What is the application of Information Technology in banking industry?
Information technology has been playing significant role in the growing banking business globally as well as locally. Information technology enhances efficiency in the technology and intern efficiency in the business.
IT in the banking sector has enhanced customer service and productivity regarding account management, while streamlining back-office activities. The biggest impact is in the area of competition. Small banking institution can access the same technology as large banking institutions and, therefore can compete with them more effectively for business.
Major application of computer/IT in banking sectors:
- Account management
- Hardware technology
- Electronic transactions
- Web based banking
Major application on the basis of categorization of sectors
The advantages accruing from computerization are three directional:
- to the customer
- to the bank
- to the employee
For the customer:
Banks are aware of customer’s need for new services and plan to make them available. IT has increased the level of competition and forced them to integrate the new technologies in order to satisfy their customers. They have already developed and implemented a certain number of solutions among them:
- Self inquiry facility
- Remote banking
- Anytime banking
- Tele banking
- Electronic banking
For the bank:
During the last decade, banks applied IT to a wide range of back and front office in addition to a great number of new products. The major advantages for the bank to implement IT are:
For the employee
IT has increased their productivity through the followings:
At last IT plays vital role in application of banking business in many ways. It makes system automatic, provides fastest services and helps to enhance the customer satisfaction.