03-08-2012, 09:55 AM
IMPACT OF INFORMATION TECHNOLOGY AND SECURITY SYSTEMS ON
BANKING INDUSTRY
1IMPACT OF INFORMATION.pdf (Size: 405.73 KB / Downloads: 32)
Introduction
With the innovation that been taking place in the telecommunication, related technologies
in the information processing known as "information technology" these would often help to
fuel the strong growth for many economies. Even banking industry was not spared by this
change. Today we cannot imagine the business world without information technology. The
retail banking industry particularly has benefited a lot from information technology
( Berger, A. N. (2003). During 1952 to recent times a revolution took place in the banking
sector, where people deposited their money into the banks that was kept safe and could be
accessed only through a check or draft. But today the tractions can be done online within
seconds the transactions are done. The banking industry was adapting to this change.
Almost all the banks started to see the impacts on the operations in the new banks in the
country. The banks had a large arrangement of information technology in their business
functioning and it proved one of the biggest advantages of information technology.
Initially, banking was done personally where the customer had to travel to the bank to
either get the information or do the transaction. In the bank everything was done on paper
that is the ledger books for maintenance of accounts, taking customer information, checks,
receipts, in and out book maintenance, transfer of money.
Literature Review:
Banking industry is one of the best customer centric industry and with the improvement in
technology it lead to a major change in all its operations as it has bought a sudden increase
in customer satisfaction and customer loyalty, that lead to the increase in profit. Earlier the
retail banking was functioning in a personalized style that is the customer had to go to the
bank to do any transactions and they also had to wait for their turn to do the transactions.
Four key forms of technology dominated business culture in the banking industry.
Personal Computer-Banking:
PC-Banking is a service which allows the bank's customers to access information about
their accounts via a proprietary network, usually with the help of proprietary software
installed on their personal computer". If the consumer can easily access he can perform
many functions, which are provided by the retail bank. As this will also increase an
awareness and importance of computer literacy among the customers in turn it will increase
the usage of personal computers. This will definitely support the growth of the PC banking
service which will virtually connects the branch bank into the customer's house or the
office. 12 available 24 hours a day and 7 days a week. This in turn would benefit the ATMs
and the Telephone banking (Rose, 1999).
Telephone Banking:
"Telephone banking (telephone banking) can be considered as a form of remote or virtual
banking, which is essentially the delivery of branch financial services via
telecommunication devices where the bank customers can perform retail banking
transactions by dialing a touch-tone telephone or mobile communication unit, which is
connected to an automated system of the bank by utilizing Automated Voice Response
(AVR) technology" (Balachandher et al, 2001).
Branch Networking:
"Networking of branches is the inter- connecting and computerization of geographically
scattered standalone bank branches into one unified system in the form of a Wide Area
Network (WAN) or Enterprise Network (EN) for creating and sharing of consolidated
customer information or records”.
Thus there will be speed rate in the transactions in the inter-branch without the distance and
time that are eliminated. So the productivity time period will also increase. Since there are
more number of branches for a bank to serve its customers and under one bank there will
huge labor working in the branches with a goal to improve the productivity in each and
every branch. The customer should travel to near by branch and spend more time to do
production activities. Are the customers of the bank today are they more satisfied and better
served from their banks with the innovations or they are happy with old format that has a
human approach to its services is the main question. The factors like availability of instant
help, availability of service after the office hours, convenience, accuracy and reliability,
low cost for the usage are important for the bank customers.