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Role of It in Banking Sector

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Role of It in Banking Sector

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  • November 17, 2010
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Page 1 of 4
Role of It in Banking Sector
Summary:
The article presents a study which aims to analyze the role of information technology (IT) in the banking industry. Based on the article, technological innovations have enabled the industry to open up efficient delivery channels. It is said that IT has helped the banking industry to deal with the challenges the new economy poses. The study also examines the views of bank employees on the implementation of IT in banks. According to the author, private and foreign banks use more IT-related banking services than public sector banks. Excerpt from Article:

ROLE OF INFORMATION TECHNOLOGY IN BANKING INDUSTRY Ilyas-Ur Rahman, Osmania University, Hyderabad, INDIA INTRODUCTION I.T. in Banking: 1). Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples. 2). Information Technology has also provided banking industry with the wherewithal to deal with the challenges the new economy poses. Information technology has been the cornerstone of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to strengthen the banking sector. 3). The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The progress of technology and the development of world wide networks have significantly reduced the cost of global funds transfer. 4). It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years. They demand instant, anytime and anywhere banking facilities. 5). IT has been providing solutions to banks to take care of their accounting and back office requirements. This has, however, now given way to large scale usage in services aimed at the...