Discuss about the requirement of information technology in the sector of banking and finance.
IT or information technology is the significant application of any system for storage, retrieval, transmission and also manipulation of data. Information technology is the sub division of ICT or information and communication technology[1]. IT is required in every business or organization for their easy completion of business activities or processes. Moreover, it is responsible for any type of critical activities that will fulfil the needs and expectations of customers[2]. All organizations, including healthcare, banking and finance, tourism, food processing, transport, airlines, media, library, telecommunications and all others require information technology in their business.
This report explains about the requirement of information technology in the sector of banking and finance. The report describes about the topic for the popular bank of Australia, namely, ANZ Bank[3]. The various advantages and risks are explained in this particular report. The procedure of maintaining and monitoring information technology in the mentioned bank is also given here.
ANZ Bank
One of the most popular banks in Australia and New Zealand, ANZ Bank has its headquarters in Auckland. It is the amalgamation of two banks of Australia and New Zealand. This bank is responsible for providing various services of banking[4]. ANZ Bank is popular for their unique strategies and ideologies in business. They have implemented information technology in their business for the successful completion of various business processes and activities.
Information technology is extremely essential for any business. For the banking and finance sector, the requirement of IT is very high. Customers are the main and the most important part of banks. The main job of any bank is to fulfil all the financial needs and requirements of their customers[5]. Information technology helps to easily store, manipulate and retrieve bulk data. Moreover, it is extremely safe and secured and thus, there is extremely less chance of data loss in any system or computer. ANZ Bank requires information technology in their bank for the successful operations of information in their business.
Information technology is extremely important for any banking sector. ANZ Bank has implemented and adapted IT in their business as this information technology has various importance. It helps to drive innovation in the banking services and this leads to the success of the business[6]. The most of important application of information technology in ANZ Bank is the entire database. Each and every confidential data or information is stored in the database. Information related to customers, banking transactions are retrieved and utilized with the help of information technology. The confidentiality of this information is always maintained by information technology.
Information technology is applied within the processes of ANZ Bank. However, there are several requirements that are needed for the successful application of information technology in a business. The various requirements that are required for applying IT in the business of ANZ Bank are as follows:
Planning: This is the most significant requirement of application of information technology in business. Planning helps to provide a proper sense of direction to the organization and also focus on the results and objectives[7]. Moreover, it gives guidelines for the purpose of decision making. ANZ Bank has planned the entire application of IT in their business by experts.
Cost: This is the second requirement of the application of information technology. Although IT has several advantages, it is extremely expensive to implement and the smaller organizations cannot afford it.
Equipments: Various equipments are required for applying information technology in a business[8]. The equipments that are needed for the successful implementation of IT in ANZ Bank are given below:
Apart from these equipments, network connectivity is required for applying information technology.
ANZ bank utilize IT in their organization for the completing their business processes. This utilization of information technology has made the banking transactions extremely easier and user friendly. ANZ Bank has a specific bank portal for their customers. All the customers have their own username and password for logging into the respective bank website[9]. They have to log into the bank website and make financial transactions easily. Information technology has made the entire process of transactions easier and the customers do not have to visit to the bank any more. Moreover, IT has reduced the time of any banking processes or activities.
Information technology has various benefits or advantages. They are as follows:
Increment of Production: The production of the banking and finance sector is incremented when information technology is applied in the business. This is the most important advantage of IT for any bank[10]. The banking productivity and transactions are increased after the application of information technology.
Time Saving: The second important advantage of information technology is time saving. Since the transactions become easier, the time incurred is extremely lesser. As time is saved, the overall production of the business is incremented. Moreover, there is no need to visit the bank for any banking activities[11]. The transactions, application for loans, paying bills or instalments all can be done with the help of information technology.
Improvises Communication: The communication procedure is improvised with IT. This is eventually done by communication technology. The tools for communication technology are mainly video conferences, telephones, electronic faxes, databases, electronic mails and many more. This is the third major advantage of IT.
Improves Storage of Data: The data storage is improved by information technology. The database is the best boon of IT[12]. It stores every confidential data and thus there is extremely less chance that the data would be lost. Moreover, the traditional data storage is improvised.
Improves File Management: The traditional file management was very tough as those files were bulky to handle. The procedure of searching anything in those files used to be a significant problem and thus information technology was utilized for this purpose. The management of file was extremely easier with IT[13]. ANZ Bank mainly deals with customer details like account information and many other confidential data. This management of confidential data are kept in proper files and are thus managed with IT.
Improvises Financial Management: Any banking sector deals with financial transactions and account details. The financial management of any banking and finance is the effective or efficient funds management for the successful accomplishment organizational objectives.
Reduces Operation Costs: The operation costs are decreased or reduced when IT is applied in an organization. These operation costs of ANZ bank are those expenses that are solely related to the business operations or in the equipments or components[14]. Since IT utilizes extremely less number of equipments, the operation costs is reduced.
Improvises B2C Relation: The business to customer relationship is improved as the banking processes and transactions become user friendly.
Provides Competitive Advantages: The other advantage of IT is that it provides significant competitive advantages to ANZ Bank by giving various benefits.
Although IT has several advantages, there are few of the risks that are extremely vulnerable for ANZ Bank. They are as follows:
Security: The main risk of information technology that often becomes a major problem is the security[15]. There are various security issues like data hacking and data loss. The intruders can break into the system for hacking of data.
Privacy: There are various privacy issues in information technology like phishing, lack of APIs, sniffing and spoofing. ANZ Bank should implement various measures for these privacy issues.
Confidentiality: The confidentiality issues in ANZ Bank mainly include accidental or disclosure risks, important data leakage by ex employees and many more[16].
The maintenance and monitoring of information technology is done by various procedures like monitoring of automated system and security IT. The management of security patch also monitors information technology[17]. Moreover, the protection of virus and malware also maintains IT security.
Conclusion
Therefore, from the above discussion it can be concluded that information technology can be defined as the utilization of various systems, computers or telecommunications for the proper storing, manipulating and retrieval of information. Moreover, it also allows exchange of confidential information securely. Information technology is the most important requirement for ANZ Bank. IT has various advantages or benefits for any organization or business. ANZ bank has implemented and adapted information technology within their business. The above report has properly described about the importance of IT or information technology within their business and the various requirements like planning, cost, installation, equipments are also explained here. Moreover, the significance on information technology in ANZ Bank with several benefits and security issues are also discussed in the report. The final part of the report has focused on the process of maintenance and monitoring of information technology or IT in ANZ Bank
References
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