Computer and Its Impact on Financial Institutions
For centuries record keeping was be manual. These record-keeping manual, developed through the ages of machines in the previous years when ARACUS is being used. This use of Abacus and other machines is being assisted into the present day use of computer automation in recording and keeping.
The research, wants to highlight more on the extent to which, this modern machine (computer) has generated and its usage by those financial institutions banks, insurance companies accounting firms etc, since most of them claim that they have fully computerized their service during their advertisement on the radio and television set.
Thus, computerization of service in our financial institution mostly our banking and insurance industries, seems a worthwhile venture and will help in recent call for technological advancement in our great country Nigeria. According to Palmer and Moris book computer science (19980. in his explanation on the importance of computer said that this enable high qualify decision making and successful attainment of business objective. It can be seen that usage of computer service will enable the enterprise maximize benefit and minimize costs.
STATEMENTS OF PROBLEMS
Although computer knowledge has been spreading rapidly in the developed nations, in Nigeria the pace is slow due to some technical problem. They includes:
a) Awareness problems: So many firms in the financial institution especially insurance companies are the importance in the awareness on the importance of computer.
b) These ideas of introducing this modern technology computer or its installation have great impact on labour.
This comes as a result on the general belief that computer would throw off people for their job.
c) These are also going to arise the orientation problem, which requires the departments of section to be computerized.
d) Also affected is the operational problem, that is the shot coming and the need for mass production policy documents the making list for removal notice and other correspondences.
Service in the Nigerian financial system and the ever-growing importance of that automation. Often substantial reason for the study and highlight of their operational problem, its impact and possible solution with these achieved, they will be better equipped to assist in the economic, social and political development of the country. It is their realization that has been the researcher major filling of hopes that all the completion of this study, a relationship should be establish between the level of the operational efficiency or effectiveness of the underwriters and the extent of utilization of computer automation in the insurance industry, so as to recommend to both the government and financial house for a change of policy towards the employment of slaved an competent computer analyst in their respective firms base on our findings.
The researcher believes that the study will give general reading more in sight into the need for installation of computer. Also employment of qualified skilled and competent computer, analyst to man the computer of computer services of the insurance industry is necessary.
PURPOSE OF STUDY
The essence of this study cannot be our emphasized as the use of computer in our insurance firms has been major issue among financial houses and beyond.
Thus, the research study is aimed specifically at,
a) Determining the extent to which financial institution has adopted. Computer system while affecting office automation of the firm.
b) Examining the problem facing computer system in the financial institution precisely most considerateness managers see the use of computer in financial firms as a threat to their job.
c) Appraising the operational performance of the computer system since the introduction bill date. In the actuarial fill the possibilities of a computer an immense and it was due to this automation that companies have been able to under take manual, valuations and make manual declaration of bonus.
d) Examining how the information, which was formerly, provided can be supplied very much more promptly and presentably.
SIGNIFICANCE OF STUDY
It is hoped that this study will benefit various interest groups on its successful completion some of which are:
i) The financial institutions
ii) The government and its relevant agencies.
iii) The financial marketers.
iv) Those in ventral field.
THE FINANCIAL INSTITUTIONS:
The study will no doubt highlight the existing disadvantages of the current practices of to them will help them to affect certain in their approach to employment of personal and maintenance to computer automation. Such charge will improve the overall efficiency and profitability of the firm.
The government and its relevant agencies: Based on the finding of the researcher recommendation will be made to the government regarding the lapse in the current legislation guiding he establishment and operation of the in financial institutions and alike.
THE INSURANCE MARKETS:
This study will highlight the financial marketers on storing information about financial market as whole, for company rates with completions and for forecasting company profits.
Actuaries: This study will no doubt highlight the companies/actuaries department on how to another take annual valuation and make annual declaration of bonus.
DEFINITION OF TERMS
Most of the terms use to not has a definition that is universally accepted, thus the arise the next to define some of the terms used in their work, based on the objectives of the study the definition are as follows:
HARD WARE: This is computer equipment for example control processor or peripherals (disks drive magnetic tope drive, printers).
SOFT WARE: This is a collective term for instruction (programs) that makes a computer work.
DISK: Floppy disk is a flexible plastic disk used for the 0recording of undertaken.
MAGNETIC TAPE DRIVE: These enables data to be written on ot read from, magnetic tape at very high speeds.
ON-LINE DIRECT: Access to the processing unit and the processing are to handle by batch sequence.
SCOPE AND LIMITATION OF STUDY:
This study will not directed at explaining or providing solution to all the encounters as result of inadequate utilization of computer services.
The study will be narrowed done trying to determine to what extent to researcher of success attained b these financial institution to their varying degrees of operational efficiency and effectiveness.
However, the research in the course will be contained to five financial institutions located around metropolis.
The financial institution randomly selected. A number of problems we encountered by the research during the course of this work.
These were inform of,
i) Time constraints
ii) Insufficient funds
iii) Non-response problems
iv) Inadequate accessibility of materials
TIME CONSTRAINTS: In this study, the research intents to use some branch offices because of the true and difficulties 0involved in reading the head offices.
INSUFFICIENT FUNDS: A lot is required to be research on or talk about but due to some financial involvement and its nature of the economy the researcher is subduing to limit the study.
NON RESPONSE PROBLEMS: During the course of the research work, the staff of those institutions were initially very reluctant the information expected or needed from them due to fear of either revealing their business strategies or their secret. They argued that the public might loses confidence in them, should they learn what is not meant for their competitors may capitalize on that and gain advantages over them.
However, after persistent dialogue of the objectives of the study, they become fairly available and ready to release some of the information they know about computer system in financial institutions.
—This article is not complete———–This article is not complete————
This article was extracted from a Project Research Work/Material Topic
“COMPUTER AGE AND ITS IMPACT ON FINANCIAL INSTITUTIONS”