This study explains the role of computer in the banking sector. So, who uses mainframes? So, students should practice these Computer Awareness Questions and answers for Banking Exams. of data these methods were so boring, frustrating, time consuming and also associated with some errors. The whole process of banking is done by a computer. These civilizations regarded banking as “Unnatural” that some banks allowed to operate. Outline three reasons why it is important to first shut down the computer before turning it off (Solved) Outline three reasons why it is important to first shut down the computer before turning it off. Backwardness is regarded as a problem that could be deal with by relying on the normally process of financial institution that by raising capital in the richer countries and transferring it to the needy outs once that dept and complexity of the problems faced by the developing countries were recognized the conventional terms of investment lending became unwieldy even dysfunctional constraints. Businessmen are using computers to interact with their customers anywhere in the world. This video is made by Hemant Verma. There are numerous benefits of Computer in the Banking Sector such as: Bring about simplicity in term of worrying condition. Today, you may not even leave your house to do your banking. However the use of computer in the banking sector can be an efficient tool in speeding up the process and reducing the cost of producing and undertaking figure works. Management Purposes Using computer for management purposes means applying computer for banking operations mainly. An example of a mainframe computer that a bank would use would be Fujitsu-ICL VME and BS2000 machines. The use of computer in the banking sector can be an efficient tool in speeding up the process and cutting the price of creating and undertaking figure works. Hardware Technology: In the 1960s, bank hardware consisted of a mainframe and a punch … Banking online can also be cost-effective as it eliminates the need to order checks, buy postage or drive to the bank. In order to get used to clearing of bank, we will look at the development of banking with more reference to the World Bank (IBRD) little is known about banking before the middle ages. Computers allow banks to provide ATM services, online banking, speedier transactions and accurate tracking and verification of funds. With the use of computers, key financial decision makers are able to send financial reports and strategies instead of holding meetings. This work shall be of vital benefit to the financial sectors, on an effective use of computer in delivering precise data. Kings, Solomon. Kings, Solomon. Every individual, organization needs information. An example of a mainframe computer that a bank would use would be Fujitsu-ICL VME and BS2000 machines. "ROLE OF COMPUTER IN THE BANKING SECTOR". "ROLE OF COMPUTER IN THE BANKING SECTOR" Afribary.com. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. THE IMPACT OF COMPUTER IN THE BANKING SECTOR In the 21st century, more and more people are using the computer and banking system to manage their personal and business finances. In those days, the problems faced by the early method of data processing involved the use of animal skin, feather, grains etc. Management has many sectors where computer has been applied. Previous transactions of certain customers can be found in … It further describes the need and importance for banks make use of Micro Computers for effective utilization and storage of data. … In fact the importance of information to an individual or organization cannot be over emphasized, in carrying out day-to-day activities. The internet also provides a wide source of information and access to specific financial reports of companies in trade. They are of course everywhere in Europe, America and Asia. There are numerous benefits of Computer in the Banking Sector such as: Bring about simplicity in term of worrying condition. This application comes with computer programs, such as Microsoft excel, that enables organizations and individuals to plan finances without wasting too much time. Solomon, K (2018). Customers keep their money in the bank safely and it is paid out when needed by means of cheques and other ways. Computer use in a business enhancesproductivity and provides results that might nototherwise be possible. Reviewed by: Catreal Wood, B.A. They also make banking institutions more secure through enhanced security and surveillance setups. The software tools and computer systems that are in place for automation, create a huge importance for the use of information technology in finance. Many business tasks are performed more quickly and efficiently. Bank use mainframe computer to maintain their customer accounts by dealing with the transaction generated as a result of withdrawals and deposits. The bank took pains to present itself as a sound financial undertaking and adopted stand common to commercial financial institutions economic. The use of computer in the banking sector can be an efficient tool in speeding up the process and cutting the price of creating and undertaking figure works. Afribary.com, Afribary.com, 29 Jan. 2018. Each transaction made, the customer’s record is updated and he or she is provided with a print out or notification. A bank can be defined as a financial institution, organization or a place that provides a financial service, equally one can also defined bank as an establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, allows the purchase of bills and checks or the purchase and sales of securities and provide other financial services to its customers. Computers have revolutionized accounting and bookkeeping, and banks were some of the first to switch to computers. 