Evaluating The Effects Electronic Data Processing In Community Bank
(A Case Study Of Emene Community Bank Enugu State)
Electronic data processing has revolutionized Community Bank by streamlining operations, enhancing efficiency, and improving customer service. By digitizing and automating various banking processes such as transaction recording, customer account management, and loan processing, electronic data processing has significantly reduced the time and resources required for these tasks. This has allowed Community Bank to serve its customers more promptly and accurately while also minimizing errors. Additionally, electronic data processing enables the bank to analyze customer data more effectively, leading to personalized services and targeted marketing efforts. Overall, the integration of electronic data processing has transformed Community Bank’s operations, making it more competitive and better equipped to meet the evolving needs of its clientele in the digital age.
The banking sector has proved a very reliable tool in the development of the nation’s economy and also in the management of individual finances. However, the distress in the banking system has drastically reduced public confidence and interest in the institution hence, community bank patronage continue to dwindle to a surprising point.
Under this negative development, the banks now rely greatly on the effectiveness of electronic data processing system for survival.
It is therefore, the scholarly need to examine the functional ability of electronic data processing system in community banks that prompted this topic.
For the purpose of this study, the researcher tacked this research work from the following perspectives. In the first plane, the broad work was divided into five chapters.
The first chapter treated the background of study, the statement of problem, purpose of study significant of the study, including research hypothesis.
Furthermore, chapter four carried the data presentation and analysis, discussion and findings embodying the needs for the electronic data processing system.
Finally, the last chapter contained the conclusion, the necessary recommendations and of course, the areas for further research.
It is therefore evident data processing system in grass root, banking. The study also showed that banks apply EDE techniques in their daily operations for enhance productivity.
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vi
Table of content viii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of problem 2
1.3 Purpose of study 3
1.4 Significance of study 7
CHAPTER TWO
2.0 Literature review 9
CHAPTER THREE
3.0 Research methodology 19
3.1 Areas of the study 20
3.2 Population of study 20
3.3 Sample and sampling technique 20
3.4 Instrument of data collection 21
3.5 Validity of instrument 22
3.6 Reliability of the instrument 22
3.7 Method of administration of the instrument 23
3.8 Method of data analysis 23
CHAPTER FOUR
4.0 Data presentation and analysis 25
4.1 Discussion of findings 45
CHAPTER FIVE
5.0 Summaries, conclusions and recommendation 47
5.1 Summary of Finding 47
5.2 Conclusion and Recommendation 47
BIBLIOGRAPHY 50
APPENDIX 54
INTRODUCTION
This chapter gives to the paper. As we can get the insight from the paper preview/abstract, the paper treaties on the need for electrification or computerization of the Emene community bank (A community bank in Emene Enugu State).
Under this veil the paper will present:
1. The background information or the historical background of the bank in question.
2. The general survey of the environment.
3. Coming to the area of the chapter preview, we discuss the nature of community bank in its entirely.
THE ADVENT OF COMMUNITY BANK IN NIGERIA
Without moving into details or digressing form the targets, community banking system is a novelty of the latest decade of the 20th century. The idea was affected with the establishment of the community bank implementation committee (CBIC) in 1990 under the authority of General Ibrahim Badamosi Babangida.
The committee issues licenses to community banks that led to its explosion as at now. It is a variant of retail banking setting and can be owned by either a person or group of individuals within a locality state.
Accordinn to Ayara Ndiyo – university of Uyo, the community bank is a representative as well as a reflection of credit and thrift co-operative societies in Nigeria. He said that many co-operative societies in Nigeria metamorphosed into banking setting with the advent of General Babangida license liberalization in 1991.
1.1 BACKGROUND OF THE STUDY
Background of Emene community bank. This bank started in 1992. they have individual shareholders, Emene development association and co-operate of shareholders like organisation establishment. Rev. Father Ede is there chairman.
Without mixing words, the bank was established to give banking services to the door step of the populace such services as accepting of deposit, giving of credits save guiding of valuables and important documents, payment to creditor serving as a trustee to the community pursue, serving as referee in case of setting of commercial land and community related financial matters.
The advantages of the electronic data processing coupled with the universal banking and globalisation are myriads in nature and cannot be elicited hastily. As a matter of reflection, the advantages of the electronic data processing system (EDPS) will be given in the chapter two of this work piece having gotten historical backdrop of the setting in question, we are moving to the General survey of the Emene community bank – banking environment in its entirety.
1.2 STATEMENT OF PROBLEMS
There are clouds of doubts about the importance of electronic data processing. Many people are in support of this innovation in data processing while others trample on it.
In this bid, Harold Hill in his book ”Computer Technology (1995-115), averred that the electronic data processing is a new discussion in data processing which is most labour-saving.
The work lends to test whether the other method of data processing meet the mileage of EDP. Also it tries to check the chromic need of SDP in the grass root banking service (ie. The community bank).
In putting all we have said in a nutshell electronic data processing (EDP) system has some needs and mileages over other method of data processing of which this paper will x-ray the true fact concerning the clouds and doubts therein.
That is to say that the research study is concerned with evaluating the effect of the use of electronic data processing system in community banks.
Critically, the research will try to examine the advantages and disadvantages of electronic data processing system in community banks.
