The Usage of It in the Banking IndustryEssay title: The Usage of It in the Banking Industry1. The Usage of IT in The Banking IndustryInformation technology has dramatically changed the way banking is done over the last 15 years or so. The era of change banking in Canada began from the establishment of Interac’s national Automated Teller Machine (ATM) network in 1986. National Debit Card network was introduced in 1994. First full service virtual bank came into being in 1997. Most recently voice recognition banking has begun to emerge in the Canadian business scene. One of the enabler of this Information technology revolution in Canadian financial service industry is Automated Teller Machine, which is essentially a date terminal with two input and four output devices. The two input devices are Keypad and card reader. The four output devices are speakers, display screen, receipt printer, and cash dispenser.
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The Usage of IT In the Banking IndustryInformation technology has dramatically changed the way banking is done over the last 15 years or so. The era of change banking in Canada began from the establishment of Interac’s national Automated Teller Machine (ATM) network in 1986. National Debit Card network was introduced in 1994. First full service virtual bank came into being in 1997. More Information Technology Now
>What are the advantages of IT in the Banking IndustryWhat are the advantages of IT in the Banking Industry
The Benefits of IT in the Banking Industry
1 Informationtech was not invented by anyone, but by the great programmers of the world, who became so skilled at it that they began to use in their own businesses. Informationtechnology is an innovative, efficient solution. IT has been around for hundreds of years and was first proposed by the United Nations in 1848, but was quickly adopted, eventually it was adopted by many industries including automobiles, food and consumer products, banking, mining, and mining and energy, to name but a few. It is not only a way to control and manage the physical and digital economy (the information we use to make decisions, conduct business, manage our finances and many other things) but also a way of doing commerce and also a way to connect people with the most important data such as credit card and banking data and also with the latest and greatest. We may get to a point where more and more of the world is being transformed around data for financial services and data for personal, government and governmental purposes. In some cases this involves new technologies or data transfer methods, but it is very important that we have a good understanding of the business applications of Information technology – as a form of finance, information information and information products and services. It also depends very much on the particular business needs of the client. In the real world, where data comes in several forms and as there are several factors at play which could affect how information is processed, the business applications of Information technology, which involve managing the physical and digital economy are likely to be different. The real problems with information processing and how they are handled has to be explored to best provide the best information for the Client. In the banking industry, there is an emphasis upon the importance of information technology services as they provide a means of transmitting and receiving financial transactions, an important part of which is the use of the Internet. So, there will be a need for information technology within the next few years.
>What are the advantages of IT in the Banking IndustryInformation technology has been proposed by the United Nations, the World Bank, and other organizations that develop and use the Information Technology for Government in general and Information technology for information technology products in particular. It has been proposed by the Federal Government for the purpose of establishing and improving the status of government in the country concerned. The Federal Government has stated that as these types of applications become more advanced, the need shall be more for the provision of information technology which will improve the effectiveness of a functioning public sector in the country concerned. Information technology is an innovative and economically beneficial business strategy that will enhance the performance of a number of other services. These include, among others, financial services, insurance, insurance of enterprises and businesses, insurance, banking securities, insurance of banks, insurance of banks and insurance of brokers to manage the situation, insurance of banks and insurance of brokers to manage, and in a number of other areas. Information technology projects have been in development for years, having not yet been completed, and these projects, which the Federal Government has identified are designed to increase the performance of Government services
2. The Banking IndustryA survey of the banks of Canada, conducted for the Canada Securities Exchange in 1994, reveals that almost half the banks in Canada, as well as most of the independent businesses, use IT technology.1 There is clearly a need for IT technology in financial services, for banks where IT is required. The importance of this technology has not been fully demonstrated in the detailed studies that have been produced during time and place that have been conducted on IT in Canada. There is some scientific evidence showing a correlation between the increasing use of IT technology and increasing number of banking professionals in Canada, particularly to assist their clients in the business. The study also reveals that there is an increasing number of IT professionals in the banking sector in Canada, primarily who use IT. The study of IT in Canada by Mark S. Rau, Ph.D. shows that the majority of IT business professionals (54%), who are either unemployed at their jobs (50% of total employment) or currently unemployed, use IT technology to make their banking transactions, which is the primary driver of their banking success.1 The majority of IT professionals who use IT technology in their banking transactions are not skilled professionals. By the time a banking transaction is completed, the customer’s bank card information is received. The process is cumbersome but provides the customer with the opportunity to obtain a balance sheet of funds on his or her account. This reduces the time and expense required to make a banking transaction by an average of 5 days for a customer based on a bank invoice. Information technology in the banking industry is not as prevalent during the financial crisis. A 2015 National Banker Statistics (NBR) survey found that the number of Canadian banks has increased substantially from 2000 on but has not been as rapid as most have estimated or predicted.1 This increase in financial services professionals is because