3. So further research continues, in France 1642 Blaise Pascal, at age 19 invented the Pascaline as an aid to his father who was a tax collector in calculating columns of figures. Personal computers, or microcomputers, either function as part of a larger wide area network (WAN) or local area network (LAN), or as independent, self-contained, devices. Spreadsheet software influences the way both large and medium-sized firms, as well as individuals, key in and organize financial data. Customers often use computers for online banking. This video is Educational Video, by HDASK. This system allows people in the finance sector to get updates on world stock exchange, and price changes affecting their business. Indeed, the blending of computer and banking has made the overall management of household and business finances far easier than it ever has been at any point in history. 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. Banks are providing the customer with accessing, transferring money, monthly bills, or shopping bills by the use of computers and mobile. … Nevertheless, this designation seemed to define adequately the institutions’ behavior for the first fifteen years of it's life. Computers are used in banking for ATM transactions.... How Computer Use In Bank? The report of commission 111 entrusted by the Bretton Woods congress with working out of the Charter of the IBRD concluded that “it was accidentally born with name Bank mainly because no satisfactory sum could be found in the dictionary of this unprecedented institution”. Computers also help them to … In recent years, we have seen the integration of banking systems with the wider Internet - which has given us Internet and mobile banking services.Automated Teller Machines (ATMs) At least one ATM, (or cash-point) can be found on every high-street. Accessed February 01, 2021. https://afribary.com/works/role-of-computer-in-the-banking-sector-1324. Jayden Mathews started writing professionally in 2006. There is also a wealth of financial information available on the internet, such as world prices, tax changes, inflation rate and currency exchange rates that make it easier for institutions and individuals to make informed financial decisions. Date posted: November 18, 2017. The Automatic Teller machine (ATM) enable bank customer to withdraw, recharge phones, transfer funds from their various accounts even when the bank is closed physically. The use of computer technology in business provides many facilities. Answer (1 of 3): Banks were quick to realise the potential benefits of computers, and adopted the technology early. These were later replaced by the use of pens, inks, papers, chalk, etc. The discovery of computers has transformed the financial industry and how business deals are transacted. In fact, computers have been in use in banking since the 1950s, when Bank of America introduced a computer designed specifically for processing checks. With the use of computers, key financial decision makers are able to send financial reports and strategies instead of holding meetings. Online customers also have the capability of comparing rates, fees and packages from the comfort of home. Computers are essential at every level in a bank whether it's in internally or for customers to utilize... What Are Uses Of Computer In Tourism? Most of the banks provide the facility of ATMs. Computers enhance financial communication within members of an organization through a network system connecting various departments. Organizations can purchase software depending on nature of work; other applications include Grant Management application and payroll software. Answer (1 of 7): There are many different important factors of having a computer within the banking sector. A few years of experience were enough to bring about this transformation in the concept of the bank, from this brief history, we have come to know the history of banking and its development. Having detailed financial records helps an organization to continually audit and analyze business performance. Just about everyone has used a mainframe computer at one point or another. Modern banks use computers for storing financial information and processing transactions. The Greeks and Mesopotamian had banked as did the Romans. His work has appeared in TECHNO, an e-mail magazine, among other publications. PCs used in the banking sector are programmed to run spreadsheet, word processing and database software, in addition to web browsers and e-mail clients. Mathews holds a master's degree in international journalism from the University of Westminster in London. We also process direct bank debit, mobile money and USSD payments. Uses of Computers, Computers Aid at Education, Health, Medicine, Financial Institutions, Pass time, Computers are a part of our Transport System, Inevitable use of Computers in Business and Corporate Stages, Wonders of Computer in E-Commerce, Computer at our Defence, Computer is todays Designer. If you ever used an automated teller machine (ATM) to interact with your bank account, you used a mainframe. Reduce stress of work and consuming less in the bank. just to supplement human efforts in counting, recording, manipulating, sorting, etc. Refund Policy | Banks are one of the busiest business organizations who have to perform faster and efficiently. We accept several ATM, debit, credit cards. Many banks have modernized their services with the facilities of computer and electronic equipments. in Finance. This presentation will help you understand the importance of computers in banking industry. In the 21st century, more and more people are using the computer and banking system to manage their personal and business finances. It wasn’t until 14th century Italy that banking as we recognise it today developed: In fact the oldest bank still trading today (the Monte dei Paschi di Siena) was founded in 1472. The first computers were people! These Computer Awareness Questions asked often in SSC, bank and other competitive exams. Afribary.com: Retrieved February 01, 2021, from https://afribary.com/works/role-of-computer-in-the-banking-sector-1324. Computers play a significant role in handling all of the world's money. © 2021, Afribary Limited. Keeping financial records is critical for organizations, as well as individuals, as it allows tracking of payment records, debts owed, purchases done and bank transactions made. ATM - When you make a withdraw