DESIGN AND
IMPLEMENTATION OF ACCOUNT HOLDER’S INFORMATION SYSTEM FOR A MICRO FINANCE BANK
TABLE OF CONTENT
Cover page
Title page
Approval page
Dedication
Acknowledgment
Table of content
Abstract
CHAPTER ONE
1.0 Introduction
1.1 Background
of the research
1.2 Statement
of research problem
1.3 Objectives
of the study
1.4 Research
question
1.5 Significance
of the study
1.6 Scope of the
study
1.7 Limitation
of the study
1.8 Definition
of terms
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
2.1 Review of
concept
2.2 Review of
related work
2.3 Empirical
studies
2.4 Theoretical
framework
2.5 Summary
of the review
CHAPTER THREE: SYSTEM ANALYSIS AND DESIGN
3.1 Introduction
3.2 Feasibility study for a standard fish farm
3.3 Method of data collection
3.4 Data preparation
3.5 Program structure
3.6 File maintenance module
3.7 Main menu specification
3.8 Problem of the existing system
3.9 Justification for the new system
3.10 System modeling
3.11 Information flow diagram
3.12 System flow chat
3.13 Activity diagram
3.14 Program flow chart
3.15 Database specification and design
CHAPTER FOUR: SYSTEM TESTING AND DOCUMENTATION
4.1 Introduction
4.2 Program language justification
4.3 Systems requirement
4.4 Implementation details
4.5 Procedure testing plan
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Bibliography
Source code
CHAPTER ONE
1.0 INTRODUCTION
ICT can
be a strategic tool in making Microfinance Institutions (MFIs) more efficient
and effective. MFIs can reach more people in a more economic way by
implementing the right Management Information System (MIS). While a few MFIs
are making good use of technology, the majority are facing difficulties in
getting the right solution.
Microfinance is considered to be an effective tool in
alleviating poverty by increasing income of poor households and reducing their
vulnerabilities. Today, when the majority of the world’s population is living
below subsistence level, more than 3,000 organizations are providing
microfinance services to millions of the world’s poor. Yet most of the poor
still have little or no access to financial services. Microfinance institutions
(MFIs) have reached a mere 70 million out of 2 billion poor people. The task of
reaching such a big number is a major challenge.
With a population of around 150 million people,
Nigeria has big potential for microfinance. 70% of the population lives in
rural areas. Despite achieving a growth rate of 6-7% in recent years, poverty
has increased by 2%, showing low penetration of economic benefit to the lower
income sector. Unemployment rate stands over 8% and per capita income is
US$652. The financial sector of the country comprises some 35 scheduled banks.
These banks have an outstanding portfolio of US$20.7 billion against 3.2
million accounts and they hold deposits worth US$33.3 billion in 28.5 million
deposit accounts. More than 50% of the deposits and portfolio are concentrated
in three main banks with large branch networks.
Banks
are financial institutions set up to provide customers with some specific
functions such as receiving deposits from customers for savings and onward
money transfer as well as credit services. Banks as defined by Business
dictionary.com is
An establishment
authorized by a government to accept deposits, pay interest, clear checks, make
loans, act as an intermediary in financial transactions, and provide other
financial services to its customers.
More so, banks are into safekeeping transaction and
group management purposes with the intention of making profits and delivering
best but affordable services to their customers.
These customers may either be individuals or
institutional and serving them in the more convenient, efficient and fastest
possible way is the aim of all banks so as to derive utmost benefit from them.
In the 1990’s through to early 2000’s, the number of accounts holders in the
various banks in Nigeria both rural and commercial banks were very few. The use
of manual banking system made it uneasy to serve customers in a more diverse
ways as urgent demand for information coupled with reconciliation of financial
statements of the various institutional customers were very hard to come by.
But with the introduction of Computerized Accounting System, the more tedious
banking functions through the use of manual banking system has considerably
been softened.
In Nigeria, the use of computerized Accounting System
in the various banks is drastically changing the way banking activities are
being organised. Electronic commerce is now regarded as the panacea for the new
commercial revolution that is taken place in the advance world which in one way
or the other lacking in Nigeria, and by offering reasonable banking products
and services to customers, Nigerian banks had to adopt computerized Accounting
System. Moreover, considering the recent improvement in the country’s
infrastructure then one can say that the banks had nothing to say but toforcibly
adopt this technology in order for them to improve their services for their
customers.