financial professional services services and payment card technology are taking a massive advantage of IT technology. As it is believed that these changes will eventually require a new and more streamlined banking system, more banks are proposing to increase IT support to a wide range of sectors of their operations, including IT as well as financial services, banking services, banking software services and commercial banking solutions. In this study, we focus on the four major industries that will be most affected by the Information technology revolution of the financial services industry.1 The Information technology revolution in Canada is expected to have many impacts on all four of these economies. The Bank of Canada (BOC), one of the main banks of Canada. With its strong support for the IT sector, the Bank of Canada will be able to reduce risk from risk-management and other fraud. One of the factors to be considered in determining the optimal financial service provider is whether or not the investment needs of banking professionals are met by the financial services provider. An analyst for the Canada Securities Exchange (CSE) explains: “…the value created by the online platform and the way that IT has been presented to financial managers has made IT an attractive investment for consumers. However, it could be even more attractive for financial professionals to get a job at a larger provider than they currently could to get a job at another provider.” The Bank of Canada and other banks offer a huge array available with an IT-related investment that is available to the industry. A number of companies including HSBC, Bank of Canada, Goldman Sachs, and Canadian Credit Union are offering IT professionals an IT-ready portfolio of IT services designed for IT providers seeking a different type of services. Although the use of IT technology for financial products is not always the best or cheapest use, a significant share of financial professionals who use IT do not have access to the internet. The high cost of
2. The Banking IndustryA survey of the banks of Canada, conducted for the Canada Securities Exchange in 1994, reveals that almost half the banks in Canada, as well as most of the independent businesses, use IT technology.1 There is clearly a need for IT technology in financial services, for banks where IT is required. The importance of this technology has not been fully demonstrated in the detailed studies that have been produced during time and place that have been conducted on IT in Canada. There is some scientific evidence showing a correlation between the increasing use of IT technology and increasing number of banking professionals in Canada, particularly to assist their clients in the business. The study also reveals that there is an increasing number of IT professionals in the banking sector in Canada, primarily who use IT. The study of IT in Canada by Mark S. Rau, Ph.D. shows that the majority of IT business professionals (54%), who are either unemployed at their jobs (50% of total employment) or currently unemployed, use IT technology to make their banking transactions, which is the primary driver of their banking success.1 The majority of IT professionals who use IT technology in their banking transactions are not skilled professionals. By the time a banking transaction is completed, the customer’s bank card information is received. The process is cumbersome but provides the customer with the opportunity to obtain a balance sheet of funds on his or her account. This reduces the time and expense required to make a banking transaction by an average of 5 days for a customer based on a bank invoice. Information technology in the banking industry is not as prevalent during the financial crisis. A 2015 National Banker Statistics (NBR) survey found that the number of Canadian banks has increased substantially from 2000 on but has not been as rapid as most have estimated or predicted.1 This increase in financial services professionals is because financial professional services services and payment card technology are taking a massive advantage of IT technology. As it is believed that these changes will eventually require a new and more streamlined banking system, more banks are proposing to increase IT support to a wide range of sectors of their operations, including IT as well as financial services, banking services, banking software services and commercial banking solutions. In this study, we focus on the four major industries that will be most affected by the Information technology revolution of the financial services industry.1 The Information technology revolution in Canada is expected to have many impacts on all four of these economies. The Bank of Canada (BOC), one of the main banks of Canada. With its strong support for the IT sector, the Bank of Canada will be able to reduce risk from risk-management and other fraud. One of the factors to be considered in determining the optimal financial service provider is whether or not the investment needs of banking professionals are met by the financial services provider. An analyst for the Canada Securities Exchange (CSE) explains: “…the value created by the online platform and the way that IT has been presented to financial managers has made IT an attractive investment for consumers. However, it could be even more attractive for financial professionals to get a job at a larger provider than they currently could to get a job at another provider.” The Bank of Canada and other banks offer a huge array available with an IT-related investment that is available to the industry. A number of companies including HSBC, Bank of Canada, Goldman Sachs, and Canadian Credit Union are offering IT professionals an IT-ready portfolio of IT services designed for IT providers seeking a different type of services. Although the use of IT technology for financial products is not always the best or cheapest use, a significant share of financial professionals who use IT do not have access to the internet. The high cost of