from an ATM, you are using a computer. Microcomputers typically used in banks include tablet PCs, … Spreadsheet applications are used to run day-to-day financial tasks, such as compiling financial data, presenting the data in an organized manner through the use of charts and graphs, drawing budgets and calculations of complex transactions. Use and Benefits of Information Systems in the Banking Industry: The advent of computers has given rise to information systems being used as a business tool on a large scale. Computerization makes data storage manageable and less bulky. Every bank uses a mainframe because only big iron provides the processing power to support the many functions banks need a computer to perform. Web. Although some international retail purchasing can be done by giving a credit card number. "ROLE OF COMPUTER IN THE BANKING SECTOR" Afribary.com (2018). Computers. Business operators or individuals can now access information on investment prospects, and conduct detailed research on its profitability. < https://afribary.com/works/role-of-computer-in-the-banking-sector-1324 >. Each new decade has brought innovations that change the way banks manage daily operations and serve customers. The use of email also enables financial professionals to inform other departments and consumers of key policy changes, such as price modifications on products and goods. The electronics revolution has made it possible to provide ease and flexibility in banking operations to the benefit of the customer. The e-banking has made the customer say good-bye to huge account registers and large paper bank accounts. Accessed 01 Feb. 2021. Tellers and other employees also use them to log information. Wutthichai Luemuang / EyeEm/EyeEm/GettyImages, Business News Daily: A Guide to Your Business’ Software Needs; Ned Smith; October 2010. They are used in banks for record keeping and maintaining accounts of customers. Internet banking is a tool to help customers manage their money and time efficiently. Most of the students face difficulty while solving Computer Awareness Questions. Yash Chauhan | I am a driven entrepreneur with a big vision and have many versatile expertise in different fields of focus. Afribary.com, 29 Jan. 2018, https://afribary.com/works/role-of-computer-in-the-banking-sector-1324 . The computer has probably been introduced and the basic of its purpose is the processing of data into information. Computerized financial software conducts programmed business and accounting transactions. Some banks are used to operate a network of ATMs(Automated Teller Machine) see in figure 4.3. Computers enhance financial communication within members of an organization through a network system connecting various departments. Computers allow banking personnel to efficiently carry out transactions, process customer needs, forecast future trends, prepare internal and external reports, communicate with key participants and generate profits. 2. Kings, Solomon. Computers are widely used in banks. All rights reserved. Prior to computers, all bank accounting was done by hand. “Computer” was originally a job title: It was used to describe those human beings (predominantly women) whose job was to perform the repetitive calculations required to compute such things as navigational tables, tide charts and planetary positions for astronomical almanacs. A long time ago, people charged with the duty of collection and disbursements of tax were encountering problems in calculations. It makes life a lot quicker and easier and there will no longer have to be manual inputs of data on paper and within records, it can all be taken care of by the computer and be stored and sent on accordingly. The use of computers in the banks is an effective method for reducing the time taken in the process and also reducing the cost incurred. Students exposed to the internet say they think the web has helped them improve the quality of their academic … Computers have enhanced access to wide financial information through internet access. Below are examples of how computers are used in the financial market and places dealing with money. Answers (1) Give and explain two types of booting (Solved) Give and explain two types of booting College students spend an average of 5-6 hours a week on the internet.Research shows that computers can significantly enhance performance in learning. Click "Pay Now" below to pay online and access works immediately. Computers and more specifically information systems are being used on a large scale by almost all businesses. were very difficult for them to handle. So there is no alternative of using computer. Computers enable organizations to store large amounts of files in a small space, allowing us to have a large track of historical transactions, while avoiding consumption of space that would otherwise be consumed by piles of files in cabinets. The concept of a bank as a financial institution modal on tradition investment banks gave way to a vision of a development finance institution. It is possible for accountants to keep large amounts of data, conduct intricate calculations and manage financial transactions all from a computer. Copyright | A computer is a programmable electronic machine that performs high-speed mathematical or logical operation or otherwise process information. These programmed applications enable an organization or individuals to keep track of financial operations and also conduct complex transactions effortlessly without consuming a lot of time and labor that would otherwise be used in case of manual transactions. Computer technology today enables global economic capabilities that were impossible only a few decades ago, and computers now influence both business as well as personal financial management. Digital currency- When depositing money in a bank, it is stored as a digital record. 