IT Impact on Banking and Finance †Free Samples for Students

Questions: Does Banking and Finance need IT? Why IT is Important for Banking and Finance Business? What is required to apply IT into chosen Business? How Banking and Finance Sector can maintain and monitor IT? Answers: Introduction Today banking and finance sector has become computerized and most of the banking activities are performed by using computer and internet and it has become easier for people to do their banking and financial work online in secure way. Due to centralization of banks and finance sector, all banks are connected with each other and providing appropriate services to people in easier ways. In banking and finance sector, the challenges regarding business and technology are faced every day. In this case, innovative IT solutions for banks and finance can provide help to manage these challenges. These IT solutions can be delivered to banking and finance sector as a service by an IT companies and they can take responsibility for the whole functionality of the banking solutions so that banks can provide appropriate customer services. Besides this there are various other needs of banking and finance sectors that are fulfilled by IT applications. Discussion In this segment of report we will discuss about some essentials points regarding role and need of IT in banking and finance sector. 1.Today, when every business organization is moving towards use of IT then it is necessary for banking and finance sector to deal with IT to provide faster and accurate services to its customers. Every individual is using information technology services and solutions to get quick and flexible services within less cost and time. For last many years, banking and finance sector has been working in conventional ways and most of the services are provided manually to customers instead of online (Ramey, 2017). It is a very time consuming process and customers are now getting fed up in bank and finance areas for delay in their work. The main reasons of delay is poor manual service, inappropriate ways to maintain information records and management of customers. Due to these reasons, banking and finance sectors need IT and it will also help to do international banking and finance tasks within lesser cost than other available communication and information sharing services. The use of IT in bank ing and finance sectors will be helpful for its customers and employees and will also enhance its performance (Ramey, 2017). 2.IT plays very important role in Banking and Finance Industry. Due to IT, banking services have become digitized and networked. Besides this, accounting and management system of banks has changed due to technology. Due to following reasons, IT is considered important for banking sector (Ralabandi, 2017): Information Technology (IT) facilitates banks by providing service of E-Banking. A banking software with an effective GUI is used by banks and its customers and through customers can access their banks details, make transactions, print bank statements etc. It is a convenient way for customers to perform their bank transactions online in secure way (wordpress.com, 2017). IT has reduced botheration of lining up into the long lines to the help desk in banks to know about account balance, to get bank statements for their accounts and to deposit and withdraw money. Now all these can be done by using internet banking via internet and It is called self-inquiry facility (Smallbusiness.chron.com, 2017). Besides banking sector, in finance sector, IT is considered important for following reasons: In finance sector, information technology allows finance to function on a global level. It is considered that finance is the first organized and global information market that is operating through networked computers. According to reviews of researchers, without information technology, it is difficult for financial markets to connect with global developments and finance companies. Financial institutions with valuable information on their customers is provided by social media on the internet. In this way, financial institutions are successfully attracting online communities those are associated with their products and encouraging their loyalty of brand. In this way, IT is considered important in finance sector for handling its various essential activities. 3.For successful implementation of IT in business and finance sector, it is necessary to fulfill some requirements of information technology and these components can be cost, hardware/software components, planning, installation and training etc. (tieto.com, 2017). Cost It is most important factor to implement information technology and its applications in banking and finance sector and for any other business. As compare to traditional technologies, the cost of IT applications is less. According to analysis, the estimated budget for IT is near about $70,000 and more. The actual cost depends on requirements of banking and finance sector and their network infrastructure (Novinson, Novinson, 2017). Planning It is next important requirement for implement IT into business and finance sector. In planning process, all requirements, cost, time and other essential components of IT are analyzed properly and on the behalf of this information right decisions can be taken for implementing information technology applications. Besides this, specifications of hardware and software components, their overall cost and best vendors of those components in market are also proper discussed in planning process. An appropriate plan for executing IT into business may lead to better outcomes. Hardware and Software Components Both hardware and software components are important for