Technology in todays modern environment plays a major role in all aspects of society, with widespread use in a majority of industry and business sectors. In today’s global economy many industries have to invest heavily in Information technology in order to keep its competitive advantage and to ensure they will be able to compete with competitors who now operate within a global economy. It can be said that there is an established trend within the financial services sector of increasingly heavy dependence on technology for delivering services and that this will continue in the future. The reliance on technology comes from the enablement, as a result of its use, to provide services and process tasks which would not otherwise be provided. The financial service industry could not provide the level of service it does without the support of advanced information processing and telecommunication technologies. The numbers of checks (over 37 billion annually), credit card drafts (over 3.5 billion annually), and securities trades (over 30 billion shares traded annually) would swamp any manual system that tried to handle them. •The impact of technology, that is information technology on the financial services sector can be seen in areas such as
•On a wider view-------
Technology is influencing competition and the degree of contestability in banking and financial services.
Delivery of service
Traditionally, the provision of financial services was very much dependent on the branch networks of financial institutions. But now, information and communications technology has enabled the more diversified and convenient provision of financial services, including via the Internet and unmanned ATM networks. The creation of a new supply channel for financial services has substantially reduced the cost of financial transactions. For example, Internet banking has greatly lowered the processing cost of banking. According to research conducted in the United States, in some cases...