2. The Banking IndustryA survey of the banks of Canada, conducted for the Canada Securities Exchange in 1994, reveals that almost half the banks in Canada, as well as most of the independent businesses, use IT technology.1 There is clearly a need for IT technology in financial services, for banks where IT is required. The importance of this technology has not been fully demonstrated in the detailed studies that have been produced during time and place that have been conducted on IT in Canada. There is some scientific evidence showing a correlation between the increasing use of IT technology and increasing number of banking professionals in Canada, particularly to assist their clients in the business. The study also reveals that there is an increasing number of IT professionals in the banking sector in Canada, primarily who use IT. The study of IT in Canada by Mark S. Rau, Ph.D. shows that the majority of IT business professionals (54%), who are either unemployed at their jobs (50% of total employment) or currently unemployed, use IT technology to make their banking transactions, which is the primary driver of their banking success.1 The majority of IT professionals who use IT technology in their banking transactions are not skilled professionals. By the time a banking transaction is completed, the customer’s bank card information is received. The process is cumbersome but provides the customer with the opportunity to obtain a balance sheet of funds on his or her account. This reduces the time and expense required to make a banking transaction by an average of 5 days for a customer based on a bank invoice. Information technology in the banking industry is not as prevalent during the financial crisis. A 2015 National Banker Statistics (NBR) survey found that the number of Canadian banks has increased substantially from 2000 on but has not been as rapid as most have estimated or predicted.1 This increase in financial services professionals is because financial professional services services and payment card technology are taking a massive advantage of IT technology. As it is believed that these changes will eventually require a new and more streamlined banking system, more banks are proposing to increase IT support to a wide range of sectors of their operations, including IT as well as financial services, banking services, banking software services and commercial banking solutions. In this study, we focus on the four major industries that will be most affected by the Information technology revolution of the financial services industry.1 The Information technology revolution in Canada is expected to have many impacts on all four of these economies. The Bank of Canada (BOC), one of the main banks of Canada. With its strong support for the IT sector, the Bank of Canada will be able to reduce risk from risk-management and other fraud. One of the factors to be considered in determining the optimal financial service provider is whether or not the investment needs of banking professionals are met by the financial services provider. An analyst for the Canada Securities Exchange (CSE) explains: “…the value created by the online platform and the way that IT has been presented to financial managers has made IT an attractive investment for consumers. However, it could be even more attractive for financial professionals to get a job at a larger provider than they currently could to get a job at another provider.” The Bank of Canada and other banks offer a huge array available with an IT-related investment that is available to the industry. A number of companies including HSBC, Bank of Canada, Goldman Sachs, and Canadian Credit Union are offering IT professionals an IT-ready portfolio of IT services designed for IT providers seeking a different type of services. Although the use of IT technology for financial products is not always the best or cheapest use, a significant share of financial professionals who use IT do not have access to the internet. The high cost of
The user inserts the card in the card reader and key in the PIN number via the keypad. The receipt printer prints the receipt and the cash dispenser ejects the cash out. All the operations are displayed on the screen along with the instructions to carry out the necessary steps. Like any other data terminal ATM has to connect and communicate through a host processor, which acts as a gateway. ATMs are connected to the host processor via leased telephone lines or dial up connections. Leased telephone lines have higher date rate transfer and are preferred at high transaction volume places. Banks themselves or independent service providers may be the owners of the host processors.
Security is the biggest issue of the transactions done electronically. According to the TIMES magazine issue dated March 7, 2005 there were 10 million people were affected by identity theft in US in 2005 with a total loss of US$ 5 Billion. ATM technology is turning to Biometrics to reduce the probability of the identity theft. The word ’biometric’ means to measure life and to recognize an individual biometrics employs a biological trait unique to that person. The traits can be finger prints, iris patterns, retinal scans. For a biometric system to work first of all the individuals have to provide the samples of the unique trait such as finger prints to the organization planning to run the system.
This voluntary deposit of the samples can be a hurdle in the setting up of the system because some individuals may not like the idea of handing over their finger prints to some organization. Once the samples of the unique character are collected, they are arranged in a data base. When a customer intends to utilize the ATM then instead of entering the PIN he/she will present a finger to the machine and the finger will be scanned to get the finger print. The finger print will be processed in a manner similar to the verification of the PIN. “False Acceptance’ and “False Rejection’ are the major limiting problems of biometric systems. In systems using finger prints the incidence of such problems is practically zero but in the system based on face recognition the rate of true recognition is only 47%.
So the systems based on finger prints are gaining acceptance while the use of face recognition system awaits the improvement in information technology. Bancafe Bank of Colombia has installed finger prints recognition system on three-quarter of its 484 ATMs. Progress and convergence in the fields of Information Technology, Genomics, Nanotechnolgy, Robotics may disrupt every industry and may indeed redefine the humanity in the long run. In the next 20 years or so we are looking at peta bytes/sq.cm storage devices, microprocessors with 5 billion transistors, real time genome sequencing, and universal networks. In such environment the network of powerful hand held devices will mean that there may not be any need of carrying debit cards or credit cards and money may change ownership on the networks without any ATMs.
2. The change of The Nature of Competition By IT UsageOver the last many years information technology has turned banking industry on its head.Changes in the internal environment such as the increased workload and cost pressures as well as the external environment such as globalization and capital mobility has led the banking industry to introduce ATM and subsequently develop new products, services, delivery channels that include home banking via phone and personal computer ATM networks and allowed banks to reach markets which were considered far and away earlier. What started as a mean to increase cost effectiveness has moved through several stages including a tool of strategic significance, a facilitator for new services and products and is now poised to break new barriers as it is set to dismantle the advantages of local banks and intensify the price competition within the industry. The 1960’s saw unprecedented