PLAGIARISM FREE WRITING SERVICE
We accept
MONEY BACK GUARANTEE
100%
QUALITY

Information Systems In Bank Industry

Keywords: banking information system, banking information systems security, cloud computing in banking

INFORMATION SYSTEMS IN BANKING INDUSTRY

Executive Summation:

Information systems are extremely vital for the expansion and success of business organizations in today's world. All areas of the industry are totally dependent on these for the management of important info and data. Small organizations to large, powerful businesses such as traditional banking institutions and central and local government are taking the assistance of information systems to modify their data. In this particular paper, we will discuss the various advantages of the utilization of information systems in the bank industry. We will thoroughly analyze the requirements of information systems at the many different levels and review the security needs for these purposes.

Use and Benefits of Information Systems in the Banking Industry:

The advent of personal computers has given rise to information systems used as a small business tool on a large scale. Computers and even more specifically information systems are being applied to a large scale by virtually all businesses. The use of the capacities of Information systems and technologies brings out improvement running a business functions (Davenport and Brief, 1990). Among the major areas to enjoy the great things about computer systems and information systems is the lenders. The type of the bank industry and also other financial industries includes information and trust. Being in the service industry, banking institutions are in the most need of information. Solutions like cloud computing and other online information storage area systems have allowed banking institutions to deliver state-of-the-art customer services to its customers while keep up with the market competitiveness necessary for gaining business. The following paper analyzes the information needs of the lenders at various departmental levels and compares the security levels utilized by finance institutions with those in other sectors. By the end of the newspaper, one should be able to understand the mostly used solutions in lenders, the security actions currently found in banks and if there is range for even more improvement.

Information Needs in Finance institutions:

The need of information was first understood in the bank industry. Being in the service sector, finance institutions needed to store information to raised their services and gain a competitive advantage over their competitors. Basic services include the book keeping data of the customers while the luxurious ones include the facility of an IVR (Interactive Tone of voice Recording) by which customers can get answers to their F. A. Q's. However, producing an information system needs huge investments, responsibility of non-leakage of information (robustness of the system), and different other security steps. Finance institutions therefore need information at every level possible. The benefits associated with information are numerous. Today, decision making systems are also utilized by banking institutions for purposes of marketing newer loan strategies. Typically, banks might need information at the following levels.

Basic or Level 1:

This is the standard level. Information as of this level might be utilized strictly for administrative purposes. Jobs include e book keeping, bank account handling of customers etc. The trend of internet banking has made the basic level much more appealing to customers than it used to be. In addition the concept of phone banking through IVRs has further became a major technical step towards progress of banks and IT systems.

Advanced or Level 2:

At this level, information is crucial and is used at the managerial level. Professionals use certain information like stock listings, annual general meetings etc in directories that is to be kept secure. These details is meant to be key and can't be distributed without consent and proper authoritative ability. Information at this level is rarely for customer use. However, in situations of fraudulence and cheating, banks may use this as a safety measure to ensure their reputation does not lose.

Evaluation of Information Systems:

Majority of the banking companies in the traditional western countries and more recently in Parts of asia to make use of the introduction of information systems to bolster their business. Decision making tools, bank account management systems, and online systems are broadly used by bankers to lure customers in the pursuit to entice them. Because the sector they operate is the service sector, bankers need to understand they can ill find the money for to let their customer service affect because of the technological advances. To judge the information systems employed by banks, one must realize the overall character of information systems employed by banks currently.

Nature of Information systems presently used by finance institutions:

A variety of information systems are being used by banks. Presently, most banking companies operate with multiple legacy systems that operate on an individual mainframe computer (Lenard ML, Ferran C 1997). With times, this basic principle has not changed much. The idea of object oriented programming has given go up to the use of multiple servers thereby reducing the load about the same PC. Additionally, the internet has changed as an entire source of secure technology that functions as a useful reference to the banking companies. The development of online systems (popularly known as web based systems) has allowed banks to become more precise and keep a headache free record system. However, the online systems have resulted in many security issues. The next section describes them.

Security:

The problem of online applications is the level of security provided. There were lots of cases with the most famous ones being the ATM greeting card duplication and bank card faults have all arisen anticipated to information system vulnerability. Therefore, bankers need to provide a degree of security that can't be breached. It is tough to say that the machine is "foolproof" since coding involves coding and decoding. Therefore what can be coded can also be decoded. However, many security actions have been used by bank regulators relative to the IT professionals to allow smooth hassle free bank by using pcs and information systems. A number of the common security features are the secure server technology (SSL technology), Enforcement of laws like the info protection act allows for more careful bank by the bankers. The law enables anyone the use the information provided online with due good care in support of with the consent of the professional of that information. This regulation has worked wonders in that it has made the owners of websites more accountable to such mishaps. Information flooded online can only be utilized for purposes said and described prior to collection of it. Rules thus acts as one of the barriers to prospects who want to breach it. Aside from law, security levels include password remembrance systems, additional information provision and providing passwords to specific phone numbers only. Using this method, the internet has taken help of other acquisitions of humans into consideration. The reasoning is a human being cannot lose all at a time and hence is an excellent measure to lessen the security hazards.

Cloud Processing?

Cloud processing is the word given to applications which operate over the net and are accessible to everyone who comes with an access to the internet. Intranet, knowledge centered systems and websites are all types of cloud computing. Cloud computing takes help of a third party company to hire the applications. With cloud processing, users have to have little expertise on the computer and its working. This demands major security hazards since it can be accessible by whoever has access to your personal computer. Computer literacy is also little required. However, for our chosen business cloud processing is not appropriate. Although in other service industries, cloud computing has worked wonders to catch the attention of customer base, banking institutions cannot afford to work with such systems. In fact, banking institutions can operate with secure systems and yet gain an edge by saying their know-how and service they take for his or her customers.

To conclude, the use and benefits of information systems in banking companies are extensive. Along with these come many obstacles which the banking companies need to take care of. However, with the beautiful invention, finance institutions have certainly been revolutionized.

References:

C. Ferran and M. L Lenard, "An Object Oriented Approach to Banking Information Systems", 1997, pp. 1-7.

D. E. Avison and V. Taylor, "Information systems development methodologies: a classification corresponding to problem situation", Journal of Information technology, 1997, pp. 73-81.

T. H. Davenport and J. E. Short, "It and business process design", Procedures Management, 1990, Vol. 3, pp. 11-27.

More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
PLACE AN ORDER
Check the price
for your assignment
FREE