This research work covers the impact of computerization   the in the banking industry, most especially in commercial banking sector. This research work goes further to give a  brief history of computer and also  enlighten everyone in the  society on not only how computer operates but also on what it takes to computerize a large scale or multi-national firm.


The project goes further to hint on computerized firm related problems and what should have become of such firm, if not computerized. As a result, this research work laid emphasis on the benefits and development brought into the banking industry  and our society.


For simplicity this project is divided into five chapter.

-                     The firs chapter is the introductory aspect of computer which gives a brief review of historical background and definitions.

-                     The second chapter covers the literature review,  which contains the historical background of the  case study, evaluations of computer in accounting   applications,  merits and demerits.

-                     The third chapter covers the method used in  collecting all the necessary data needed in the  course of this project.

-                     The fourth chapter covers the presentation of data, analysis and the test of hypothesis formulated.

-                     The fifth chapter , which is the final chapter, covers the research summary of the findings, conclusion and recommendations on the  study.

Lastly,  have the appendix with accorded bibliography






Title page                                                                                                        i

Certification                                                                                                    ii

Dedication                                                                                                      iii

Acknowledge                                                                                                  iv

Abstract                                                                                                          v

Table of content                                                                                              viii



1.1       Background of the study                                                                    1

1.2       Statement of the problem                                                                   2

1.3       Significance of the study                                                                    3

1.4       Research questions                                                                              4

1.5       Objectives of the study                                                                       5

1.6       Scope of the study                                                                              6

1.7       Purpose of the study                                                                           6

1.8       Limitation and delimitation                                                                6

1.9       definition of terms                                                                              8


Literature review                                                                                             11

2.1       evaluation of computer in accounting                                                 13

2.2       Computer usage                                                                                  14

2.3       Features of low level language                                                           15

2.4       Low level language                                                                             17

2.5       High level language                                                                            18

2.6       program language and transaction relations                                        19

2.7       Components of computer                                                                   20

2.8       Expert system                                                                                     20       

2.9       Classification by age of computer   generation                                   27

2.10                      Classification of computer                                                      29

2.11     Application of computer in accounting/banking industry in Nigeria    31

2.12     Term in computing                                                                              33

2.13     Merits and demerits of computer in banking industry                        33

2.14                      Demerits of computer                                                             34


3.2.            Introduction research methodology                                                  36

3.3              Population of study                                                                           36

3.4              Research methodology procedures used                                           37

3.5              Sampling technique                                                                           37

3.6              Re-statement of research questions                                                   38

3.7              Research instruments                                                                         38

3.8              Statement of hypothesis                                                                    39

3.9              Method of data  analysis                                                                   39

3.10          Source of data                                                                                   40

3.11          Primary data                                                                                      40

3.12          Secondary data                                                                                  40

3.13          Method of investigation                                                                    41

3.14          Method of distribution of questionnaire                                           41



4.1              Data presentation                                                                                48

4.2              Data analysis and interpretation                                                         48



5.1              Summary of findings                                                                          62

5.2              Conclusion                                                                                          63

5.3              Recommendation                                                                                64

Bibliography                                                                                       66






                        CHAPTER ONE



 This topic examines the effect of computer on banking industry in Nigeria. Therefore, the topic laid emphasis on the world “computer” and the “effect” i.e the benefits which the use of computer in the operation has contributed to the success of the banking industry in Nigeria .


The use of computer cannot be over emphasized in modern banking operations and as a result, lack of computer development will lead to failure of the banking industry.


Therefore, computer itself can be defined as an electronic device that is capable of accepting large volume of data (input) and product it in a short time with high degree of accuracy. Computer is originated from Chinese merchants who first use of Abacus which had been in existence since 1642, when Pascal invented the first machine for operating four fundamental operations arithmetic i.e. addition, subtraction, multiplication and division in money to six digits. This was later improved upon on Leibrus in 1971 and was recommended for the use in large volume of calculations of that  time. This computer has its own languages which are called low and high level languages. High level language included COBOL, ALGOR, FORTRAN etc.

It translate such language into understandable for human use.

Infact, the bank (CITY BANK NIGERIA PLC) has operated manually  system of data processing unit recently when. It tends to computerize its operational systems and the introductions of computer to speed up its transactional system.



