation and also reduce cost of running bank services. The computer department should be manned by people of good integrity, with sound knowledge of computer to reduce fraud in the banks. Banks’ management should encourage the use of on-the- job training to stimulate and educate their staff on the application of computer device as this will not only lead to efficiency and profitability but also specialization. The supervisory authority CBN should provide statutory framework for banks with external auditors to report, especially any inspection of banks. BIBLIOGRAPHY Aduba N.C.O “Technology Driven Banking Services Hand Book Technology Driven Banking Services Hand Book Series” Volume 10, Number 2, 1997, Pg 4. Anderson R.G. (1979), Data Processing and Management Information System. The Publication Lagos State. Anyanwu A. (2000), Research Methodology in Business and Social Sciences. Forum Publication Owerri Imo State. Ezirim et al (2006), Research Methodology for Management and Social Sciences. M.C Computer Press Nnewi, Anambra State. First Bank of Nigeria Plc (www.firstbanknig.com) Hornby (1974), Oxford Advanced Learners Dictionary of Current English. Oxford University Press, New York. Kanu N.O.N (2005), Money and Banking Concept, Principles and Practices. Bone Associate HRDC Owerri, Imo State. Komolade B. “Anxiety Grips Banks over Proposed Niche Banking, Begin sale of Subsidiary” Vanguard Newspapers, March 2009, pg 16. Longman (2000), Longman Dictionary of Contemporary English. Pearson Education Limited Edinburgh Gate, England. Ohimia E. “Computer Application Hand Book Series”, Volume 2, Number 3, 1995 pg 5. Okezie B.N (2004), Auditing and Investigation with Emphasis on Special Classes of Audit. Bon Publication Owerri, Imo State. Opara C.C (2003), Genesis of Computer Science. Print Master Uyo, Akwa Ibom State. Opara et al (2006), Management Information Systems, Shack Publishers Owerri, Imo State. Zenith Int’l Bank Website (www.zenithbank.com) Department of Accountancy School of Bus. & Mgt. Tech., Federal Polytechnic, Nekede P.M.B. 1036 Owerri, Imo State. Dear Sir/Madam A REQUEST FOR ASSISTANCE I am a final year student of the above named institution currently carrying a research on the topic “The Impact of Computer to Modern Banking in Nigeria. A case study of Zenith Bank Int’l Plc and First Bank Nigeria Plc”. This is in compliance with the prerequisite for the award of Higher National Diploma (HND) in the department of Accountancy. In this regard, I wish to request that you assist me with information to help me carry out this research work successfully, and I will also assure you that any information or answer discussed here will be helped with every authenticity and treated in strict confidence without any embarrassment to your private and official affairs. Thanks for your co-operation Yours Faithfully, Ihejirika Ijeoma .C. QUESTIONNAIRE INTERVIEW SCHEDULE FOR COMPUTERIZATION OF BANKS Introduction: Please fill in the gap and tick ([) in the box where appropriate. Name of Respondent…………………………………………………………. Sex: a. Male b. Female Position…………………………………………………………………………. Age: a. 25-35 b. 35 and above Working Experience: a. 5-10 yrs b. 11 and above Qualification…………………………………………………………………… 1. To what extent is our Society aware of electronic banking? A. To a large extent B. to a little extent 2. Has electronic banking improved the quality of banking operation in our society? A. Yes B. No 3. Has computerization of banking helped to reduce the cost of running bank services in Nigeria? A. Yes B. No 4. Do you think the benefits of computerization justify the cost? A. Greatly B. Partially C. Not at all 5. Is there any difficulty in maintaining and powering your computer spare parts locally? A. Yes B. No 6. Has computerization made work at your banks less burdensome? A. Yes B. No 7. If yes, in what ways? A. Payment system B. Fund Transfer locally C. International customers D. Record Enquiry E. All of the above F. Non of the above 8. Do you this that the introduction of computer/electronic banking has rendered some people jobless? A. Yes B. No 9. Has computerization of banking industry led to time saving on bank services in all area of banking transactions? A. Yes B. No 10. Does the problem of electricity led to increase in cost of bank services? A. Yes B. No 11. Has globalization any impact on the economy and future problem? A. Yes B. No 12. Has computerization of banking industry contributed to the increase in banking performances and efficiency in terms of profit? A. Yes B. No