1.1 BACKGROUND OF THE RESEARCH
Amanano
Rural Bank Ltd was registered as a Limited Liability Company on the 29th March
2004 and it is Head quartered at Lagos off Kumasi Road. The Bank is currently
operating other Agencies or Branches namely Ikeja Agency, Ojudu Agency and VIP
all in Lagos. Services that are currently being rendered by Amanano Rural Bank
Ltd to its clients includes Report Activities, Loans, Overdraft, Micro-Finance,
Business Advisory, Money Transfers and Investment Services. A very detailed
coverage of the case company will be given in my next report.
Vision Company
Amanano Rural Bank’s vision is to become the eye
opener and a pacesetter of Rural Banking in Nigeria with Strong growth
indicators for regulators and competitors to use as a benchmark and for
employees to feel proud working with us.
Company Mission
Amanano Rural Bank’s mission is to generate superior
returns to all stakeholders: that is to improve Shareholder value, employee
motivation and customer care.
Company Values
The bank’s core values are integrity, professionalism,
growth mindedness and continuous improvement.
1.2 STATEMENT OF RESEARCH PROBLEM
Complaints
over the processes in which Nigerian banks offer their services specifically in
withdrawal and deposit services, processing customer information and giving
them feedback called for this research. The computerization of the bank’s
operations and services as well as the introduction of accounting software and
Automated Teller machines by some multi-national banks has helped in improving
the financial strength of Nigerian banks. Various studies conducted by most
scholars established that Information technology has considerable positive
effects on banks productivity, cashier’s duties, banking transaction, bank
patronage, bank services delivery and customers’ services. They concluded that,
these have positive effects on the growth of banking industry. The main
research problem is that, banks in Nigeria seem to be performing below
expectation and this has affected customer’s participation of which some of
them have been left with no other option than to be selective and extra
vigilant in their dealings with the banks.
1.3 OBJECTIVES OF THE STUDY
The
main objective of this research work, after a critique analysis of the bank
issues and loop hold, which brought about this research work, the research
seeks to computerized the existing bank account holders information system, to
enhance the bank operate with effectiveness and efficiently to the standard of
others advance bank within the state or the country. A system that will
efficiently present each account holder their basic information to the account
and operation carried out.
1.4 RESEARCH QUESTION
These
research questions are of interest to the researcher and the stakeholder
company in the sense that, the existence of any banking firm to a very large
extent hangs on the banks ability to entice and maintain customers through the
offer of innovative and technologically improved banking services and products.
In order to analyse and interpret these main problems, the following research
questions of the study were identified.
1. What are the benefits of a computerized banking
system at Amanano Rural Bank Limited?
After completing the researchwork there should be a
clear answer to the following questions as well.
• What are the factors behind the growth in the use of
computers?
• What are the different software products and their
applications?
• What are the benefits of the computerized system in
comparison with the manual system?
• What are the cost effects of operating a
computerized accounting system?
1.5 SIGNIFICANCE OF THE STUDY
This
research work significance is that it will promote and increase service
delivery of the bank, there by satisfying the clients wants. It will go a long
way to manage the bank data concerning the customers/clients.
1.6 SCOPE OF THE STUDY
This
research work scope is basically on Amanano Rural Bank Limited, Lagos State and
the system functionality coverage falls on the account holder information
system, basic information and the activities carried out by the account holder.
1.7 LIMITATION OF THE STUDY
During the course of
performing/researching this project work, the researcher encountered a lot of
challenges as well as opposition which ranges from financial constraints, time
factor. This factors in their own ways, slowed down the speedy progress of this
work that resulted to the researcher not being able to finish the research work
on time as is required
Also, within
the area of study the researcher was faced with some other forms of constrains
that contributed to the limitation of this researcher work, like accessibility
to data, information and facts concerning the present study due to some reasons
or the other, some not willing to give out information that it is to be within
the workers.
1.8 DEFINITION OF TERMS
Information System: A computer
Information System (IS) is a system composed of people and computers that processes
or interprets information. The term is also sometimes used in more restricted
senses to refer to only the software used to run a computerized database or to
refer to only a computer system
Bank: A bank is a
financial intermediary that creates credit by lending money to a borrower,
thereby creating a corresponding deposit on the bank’s balance sheet.
Account: A
record of financial transactions for an asset or individual, such as at a bank,
brokerage, credit card company, or retail store1