ABSTRACT

With the expansion of activities in banking industry, the number of

transactions increased. The manual method of keeping and maintaining
records and accounts was found to be unmanageable. With the introduction of
computers, the manual method of accounting is being gradually replaced. And
finally, the database technology has revolutionised the accounts department of
the banking organisations.
This work centres on the role of computers in accounting and the need of
computerised accounting saving system.

CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The use of computer in almost all aspect of human service is assuming greater
dimension every day since computerized banking information system is to
provide correct and up to dates information about the customer and
establishment for manpower planning purpose and recognition.

Means while, there is need to ensure that the paper information are in good
order before computerization begins. The computerized system is dependent
upon the reliability of the paper information that should be kept for further
reference.

A bank savings account is a type of account designed to simply hold money

that you do not need immediate access to. It is the oldest scheme among the
National Savings instruments. The scheme has been designed to encourage the
small savers and to meet their day to day needs. This is an ordinary account
and frequent withdrawals (thrice a week) can be made through this account

In ancient times, people adopt so many ways of savings money ranging from
hiding money far away from our homes maybe in the bush; use of small
calabash or box with a small opening at the top and so no. This practice has
been on for years and even now in some parts of the world. Late in October
1994, Chase unveiled a personal computer-based home-banking service, to
Central New York consumers. Through computerized banking, Chase
customers can have on-line access to checking, savings, and credit lines; pay
bills electronically, balance check books, transfer funds between accounts,
instantly update the value of their investment portfolios, and send E-mail
messages to the bank--all from home, using a personal computer.
Savings account includes a deposit or an account that meets some
requirements and from which, under the terms of the deposit contract or by
practice of the depository institution, the depositor is permitted or authorized
to make up to six transfers or withdrawals per month or statement cycle of at
least four weeks. The depository institution may authorize up to three of these
six transfers to be made by check, draft, debit card, or similar order drawn by
the depositor and payable to third parties. There is no regulation limiting
number of deposits, but some banks choose themselves to limit deposits.
Within most European countries, interest paid on deposit accounts is taxed at
source. The high rate of some countries has led to the development of a
significant offshore savings industry. The financial centres for either
information on interest earned to be shared with EU tax authorities or for
withholding tax to be deducted on interest paid on offshore accounts, because
of concerns relating to potential tax evasion. Account holders must either pay
the withholding tax or disclose account holder information to relevant tax
authorities
Withdrawals from a savings account are occasionally costly and are sometimes
much higher and more time-consuming than the same financial transaction is
being performed on a demand (current) account. However, most savings
accounts do not limit withdrawals, unlike certificates of deposit. In the United
States, violations of Regulation D often involve a service charge, or even a
downgrade of the account to a checking account. With online accounts, the
main penalty is the time required for the Automated Clearing House to transfer
funds from the online account to a "brick and mortar" bank where it can be
easily accessed. During the period between when funds are withdrawn from the
online bank and transferred to the local bank, no interest is earned.
1.2 STATEMENT OF PROBLEM
Banking industry has encountered tremendous problems in their mode of
operation in recent times, most of the problems which led to the development
of this computerized saving account system include:

