Strategies of Two Banking Giants
Ma. Eliza Jijeth V. dela Cruz
Strategies of Two Banking Giants
Many of us share a fairly basic view of banks. They are places to store money, make basic investments like term deposits, sign up for a credit card or get a loan. Behind this mundane view, however, is a highly regulated system that ties our day-to-day banking back into the wider financial system. Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions like with the banking business. Information
Technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets. Internet has significantly influenced delivery channels of the banks. Internet has emerged as an important medium for delivery of banking products and services. As the impact of IT has grown in organizations, IT strategy is finally getting the attention it deserves in business. Nevertheless, most organizations are still in the very early stages of learning how to develop an effective IT strategy and synchronize it with an overall business strategy. Getting the balance right between the many different ways IT can be used to affect a business is a constant challenge for today’s leaders. HSBC and Citigroup are both the largest global banks of similar size that uses Information Technology but in different approaches and strategies. This paper discusses how their IT strategies enable them to improve both of their financial performance in the future, how
Strategies of Two Banking Giants
Many of us share a fairly basic view of banks. They are places to store money, make basic investments like term deposits, sign up for a credit card or get a loan. Behind this mundane view, however, is a highly regulated system that ties our day-to-day banking back into the wider financial system. Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions like with the banking business. Information
Technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets. Internet has significantly influenced delivery channels of the banks. Internet has emerged as an important medium for delivery of banking products and services. As the impact of IT has grown in organizations, IT strategy is finally getting the attention it deserves in business. Nevertheless, most organizations are still in the very early stages of learning how to develop an effective IT strategy and synchronize it with an overall business strategy. Getting the balance right between the many different ways IT can be used to affect a business is a constant challenge for today’s leaders. HSBC and Citigroup are both the largest global banks of similar size that uses Information Technology but in different approaches and strategies. This paper discusses how their IT strategies enable them to improve both of their financial performance in the future, how