CHAPTER ONE:

1.1 Background to the study

The banking industry constitutes one of the pillars in which the economy of any nation rests. The computer has massive effect. On the nature, quality and structure of works almost everywhere there by becoming largely responsible for the emergency of the modern post industrial societies. Proper application of the computer is a major technical factor affecting organization efficiency and culture worldwide.

In the past decades, the introduction of workstation and powerful networking devices have put computer on the desk of offices. It has continues to play a central role in the operation of many corporations while other forms of computing are used in business in various capacities, the largest place in the e-banking environment such as banking health care government, insurance e.t.c. 

The results of the use of computer union bank in banking sector include:
1. E-banking:- Electronic banking also use electronic technology as a substitute for cheque and other paper transactions.
2. ATM:- Automatic teller machine- these are electronic terminal that permit banking transaction almost any time. To withdraw cash, make deposits or transfer fund, between accounts, the user generally insert the ATM card, enter the personal identification number (PIN).
The use of the ATM is increasing over the years.

3. Direct deposit:- it permit the user to authorize specific deposits, such as pay cheques and social security cheques, to the account on regular basic.
4. PC- banking:- personal computer banking permit customer to handle may banking transaction via- the pc. The customer may use the computer to view the account balance request, transfer between accounts and pay bills electronically.
5. Point of sale transfer:- this allows the user to pay for purchase with a debit card, which also may be the ATM card.
6. Paying bills on:- line: this is a process whereby remote terminal is linked directly in to the processor.

The following are steps involves with setting yup an on-line paying program.

• First the user must decide if bills are going to be paid through the bank (assuming the banks offer the service) or through a third party vendor.

• Check out the on-line banking fees to help the user make the decision.

• Once the user have set up the account with the bill paying service provider, the user will have to input the address, homes and phone numbers of the payees, as well as the number for each of the accounts.

• Many banks offer lower checking accounts to customer who refer to bank ATM, phone or computer and every few charges on individual account access.