Computer | Modern Banking System

Computer

Computer and Modern Banking System

Since creation, there has been constant quest by man to improve on the quality of life and existence.
This ever-increasing quest been necessitate and propel by the simple need to address the challenges posed by the environment. Borne out of this need, a number of inventions have made in virtually every field of human endeavor.


The computer is one of the most spectacular of such inventions. It is a tool specifically made for computable problems. The present form of the computer is the culmination of series of inventions and research developments spanning over centuries.

Development of Computer

The beginning of the development of computer traced back to over 5000 years ago when the Chinese invented abacus. Thereafter various other computation contraptions were developed.
These ranged from manual devices such as the slide rule to purely mechanical devices and in more recent times electrical calculating machine.

electronic computer

The electronic computer was developed. In addition, has given birth to a new field of endeavour known as information technology (IT). The world of IT is expanding in scope, and yet narrowing in terms of the physical distances between user-points. In combination with telecommunication devices, the computer is functionally reducing the world to a global electronic village in which space is no longer a barrier to the exchange of data and information. Today, the computer as pervaded in its effect and use.

Important of Computer our Society

It has found applications in virtually all fields of human endeavour, including arts, business, education, engineering, finance, science and technology. In these fields, the computer is not just a passive tool, but it has also enhanced standards of performance. These are several ways that computers can affect our lives. These ways are dependent on the applications installed on the computer.

However, in the banking industry, computer has been used in various areas like in carrying out their day-to-day activities. Research shows that computer affects financial institutions by easing enquiry, saving time, and improving service delivery. Computer also provides solutions to the needs of modern societies and its dealings with modern banks have helped in increasing banking performance.

Important of Computer to Banks 

Throughout history, there have been many forms of computers used by man. However, the modern computer is an electronic device, which can respond to commands, while banking is in the service industry.

Previously before the advent of computer in the banking sector, the quality of services rendered by banks has been attracting criticism from people in all works of life. The government functionaries, businesspersons, the media and the public are all very critical of banking services due to inefficiency and ineffective use of adequate technological system.

The complaints range from inefficiency, favouritism, and long delays in cashing cheques or making withdrawals. However, the introduction of computer to increase modern banking services as resulted to computer replacing bank workers and bringing about mass retrenchment or loss of jobs. People believe that the installing of computers will result to less human effort to perform the desired operation.

Therefore, this study is to examining the positive impact of computer to the improvement of modern banking system.

Frequent ask questions on impact of computer to modern banking system
i. How effective is computer system?
ii. Can computer system improve banking services?
iii. Has computerisation help in reducing fraud in modern banks?
iv. Has computerisation help in bringing efficiency in modern banks?
v. Can any bank operate without the application of human effort?
vi. Has computer replaced human in the work place?