Computerization effect in the banking industry cannot be over emphasized as it affects the industry (banking) in so many ways. Same of which are explained below.

i.            Unemployment is created as a result of full, computerized in the banking industry.

ii.          A full computerized banking industry is exposed to malpractices even from outsiders who are specialist in computer ( internet).

iii.        Computer expert often influences the central processing unit (UPC) system through regular malpractices resulting in changing or software computer system.



This study is designed to make known to people the use of computer in the banking industry (City Bank of  Nigeria  Plc) whose work lies in providing the public with  a brief and clear picture of the  said problem.


Moreso, if thoroughly read through, it encouraged  other financial institutions to contribute the  system of computerizing by highlighting banking industry where operational system give more emphasis to  those banks where there is need fore establishment of computer by advising such banks on the  need and importance of computer in banking operation.


The study also find out problems been faced by the banks which have not been computerized, it is also deigned to know the efficiency and effectiveness of the computer.



The following research questions will further highlight the problems of this study and then serve as a guide for his study;

1.          What is the importance of computerization in the banking industry?

2.          Hw effective is computerization to the bank efficiency?

3.          What are the problems of computerization to the banks?

4.          How well utilized is computerization in the banking industry?




 As the topic indicates, the research works is designed to look at the benefits and development being accorded to the banks as a result of introduction of computer to processing of data in the banks. The primary  aims of the study is indicated with such possible contribution that could be achieved by the  introduction of  computer  in banking industry, such benefits being enjoyed not only by the customers but also by the bans itself.


The study also aim at knowing if the introduction of this computer has been able to save the customers time and  find out if it has been the bankers. I believe every issue will become clear at the and of the study.



This study covers the City Bank Nigeria Plc Abuja branch. It also covers the purpose for which computers has been introduced, the functions of the computer as well as the achievement which has been derived from the use of computer. This study also indicates the components part of the computer and their various functions, example of which are input unit, central processing unit which consist of arithmetic unit, control unit, memory and output unit where the result of the processed data are obtained e.g. screen.



The purpose of the study is to highlight the roles played by the introduction of computer in the banking by the introduction of computer in the banking industry ( CITY BANK NIGERIA PLC).

I also aimed at introducing the basic elements, functions types, advantages or merits and the language of computer in general (low and  high level language) and not only this, to get the banks customers informed of such benefits they will gain form the use of computer as a method of data collection



There is much we can discuss on the topic in question; however, it is limited to the documentation of facts data, processing and providing of account rate information to the bank.


The method of data collection is based on few understanding banks that are willing to release some important information. Infact, there are problems being faced during the courses of the study among which are the following:


Illiteracy and communication barrier – communication ability to people from which reliable information can be achieved is one of the problems faced in the course of the study.


Limitation of time – the time available for the researched to carryout our data collection of relevant information is too short and as such all   needed information cannot be obtained.


Furthermore, financial constraints – the inability  of the research to finance himself with the cash needed during the  course of study is a great fact which has influenced the research work.


Lastly, is the inability of the research to cover the required distance from which the data can be collected and this hinders those information that suppose to have been included to the research report.



a)           COMPUTER: A computer is an electronic devices or machine which can accept data in a prescribed from process such data and supply the result of the processing in specified format, as information or as signals to control automatically some further machine in process.

b)          HARDWARE:- It is the physical components unit or  machine which make up the  computer configuration; it simply means the machine itself, the  mental cases and the electronic contents.

c)           SOFTWARE:- Refers to the programs which are drive to the  hardware. It is instruction which control the work computer.

d)          PROGRAMMES:-  These are set of information deigned to achieve predefined operation with the computer.

e)           KEY-BOARD:- Is an input device that allow data to read into central processing unit ( UPC) from the outside the world by the user.


1.     James J. (1986),      “The Principle of Computer in

accounting “ Revised Edition (Ibadan Nigeria; Graphic Publisher

published yr 1986).


2.     Napier J. (1992),      “Computer  and data Processing”

first edition (Dallas Texas: John Publishers) Published 1992.


3.     Frimerman L . (1982), Data Processing in Accounting

Preparation Revised Edition Published ( 1982).


4.     Chiomeka S.C. and   “Data Processing and  Management Egbokhare (1998)      Information System. Adieu



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