The Impact Of Computerization In Microfinance Bank

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The study is aimed at determining the impact of computerization of microfinance bank in Nsukka urban. Cross sectional survey research design was used. The population of the study were eighty (80) was sampled for the study. Five research questions were raised to guide the study. Structured questionnaire which was validated by lectures was the instrument used for data collection statistical means were instrument used for data analysis. The result of the study showed that; computerization has a great impact on microfinance bank, helps in documentation of the bank, helps improve customers loans interaction, and it helps in making preparation and processing of credit and makes work more reliable, it reduces the keeping of bulky documents in the bank, helps in having safer storage of information and helps in reducing the work load of staff in checking balance. Finally it increases the speed of banking system.


Background of the Study
Micro finance bank has impacted the Nsukka urban by using computer in preparing different types of account, processing of customer’s statement of account, money transfer and cash dispensing version. The banking transaction that were manually done before the advent of computer into the banking system is now practiced in microfinance banking.
Akukwe (2003) pointed out that as early as 1950’s the magnetic in character recognition (M.T.C.R) system was used by bank chequ. Micro finance bank is still in use, in the banks today. However, the latest computer technology in the bank industry is found in the use of automated teller machines (A.T.M) and electronic fund transfer (E.F.T) system. Under the electronic funds transfer your pay roll cheques as work are despaisted to your account with ease and your regular monthly payment are automatically made on your behalf. Again fund can easily be transferred from your savings to cover the cheque you have issued to people or organization in respect of the purchase you made, or donations you announced. An A.T.M. is a specialized computer terminal installed at such place like the inside and outside of the banks, supermarket, shopping plaza , hotels for quick and faster deposits and withdrawals of funds. Customer use this arrangement to transfer fund between accounts without necessarily going to the bank.
Robinson (2001) examines microfinance bank as small-scale financial services- primarily credit and savings provided to people who farm or fish or herd who operate small enterprises or who provide services: who work for wages or commissions who gain income from renting out small amount of land, vehicles draft animals or machinery and tools and other individuals and groups at the local levels of developing countries both rural and urban.
Ndiaye (2005) opined that access to improved financial services and access to more and better ways of turning savings into lump sums help poor people from sliding deeper into poverty and helps Nsukka people lay foundation for their ambitions to better themselves and their families.
In most developed countries the history of microfinance bank is yet to be written. In many countries it will be difficult to do so for want of written document. This makes it difficult to build on the existing ones, mostly informal foundations of microfinance and learn from past experience. For example Nigeria is the only African country south of the Sahara of which one knows that microfinance existed at least as early as 500 years ago mainly in the form of rotating savings and credit associations. They are called “Esusu” among the Yoruba in Nigeria. Now a lingua France term in many west African countries. Respondent claim that their close relation are easier to draw into group based association than people from other ethnic groups. This corroborates the finding of Zellers et al (2001) that nearly half of group members are related to each other. Substantial importance is placed on known information about potential member since point liability and group cohesion, served as collateral for group members to obtain microcredit from microfinance NGOs (Zellers et al, 2001).
The distribution of respondents according to gender showed that there were more female (57percent) than male (43percent) this support the findings of UNCDF (1997), Adebayo (1997). Olomola (2001), Adyeye (2003) that members of microfinance NGOs are mostly women who, along with children form the group that is vulnerable to poverty, this makes NGO microfinance delivery in the area truly poverty alleviation initiative.
C.F Strickland (1934) a British cooperative expert examined the Esusu as a possible basis for modern cooperative societies in western Nigeria. Having previously worked in India where he encountered rotating funds, he speculated that the Esusu must have been imported from India. Which he considered a superior culture at some unknown time and concluded that in this cause one might as well import cooperative from England instead of modernizing the Esusu/Strickland the co-operative society’s ordinance introduced in 1935 and modelled after British colonies in Africa.
It was only in eastern Nigerian where financial co-operative flourished: encouraged by enlightened cooperative officer to build on the ubiquitous Esusu. The Igbo version of the Esusu: had a legal and supervisory framework been provided for the Esusu. Isusu, Adashi, Bam and whatever ROSCAS are called in 350 ethnic groups and had their origin not been misjudged.

Statement of the Problem 
In recent times there has been little or no satisfaction of customer from the services performed in microfinance banks. Before the invention of computer according to Akwkwe (2003) the accountant did their work spending many hours of tedious calculation and re-calculation. Today the electronic spread sheet page assumes the position of the proper, pencil and calculation for the accountant. The electronic formulation; the computer now enables the accountant to compute the entire accounting job like pay-roll income and expenditure recording etc. with ease
However the use of computerization in microfinance bank in Nsukka urban is yet to be modernized for the benefit of Nsukka people.

Purpose of the Study
The primary purpose of this study is to find out the impact of computer on microfinance bank in Nsukka urban.
1. To determine how far the manual performance of microfinance banking has gone.
2. To ascertain the impact of computerization in microfinance bank in Nsukka.
3. Identify other ways of improving banking functions through the use of computer.
4. To determine how ready and rich the microfinance bank are for the adoption of computerization.
5. Computerization and IT benefit.

Significance of the Study
In this research work, the researchers intend to establish computerized strategies of banking of which both microfinance banks and even customers will benefit from.
Furthermore, it is optimistic that after study, the acquired knowledge of computer, internet and information technology of carrying out their services has been replaced with fast and easy technology which also makes their services more effective.
As a result of this microfinance banks will attract huge deposit as they will be computing with other commercial bank.

Scope of the Study
This study is meant to cover all microfinance banks throughout Nsukka urban zone. However, it is not possible to reach and collect information from every were.
Therefore, this study is carried out but with a case study of micro-finance bank with Nsukka urban zone.

Research Question 
1. How has computerization helped microfinance bank to improve their banking services?
2. What are the impacts of computerization in Nsukka urban?
3. What are other ways of improving services through the use of computer in microfinance bank in Nsukka urban?
4. How ready microfinance bank in Nsukka urban for the adoption of computerization?
5. How has computerization helped microfinance bank to improve their banking services?

Definition of Terms
1. Science: this is a system of organized knowledge about a particular subject especially one concerned with aspect of human behaviours and society.
2. Computer: this is an electronic machine that can score organize and find information and calculation and control other machines.
3. Machine: it is an apparatus designed to make the performance a particular task easier.
4. Computerization: is a process of computerizing on industry (i.e. to provide a computer for the industry).
5. Computerized: is to provide computer to do the work of something.

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