Impact of Information Technology on Banking Sector

In: Business and Management

Submitted By neta
Words 562
Pages 3
This project examines the general impact of Information Technology(IT) on the banking industry. The banking industry has introduced various new customer services and products using IT. The banking industry has gone through many changes as a result of the introduction of IT. In fact, the structure of the industry is continuously changing because of rapid development of IT. The continued success of IT applications mean that the limitations of current IT computer systems in banks have to be re-developed to meet future requirements.

The aim of this project is to evaluate how the banking industry has applied IT; the effects of IT on competition; current IT applications and systems problems; the security of IT systems; IT risk and IT fraud and the future application of IT in the banking industry. The focus of the report has mainly been in the UK and US.

In the research, the banking industry has demonstrated a fair amount of competence in the application of IT. Some banks were at the cutting edge of IT and have a clear vision of how IT could be furthered applied successfully. Banks have spent millions of pounds on IT every year in a bid to fully automate its operations and services to customers. The industry recognises that IT was a major key to its development.

The research brought to light the fact that IT has increased competition within the industry. The realisation that the market size is not really increasing has made banks more competitive. Also, the expectation of their customers is very high and in response banks using IT to satisfy the demand for quality services and products. However, there is an increasing outside threat to the banking industry from the non-banking sector. Deregulation of the banking industry has introduced more competition but the low cost of computer technology has made it easier to enter the industry. Non-banks can now pick up off…...

Similar Documents

Technology and Indian Banking Sector

...ISSN No-2230-7850 Vol.1,Issue.IX/Sept;11pp.1-4 Research Paper Technological Developments in Indian Banking Sector Dr. B.S. Sawant, Director, K.B.P. Institute of Management Studies and Research, Satara, Research Guide Abstract: Banking sector plays a significant role in development of Indian economy. So banks need to optionally leverage technology to increase penetration, improve their productivity and efficiency, deliver cost-effective products and services, provide faster, efficient and convenient customer service and thereby, contribute to the overall growth and development of the country. Technology enables increased penetration of the banking system, increases cost effectiveness and makes small value transactions viable. Besides making banking products and services affordable and accessible, its simultaneously ensures viability and profitability of providers. Technology allows transactions to take place faster and offers unparallel convenience through various delivery channels. Technology enhances choices, creates new markets, and improves productivity and efficiency. Effective use of technology has a multiplier effect on growth and development. In the area of payment systems, there have been significant advancements of technology on the customer transactions. India is one of the country that has effectively tackled huge volumes of paper instruments in cost effective manner. The Magnetic Ink Character Recognition (MICR) cheque clearing System, cheque......

Words: 3234 - Pages: 13

The Evolution and Impact of Information Technology in Businesses

...The Evolution and Impact of Information Technology in Businesses Introduction to Business BA101 January 15, 2013 The Evolution and Impact of Information Technology in Businesses The rise of the technological advancement in society has had a major impact in today’s business world. Technological development has restructured the way businesses operate effecting the business structure, advertisement, marketing, and communication. With the advancement of information technology, coupled globalization the business environment has been thrust into global market forever changing the boundaries resulting in unlimited business opportunities across the globe. Although technology coupled globalization has a major impact on business world, there are also some disadvantages of technology in the work place. In this discussion I will define information technology, explore the impact on of information technology (globalization) in the work place and examine the advantages and disadvantages of information technology. Information technology is defined as the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate information. In this present day information technology has continued to transform the landscape of the business community and the way society conducts business. Information technology has spun the business sector into a globalization electric transformational market place. Globalization has bridged the gap of space and time bring a......

