Relevance of Mathematics in Banking Industry
Mathematics is used throughout the world as an essential tool in many fields, including Science, Engineering, Medicine and Finance, among others. Mathematics is an aid to representing and attempting to resolve problem situations in all discipline.
Branch Manager, Enterprise Bank Ltd, Canaan Land Branch, Mrs. Ololade Tom-Ezewu has described Mathematical formulas as the helping tool bankers need to compare income, expenses, profits and debts.
Mrs. Ololade, who was represented by her associate, Mr Adesola Ogundiran, spoke on the “Relevance of Mathematics in the Banking Industry,” on Wednesday at the Town and Gown Interaction organized by the Department of Mathematics, Covenant University.
She defined Banking as the business activity of accepting and safeguarding money owned by individuals and entities and release of the money to the owner whenever the need arises. According to her, Mathematics and Banking are closely connected, and extensive Mathematics is involved in keeping track of the money in a bank.
Speaking on the importance of a Mathematician, she stated that Banking requires constant use of Mathematics, that is, complex formulas are necessary to compute interest and loans. Also, not only does banking require extensive maths skills, it also requires intense precision and accuracy, which a well-grounded Mathematician is capable of providing.
When itemizing the correlation between Banking and Mathematics, Mrs. Ololade stated that when deposits or withdrawals are made from a bank, Mathematics is involved to calculate the total in the accounts. Precision and accuracy is important.
Accurate Mathematics is essential to all cash transactions to ensure that correct amount/money is coming and going to the correct places (accounts).
Other correlation between Banking and Mathematics include: Fund Transfer, Reconciling of account, Bank Reconciliation, Loans and Interest Rates, Income and Expenditure, Portfolio Management and Risk Assessment.
In her conclusion, she outlined the fundamental principles that should guide a Mathematician that ventures into the Banking sector, using the acronym- MATHEMATICS: M- MENTAL ALERTNESS, A – ACCURACY, T – TRANSPARENCY, H – HARDWORK, E – EFFICIENCY, M –MEASURABLE, A – ACCOUNTABILITY, T – TENACITY, I - INTEGRITY, C – CONFIDENCE, S – SPIRITUALITY.
Present at the interactive session were the Head of the Department, Professor Samuel Iyase, other staff and students of the Department