Lack of facilities for fast processing and issuance of account

numbers to newly signed customers.
The stress involved in accessing ones account in the case of
withdrawal or trying to get some vital information about the account.
Difficulties encountered during transactions.
1.3 OBJECTIVES OF STUDY
Regular savings accounts are likely to produce the best deals where interest
rates are concerned, and theyve been around for a long while. It isnt quite as
simple as that though. As you can probably imagine, excellent interest rates
come at a price. In the case of a regular savings account, that price takes on
the form of commitment.
Well, the main aim of the work is to develop a computerized accounting system
that will help in fast processing and transaction of operations in banking
sectors
1.4 SIGNIFICANT OF THE STUDY
Easy Access to an Account
Computerized Savings accounts offer easy access to your cash. In other words,
your money is liquid (meaning you can make a withdrawal easily and quickly)
in a bank savings account. Note that savings accounts are not as liquid as
checking accounts, because you can get money from a checking account by
simply writing a check.
Increases Your Money
When you have money in a bank savings account, your money earns interest.
This is a nice feature. Your bank savings account pays a rate of return on all
the money in the account ( your APY). That means that you get paid for keeping
your money in the account. If you were not going to use the money anyway,
then getting paid a little is better than nothing.
Bank savings accounts pay you more on your money than checking accounts.
It Is Relatively Safe
Computerized Bank savings accounts offer a safe place to keep your money.
Suppose that you have $1,000 and you're not going to use the money for
another 3 months. You could do several things with the money. You could
carry it around with you, you could put it under your mattress, or you could
put it into a bank savings account.
The safest thing to do with your money is to put it into a savings account. If
you carry the money around with you, you might lose it. If the money is under
your mattress, your house could burn down or be robbed. However, if the
money is in a bank savings account, your banking institution is responsible for
the safekeeping of that money. If the bank burns down, your money won't go
with it, and any reputable bank will not just lose your savings.
1.5 LIMITATIONS OF THE STUDY
A number of factors hinder the progress of this work. Most of the difficulties
encountered during this work include:
Unwillingness of the respondent to release basic and necessary
facts.
 Cost of sourcing of information from relevant journal, materials,
internet and respondent at the administrative area is exorbitant.
Insufficient material at the school library as most books in the
library are irrelevant of this study.
The stress of combining lectures and research work has not been
easy.
1.6 SCOPE OF THE STUDY
The main aim of this work is to ease the stress encountered by people in
carrying out transaction by developing a computerized bank savings account
system. The study is narrowed down to transaction unit of FIRST BANK NIG
PLC. This will help in the effective and efficient transaction on customers
database as well as monitoring the administrative activities.

1.7 DEFINITIONS OF TERMS

BANK
A bank is a financial institution that serves as a financial intermediary

SAVINGS ACCOUNTS
Savings accounts are accounts maintained by retail financial institutions that
pay interest but cannot be used directly as money (for example, by writing a
check)
BANK SAVINGS ACCOUNT
A bank savings account is a type of account designed to simply hold money
that you do not need immediate access to.

TRANSACTION PROCESSING
Transaction processing is information processing that is divided into
individual, indivisible operations, called transactions.

CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 BRIEF HISTORY OF FIRST BANK
First Bank traces its ancestry back to the first major financial institution
founded in Nigeria; hence the name. The current chairman is Dr. Ayoola Oba
Otudeko, OFR. The bank is the largest retail lender in the nation, while most
banks gather funds from consumers and loan it out to large corporations and
multinationals, First Bank has created a small market for some of its retail
clients.
At the end of August 2006, the bank had assets totalling 650 billion Naira or
$5 billion dollars. The bank was also the most highly capitalized stock on the
Nigerian Stock Exchange, and had about 10 billion outstanding shares. It has
a subsidiary in the United Kingdom, FBN Bank (UK), which has a branch in
Paris. The bank also has representative offices in South Africa and China.
The company was named the best bank in Nigeria by Global Finance magazine
in September 2006. The firm's auditors are PricewaterhouseCoopers (Chartered
Accountants). The firm has solid short and long term ratings from Fitch and
the Global Credit Rating Company partly due to its low exposure to non-
performing loans. The firm's compliance with financial laws has also
strengthened with the Economic Financial Crimes Commission giving it a
strong rating.