Words: 1256 - Pages: 6

Impact of Information Technology

...THE IMPACT OF INFORMATION TECHNOLOGY ON BANK PERFORMANCE IN NIGERIA: A CASE STUDY OF FIRST BANK NIG PLC. TABLE OF CONTENT Title page i Approval page ii Declaration iii Dedication iv Acknowledgement v Table of content vii Abstract ix CHAPTER ONE: INTRODUCTION 1.1 BACKGROUND TO THE STUDY 1.2 STATEMENT OF PROBLEM 1.3 OBJECTIVES OF THE STUDY 1.4 RESEARCH QUESTIONS 1.5 RESEARCH HYPOTHESES 1.6 SIGNIFICANCE OF THE STUDY 1.7 SCOPE OF THE STUDY 1.8 STRUCTURE OF THE STUDY 1.9 OPERATIONAL DEFINATION OF TERMS CHAPTER TWO: LITERATURE REVIEW 2.1 INTRODUCTION 2.2 INFORMATION TECHNOLOGHY CONCEPTS 2.3 DEVELOPMENT OF INFORMATION TECHNOLOGYIN BANKING INDUSTRY 2.4 EVOLUTION OF INFORMATION TECHNOLOGY 2.5 COMPUTER TECHNOLOGY IN BANKING INDUSTRY 2.6 GLOBALIZATION, INFORMATION TECHNOLOGY AND NIGERIAN COMERCIAL BANKS 2.7 BENEFIT OF......

Words: 2309 - Pages: 10

Impact of Information Technology

... ciop^ ^ mm James C. Emery, Assistant Professor THE IMPACT OF INFORMATION TECHNOLOGY ON ORGANIZATION November 1964 No. 103-64 Paper to be delivered at the 24th Annual Meeting, Academy of Management Chicago, December 29, 1964 . THE IMPACT OF INFORMATION TECHNOLOGY ON ORGANIZATION Introduction A discussion of the impact of information technology on organization is largely a matter of speculation, since we are just now beginning to per- ceive its effects. Speculation, though often interesting and occasionally useful, presents some obvious hazards. One hazard, of course, is that predictions may prove wrong. This is not as great a danger as one might suppose, however, since the dramatic developments in the field of information technology make it likely that any prediction, if it is sufficiently imaginative and glamorous, will eventually prove correct. In any event, suitable hedging can minimize the probability of error, and faulty memories will reduce the penalty of an error if the prognosticator is indiscrete enough to make it obvious. A more serious and immediate pitfall trite and commonplace. is that the speculation may be This hazard is particularly treacherous when dis- cussing information technology and organization, since we already have been * presented with such a rich abundance of speculation on the subject. I do not claim that I have avoided this hazard altogether,......

Words: 4898 - Pages: 20

Technology Change in Banking Sector

... 0  0  1   In this article I want to first give an overview of how managers have been functioning in classical organizations, then look at how their environments have changed and the impact that this has had on them and their ability to respond to their environment.  Lastly I want to look at the new, developing role which requires managers to be responsive to this changing environment and to develop adaptive changes. 1.            Failure of Traditional Management In many organizations, managers have been taught to carry out the classical functions of management – planning, organizing, leading and evaluation.  Yet any observer of human behavior would have to conclude that by and large this has not happened.  Many managers have not understood their roles nor carried out their management functions at all well – particularly planning and evaluating.  Probably leadership in many cases has been entirely lacking. One of the major issues that I have with classical management theory and practice is that it is based on outmoded views of human behavior.  It assumes also that we live in a stable unchanging environment which can be predicted with accuracy so that the organization can appropriately respond. This model of management also assumes that the most competent, the very best performers and the most creative thinkers become managers.  And we know that is not true!  Many people achieve management positions for a diverse range reasons including those of talent, politics, age,......

Words: 1384 - Pages: 6

The Impact of Information Communication Technology

...ESSAY ON IMPACT OF C/T ON PERSONAL BUSINESS LIFE Conclusion Communications Impacts In the past the manual and verbal method of communication was the norm on all aspects of our lives. Communications mediums have changed beyond recognition with the advancement of Technology. In this essay I will provide an overview of three forms of Technology: Mobile Phone, the Internet, the E-Mail. I will also explain current development in C/T and discuss the role of legislation on the industry. Mobile Technology: Mobile Technology is the technology used for cellular communication. They come into use in 1990’s. When first introduced, it way a luxury item, today it is viewed as an essential to our existence. Old mobile technology consisted of a large handset, battery and signal difficulties and was very expensive. Since the start of this millennium a standard mobile device has gone. Today mobile are slim line, cheaper and can perform of many functions: Personal Mobile use: * To call * To Text * Camera functions * Games * Alarm * Email * Internet * Calendar * App Store Business use: * To communications with staff, customers/business partners Advantages of Mobile Technology: * 24/7/365 contact * Accessible at all time * Variety of services available via any mobile * Mobile Marketing reaches new and existing customers * Sending out special offers and tracking responses. * GPS in phone can help......

