Computer Notes for Banking : Definition, Functions, Advantages and Disadvantages of computer.

Today’s world is an information-rich world and it has become a necessity for everyone to know about computers.

Functionalities of a computer

Any digital computer carries out five functions in gross terms:

  • Takes data as input.
  • Stores the data/instructions in its memory and use them when required.
  • Processes the data and converts it into useful information.
  • Generates the output
  • Controls all the above four steps.


Computer is an electronic data processing device which

  • accepts and stores data input,
  • processes the data input, and
  • generates the output in a required format.


Following list demonstrates the advantages of computers in today’s arena.

High Speed

  • Computer is a very fast device.
  • It is capable of performing calculation of very large amount of data.
  • The computer has units of speed in microsecond, nanosecond, and even the picosecond.
  • It can perform millions of calculations in a few seconds as compared to man who will spend many months for doing the same task.


  • In addition to being very fast, computers are very accurate.
  • The calculations are 100% error free.
  • Computers perform all jobs with 100% accuracy provided that correct input has been given.

Storage Capability

  • Memory is a very important characteristic of computers.
  • A computer has much more storage capacity than human beings.
  • It can store large amount of data.
  • It can store any type of data such as images, videos, text, audio and many others.


  • Unlike human beings, a computer is free from monotony, tiredness and lack of concentration.
  • It can work continuously without any error and boredom.
  • It can do repeated work with same speed and accuracy.


  • A computer is a very versatile machine.
  • A computer is very flexible in performing the jobs to be done.
  • This machine can be used to solve the problems related to various fields.
  • At one instance, it may be solving a complex scientific problem and the very next moment it may be playing a card game.


  • A computer is a reliable machine.
  • Modern electronic components have long lives.
  • Computers are designed to make maintenance easy.


  • Computer is an automatic machine.
  • Automation means ability to perform the given task automatically.
  • Once a program is given to computer i.e., stored in computer memory, the program and instruction can control the program execution without human interaction.

Reduction in Paper Work

  • The use of computers for data processing in an organization leads to reduction in paper work and results in speeding up a process.
  • As data in electronic files can be retrieved as and when required, the problem of maintenance of large number of paper files gets reduced.

Reduction in Cost

  • Though the initial investment for installing a computer is high but it substantially reduces the cost of each of its transaction.


Following list demonstrates the disadvantages of computers in today’s arena

No I.Q

  • A computer is a machine that has no intelligence to perform any task.
  • Each instruction has to be given to computer.
  • A computer cannot take any decision on its own.


  • It functions as per a user’s instruction, so it is fully dependent on human being


  • The operating environment of computer should be dust free and suitable.

No Feeling

  • Computers have no feelings or emotions.
  • It cannot make judgement based on feeling, taste, experience, and knowledge unlike a human being.