July 24, by articles 1 Comment The Impact of Information Technology in Banking Industry In firms that are conscious of need for better information management, there is a shift from a fact and information gathering activity to a problem solving and action recommending function. A marketing information technology would emphasis the continuing interaction and integration of information in decision process. Implicit in this marketing definition are several useful consideration. One point to note is the broad system concepts of information handling.
The Internet is rapidly becoming the information superhighway of a global electronic marketplace. The rising commercial interests in the Internet are especially evident in "frontend" applications such as electronic catalogs, yellow pages, storefronts, malls, and customer support centers.
Although "back-end" applications such as electronic data interchange EDI are equally important, their adoption has not been as rapid. One major concern is security: Upon a closer look, however, this view is not warranted, since technologies such as public key encryption and firewalls address essential security concerns.
Moreover, such technologies are already available. The only remaining barrier is the lack of real world users of those technologies.
The pilot project between Bank of America BofA and one of its large corporate customers involves transporting financial EDI transactions over the Internet. If successful, BofA expects that this new EDI option will lead to a reduction in telecommunications costs, an improved position with respect to its value-added network VANand valuable learning experience with the Internet environment, which is becoming increasingly important to the bank.
The project is also significant beyond BofA: The key to survival is customer service. Customer loyalty will be determined by convenient and innovative delivery of products and personalized services. In the '70's and '80's, banks were marketing to a generation raised on old style banking: That generation was disdainful of "impersonal" service and afraid of computers.
Convenience was having a "branch" in one's neighbourhood. Today, personal service and convenience are still the critical factors in the banking relationship, but they are defined differently.
Consumers still want to bank with a financial institution they "know," and one who "knows" them, but they do not necessarily want to go to the bank.
They are not afraid of computers and technology; they embrace them. Convenience is doing their banking when they want, and where they want. They are now comfortable with personal computers and other electronic devices. They expect fast, efficient, and accurate service And the only way to cost effectively provide the instant, quality service that customers demand, and that the competition provides, is through intensive use of the most advanced information technologies and through good people trained in the use of these technologies.
For all these reasons, the banks delivery systems are completely changing. The new Delivery Systems. The increasing cost of building brick-and-mortar branches, decreasing cost of computers, high delivery costs and slow revenue growth force a relook at the conventional delivery systems.
Moreover, growing comfort of technology usage by the customer is rapidly fostering usage of non-branch channels for routine transactions.
The new strategy changes the focus of the branch from being a high cost transaction center to a provider of a wide range of services like telebanking, customer service kiosks, ATMs, and remote electronic banking.
As the new technology is so expensive banks need to use the new systems to do more than deliver information and basic services. Banks need the ability to also sell insurance and investment products to get a better return on this investment.Information Technology Strategic Plan - FDIC IT Strategic Plan ii This page left intentionally blank convenience and immediacy of online and mobile banking services.
As a result, goals with supporting objectives designed to improve business capabilities and systems. Does Your Current Information Technology Company Have a Proven Process to Providing Reliable Banking IT Services?
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Reliable IT Banking is a Banking IT services company providing clinicians and administrators the ability to deliver extraordinary patient care. Our unique . This role is responsible for the administration and support of the technology used in Administrative Services.
In addition, this role assists with District software and hardware purchases, asset tracking, and support access requests for resources.
role of it in banking sector Abstract: Initiation of Information Technology and Communications networking system is set to change the operating environment of .
Banking industry is heavily depending upon information technology that needs professionals for development, implementation and support. Despite the programs performed by many banks to develop their local expertise in IT, there is still a real shortage of qualified personnel.
Reserve Bank Information Technology Private Limited (ReBIT), has been set up by the Reserve Bank of India to serve its IT and cybersecurity needs and to improve the cyber resilience of the Indian banking industry.