Words: 867 - Pages: 4

Social Issues on Information Technology That Affects Banking Sector

...* Banks, usually take help of various Information Technology (IT) basedchannels to provide their banking and other services. For this purpose, they are in need to provide continuous and frequent information about their services. We can use IT as a strong means to fulfill our objectives social and ethical banking. The IT based banking services are as follows: Mobile Banking is a new and emerging concept. Large numbers of people are still not aware about usage of mobile banking. In this, one's mobile phone is used to conduct banking transactions. • The popularity of Online Banking is significantly increasing day by day. It is a term used for performing various transactions, payments, and account statements etc. with the help of Internet. • Relationship Managers, mostly for private banking or business banking, often visit customers at their homes or businesses. • Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a videoconference enabled bank branch clarification. * Frauds and deceptions have been the bane of banking and finance down the ages. Advent of computers have not only made novel ways of fraud possible, but also made the consequence of such frauds – the quantum of potential loss astronomical. The banks are susceptible to frauds both from......

Words: 670 - Pages: 3

The Evolution of Information Technology and Its Impact

...The Evolution of Information Technology and its Impact Felles Grant Grantham University October 29, 2013 The Evolution of Information Technology and its Impact Businesses have been searching forever for newer technology and ways to speed up production to draw in more business. With the introduction of the first personal computer in 1981 the promise of a new age of information technology was just beginning. Before businesses could capitalize on these benefits some rearranging had to take place. Automated tellers came to be and Microsoft releases the windows operating system in 1985, then in the 90's electronic commerce gabbed hold to technology. Now look at us mostly all business is conducted over a personal computer or some type of device. Computers offer businesses many options to organize data, personal information and other essential information. Information technology though it may seem new it's not, it has been around for a while now. It has been around so long that information technology can be broken down into 4 main ages. There is the premechanical age, the mechanical age, the electromechanical age, and the electronic age. The premechanical age is around the time of 3000 B.C and 1450 A.D. Yes we're talking caveman. Some of man's first communications were performed by drawings and carvings on rocks. This technology was called petroglyths. The along came the alphabet and we as people began......

Words: 515 - Pages: 3

The Impact of Information Technology in Nigeria’s Banking Industry

...ENGINEERING, VOLUME 7, ISSUE 2, JUNE 2011 63 The Impact of Information Technology in Nigeria’s Banking Industry 1 Oluwagbemi Oluwatolani 2Abah Joshua and 3Achimugu Philip Abstract-Today, information technology (IT) has become a key element in economic development and a backbone of knowledgebased economies in terms of operations, quality delivery of services and productivity of services. Therefore, taking advantage of information technologies (IT) is an increasing challenge for developing countries. There is now growing evidence that Knowledgedriven innovation is a decisive factor in the competitiveness of nations, industries, organizations and firms. Organizations like the banking sector have benefited substantially from e-banking, which is one among the IT applications for strengthening the competitiveness. This paper presents the current trend in the application of IT in the banking industries in Nigeria and gives an insight into how quality banking has been enhanced via IT. The paper further reveals that the deployment of IT facilities in the Nigerian Banking industry has brought about fundamental changes in the content and quality of banking business in the country. This analysis and clarification of how Nigerian Banks have used IT to reengineer their operations is detailed through literature review and observation. Three categories of variables that relate to the use and implementation of information technology devices were considered in this paper. These......

