ROLE OF ICT IN BANKING
Technology is no longer being used simply as a means for automating processes. Instead it is being used as a revolutionary means of delivering services to customers. The adoption of technology has led to the following benefits: greater productivity, profitability, and efficiency; faster service and customer satisfaction; convenience and flexibility; 24x7 operations; and space and cost savings (Sivakumaran, 2005). Harrison Jr., chairman and chief executive officer of Chase Manhattan, which pioneered many innovative applications of ICT in banking industry, observed that the Internet caused a technology revolution and it could have greater impact on change than the industrial revolution (Engler & Essinger, 2000). Technology has been used to offer banking services in the following ways (Sivakumaran, 2005):
ATMs are the cash dispensing machines that can be seen at banks and other locations where crowd proximity is more. ATMs started as a substitute to a bank to allow its customers to withdraw cash at anytime and to provide services where it would not be viable to open another physical branch. The ATM is the most visited delivery channel in retail banking, with more than 40 billion transactions annually worldwide. In fact, the delivery channel revolution is said to have begun with the ATM. It was indeed a pleasant change for customers to be in charge of their transaction, as no longer would they need to depend on an indifferent bank employee. ATMs have made banks realize that they could divert the huge branch traffic to the ATM. The benefits hence were mutual. Once banks realized the convenience of ATMs, new services started to be added.
The phenomenal success of ATMs had made the banking sector develop more innovative delivery channels to build on cost and service efficiencies. As a consequence, banks have introduced telebanking, call centers, Internet banking, and mobile banking. Telebanking is a good medium for customers to...
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