CHALLENGES IN UTILIZATION OF COMPUTER IN COMMERCIAL BANK IN ENUGU STATE A CASE STUDY OF FIRST BANK

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Computer is an indispensible part of banking operation in the contemporary world. Computer adoption by banks will go a long way towards enhancement of banking processes. In the context of this study, computer is an electronics device that accepts data as an input, processes data, stores data and bring out information as an output. The use of computer in commercial banks is a relevant and functional way of providing services to bank customers in other to assist them deposit/withdraw from any branches of a particular bank irrespective of where the account was opened. Computer holds great promise to improve banking services in addition to shaping the entire work force. Computer offer innumerable benefits in enriching the quality of the services rendered in the commercial bank. The challenges of commercial banks in the 21st century will be incomplete if the challenges in utilization of computer in banking sectors are not meet. Some of these challenges facing utilization of computer in commercial banks in Enugu State include: Sta development challenges. Sta development challenges form the greatest of all the challenges in utilization of computer in commercial banks. Sta development challenges arise as a result of inadequate computer infrastructures, insufficient computer facilities among others.

Most banking sectors have insufficient computer expert that will integrate and utilize computer for enhancement of qualitative banking services. This might be as a result of insufficient computer experts in commercial bank, all bankers should undertake mandatory training and retraining of computer problems to provide the staff with practical and financial knowledge of computer. Another challenge in utilization of computer in commercial banks is challenges in maintenance of computer. Computer maintenance is those activities concerned with keeping computers in condition of completeness and efficiency through repairs or replacement. Maintenance challenges in utilization of computer in commercial banks come up as a result of incompetent technologist, inadequate funding incompetent computer skilled bankers or sheer nonchalant attitude towards maintenance of computer facilities. However, there cannot be maintenance of computer without consistent electricity supply. Electricity is the nerve center of all computer facilities. Though electricity supply all over Nigeria appears erratic. All computers depend heavily on steady supply of electricity if they are to function effectively (Adebayo, 2008). As a result of this commercial banks rely on generating plants to sustain their computer services. But the overhead cost is enormous to sustain computer facilities coupled with the fact that there is inadequate funding. Funding is a major challenge confronting the acquisition and utilization of computer in banking sectors. Inadequate funding lead to limited availability of computers in commercial bank. Low level funding in commercial banks is as a result of inadequate budgetary allocation from the top banking personnel. Therefore, top banking personal should map out special fund and invest honestly for successful utilization of computer in commercial banks. Commercial banks are financial institute which accept deposit and other valuables from public for safe keeping, with the sole aim of making profit. In other words, commercial banks are financial institutes that perform the services of holding people’s money and using such money to grant loan and other financial services available to customers. The loans are usually for short and medium terms. They are owed by private individuals, institutions or governments commercial bank are limited liability companies. Central Banks of Nigeria control all commercial banks in Nigeria. Commercial banks accept deposit from individual business sector, and government.