reseasrch paper

Impact of Information Technology in the Banking Sector

ITS-832 Information Technology in a Global Economy

Dharavath Sneha Latha Naik

University of Cumberlands, Williamsburg, KY

Impact of Information Technology in the Banking Sector

As Information Technology brings in more convenience and improves operations, banking institutions are continually optimizing and enhancing their performance to foster advancements. In the current society the advert of information technology in every human aspect is becoming the new normal. Most of the business are finding comfort in information technology-based solutions. The banking sector globally has embraced information technology (Kamel, 2003). The information technology has been a great essence in the banking system globally. This research is driven by these objectives knowing customers’ demographic profile, factors influencing on service accessibility, customers’ satisfaction based on technology services and strategies required to improve the portfolio. Information Technology has improved the banking sector by improving performance and reducing the operational cost. Despite of all these contribution of IT in the banking sector, there is a debate on what impact has ICT brought in the banking sector. This research aims at addressing this debate and focusing on the major impact of information technology to the banking sector. Which include the customer services, online banking and fraud detection. Initially good customers service team was key in banking industry, today thanks to chat bots, banking services have been greatly improved at a lesser cost. Also, thanks to information technology, online banking has been made possible. Initially banking only involved one appearing physically at a banking hall for a transaction to occur.

Today, with a click of a button, one can make bank transaction without having to visit the banks. All this has been made possible by IT. Banking transaction has rapidly been improved thanks to IT. Also, the issue of fraud detection has been addressed by IT. IT is being used to detect fraudulent activities, track and even prevent them. Through IT, it impossible for a fraudster to transact with fake currency in banks. These are just but a few of the contributions that information technology has brought to the banking Industry globally. Today it is almost impossible for banks to transact any business without depending on IT. This research intends to analyze the investment in information technology by banks all over the world over a considerable amount of time. And eventually evaluating the impacts of this investment. In a specific model with network effects. This research intends to characterize the conditions to identify these effects. This study seeks to test the above objectives with simple percentage analysis, factor analysis, and multiple linear regression test, mean score, t-test and chi-square test.

The Global Finance and Banking industry has undergone major changes in regard to automation and adoption of technology due to an increased impact of the change of consumer behavior. The new technologies brought by Information Technology emphasize sharing, openness, and transparency challenges that banking must embrace.

References

Kamel, S. (2003). Managing globally with information technology.

Mocetti, S., Pagnini, M. & Sette, E. Information Technology and Banking Organization. J Financial Services Research 51, 313–338 (2017).