Words: 2996 - Pages: 12

Impact Information Technology

...EXECUTIVE SUMMARY Information technology is an amalgam of some wonderful inventions of the 20th century in electronics and communication. During a very short span of time it has acquired an important place in almost all aspects of human life and is found everywhere these days. For most of us, it is hard to image daily life without the influence of technological devices, be it handheld video games, personal digital assistants, cell phones or any number of computers. Through this paper the study on “IMPACT OF INFORMATION TECHNOLOGY” on students and at work place and also the satisfaction level of using IT by these two groups of people have been shown, the advantages and disadvantages of IT. This paper also reflects the problems faced by the students and the employees working in the organization. The objectives of this paper are: • To study the impact of information technology on Students, at work place and on general public. • To study the satisfaction level of using information technology. • To study the problems faced by them. In the research methodology I have taken both primary data as well as secondary data. In the primary data I have made a questionnaire to find out the impact of information technology. In the secondary data I have collected the information from different age groups respondents, from various reports and journals published by different authors and from reports of various study group or working groups appointed by Government from time to......

Words: 7224 - Pages: 29

Negative Impacts of Technology in Banking Sector

...Negative impact of technology in banking sector Information Technology solutions have paved a way to a new world of internet, business networking and e-banking, budding as a solution to reduce costs, change the sophisticated economic affairs to more easier, speedy, efficient, and time saving method of transactions. Internet has emerged as a blessing for the present pace of life but at the same time also resulted in various threats to the consumers and other institutions for which it’s proved to be most beneficial. Various criminals like hackers, crackers have been able to pave their way to interfere with the internet accounts through various techniques like hacking the Domain Name Server (DNS), Internet Provider’s (IP) address, spoofing, phishing, internet phishing etc. and have been successful in gaining “unauthorized access” to the user’s computer system and stolen useful data to gain huge profits from customer’s accounts. Thus Technology has come with its advantages. But it also has its negative effects; the case in question is the introduction of e-commerce in the banking sector; a technology hitherto known as "E-Banking". Hacker: Hacker is computer expert who uses his knowledge to gain unauthorized access to the computer network. He’s not any person who intends to break through the system but also includes one who has no intent to damage the system but intends to learn more by using one’s computer. Information Technology Act 2000 doesn’t make hacking per......

Words: 1843 - Pages: 8

The Impact of Information Technology on Accounting System

...THE IMPACT OF INFORMATION TECHNOLOGY ON ACCOUNTING SYSTEM A CASE STUDY OF FIRST CITY MONUMENT BANK PLC MAKURDI ABSTRACT This study examines the impact of information technology on accounting system. The researcher has done this research using primary and secondary sources of data thereby adopting the questionnaire method and personal interview as a data collection technique. The statistical tool adopted in testing hypothesis was analyzed using chi-square. The major findings of this research revealed that, the positive impact of information technology outweighs the negative impact and both banks and customers benefit from it. Fraud is a major problem associated with information technology as it is on the increase by the day. The research recommended that, Government should improve the electricity supply in the country; they should support local IT firms by providing loans, and lowering tariffs with a view to encouraging them in carrying out their activities. TABLE OF CONTENTS Page Tittle page - - - - - - - - i Approval page - - - - - - - - ii Declaration - - - - - - - - iii Acknowledgement - - - - - - - iv Dedication - - - - - - - - v Abstract - - - - - - - - vi Table of contents - - - - - - - vii CHAPTER ONE INTRODUCTION 1.1 Background to the study - - - - - 1 1.2 Statement of the Problem. - - - - 2 1.3 Objectives of the......

