. the Change of the Nature of Competition by It Usage
. The change of The Nature of Competition By IT Usage
Over the last many years information technology has turned banking industry on its head.
Changes in the internal environment such as the increased workload and cost pressures as well as the external environment such as globalization and capital mobility has led the banking industry to introduce ATM and subsequently develop new products, services, delivery channels that include home banking via phone and personal computer ATM networks and allowed banks to reach markets which were considered far and away earlier. What started as a mean to increase cost effectiveness has moved through several stages including a tool of strategic significance, a facilitator for new services and products and is now poised to break new barriers as it is set to dismantle the advantages of local banks and intensify the price competition within the industry. The 1960's saw unprecedented growth in the banking industry and that in turn created a need for more personnel and to automate data processing.
This was the time when courtesy the genie of information technology, salaries and wages were first received directly in the bank accounts. This had a two-fold effect on the market; it facilitated banking for the existing customers and also it introduced the industry to a whole new segment of people. As the new products and services expanded and the margins shrank in the 70's it put more pressure on the banks to automate and to convert to real time systems. The decade saw the emergence of ATM's and direct electronic deposit and withdrawal for large automated users. The increased mobility of capital, globalization, and the menace of population and rush hour pressures further necessitated the need for automation and in the 1980,s the ATM's flourished and self-service became the fad. The multi nationals increased in number and the existing ones spread their wings thanks to easier currency convertibility and economies of scale.
Over the last many years information technology has turned banking industry on its head.
Changes in the internal environment such as the increased workload and cost pressures as well as the external environment such as globalization and capital mobility has led the banking industry to introduce ATM and subsequently develop new products, services, delivery channels that include home banking via phone and personal computer ATM networks and allowed banks to reach markets which were considered far and away earlier. What started as a mean to increase cost effectiveness has moved through several stages including a tool of strategic significance, a facilitator for new services and products and is now poised to break new barriers as it is set to dismantle the advantages of local banks and intensify the price competition within the industry. The 1960's saw unprecedented growth in the banking industry and that in turn created a need for more personnel and to automate data processing.
This was the time when courtesy the genie of information technology, salaries and wages were first received directly in the bank accounts. This had a two-fold effect on the market; it facilitated banking for the existing customers and also it introduced the industry to a whole new segment of people. As the new products and services expanded and the margins shrank in the 70's it put more pressure on the banks to automate and to convert to real time systems. The decade saw the emergence of ATM's and direct electronic deposit and withdrawal for large automated users. The increased mobility of capital, globalization, and the menace of population and rush hour pressures further necessitated the need for automation and in the 1980,s the ATM's flourished and self-service became the fad. The multi nationals increased in number and the existing ones spread their wings thanks to easier currency convertibility and economies of scale.