1. Are the community bank in Nigeria ripe enough to employ the services of electronic data processing system in community banks?
2. Another problem of the study is the tendency of some community banks to play down on the goods counsels and advices of employing the services of electronic data processing method in community banking.
1.3 PURPOSE OF STUDY
Every study has a sect goal, the topic not an exception. That bring about the statement of the purpose of the research work.
1. Explicitly and precisely, the work piece is staged to know and evaluate the need of electronic data processing in the lowest level of banks, which is the community bank.
2. To evaluate the need, there are other pertinent facts to be discussed along the line. It should be noted that work of this nature cannot be successfully accomplished without the use of secondary data. The secondary data engaged in the quest have to be compared with personal interview and other primary data collected along the line in order to reach an tentative solution to the problem at hand.
3. Reiterating the study is to x-ray the importance of electronic data processing (EDP) system in a community bank, knowing outlay that most of the new community banks do not meet the requirements for the installation of electronic data processing (EDP) system.
4. It is pertinent to have a broad view of the effects of electronic data processing in community bank in Nigeria. Therefore, the major purpose or objectives of the study is to educate that virtually. It is ripe for all community banks to employ the services of electronic data processing system in community banks.
5. Finally, it would also be the purpose of this study to explore the ways electronic data processing in community banks is more advantageous over manual or mechanical systems especially in the achievement of the bank’s other goals.
6. Another purpose of the study is to emphasize that with effective installation of electronic data processing systems in community banks planning on how to implement banks efforts to update their high demanding banking operations become easier.
7. In regards one important objectives of this study would be to create an enhanced productivity in community banking sector through the use of electronic data processing (EDP).
8. Finally it would also be the purpose of this study to ensure that all problems that affect the use of electronic data processing system in community banks are offered solution.
1.4 SIGNIFICANCE OF STUDY
This study would be significance in many ways, which must include the following:
1. That the installation and use of electronic data processing (EDP) systems in community banks would help to meet up the present competitive market in banking industry.
2. That the installation and the use of electronic data processing (EDP) systems in community banks would strengthen the market position of the bank. This will fasten banking operations.
3. This study will eradicate completely the unguided misconception previously leveled against the use of electronic data processing in community banks, thereby enabling management to realize and recognize the advantages of electronic data processing (EDP) systems
Evaluating The Effects Electronic Data Processing In Community Bank:
Electronic Data Processing (EDP) has significantly transformed the operations of community banks, providing numerous benefits and effects on various aspects of their functioning. Here are some of the effects of Electronic Data Processing in a community bank:
- Efficiency and Speed: Electronic Data Processing automates and streamlines various banking processes, such as transaction processing, account management, and record keeping. This leads to increased efficiency and faster turnaround times for customer requests and transactions.
- Accuracy and Reduced Errors: Manual data entry is prone to errors, which can lead to financial discrepancies and customer dissatisfaction. Electronic Data Processing reduces these errors by automating data input and processing, resulting in more accurate records and financial reports.
- Improved Customer Service: With Electronic Data Processing, community banks can offer faster and more responsive customer service. Real-time transaction processing, online banking, and electronic communication channels enable customers to access their accounts and perform transactions conveniently.
- Online Banking: Electronic Data Processing enables community banks to offer online banking services, allowing customers to access their accounts, view balances, transfer funds, pay bills, and perform other banking activities remotely. This enhances customer convenience and satisfaction.
- Data Analysis and Decision-Making: Electronic Data Processing systems can generate detailed reports and insights from large datasets. Community banks can use these insights to make informed decisions about products, services, and strategies to better serve their customers.
- Risk Management: Electronic Data Processing systems can incorporate advanced risk management tools, helping community banks monitor transactions for potential fraud, unusual patterns, or compliance violations. This enhances the bank’s ability to detect and prevent fraudulent activities.
- Cost Savings: While implementing Electronic Data Processing systems initially involves costs, they can lead to long-term cost savings by reducing the need for extensive manual labor, paperwork, and physical storage of documents.
- Regulatory Compliance: Electronic Data Processing systems can be configured to help community banks adhere to regulatory and compliance requirements. The automation of record-keeping and reporting processes aids in ensuring accurate and timely submission of required documents.
- Data Security: Electronic Data Processing systems allow community banks to implement robust data security measures, such as encryption, authentication, and access controls. This helps protect sensitive customer information from unauthorized access and breaches.
- Scalability: As community banks grow and expand, Electronic Data Processing systems can be scaled to accommodate increasing transaction volumes and customer base without significant infrastructure changes.
- Customer Insights and Personalization: By analyzing customer data, community banks can gain insights into customer preferences and behaviors. This information can be used to personalize services and tailor product offerings to individual customers.
- Innovation and Competitive Edge: Community banks that embrace Electronic Data Processing are better positioned to adopt innovative technologies, such as mobile banking apps, digital wallets, and other fintech solutions. This helps them remain competitive in the rapidly evolving financial landscape.
In summary, Electronic Data Processing has a profound impact on community banks by enhancing operational efficiency, customer service, decision-making, and overall competitiveness. However, it’s important for community banks to carefully plan and implement Electronic Data Processing systems to ensure they align with their specific goals and customer needs while maintaining a strong focus on data security and regulatory compliance.