2.2 OVERVIEW OF BANK

Cronin, Mary J. (1997). The term "bank" may refer to one of several related
types of entities:
A central bank circulates money on behalf of a government and
acts as its monetary authority by implementing monetary policy, which
regulates the money supply.
A commercial bank accepts deposits and pools those funds to
provide credit, either directly by lending, or indirectly by investing
through the capital markets. Within the global financial markets, these
institutions connect market participants with capital deficits (borrowers)
to market participants with capital surpluses (investors and lenders) by
transferring funds from those parties who have surplus funds to invest
(financial assets) to those parties who borrow funds to invest in real
assets.
A savings bank (known as a "building society" in the United
Kingdom) is similar to a savings and loan association (S&L). They can
either be stockholder owned or mutually owned, in which case they are
permitted to only borrow from members of the financial cooperative. The
asset structure of savings banks and savings and loan associations is
similar, with residential mortgage loans providing the principal assets of
the institution's portfolio.
Because of the important role depository institutions play in the financial
system, the banking industry is generally regulated with government
restrictions on financial activities by banks varied over time and by location.
Current global bank capital requirements are referred to as Basel II. In some
countries, such as Germany, banks have historically owned major stakes in
industrial companies, while in other countries, such as the United States,
banks have traditionally been prohibited from owning non-financial companies.
In Japan, banks are usually the nexus of a cross-share holding entity known
as the "keiretsu". In Iceland, banks followed international standards of
regulation prior to the recent global financial crisis that began in 2007.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered
in Siena, Italy, which has been operating continuously since 1472.
A Bank's main source of income is interest. A bank pays out at a lower interest
rate on deposits and receives a higher interest rate on loans. The difference
between these rates represents the bank's net income.
2.3 BANK SAVINGS ACCOUNT
Bank savings accounts are a critical part of everybody's financial picture. If you
need a safe place to keep money, a bank savings account is often a good
choice. Heres a quick review of what savings accounts are and why you might
want to adopt its services

Macesich, George (2000). A bank savings account is a type of account

designed to simply hold money that you do not need immediate access to.
When contrasted with checking accounts, bank savings accounts tend to pay a
slightly higher rate. Savings are the bedrock of most people's finances, so it
makes sense always to obtain the best possible deal. That means not only
searching out the highest interest rate but also making sure you pick an
account that suits your needs. Accounts can be opened and managed by post,
telephone or internet and range from easy-access deals where no notice needs
to be given to withdraw money, to those governed by a notice period, to fixed-
term accounts that lock your money in for a specific term. Here are some
various forms of savings account.

Easy access
Easy-access accounts, also known as instant access, allow you to deposit and
withdraw money whenever it is convenient without facing a penalty. Most can
be opened with an initial deposit of just 1. Easy-access accounts from high
street banks allow you to manage your account in person in branch; while
internet-only providers let you open an account straightaway and transfer
money quickly and easily online.
The interest rates on these accounts are lower than other types of savings
accounts because you are able to withdraw money at any time and many
advertised interest rates include short-term bonuses.
Notice accounts
If you are willing to give your savings provider some warning before you make a
withdrawal, interest rates on notice accounts are usually higher than easy-
access accounts. However, as with easy-access accounts, the rates can be
changed by providers at short notice. The periods on notice accounts vary from
a week to 120 days, or more. Some notice accounts are postal, which require a
form to be filled in and sent to a savings provider.
Fixed-term savings accounts
The interest rates promised to savers who lock their cash away for a fixed
period of time are often the best on the market. The benefit of fixed-term, fixed-
rate savings accounts is that you can be assured that the interest rate on your
cash will not fall when your back is turned.
The downside is that you will not have access to your money for the term of the
account. Savings bonds, the most common fixed-rate product, are available for
as little as three months, or as long as five years, or more. Just make sure you
don't deposit cash you might need in an emergency. You might receive a high
interest rate on a fixed-rate bond, but if you need to withdraw your cash after a
couple of months you will lose most of the interest gained.
Regular savings
If you can afford to squirrel away some cash into a savings account every
month you could sign up to a regular savings account. As long as you can
guarantee to deposit a certain amount monthly, you will be rewarded with
higher rates of interest. Savings providers usually set limits on the minimum
and maximum amount you can deposit - typically a minimum of 20 and a
maximum of 250.
2.4 MAKING YOUR SAVINGS WORK

Running the account

How you decide to manage and access your account can have quite an impact
on the interest rate you receive. Although some people are still a little dubious
over the safety risks, internet banking is becoming more and more popular.
Online banking is not only quick, easy and accessible for customers, the banks
also like it because it means less work for them! And many online savings
products offer better interest rates. Customers can often check balances,
conduct transactions and transfer money via the internet. Other ways to
manage a savings account include, by branch, post or phone. You may well
find that certain products are restricted to a number of these methods so
make sure you know which ones your product allows! If you are someone who
prefers to deal with people face-to-face, check out how many local branches
there are.

