Information Technology & Banking

When you drive up to your bank or walk up to your teller, your main goal is to complete your transaction and move on with your day. The last thing on your mind is how that transaction is taking place. You don’t care what happens behind the scenes as long as your money is where it needs to be and is safe. As the banking and finance industry has transformed, so has the process of how your money is handled. To accompany those changes, regulators and lawmakers create laws designed to protect consumers, banks, and the economy as a whole. As you will learn, the history of the banking industry has changed drastically over the last two thousand years and even more so in the last century with the advance of technology. It only makes sense that those lawmakers must continue to update and invent new regulation to further protect those interested parties. My goal is to demonstrate just how rapidly and radically the finance industry has changed and how new elements being introduced to finance and banking will adapt the industry and the regulation.

The Federal Reserve System has three branches: the Board of Governors, The Federal Open Market Committee, and Reserve Banks. The Federal Reserve System (Fed) supplies and regulates America’s money to all the banks. The Board of Governors is the main authority of the three branches of the Fed, and it supervises other banks. The Federal Open Market Committee is the most prominent policymaker of the three branches and regulates the supply of money in the economy. Federal Reserve Banks serve other banks, this is why they are called banker’s banks. There are twelve Federal Reserve Banks which represent different states and these “districts” share data for monetary policies. The future role of monetary policy is vital

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.

Objective: To find out the risk of customers using bank accounts and provide methods for mitigation of the highest priority residual risk.

The banking industry builds and sustains Financial relationships with its consumers of all sizes to supply Financial products and services to stimulate economic growth. The industry participants produced a variety of services from savings accounts to home and business loans mortgages checking accounts and

b) Reserve Banks. The Fed consists of 12 districts. Each Federal Reserve Bank holds reserve deposits from sets the discount rate for commercial banks in its geographic region. Reserve banks also play a major role in the nation’s check-cleaning process.

This research project, THE IMPACT OF INFORMATION TECHNOLOGY ON BANKING SERVICES (CASE STUDY OF ZENITH BANK PLC), written, researched and submitted by EBHOHON OLUWASEUN I was carried out under my supervision and it is adequate in scope as a project it meets the requirement and regulations governing the award of Bachelor of Science in Banking & Finance,

The statements below are the impacts of the internet on the competitive landscape of corporate banking:

Lastly, all of these shortcomings to the conventional system prolong the time it takes for a customer to deposit a check and receive the funds. Ultimately, any process improvements must create a positive customer experience and reduce added exposure to both the customer and the banks.

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

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

All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

(Ernst&Young, 2015). It is essential for capital markets institutions to upgrade technologies – in-house or through joint ventures, strategic alliances or acquisitions of ‘permitted’ technology firms that are closely aligned with banking – to make valuable operational and financial decisions. (KPMG, 2015). Bank must also invest in technology preventing financial crimes and cyber threats. Furthermore, investment banks can enable their staff to access necessary information to perform their work more efficiently and support better connectivity with clients by using social media and mobile technology. Technology will enable the bank to transform , to take control, to rebuild trust, to drive efficiency and to become digital.

Commercial banking centers are going through drastic changing times. Nationwide most major banks are gradually closing their branches. Across the country banks are disappearing. The rise of technology and convenience of smart phones is making retail banking an uncertain career choice. The one area that needs to be focused on is what goes on inside a commercial bank, because for many financial centers, it has been the image to the public.

According to Langdon and Langdon, (2006) IT including computer based information systems used by an organization and their underlying technologies have propelled changes in the banking sector Technological innovation for that matter affects not just banking and financial services, but also the direction of an economy and its capacity for continual and sustainable growth. Most banking industry and development analysts assert that technological change is one of the important factors underlying the dynamics in the banking industry structure and performance today which leads to cost competitiveness and diversification into new lines of business to improve profitability, through strategic positioning and processes.