Information Technology-The Driver of Transformation in Financial Services
This report focuses on the relationship between technology and change, both past and future, in the financial service industry. The roles of technology as both a motivator and a facilitator of change are analyzed. Other agents of change are considered only to the extent that they help define the market for new technology or its impact.
Key factors that have changed the nature of financial services: the ways in which they are created, delivered, priced, received, and used. Relationships between and among users and providers of financial services are changing
Information processing and communication technologies are being used to
* Enhance existing services,
* Implement new ones
* Make them available in new ways.
Technology is a key factor responsible for the rapidity and magnitude of change in the financial service industry. However, other factors such as the legal/regulatory environment general economic conditions and the demands of users have also have a significant impact on the industry
The changes that have taken place in the financial service industry affect a number of areas including
* Industry structure
* The legal/ regulatory environment,
* Financial service delivery systems, consumer interests
* The safety and soundness of the industry.
Faster and effective communication is the key to delivering financial services efficiently. Networks are used to connect shared systems of automated teller machines and also to provide the basis of systems permitting electronic initiation of fund transfers from the merchant’s counter. Access to funds from virtually any place in the Nation regardless of where they are deposited is possible now. Advanced communication technologies including satellite relays, video cable, fiber optics and cellular radio have found wide application in the financial service industry.
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