Take an interest
Even when you have decided on the account you want to go for, there are no
guarantees that your rate is going to stay at a lucrative level. Many of the
bonus rates you see on best buy tables will only apply during the introductory
term, so prepare yourself for a drop typically after six to twelve months. Even
after offer periods, banks and building societies have a tendency to carry on
reducing your rate so keep on the ball, take an interest in your account and
make sure your rate is not dwindling. If you open an account which has an
introductory bonus, consider moving your money elsewhere when the bonus
period ends

2.5 NEED FOR COMPUTERIZED BANK SAVINGS ACCOUNT SYSTEM

The need for computerised accounting arises from advantages of speed,
accuracy and lower cost of handling the business transactions.
Numerous Transactions
The computerised savings accounting system is capable of handling large
number of transactions with speed and accuracy.
Instant Reporting
The computerised savings accounting system is capable of offering quick and
quality reporting because of its speed and accuracy.
Reduction in paper work
A manual savings accounting system requires large physical storage space to
keep accounting records/books and vouchers/ documents. The requirement of
stationery and books of accounts along with vouchers and documents is
directly dependent on the volume of transactions beyond a certain point. There
is a dire need to reduce the paper work and dispense with large volumes of
books of accounts. This can be achieved by introducing computerised savings
accounting system.
Flexible reporting
The reporting is flexible in computerised savings accounting system as
compared to manual savings accounting system. The reports of a manual
accounting system reveal balances of accounts on periodic basis while
computerised savings accounting system is capable of generating reports of
any balance as when required and for any duration which is within the
accounting period.
Scalability
Computerised savings accounting system are fully equipped with handling the
growing transactions of a fast growing business enterprise. The requirement of
additional manpower in Accounts department is restricted to only the data
operators for storing additional vouchers. There is absolutely no additional cost
of processing additional transaction data.
Accuracy
The information content of reports generated by the computerised savings
accounting system is accurate and therefore quite reliable for decision making.
In a manual savings accounting system the reports and information are likely
to be distorted, inaccurate and therefore cannot be relied upon. It is so because
it is being processed by many people, especially when the number of
transactions to be processed to produce such information and report is quite
large.
Security
Under manual savings accounting system it is very difficult to secure such
information because it is open to inspection by any eyes dealing with

CHAPTER THREE

3.0 RESEARCH METHODOLOGY AND INVESTIGATION

3.1 INTRODUCTION

Research methodology and investigation stated the various methods employed

during data collection for the study and statistical techniques for analysis of
the data. It is the detailed and description of what the analysis planned and
carried in his/her study.

According to Nkpa (1997) Research is a process of generating findings, which

are used for rational decision making and as a springboard for further
research. Therefore, research methodology is a structured approach of arriving
at a dependable solution to problems through the panning and interpretation
of data. It is also a detailed description of what the researcher planned and
procedures adopted in actualizing a particular project work.

3.2 RESEARCH METHODS ADOPTED

The principle research methods adopted in this work are interviews,
observation, questionnaire and written records which are categorized into
primary source of data collection.

3.2.1 Primary Methods

The primary source of data is the study from which information is collected on
first-hand basis through interviews, observations or questionnaires. All these
tools were used in this research work, much of the information to be presented
and the analysis in the chapter were first-hand information.

3.2.2 Interviews Methods

This is the method in the researcher meets face-to-face with the respondent. It
is a method through a researcher gets in contact with the respondent from
whom the information is obtained and recorded as first-hand information.
Some of the staff could not give the opportunity of monitoring the they work as
they see it as a distraction, so they decided to grant me an interview and for
any discussion with them. I was led into understanding more about savings
account system in the bank.

