Impact of Information Technology on Banking Systems - Term Paper Example

Download file to see previous pages The paradigm and framework within which banks deliver their services has changed beyond identification as banks fine-tune to societies’ changing needs. In fact, changes in technology have had a great impact on banks such that apart from the changes that the society’s changing nature cause directly, changes in technology are the most significant changes to have taken place in this industry. Banking and technology are so inter-twined that it has become almost impractical to think of one without the other. Technology drives the banking industry forward and in the modern world, through devising new low-cost payment systems and delivery channels, banks use it as an innovative customer-service delivery means. Banks no longer use technology merely to automate processes but use it as a revolutionary service delivery means to their clients (Panwar 5). This paper discusses the current state of information technology and the general impacts that it has on banking system.
According to Agboola, Information Technology, abbreviated IT, refers to the mechanization of information production controls and processes by means of telecommunications; software and supplementary equipment including debit cards and automated teller machines (ATMs); and computers. In general, the term covers electronic technology harnessing for a business’ information needs at all levels. Panwar defines banking technology as the use of intricate communication and information technologies in conjunction with computer science to make it possible for a bank to maintain competitive advantage above other banks, even as it provides its clients with superior services in an affordable, reliable and secure manner. ...Download file to see next pagesRead More