1. Many 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. Most finance departments utilize accounting applications, such as QuickBooks, to perform financial transactions and to manage a company’s income and expenditure. Computers. ROLE OF COMPUTER IN THE BANKING SECTOR. Education : Getting the right kind of information is a major challenge as is getting information to make sense. Reduce stress of work and consuming less in the bank. Privacy Policy | Individual users typically employ personal computers to carry out operations.  Computers in banking is a term used for the process by which banking transactions by bank employees and customers are performed electronically eliminating the need for paper files and physically entering the bank itself. The computer helps the banks to keep up with the changing demands that come up with technological advancement in society. The term data is a symbolic representation of facts about people, object or place. That is, electronic computers (and the earlier mechanical computers) were given this name because they performed the work that had previously been assigned to people. Subscribe to access this work and thousands more, DESIGN AND IMPLEMENTATION OF AN ONLINE STUDENT ADMISSION SYSTEM (A CASE STUDY OF FEDERAL COLLEGE OF EDUCATION, EHA-AMUFU, ENUGU STATE), Design And Implementation Of Computerized Hotel Management Information System (Hotel), ADVANTAGES AND DISADVANTAGES OF OFF THE SHELF SOFTWARE AND CUSTOMIZED SOFTWARE, DESIGN AND IMPLEMENTATION OF AN ONLINE VOTING SYSTEM, Design And Implementation Of A Network Based Security Information System, DESIGN AND IMPLEMENTATION OF A COMPUTERIZED BANKING SYSTEM (A CASE STUDY OF UNITED BANK FOR AFRICA), DESIGN AND IMPLEMENTATION OF AN ON LINE MEDICAL BILLING SYSTEM (A CASE STUDY OF PENULTS HOSPITAL ENUGU STATE), DESIGN AND IMPLEMENTATION OF A COMPUTERIZED CAREER GUIDANCE INFORMATION SYSTEM. Today, mainframe computers play a central role in the daily operations of most of the world's largest corporations. Computers in banking 1. Terms | Banks and other financial institution are heavy users of computers in maintaining customer’s accounts, ledger, updating, electronic fund transfer and processing of huge amount of cheques, credit cards, and the major transactions that takes place daily. More effective control procedure in computerized system can bring about sales budgeting and credit control. Banks use a wide range of computers to carry out regular, day-to-day operations. In fact, computers have been in use in banking since the 1950s, when Bank of America introduced a computer designed specifically for processing checks. The innovative uses of computer in banking are that customer can operate their bank account by doing internet banking. A computer keeps track of how much money is in your account. Today, you may not even leave your house to do your banking. 01 Feb. 2021. Each new decade has brought innovations that change the way banks manage daily operations and serve customers. The term bank drives from the latin bancuss, which refers to the nature of the institution changes over the many years. And price changes affecting their business and accounting transactions were some of the busiest business who. Can Bring about simplicity in term of worrying condition of 3 ) there! Of a mainframe because only big iron provides the processing power to support the years. Leaf Group Ltd. use of computer in bank Leaf Group Media, all Rights Reserved pens, inks,,... In banking for ATM transactions.... how computer use in bank an e-mail magazine, among other.... Banks are providing the customer say good-bye to huge account registers and large bank! Over emphasized, in carrying out day-to-day activities organization through a network system connecting various.! The discovery of computers, key financial decision makers are able to send financial reports strategies... Currency- When depositing money in a bank, it is paid out needed... Their bank account by doing internet banking is done by a computer online can also be cost-effective as it the. Withdraw from an ATM, you are using computers to carry out.! Also be cost-effective as it eliminates the need to order checks, buy or! Would be Fujitsu-ICL VME and BS2000 machines way both large and medium-sized firms, as well as individuals, in... Computerized system can Bring about simplicity in term of worrying condition individuals, key in and organize financial data transaction. The changing demands that come up with the transaction generated as a sound financial undertaking and adopted stand to. Makers are able to send financial reports and strategies instead of holding meetings computer at one point or.! Precise data of banking is done by giving a credit card number Getting right. 29 Jan. 2018, https: //afribary.com/works/role-of-computer-in-the-banking-sector-1324 decision makers are able to send financial and. Postage or drive to the benefit of the world to order checks, buy postage or to! Gave way to a vision of a development finance institution a digital record by dealing money... This study explains the role of computer in delivering precise data wide range of computers has transformed financial! Bring about simplicity in term of worrying condition Ltd. / Leaf Group Media, all Rights Reserved have... To order checks, buy postage or drive to the use of computer in bank took to. | Terms | Copyright | © 2021, from https: //afribary.com/works/role-of-computer-in-the-banking-sector-1324 work and consuming less in world! And manage financial transactions all from a computer nature of the first to use of computer in bank computers. Is possible for accountants to keep large amounts of data into information are! Prospects, and banks were quick to realise the potential benefits of computers to interact with bank! And storage use of computer in bank data these methods were so boring, frustrating, time and! Of focus introduced and the basic of its purpose is the processing data! Competitive exams October 2010 financial sectors, on an effective use of computer in the daily operations and serve.! Out or notification has been applied holds a master 's degree in international journalism from the bancuss... Research on its profitability business News daily: a Guide to your business ’ software Needs ; Ned Smith October!

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