3.2.3 Observation Methods

This is a method whereby the researcher is present at the point of the incident
and records the actual at that point in time. This makes the researcher
observes and watch critically as the operations goes on and record what
actually happened. The researcher watch keenly how different operations were
carried out, the researcher observed how update is being carried out and also
the contemplation of the proposal of the new system.

3.2.4 Questionnaire

In order to establish the truth with regards to interviews, simple analytic

techniques were used. Some question were drafted, 20 persons were randomly
selected from the working population of about 40 staff in First Bank PLC. The
number of response from the 20 persons was involved in this analysis stage.
The response of these people was classified and tabulated later in chapter four.

3.3 SYSTEM INVESTIGATION

This refers to the investigation of the new system with the objectives of
understanding how and the ways the system operates and also to find out
areas, procedures/sub-system that needs to be improved in the old system and
possible procedures for such improvements. This deals with the ordering of the
breaking down of data collection into construction parts. It consists of
statistical calculation performed with raw data to provide answers to the
question initiating the research. Facts were gathered in respect to the new
system.

3.4 SYSTEM ANALYSIS

This is the process of collecting, gathering and analysing facts about the
existing system. In order to obtain an appreciation of their nature, their
characteristics and problems, two things must be considered which are:

The system requirements

The user requirements

The study of the old system revealed that the system was not meeting the
users requirement as well as the system requirements. The staff could not be
held responsible for any delay in operation as they are human beings and not
machines. There was no reliable information from the savings account unit and
operations were not efficient as more time and material were being wasted.

3.5 WEAKNESS AND PROBLEMS OF THE EXISTING SYSTEM

Since the savings account unit of First Bank PLC is being operated manually
(i.e. by issuance of tally or teller number), there are some inherent problems
like:

Lack of facilities for fast processing and issuance of account

numbers to newly signed customers.
The stress involved in accessing ones account in the case of
withdrawal or trying to get some vital information about the account.
Difficulties encountered during transactions.

3.6 PROPOSAL OF THE NEW SYSTEM

Computerized bank saving account system is being proposed as solution to the

problems in existing system. The proposed system allows customers to make
fast and reliable transactions over their account simply by logging in into the
banks website at their own convenience. Most of its advantages are outlined
below:

It allows easy access to ones account

It increases your money
It is relatively safe
CHAPTER FOUR

4.0 ANALYSIS, DESIGN AND SYSTEM IMPLEMENTATION

4.1 INTRODUCTION

This chapter deals with the analysis of the data collected with the aid of the
questionnaire, system design and implementation. A total number of 20
questionnaires were administered at the institution and 15 returned theirs why
5 did not returned their own. All computations were based on tables, figures
and percentages.

Research question

How do you consider computerized bank savings account system?

Table

Response Frequency Percentage

Very good 13 86.33%

Good 2 13.33%

Bad - -

Total 15 100
The table above shows that 86.33% representing 13 staff strongly considered
the adoption of computerized bank savings account system very good, 13.33%
representing 2 staff considered it good while none of the staff considered it bad.
Below is bar-chart for the distribution.

4.2 SYSTEM DESIGN

System design is the act of deriving or inventing a part of a partially or

computing a new scheme. It is a creative function, it involves improving on the
lapses or setbacks, most of the points usually taken into consideration while
designing a system include:

Re-appraisal in the light of the result so far obtained.

Viewing repeatedly on the analysis of the existing system

particularly any weak points and any unexpected discovery.

Decide if the system is perfect or can an analyst predict completely

the requirements of any system.

4.3 SYSTEM REQUIREMENTS

4.3.1 Software Requirements

The basic software requirement in running this is the operating system,

windows Xp, Vista or Windows 7.

The type of programming language adopted is visual basis dot net (vb.net) 2008
edition.

4.3.2 Hardware Requirements

The hardware requirements for the new system are as follows:

At least 14 inches monitor for display of information.

A standard keyboard normally that of Microsoft Corporation for

entering of data/values into the system.

