Computerisation of Banks

Topics: Bank, Computer, Accounting software Pages: 35 (9179 words) Published: September 25, 2009

The world as a global village has become so computerized that the use of computers is inevitable therefore makes them very important in all aspect of human life especially on the accounting field.

Accounting system is a procedure that is designed by an organization for capturing all financial events and data in an organization. An accounting system after capturing and gathering all events and activities has the ability to process them and communicate them to interested parties for decision making. Financial institutions in many countries were so much concerned about the switch from manual to computerized accounting system.

It must however, be emphasized that manual accounting systems has not been eliminated completely but reliance and dependency on them has been reduced drastically due to the emergence of computerized accounting systems. While many financial institutions responded quickly to the use of computers in accounting systems, others still face difficulties in adapting to these computerized systems of accounting. Most organizations have resorted to the use of computers in their accounting systems because of the inherent accuracy and processing speed of this automated accounting system.

They also have resorted to it because of the efficiency which leads to higher profitability. It is obvious that this computerized accounting system has led to the reduction of time; cost and quick generation of reports since one no longer have to wait a whole day to get a report. Although the emergence of this system comes with a number of benefits, it still has got some problems associated with it. One inherent problem with this new system of accounting is the high cost of operations. Day in and day out, computers that become obsolete need to be replaced or upgraded to meet acceptable standards. In addition, this new system has brought about computer crimes. For example, the Equity Funding Corporation Scandal in the USA is probably one of the most outrageous frauds that have been committed with the assistance of the computer. Total estimated misappropriation as a result of computer crimes in the United States America seems to be in the region of U.S 35 million. These cost associated with computerized accounting system have prompted decision makers in financial institutions to do careful analysis of their accounting system and its loopholes before making a choice of a system which will suite them best. One thing that has also made the use of computers a delight is the less need for visual editing because of the ability of the computer to perform many editing steps by having programmed controls incorporated in the computer program.

Recently, the allocation of resources or quota in banks for embarking on projects has been made easy due to the discovery of Swedish Grid Accounting System. This accounting system which was developed by Swedish Research Council maintains a Grid wide view of the resources consumed by its members.

Despite the availability of computers at Ecobank, clients still queue at the bank hall and the probability of Tellers to make mistakes is high. Customers still queue in order to withdraw monies from their accounts due to power failure despite the ATM facility available to them. This also applies to those who have access to the ATM’s but still issue out cheques.

Another major problem that the bank faces is the poor network system. Customers sometimes make payments into accounts of other branches and takes days for the amounts to reflects in that accounts. This research at the end will find solutions to the problems above and appropriate mechanism to be applied at the right time to encourage the effective and efficient use of computers available to Ecobank.

The study attempts to find answers to the following questions: ❖ What are the various hardware products...

Bibliography: Nsouli, (2002), challenges of the E – banking revolution.
Sangster, (2002), business accounting
Sangster (1992) strategies for Business Decisions 2nd edition
Koerber k. (1992), accounting systems
Hilton (1994) cost management accounting 2nd edition
Bagronoff (1996) Decision support tools for choosing accounting software
Ecobank Annual Report
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