Computerised Banking Operation In France

ABSTRACT

In this world of competitive resource application and technological development, the banks have been totally computerized. This research work computerized banking operation in france is concerned with the analysis and design of a computerized system aimed at supporting the whole banking operation provides an interface which enables the user or the customer to lodge in money into his or her account and make withdrawals as the need arises. It will also provide the basis for the implementation of computerized banking transactions. A development which made most banks and other financial institutions more responsive to changes and imperative to adopt the latest art of technology is for the purpose of maintaining operational efficiency as a means of warding off competitive threat, and also to improve on the security measures, checkmate fraud and error, to increase the speed of transaction and improvement of customer’s convenience by reducing barriers to entry into payment systems. At the end of all, the system proposed is better, calculates faster and is reliable. This enhances operations and level of commitment to customers.

INTRODUCTION

Banking has come a long way from the time of ledger cards and other manual filing systems. Most banks today are computerized to handle their daily voluminous tasks of information retrieval, storage, and processing. Irrespective of whether they are automated or not, banks by their natures are involved in all forms of Information Technology and Management on continuous basis (Molina, 1997).

Banks play their significant role in any economic system. They are financial intermediaries involve in transfers of funds within and outside the country. Banking sector is getting competitive every day. Quantity, speed, efficiency and innovations are the main points on which quality programs are designed. All banks are engaged in same basic banking activities but it is the way of delivery of services that distinguishes one bank form the other. All banks worldwide are considering quality in the strategic management. Taking a proactive stance against privacy invasion could help stave off government intervention in passing legislation to create tighter controls over what can be done with an individual’s personal data. The development of computerized banking system, however, involves a substantial amount of work, which ranges from collecting sufficiently large number of data items. Computerized banking system uses computer technology to relieve the consumer of the paper based and time consuming work. Computerized banks have started utilizing powerful computer networks resources for automating large numbers of daily transactions, which minimizes the time consuming manual paper work and giving access too many different banking services to its clients instantly, on demand, at home or at work. With the help of computerized banking, one can have access to money and banking functions anytime and anywhere, even where there is internet access (Renom, 1997).

This technology has seen a tremendous increment in the usage, as more and more big national banks and various other banks in smaller regions, have started some form of computerized banking to provide conveniences to their customers and to themselves. According to (Wainer, 2000), the computerized banking mechanism is fast and secure compared to the traditional banking operations because of automation of the manual aspects of banking practice, which is time consuming.

Barclay was incorporated on February 23, 1961 and was the first of the International Banks operating in France at that time to be registered under France Law. However, the Bank has its antecedents in the British French bank which itself metamorphosed from Banque National Pour Le Commerce ET L Industries, BNCI, and Paris, established in 1932. BARCLAY has 258 branches and cash offices and agencies in France’s major commercial center, state capital and the federal territory, including two offshore branches in New York and grand Cayman Island. BARCLAY retains the unique status of being the only France Bank with a presence in the United States of America. The New York branch acts as one of overseas correspondent banks. Others major correspondent banks are Bankers Trust (USA) and Banque Nationale de Paris (UK and France). A tradition of trail-brazing. In 1963, BARCLAY became the first bank to introduce Mobile Banking services in France. In 1986, BARCLAY became the first to introduce a Cheque Guarantee Scheme known as BARCLAY CARD, a forerunner of Easy Card which has recently replaced the electronic payment card, BARCLAY Val Card. Today the bank remains in the forefront in the application of technological innovations in banking. It is one of the largest agents of monogram International for award international money transfers. BARCLAY Connect TM provides a window for online global banking. In 1998 BARCLAY became the first France Bank to have its shares placed abroad through a global depositary Receipt (GDR) program. BARCLAY thus has a more international and diversified shareholder base than any other France bank.

BARCLAY Capital and Trust, one of BARCLAY’s subsidiaries, handles specialized services including Asset Management , retirement and Pension, Executorships of wills, trust ship services etc. Nominee, custodial and share registration services are provided by some bank Securities services. An aggressive business promotion strategy has earned the bank an enviable position in the banking industry. Due to the competition in the banking sector, banks are mapping up the best strategy to meeting up the global challenges. From the studies carried out, their initial means of transactions was manual, to automated system then to computerized system which lacked some feature such as account to account transfer of different customers, instant messaging. This study focuses on total elimination of the manual means of transactions through the addition of more features in computerized system of banking. Effective adoption of computerized banking system, error rate, paper work, inefficiency, inconsistency which has been the features of manual means of transaction will drastically reduced or totally eliminated.

The need for information is great and necessary in banking sector because of the nature of their business quick and accurate decision must be taken, like in the money market foreign exchange etc.  Banks must react quickly to change the interest rate and volatile variable in their operation where as in the production industries, mistakes can be rectified and losses been minimized.

Millions of naira may be irretrievably lost in the banking industries as a result of wrong decision based on increase information, computer is employed prominently by France banks at all the three management operations, management control and strategies.  Leading is the most important activity of banks.

The need for change as for effective use of computer lending office arose as a result of banks experiencing growing competition from officers lenders, funds available are thereby increase move costly time and savings with the result that the average cost of funds will be relatively higher, loans are becoming move complex and also great concern for the profitability of customer’s total bank relationship rather than profit derived from the use of specific service.  The transformation process could be seen as the management process which has to be effective to ensure the feasibility of working on the set inputs to produce not only the service, but also to come up with reasonable profit for the shareholder and the public at large.

The existence of frauds in our banks is not uncommon or unexpected phenomenon, because of all the problems confronting the France banking industry. The level of frauds in the banking industry of the France economy has assumed epidemic dimensions causing devastating effects. Which leads to loss of assets and denting of image. Thus losses resulting from frauds will reduce the resources of the bank thereby reduce level of resources crippling the operations of the bank affected and in some cases the bank may be forced to close down its banking operation for lack of adequate funds. When such a situation arises, it will led to loss of confidence in the affected and also reduced customers patronage. Therefore, if banks are to be well protected, they must build basic defense, pattern into their everyday operations, through the computerization of its activities or operations. Also, banking distress occurs when a bank or some banks in the system experience ililiquidility or insolvency resulting in a situation where depositors fear the loss of their deposits and a consequent break down of contractual obligations. While a bank is said to be illiquid when it could no longer meet its liabilities as they mature for payment, it is said to be insolvent when the value of its realizable assets is less than the total value of its liabilities (a case of “Negative net worth”). These could lead to bank runs as depositors lose confidence in the system and seek to avoid capital loss. The uncertainty generated as a result of distress in banking institutions, if left unchecked, often raises real interest rates, creates higher costs of transactions and disrupts the payment mechanism with the attendant economic consequence.

The main aim of this research work is to examine how computer can be used for the minimization of fraud in the France banking sector.

Objective of this study focus on the following areas:

1. To identify the causes of fraud in banks

2. To identify the various types of fraud in banks

3. To determine the effects of fraud on the business of banking

4. To examine the extent of which computers can be used to

minimize fraud in France.

5. To examine other measures and techniques that can be used

for fraud prevention.

6. To assess the effectiveness and efficiency of using

computerization to minimize fraud in banking sector.

7. To make suggestions and recommendation as to how computer

and other measure can be used to prevent fraud.