implementing information technology. If in banks and financial organizations, better quality of system hardware and software components will be used, then they can get required results. Hardware components of IT systems include hard drive, network cards, monitor and chips etc. Software components of IT systems must be operating system, memory, CPU and third party software etc. Installation and Training he suitable configuration of information technology is required to perform every operation in banking and finance sector. An IT system will work effectively, if all its components will be configured or installed properly. Otherwise, system errors or bugs can occur. In banking and finance sector various employees belongs to non-IT sector and they may have less knowledge about IT. In this case, it will be better to provide training to these employees, so that they can use these system without any problem. This can be done by IT professionals of service providers or technical department of banking and finance sector. How IT is used in Banking and Finance In banking sector, IT is used in following ways: In banking sector IT is used to facilitate customers for making their transactions and checking their account summary. IT is helpful for bank employees for maintaining customers account information into an online database that can be accessed from anywhere and anytime by using internet to collect required information from it (com, 2017). Information Technology is time saving and inexpensive technology to use by every business industry (World Economic Forum, 2017). In finance sector IT is used to get broad and secure information network that can valuable information regarding finance market and its customers. In 20th century, closed information network were used by finance sector but it caused various conflicts. Besides this, from social media applications of IT, valuable information is collected by finance sector. Benefits and Advantages of IT in Banking and Finance Sector In banking and finance sector, following benefits are encountered by customers due to implementation of Information Technology: Information Technology has increased the level of competition for banks and forced them to introduce new technologies into banks to facilitate finance sector. Remote terminals at site of customers are introduced by IT that are connected to the respective branch by using a modem (Francis, 2017). Cash withdrawal and deposit are become easier with help of information technology. Now customers can get their money anytime and from anywhere from their accounts by using ATM cards (in, 2017). In finance sector, the main benefit of Information Technology is to easily get information regarding stock market, banking sector and competitive financial market. It was not possible in previous days when every financial activities were performed manually. Information Technology is considered most accurate, secured and quick way to collect latest updates about financial sector (Deloitte United States, 2017). IT applications are inexpensive, so banking and finance sector is saving purchasing and maintenance cost of IT. After implementing IT systems into banking and finance sector, positive impacts are also seen on revenue. Risks of IT in Banking and Finance Sector Banking and finance sector is also facing some common risks of IT such as security and privacy of information. In banks and financial organizations, confidential information about employees and customers is stored that contains personal information of customers, information about bank account such as balance in bank account, monthly transactions, fixed deposits and information regarding market shared and stock exchange respectively. This information is very much important for every customer that is why hackers always attack to access this information. Due to weakness of security in IT applications risks of hacking and phishing can occur. This weakness can be at both developers and users levels that must be controlled (Kotwani, Kotwani, profile, 2017). 4.To maintain security and privacy of information technology systems and its applications, banking and finance sector should use anti-virus, firewall, security patches and other third party software solutions for database scanning. These tools are helpful to detect and restrict hacking attacks. By using these tools in appropriate way, system security can be maintained for long time. Besides this, SSL i.e. Secure Socket Layer and cryptography should be used by developers for high level security of banking networks (Poonegar, 2017). Conclusion After this whole discussion we can say that in Banking and Finance sector confidential and important information regarding customers finance is stored and used during transactions. Therefore, it is important for this sector to be very careful regarding security and privacy of this information while implementing IT applications or systems. It is matter of customers trust and that should be maintained. Reference Ramey, K. (2017). The Role of Technology in Banking Industry - Use of Technology. Use of Technology. Retrieved 23 May 2017, from https://www.useoftechnology.com/role-technology-banking-industry/ Smallbusiness.chron.com.(2017). Importance of Information Technology in Finance. Retrieved 23 May 2017, from https://smallbusiness.chron.com/importance-information-technology-finance-17292.html tieto.com.(2017). IT solutions for banks and financial institutions - Tieto. Retrieved 23 May 2017, from https://www.tieto.com/industries/financial-services/it-solutions-banks-and-financial-institutions Francis, A. (2017). Role of Information Technology (IT) in the Banking Sector. MBA Knowledge Base. 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