THE ROLE OF COMPUTER IN ENHANCING BANKING

INTRODUCTION

The first computers were people! That is, electronic computers (and the earlier mechanical computers) were given this name because they performed the work that had previously been assigned to people. “Computer” was originally a job title: It was used to describe those humans’ beings (predominantly women) whose job it was to perform the repetitive calculations required to compute such things as navigational tables, tide charts and planetary positions for astronomical almanacs.

A long time ago, people charged with the duty of collection and disbursements of tax were encountering problems in calculations. In those days, the problems faced by the early method of data processing involves the use of animal skin, feather, grains e.t.c were very difficult for them to handle. These were later replaced by the use of pens, inks, papers, chalk e.t.c just to supplement human efforts in counting, recording, manipulating, sorting e.t.c of data these methods were so boring, frustrating, time consuming and also associated with some errors. So further research continues, in France 1642 Blaise Pascal, at age 19 invented the Pascaline as an aid to his father who was a tax collector in calculating columns of figure.

Computer is probably being introduced and the basic of its purpose is the processing of data into information. The term data is a symbolic representation of facts about people, object or place. A computer is a programmable electronic machine that performs high-speed mathematical or logical operation or other wise process information. Infact the importance of information to an individual or organization cannot be over emphasized, in carrying out day-to-day activities. Every individual organization needs information. Banks and other financial institution are heavy users of computers in maintaining customer’s accounts, ledger, updating, electronic fund transfer and processing of huge amount of cheques, credit cards, and the major transactions that takes place daily.

The up coming automatic teller machines (ATM) already installed by some banks are the most visible symbols of computer in the banking sector in Nigeria. They are of course everywhere in Europe, America and Asia. The Automatic Teller machine (ATM) enable bank customer to withdraw, transfer funds from their various accounts even when the bank is closed physically. Each transaction made, the customer’s record is updated and he or she is provided with a printed receipt.

However the use of computer in banking sector can be an efficient tool in speeding up the process and reducing the cost of producing and undertaking figure works.

More effective control procedure in computerized system can bring about sales budgeting and credit control. Many credit cards, smart cards, master cards can also be used to withdraw money in an ATM and the online banking against the credit limit extended to the card.