Abstract
This study was
conducted with the ultimate aim of studying the impact of computerization of Microfinance function in Nsukka Urban, Enugu State.
Banking system today has gone so far compared to what was obtained in the past,
for instance, more emphasis are laid on the use of computer, ATM, E-banking
etc. Today unlike in the past when bulk of books called ledger are carried
about and most things were done manually. As things change rapidly everyday so
do the people in the system do, so the high level of competition among all the
banks and need for meeting up with their customers demand led to this
development. This issue of computerization makes it easier and quicker for
their customer to transact with the bank without stress, business such as
checking of balance, making payment and withdrawals, getting of loans are done
with ease. This research work “The Impact of Computerization of Microfinance
bank Function†tries to look into the effectiveness and efficiency for
computerizing microfinance banking system. For the ease of achieving the goal
of this project, it is divided into five chapters with different headings for
real effectiveness of this work.
CHAPTER I
INTRODUCTION
1.1
Background of the Study
Micro finance bank have impacted the Nsukka Urban by
using computer in preparing different types of account, processing of customers
statement of account money transfer and cash dispensing etc. E-banking meaning
electronic banking which is the computerized version of all the banking
transaction that were manually done before the advent of computer into the banking
system is now practiced in micro finance banking.
Akukwe (2003) pointed out that as early as 1950’s the
magnetic ink character recognition (M.I.C.R.) system was used by bank cheque.
MICR is still in use, in the banks today. However, the latest computer
technology on the bank industry is found in the use of the automated. Teller Machines
(A.T.M.) and Electronic Funds Transfer (E.F.T.) system, under the electronic
fund transfer your pay roll cheques as work are deposited, to your account with
ease and your regular monthly payment are automatically made on your behalf.
Again, funds can easily be transferred from your savings to cover the cheque
you have issued to people or organization in respect of the purchase you made,
or donations you announced. An A.T.M. is a specialized computer terminal
installed at such place like the inside and outside of the banks, supermarket,
shopping plazas, hotels in Nsukka urban for quick and faster deposit and
withdrawals of funds. Customers from Nsukka urban use this arrangement to
transfer fund between accounts without necessarily going to the bank.
Micro finance bank were established banks complement
the activities of commercial banks in providing capital for small industrialist
and co-operatives association in Nsukka Urban and also E-banking allow people
of Nsukka Urban to submit application for various services, give instruction
and make enquires on their account balance on its website. They also allow
customers to electronically transfer funds to and from their account and use it
as means of disseminate information to the general public on banking product
and services.
1.2
Statement of the Problem
In recent times there has been little or no
satisfaction of customer from the functions performed by micro finance bank.
Before the invention of computer according to Akukwe (2003). The accountant did
their work spending man hours of tedious calculation and re-calculation using
the sheet of paper pencil and calculators. Today the electronic spreadsheet page
assumes the position of the paper, pencil and calculation for the account. The
electronic spreadsheet is described as the account ledger book in an electronic
formulation. The computer now enables the accountant to carryout all the
accounting jobs like pay-roll, income and expenditure recording etc. with ease.
1.3
Purpose of the Study
The primary purpose of this study is to fund out the
impact of computer on micro finance bank. The objective purpose of this study
include;
i.
To determine how
the manual performance of their function have gone.
ii.
To determine how
ready and rich the microfinance bank are for the adoption of computerization.
iii.
To ascertain the
impact of computerization on their function.
iv.
Identify other ways
of imploring banking functions through the use of computer.
1.4
Significance of the Study
In this research work, the researchers intend to
establish computerized strategies of banking of which both microfinance banks
and even customer will benefit from it.
Further more, it is optimistic that after study, the
acquired known of computer, internet and information technology of carrying out
their function and thereby replace them with fast and easy modern techniques,
which also makes their functions move effective and efficient. As a result of
this micro finance banks will attract huge, deposit as they will be competing
with other commercial banks.
1.5
Scope and
Limitation of the Study
This study is meant to cover all micro finance banks
through out Nigeria.
However, it is not possible to reach and collect information from every look
and cranny of the country. Therefore this study is carried but with a case
study of micro finance bank with Nsukka Urban Zone which include only four
namely: University of Nigeria (U.N.N.) micro finance bank, micro finance bank
Ogige and kerechukwu micro finance bank.
1.6
Limitation of the Study
i.
Time constraint:
The time of completion of Unis study (developing and submitting) is quite
short.
ii.
Confidentially: All
the information we needed from the bank was classified highly confidential and
so it was not easy for a third party to get such an access but after a careful
examination of the intend of the work and even the relevance. It stands to add
to the banking operation we were given concession.
iii.
Rate of response:
The respondents through a greater percentage attempted to answer the entire
question asked but the problem was delay in the return of filled out
questionnaires administration.
1.7
Research Questions
For the purpose of this study, the research have
proposed the following research questions.
i.
How far has the
manual performance of micro finance function gone?
ii.
How ready and rich
are the micro finance bank for the adoption of computerization?
iii.
How can
computerization impact the function of micro-finance?
iv.
What are other ways
of imploring banking function through the use of computer be identified?
1.8
Definition of Terms
i.
Science: This is a
system for organizing the knowledge about a particular subject especially one
concerned with aspect of human behaviour and society.
ii.
Computer: This is
an electronic machines that can store, organize and find information and
calculation and control other machines.
iii.
Machines: It is an
apparatus designed to perform a particular task easier.
iv.
Computerization: Is
a process of computerizing an industry (i.e. to provide a computer for the
indstry or bank to store information).
v.
Computerized: Is to
provide computer to do the work of something.
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