The Effects of Computerized Accounting System on the Performance of Banks in Nigeria

Abstract

Computerization in Nigerian commercial banks has now become widely spread. However, the fact that computerization has gained acceptance in Nigerian banking sector does not mean that an improvement in bank performances has occurred over the years of adoption of computerized system. Apparently, the study aims at examining the effects of computerized accounting systems on bank performance in Nigerian banking sector. Convenience sampling method was adopted to arrive at sample size of 50 covering Guaranty Trust Bank Plc, Wema Bank Plc and First Bank Plc. The study variables consist of both dependent variable and independent variable, with Computerized Accounting System being the dependent variable and banks profitability as independent variable and customer service delivery respectively being the dependent variables. Data collected were analyzed using correlation analysis. Results show that computerized accounting system has a positive effect on bank's profitability and as well customer patronage. The study therefore recommends that computerized accounting systems should be adopted by all banks in Nigeria because it has a lot of advantages and benefits and government power supply should be replaced with inverters for the purpose of powering the computers used in their operations so as to prevent power outage which may result in data loss on the computer.

Keywords: Computer accounting, Profitability, Commercial Banks, Customers Patronage