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The Impact of Information Technology on the Banking Industry

This project examines the general impact of Information Technology(IT) on the banking industry. The banking industry has introduced various new customer services and products using IT. The banking industry has gone through many changes as a result of the introduction of IT. In fact, the structure of the industry is continuously changing because of rapid development of IT. The continued success of IT applications mean that the limitations of current IT computer systems in banks have to be re-developed to meet future requirements.

The aim of this project is to evaluate how the banking industry has applied IT; the effects of IT on competition; current IT applications and systems problems; the security of IT systems; IT risk and IT fraud and the future application of IT in the banking industry. The focus of the report has mainly been in the UK and US.

In the research, the banking industry has demonstrated a fair amount of competence in the application of IT. Some banks were at the cutting edge of IT and have a clear vision of how IT could be furthered applied successfully. Banks have spent millions of pounds on IT every year in a bid to fully automate its operations and services to customers. The industry recognises that IT was a major key to its development.

The research brought to light the fact that IT has increased competition within the industry. The realisation that the market size is not really increasing has made banks more competitive. Also, the expectation of their customers is very high and in response banks using IT to satisfy the demand for quality services and products. However, there is an increasing outside threat to the banking industry from the non-banking sector. Deregulation of the banking industry has introduced more competition but the low cost of computer technology has made it easier to enter the industry. Non-banks can now pick up off the shelf IT solutions for the services they want to provide.

The research reveals that traditional banks find it difficult to integrate new computer technology with their old systems. As a result, their IT costs is higher than expected and IT integration takes to much time.

The need for more investments in IT has increasingly forced some banks to sell-out of certain banking operations. The cost of IT investment required to remain competitive and the uncertainty future profits has forced withdrawal.

Security of information systems was found to be very vulnerable in general. The amount of resources that is required for security is lower than required. The fact that ‘Hackers’ can still get into banking IT systems easily without inside help demonstrate the magnitude of the problem.

IT Fraud is also a major problem of the banking industry especially where plastic cards are concerned. The increased IT knowledge of the general public and proliferation of cheap computer technology mean that weaknesses in card payment systems is exploited fraudulently. Millions of pounds is lost to plastic card fraud every year. This is simply because the cards are not secure enough.

In recommendation the banking industry need to better apply IT to improve its operations, customer services and products. Banks should devote more resources to development of secure IT systems, services and products. Also, the future impact outsourcing IT requirements should be thoroughly evaluated, the long term effect may be very expensive.

Mostra/Nascondi contenuto.
THE IMPACT OF 'IT' ON THE BANKING INDUSTRY OLU FASAN 5 EXECUTIVE SUMMARY This project examines the general impact of Information Technology(IT) on the banking industry. The banking industry has introduced various new customer services and products application of IT. The banking industry has gone through many changes as a result of the introduction of IT. In fact, the structure of the industry is continuously changing because of rapid development of IT. The continued success of IT applications mean that the limitations of current IT computer systems in banks have to be re-developed to meet future requirements. The aim of this project is to evaluate how the banking industry has applied IT; the effects of IT on competition; current IT applications and systems problems; the security of IT systems; IT risk and IT fraud and the future application of IT in the banking industry. The focus of the report has mainly been in the UK and US. In the research, the banking industry has demonstrated a fair amount of competence in the application of IT. Some banks were at the cutting edge of IT and have a clear vision of how IT could be furthered applied successfully. Banks have spent millions of pounds on IT every year in a bid to fully automate its operations and services to customers. The industry recognises that IT was a major key to its development. The research brought to light the fact that IT has increased competition within the industry. The realisation that the market size is not really increasing has made banks more competitive. Also, the expectation of their customers is very high and in response banks using IT to satisfy the demand for quality services and products. However, there is an increasing outside threat to the banking industry from the non-banking sector. Deregulation of the banking industry has introduced

International thesis/dissertation

Autore: Olumide Fasan Contatta »

Composta da 69 pagine.

 

Questa tesi ha raggiunto 4174 click dal 08/02/2006.

 

Consultata integralmente 10 volte.

Disponibile in PDF, la consultazione è esclusivamente in formato digitale.