Words: 2144 - Pages: 9

Impact of Information Technology in Banking Sector

...S.No. | Bank | Tenure | Interest Rate | 1 | Lakshmi Vilas Bank | 1 year to less than 2 years | 10.50% | 2 | Tamil Nadu Mercantile Bank | 1 year to less than 2 years | 10.25% | 3 | City Union Bank | Above 3 years upto & inclusive of 5 years | 10.10% | 4 | Dhanalaxmi Bank | 300 days | 10.00% | 5 | State Bank of Travancore | 1 year and above | 9.50% | 6 | South Indian Bank | 300 days | 10.00% | 7 | Karur Vysya Bank | 1 year to 2 years | 10.00% | 8 | State Bank of Patiala | 999 days | 9.75% | 9 | Syndicate Bank | 211 to 269 days | 9.55% | 10 | Punjab and Sind Bank | 500 days | 9.75% | 11 | Karnataka Bank | 1 year to 2 years | 9.75% | 12 | Corporation Bank | 12 months | 9.65% | 13 | Yes Bank | 480 days | 9.60% | 14 | Kotak Bank | 1 Year & above upto and inclusive of 389 Days | 9.50% | 15 | IDBI Bank | 500 days | 9.50% | 16 | J&K Bank | 2 years to less than 5 years | 9.50% | 17 | Federal Bank | 1 year | 9.75% | 18 | Central Bank of India | 2 yr to less than 3 years | 9.30% | 19 | Axis Bank | 1 year to less than 14 months | 9.40% | 20 | Andhra Bank | 1 year | 9.40% | 21 | Vijaya Bank | 2 years to less than 3 years | 9.35% | 22 | Bank of Baroda | 444 days | 9.35% | 23 | Dena Bank | 1 year | 9.60% | 24 | Canara Bank | 1 year | 9.25% | 25 | Indian Overseas Bank | 1 year | 9.50% | 26 | ICICI Bank | 590 and 990 days | 9.25% | 27 | Bank of India | 555 days | 9.25% | 28 | Indian Bank | 1 year to less than 3 years |......

Words: 304 - Pages: 2

Information Technology Risk in the Banking Sector in Bangladesh

... ASSIGNMENT ON Information Technology Risk In The Banking Sector IN Bangladesh Course Title: Working Capital Management Course Code: BBA-4122 Submitted To: Md. Munsur Ahamed Lecturer, Department of Finance,AUB Submitted By Group-E Name | ID NO: | BATCH | SECTION | Nargis Akter | 200820324 | 33rd | Finance(A) | Shamima Ferdaus | 200820558 | 33rd | “ | Syeada Kohenur Begum | 200820786 | 33rd | “ | Umma kulsum | 200820367 | 33rd | “ | Umme kulsum Binte Nazrul | 200820554 | 33rd | “ | Submission Date: 25-March-2012 DEDICATION PAGE I want to dedicate this Assignment to my honorable teacher Munsur Ahamed (Lecturer , Department of Finance, AUB ), who encourage and help me utmost to complete such a typical assignment. ACKONOLEDGEMENT PAGE I attempt to make a typical assignment, to complete these assignment many person help me. Thanks my honorable teacher Munsur Ahamed ( lecturer , Department Finance AUB. ) To collect some information I got help from many books and Internet so thanks Asian University Library and computer lab thanks my all friends who help me to complete a good assignment. At last thanks to Almighty Allah. Information Technology Risk In The Banking Sector In Bangladesh Abstract Continuous technological development, particularly, information technology revolution of the last two decades of the 20th century has forced the banks to introduce the e-banking operation for their sustainable growth in an......

Words: 5900 - Pages: 24

Impact of Information Technology on

...Journal of Information Systems Vol. 16, No. 2 Fall 2002 pp. 209–222 Impact of Information Technology on Public Accounting Firm Productivity Rajiv D. Banker Hsihui Chang The University of Texas at Dallas Yi-ching Kao University of Wisconsin–Milwaukee ABSTRACT: In recent years, information technology (IT) has played a critical role in the services provided by the public accounting industry. However, no empirical research has evaluated the impact of IT on public accounting firms. This study focuses on five offices of an international public accounting firm that recently made large IT investments, primarily in audit software and knowledge-sharing applications. Both qualitative and quantitative information from the research site are analyzed to estimate the change in productivity following the implementation of IT. The results from both regression analysis and Data Envelopment Analysis (DEA) indicate significant productivity gains following IT implementation, documenting the value impact of IT in a public accounting firm. Keywords: public accounting; information technology (IT); IT productivity; IT adoption; data envelopment analysis. Data Availability: The confidentiality agreement with the firm that provided the data for this study precludes revealing its identity and disseminating detailed data without its written consent. I. INTRODUCTION dvances in information technology (IT) have transformed many firms in professional services industries, but......

Words: 8102 - Pages: 33