At least Pentium IV system with a minimum of 512MB of RAM and

a fast processing speed for program execution.
4.4 SYSTEM IMPLEMENTATION

This is the planning and supervising of the effects on ongoing operations of the
instruction and conversion of information systems or computer systems. Here
in the implementation level, the administration should create an office block for
computer installation and also employment of qualified staff such as system
programmers, system analyst and other computer operators. Implementation
involves the following:

Drawing up the implementation plan

Software and hardware acquisition

Staff training

Documentation of the system

Program Implementation: This involves coding, testing, changeover

procedure, evaluation and maintenance of the program.

4.5 TESTING

In this research, the researcher re-examined the logic of the design tool to
correct any flow. Careful steps were taken to ensure that the logic of the data
corresponds with the logic of the design tools; this was done by using both the
valid and invalid data to check the correctness of the data.

When it is ensured that the system is running error free, the user are called
with their own actual data so that the system could be shown running as per
their requirements.

4.6 MAINTENANCE

System maintenance is the process of supporting the system after it has been
proposed. The maintenance stage of the newly implemented system will include
the effort taken to ensure that the system continuously meet the need of the
institution.

Maintenance is necessary to eliminate errors in the system during its working

life and to turn the system to any variation in its working environments since
the equipments and the system is in use, personnel need to monitor and
maintain it so that the system will not break down, and even if this eventually
occurred, the fault will be easily identified and corrected immediately. Another
maintenance stage is to produce a clear, correct and maintainable program. A
program is maintainable when it can be easily amended in times of such need.
This is written in such a wan that it can be modified at any time to meet the
current standard or need.

CHAPTER FIVE

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY

Like earlier said, the use of computer in almost all aspect of human service is
assuming greater dimension every day since computerized banking information
system is to provide correct and up to dates information about the customer
and establishment for manpower planning purpose and recognition.

The adoption of computerized savings account system has tremendously

changed the way operations are being carried out. The Savings Accounting System
will accommodate various types of savings plans. It is designed to allow one-
time entry of the Customer Information File which can be tied to as many
accounts as necessary. Accounts are set-up according to size, type, and class,
and reports may be generated accordingly. Compounding may be done daily,
monthly, quarterly, semi-annually, or annually. Deposits and withdrawals may
be made at any time. Statements are created individually, or may be run on a
selected cycle basis. Complete accounting of accrued interest is available at all
times including: interest paid to customers, interest due and unpaid to each
and all customers, and total unpaid interest for each class and type. Interest
may be paid to the customer or any designated individual, added to principal
account, or transferred to another account.

5.2 CONCLUSION
Computerized bank saving accounting system is a beneficial use of current
technological advances. Not only has it revolutionized the traditional paper
methods of accounting, but it has also created new types of accounting
applications for banks. Banks now create entire accounting information
systems that integrate all transactions being carried out in the bank.
Bank savings accounts offer a safe place to keep your money. Suppose that you
have $1,000 and you're not going to use the money for another 3 months. You
could do several things with the money. You could carry it around with you,
you could put it under your mattress, or you could put it into a bank savings
account. The safest thing to do with your money is to put it into a savings
account.
5.3 RECOMMENDATION

Computerized bank savings account system is a type of account designed to

simply hold money that you do not need immediate access to. When contrasted
with checking accounts, bank savings accounts tend to pay a slightly higher
rate.

Finally, I recommend that banks and other financial institution should look
into an effective performance of this system through:
Training of their staff to fit into the newly implemented system.
Setting up system and materials in a well conducive environment
for effective functioning of the system.
Employing engineers, system analyst and other related computer
professional for effective system management.
REFERENCES

Macesich, George (30 June 2000)

Issues in Money and Banking. Westport, Connecticut: Praeger

Publishers

Cronin, Mary J. (1997)

Banking and Finance on the Internet, John Wiley and Sons

Hoggson, N. F. (2007)
Banking Through the Ages, New York, Dodd, Mead & Company.

Cole, Robert E. (1995)

Consumer and business credit management. Homewood publishers
new york