How Technology is Important to the Success of a Bank Essay

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

The United Bank is an organization that engages in banking and uses Information Technology to help serve customers from banking firms better. The firm’s headquarter is located in the United State with potential of venturing internationally. The purpose of this Information Technology Strategic Plan is to presents initiatives that the bank must undertake to achieve the continued success and improvement of the Information Technology at the banking sector. This strategic plan involves the uses of SWOT analysis as the centerpiece initiative to achieve the future of this firm using modern technology, such as, cloud computing. The plan will accelerate the future of this firm by automation and streamlining of many of the manual and fragmented processes that the firm is currently using. The results of this analysis are therefore proposed as Information System applications, like, Knowledge Management System Application, Automatic Files and Data Transfer as well as Cloud Computing to help serve customers efficiently and effectively thereby increasing revenue earned. The results of this analysis also generate various policies requirements to be adopted by the bank so as to realize revenue increase from the current $5 million to $20 million per year. The plan therefore, shows how customers in the banking sector can conduct basic banking transactions electronically at their

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

All the banks are attempting to lure clients away from competitor banks which increase the competition are, offering lower rates for loans, higher rates for deposits, services enabled by technology, initiatives for insurance, investment services, and grater conveniences than their rivals. The problem of the banking sector is that when a technology first developed, the bank that first adopt and promotes the product will earn a higher market share until another one capture the same technology and it happens very quickly. And another major factor is the development of sustainable competitive advantage through innovation and technology and powerful competitive strategy followed by rivals. The Seylan bank is consisting with the core advantage from customer loyalty and friendliness, but not having many of the technologies and innovative products may create a disadvantage for the bank. Another issue posed by the current competitive banks like Sampath Bank, Commercial Bank and HNB is required to open certain amount of accounts every month which makes competition really fierce to the bank. The Seylan bank dependability upon enhancement of the customer base, the technology and innovations have gone to the secondary level which will be increasing the threat of competition with leading banks. Therefore the fierce current competition will be the most affecting force that has to be answered

Banking industry is currently operating in the maturity stage. There are many players as a result of which the competition is quite high. Competition is broadly based on the levels of fees charged, reputation, the range of services and products provided. As the industry consolidates and the range of services broadens, the size and geographic spread of industry players in increasing. Providing a high set of barriers is the capital and regulatory requirements within the banking sector. Entities that want to start up as a commercial bank and/or investment bank or securities dealer face significant establishment costs in order to gain acceptance and meet market reputation. Furthermore, start-ups require up-front expenses in order to establish proper distribution channels. Globalization is high and the trend is increasing. Cross-border sales and acquisitions of banking operations are also occurring, as assets are shuffled in the race to raise capital.

Banking industry is highly competitive as there is high exit barrier. Moreover, competitors are large and quite equally balanced. Additionally, as banking industry has emerged for hundred years, just about everyone who needs banking services already has them.

The banking industry has transformed in numerous ways through the ages. Financial institutions now offer a broader assortment of products and services than ever before. The banking industry’s principal purpose remains the same. Financial institutions put the public 's excess monies (deposits and investments) to work by loaning them to individuals to purchase dwellings and automobiles, to open and grow businesses, college funds for families with children, and for countless other reasons. Banks are essential to the wellbeing of our country 's economy. For millions of people residing in the United States, financial institutions are the primary election for saving, borrowing, and investing funds.

A bank is an institution that facilitates financial transactions between the parties. Amongst its standard operations are accepting deposits from the customers, lending money as loan (cite). The major source of income for banks is interest income which is earned on loans given to the customers, business firms and corporations. This very nature of it makes banking institutions so crucial for economic development of any country. Strong banking operations and fundamentals paves the way for higher customer and investor confidence in the company.

An overview of the principal types of deposits offered by TD Bank personal, small business, commercial banking and investing and competitiveness of these offerings are the strategic weapons or differentiating product features (quality, price, service), which allow some companies within an industry to perform better than others. Industry standards and regulation often set minimum requirements for the industry an as key inputs to the industry, plays a significant role in determining the success of individual companies within the industry. It is not divergent to the use and adoption of rapidly technological advances, which are keys to every firm’s competitive positioning. In fact TD Bank indicates competitiveness of these offerings is terms of price, quality and service, tracking the competitor’s strengths and weakness. By comparing their strengths to its own clearly see where the threats future business may lie. By examining weaknesses, find direct opportunities capitalize on.

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

o Technology: In a technology driven world, it is important that banks in the industry ‘move with the time’. With respect to the big four, these banks have now introduced internet and cell phone banking as well as banking from the ATM; making the industry highly competitive. This technology aims to make banking for the client simple and accessible from anywhere. This new technology is aimed, once again, at the medium to high-income earning clients, who have access to these technologies.

The use, acceptance, adoption and application of internet technology to businesses to boast their performances are not something new. Saffu et al., (2008), states that there has been a significant increase in the use and application of e-commerce in businesses in the past decade. E-commerce has benefits such as reduction in costs, increased business opportunities, reduced lead time and providing more personalized service to the customers (Turban et al., 2008). Internet banking or e-banking is one of the many tools of e-commerce adopted by the banking industry. Tools of information technology such as internet banking have significantly improved the quality of services offered by the banking

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

The Mission statement of the bank is to “help you make progress toward your goals”. Which means to provide simple ways to spend, save and manage the money of the consumers. Nowadays, banks operate in those sectors where the environment is stable but nonetheless many banks are facing aggressive competition but fighting back to the competition is vital role to play to generate

The recent guidelines on New Bank Licenses by RBI have opened the doors for the entry of third set of private banks into the 73 trillion banking sector. Taking a look at the non-financial players like Aditya Birla Nuvo Ltd, Reliance Capital Ltd, L&T Finance Holdings Ltd, and Bajaj Finserv Ltd.which having a past record of sound credentials and integrity along with being financially sound have run the competition. Not only that, with a successful track record of 10 years, one would normally hope of improved productivity of the banking sector, which has been seen stagnating over the last few years and this gives a new opportunity for new