The Future of Banking Information System and Its Impact on E-Banking - Thesis Example

The growth and advancement in information technology have significantly influenced innovation in the banking sector where financial institutions are improving access of banking services, enhance the speed of service delivery, enable self-care management, and improve security and privacy commitment for their consumers. According to Pilarczyk (2016), electronic systems adoption for the banking sector is aimed at improving the deployment of services in retail banking. Although information management systems have improved customer convenience and improved access to banking services, there are security and operational challenges that influence this type of innovation.

Though governments and regulatory agencies have drafted policies and guidelines for reducing vulnerabilities associated with electronic banking, it still remains a critical challenge. Given a broad range of electronic banking vulnerabilities, failure, and lapses, the current study focuses on future information management systems for banks addressing various challenges in the existing models. The study considers improvement strategies that are necessary for information management systems, multidisciplinary view of services, the role of technology in service delivery, service science, and second wave of e-commerce (Minjoon, 2001; Loonam & O'Loughlin, 2008).

One of the key frameworks that guide in the identification of future of banking information management systems is the electronic service. Conceptualization of the framework is based on a multidisciplinary and multidimensional construct approach, which involves assessment of the existing frameworks and potential improvements that could enhance service delivery (Loonam & O'Loughlin, 2008). This understanding creates a foundation of the study on the future of banking information system and its impact on e-banking.

In recent years, information system technology is being employed in the banking industry to improve effectiveness and efficiency that are key to customer satisfaction. With the recent advancement and growth in digital technologies, there are challenges relating to information security, data privacy, and vulnerabilities that any future systems must meet. As Chafey (2003) states, growth in wireless devices (mobile phones and tablets) and the advancement of technology has resulted in significant changes in banking operations.

There is no definite universal mobile banking system since they vary from one country to another in meeting the country’s legislative and policy guidelines provided for the banking industry. As a result, most banking information system offers micropayments to merchants, money transfer, long-distance remittances, and bill payment to utilities (Porteous, 2006). The growth in technology and innovation has enabled the development of complex banking information systems that have advanced implementation of electronic banking (i.e. e-banking).

According to Steven (2002), electronic banking uses electronic and telecommunication networks to enhance services in the banking sector. Porteous (2006) view electronic banking as a form of e-commerce targeting the banking sector to offer financial services. Additionally, banks offer money transfers and payment services to their customers through the information technology infrastructure (Porteous, 2006). In the current business environment, there are dynamic changes arising from disruptive technological innovation that has increased demand for e-banking services.

The study focuses on critically evaluating the future of banking information system and explore how these changes will impact electronic banking.