Computer Application in Banking

Topics: Bank, Online banking, Debit card Pages: 12 (3737 words) Published: October 30, 2012
Today’s world has been changed by the rapid use of ICT. The most important components of this revolutionary change are computer and network system. With the growing development of computer system many new systems have been introduced. Business world has also been improved by this computer and its various applications. There is no sphere of business where the application of computer has not been applied. In many ways, e-banking is not unlike traditional payment, inquiry, and information processing systems, differing only in that it utilizes a different delivery channel. Any decision to adopt e-banking is normally influenced by a number of factors. These include customer service enhancement and competitive costs, all of which motivate banks to assess their electronic commerce strategies. The benefits of e-banking are widely known and will only be summarized briefly in this document. E-banking can improve a bank’s efficiency and competitiveness, so that existing and potential customers can benefit from a greater degree of convenience in effecting transactions. This increased level of convenience offered by the bank, when combined with new services, can expand the bank’s target customers beyond those in traditional markets. Consequently, financial institutions are therefore becoming more aggressive in adopting electronic banking capabilities that include sophisticated marketing systems, remote-banking capabilities, and stored value programs. Internationally, familiar examples include telephone banking, automated teller networks, and automated clearinghouse systems. Such technological advances have brought greater sophistication to all users, commercial and “the man in the street”.

Methodology and Limitation
The study is descriptive in nature. Data used in this study are basically from secondary sources. Primary data cannot be collected because of many constraints. Secondary data derive from various sources including different websites of banks. There are also some parts that have been derived from others study of computerized banking and network system. For better information and comparison of work websites of different banks offering Internet Banking and some bankers working on those particular banks were consulted. For industry and infrastructure related, internet is a good source of information.

Bangladesh is lacking behind to use internet banking in banking transaction comparing most of the SAARC countries. So collecting data in Bangladesh is very much difficult where banks are thinking EPC operation is a competitive advantage in banking business. Banks are not interested to disclose their business secrets. In addition to this, a lot of journals, periodicals and published data on this issue are not available. We put all efforts to collect necessary data through resource and budgetary constraint. Moreover, Interviewing target respondents adopted convenience sampling as alternative to random sampling, at some phases where respondents were inaccessible or not available. Bank officials were found too busy and also reluctant to talk without a proper written permission from the competent authority. Moreover, while collecting data they did not disclose much information/data due to the secrecy of the organization.

Computer Application in Banking
Numerous factors including competitive cost, customer service, and demographic considerations are motivating banks to evaluate their technology and assess their electronic commerce and Internet banking strategies. Many researchers expect rapid growth in customers using online banking products and services. Evaluating a bank’s data on the use of their Web sites, may help examiners determine the bank’s strategic objectives, how well the bank is meeting its Internet banking product plan, and whether the business is expected to be profitable studies show that competitive pressure is...
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