Role of Computer in Banking Management

Role of Computer in Banking Management

Introduction

A bank are often defined as a financial organization, organization or a place that provides a financial service, equally one can also defined bank as an establishment approved by a government to just accept deposits, pay interest, clear checks, make loans, act as associate degree intermediary in financial transactions, allows the purchase of bills and checks or the purchase and sales of securities and provide different money services to its customers.

The first computers were people! That is, electronic computers were given this name as a result of they performed the work that had antecedent been assigned  to individuals. A long time ago, people charged with the duty of collection and disbursements of tax were encountering issues in calculations. In those days, the problems faced  by the early technique of data processing involved the utilization of animal product, feather, grains etc. were very difficult for them to handle.

Importance of computer:

So more research continues, in France 1642 blaise pascal, at age 19 invented the Pascaline as associate degree aid to his father UN agency was a tax collector in calculating columns of figures. The computer has probably been introduced and the basic of its purpose is the processing of data into information. The term data is a symbolic representation of facts regarding people, object or place.. In fact 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. The up coming automatic teller machines (ATM) already installed by most banks are the most visible symbols of computer in the banking sector in Nigeria.However the utilization of computer in the banking sector will be associate degree efficient tool in dashing up the process and reducing the price of producing and enterprise figure works. The More effective control procedure in computerized system can bring about sales budgeting and credit control. Many types of credit cards, smart cards, master cards can also be used to withdraw money at an ATM and the online banking against the credit limit extended to the card. Customers keep their money in the bank safely and it is paid out when needed by means of cheques and other ways.

These banking services include:

a) Acceptance of deposits from customers.

b) Banking payments locally or internationally

c) Granting loans and advances.

d) Trading in securities

e) Clearing of cheques and similar instruments

f) Phone banking and internet banking facility

The idea of a bank as a  modal on tradition investment banks gave thanks to a vision of a development finance institution. A few years of experience were enough to bring about this transformation in the construct of the bank, from this brief history, we have come back to understand the history of banking and its development.

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