Impact of Information Technology on HSBC: A Study on Ethical and Social Issues, Computer Networks, and Artificial Intelligence

This report evaluates the impact of Information technology on the performance of HSBC. It examines the role of IT, ethical and social issues, different computer networks, and the impact of Artificial Intelligence on the organization.

INTRODUCTION TO
INFORMATION
TECHNOLOGY

ABSTRACT
The aim of this report was to evaluate impact of Information technology on the
performance of an organization. With this regard, HSBC was taken into consideration and in
context of the organization role of IT was scrutinized, then different ethical and social issues
which were prevailing in practise were examined. The report also paid attention to different
computer networks and their impact on the performance of HSBC. At the end of this report role
of Artificial Intelligence was perceived with respect to the entity and its role was summarized.

Table of Contents
ABSTRACT....................................................................................................................................2
INTRODUCTION 125....................................................................................................................4
LITERATURE REVIEW................................................................................................................4
ANALYSIS AND DISCUSSION...................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION 125
Information technology refers to the process of utilizing the technology for organising,
collecting, sharing and delivering the information. In the current period of time the organisations
are depending on the technology as it is increasing the data security and cost effective process
(Prentice Dominique Lopes and Wang, 2020) The present report is based on the HSBC which is
British multination bank services providing company. The organisation is considered as the
private limited company that is found in the 1865. The present report will examine the impact of
IT which is providing assistance in increasing the efficiency of the operation of the company.
Along with the issues which the company is facing in the marketplace. Apart from that the report
will reflect the verity of computer netweork which is affecting the profitability of the company.
Furthermore, the report will elaborate the impact of artificial intelligence in enhancing the
business.
LITERATURE REVIEW
Theme:1 Impact of IT to help business in enhancement of their operations-
According to Alfalah, (2018) Information Technology is one of the most affective factor
to such organizations which are engaged in banking and insurance related business. Over the
time, global business formation has been changed and organization are now more likely to
expand their operations to the cross broader. This act of running business is being made simpler
and handy by Information technology.
Chen, Chen and Lin, (2020) said that the organizations like HSBC who are running their
businesses in around 64 nations. It was not possible without Information technology. Being an
organization engaged in banking and insurance sector, the organization is greatly affected by
such innovations. Information technology is giving upper hand to the organization and enabling
it to widen its diaspora to serve people and hiking its operational efficiency.
IT made the work simpler to reach the clients and customers living in backward areas.
Holzinger, et al. (2019) supported that information technology is getting surged with the progress
of time and helping organizations to eradicate the gapes they had earlier. It is being experienced
that Information Technology is surging ability of organizations to run their business in different
corners of the world.

There are number of sources, tools, applications, systems are being offered by
Information Technology which are transforming organizational performance and ability of
getting their clients satisfied. It is too often to see organization work with wider diaspora due to
IT. There are multiple tools and technologies such as Analytics, Technological infrastructure,
Data base, Data management, Automation, Artificial Intelligence, Cloud computing,
Communication, Collaboration tool etc.
The organizations are using these tools for their betterment and making their business
operations simpler, handy, affordable, greater, lucrative, advantageous etc. With the progress of
time the banking and insurance businesses are getting hyper place and requirement in the society.
People and organization are more likely to avail such services. Earlier it was not possible to
reach every and each needy person but now with the help of IT, it is so handy for organization to
accomplish.
Theme:2 Importance of ethical and social issues in running the business operations in the age
of virtual world-
Khisamova, Begishev, and Gaifutdinov, (2019) shared the notion that in the virtual world
there is one big issue of ethical practise and abiding with social needs, norms, legitimation. Over
the time it is seen that the organizations which are using Information Technology are found
breeching ethical norms and inculcating some malpractices in order to maximize the
profitability.
According to Madan and Mangipudi, (2018) Information Technology development are
not alone in nature since they are also bringing some issues such as Ransomware, Hacking,
Financial theft, IPR related theft etc. These all things are also going up since there is great scope
for such unethical practises. There are range of norms are set and governments of respective
nations are also striving a lot to bring safe practises in IT field yet it would not be fair to cite it
totally safe for the organizations.
The first issue is Data insecurity. Since the IT is providing ease to organizations to hike
the area of serving. They are now able to gather big data and can use that too in meaningful way.
HSBC is currently having around 40 million customers across the world (Naheem, 2018) The
organization is having mammoth size of data. With this regard, the biggest demon comes in the
form of data security. Data is needed to be kept safe and secure the organizations are supposed to
abide with all rules, regulations to manage their data so can hike ethical morality.

The organizations such as HSBC who are working in more than 64 nations, having lacs
of customers, working of different realms such as banking, insurance, asset management etc. are
having rigours need to ensure ethical and socially justifiable practices in order to make sure their
higher performance without any ethical or social barriers.
As per Martynov, Shavaleeva and Zaytseva, (2019) the second issue is Hacking of
websites. The organization is working on wider level so the data and other forms of information
become severely prominent for them. If there is no proper structure to manage the safety then
some illegal hands may approach their websites and can misuse the information sets. This issue
is very much helpful if appropriate measures are taken then organization can hike its overall
performance.
Online crimes have been some most horrendous issues, this can be considered as third
issue. Social safety is very important thing and organizations are ethically obliged to practise
online safety. But over the time it is seen that some fake news spread, trolling, online threats,
disseminating misinformation etc. are being so often and society is getting affected by such
instances.
Theme:3 Different types of computer networks and their effects on the businesses-
According to Mirza and Cosan, (2018) there are multiple types of computer networks
which are being used by different organizations but the most prominent networks are these four-
LAN, MAN, WAN, PAN. These all are highly comprehensive since organizations and their
business performance are getting affected by these networks. The quality, affordability,
reliability etc. of computer networks decide the way forward for an organization.
HSBC is working in 64 countries and having its head office in UK. The organization is
able to run its business in some African, Asian, American nations and it all became possible due
to computer networks and their efficiency. Now wireless technology is experiencing its apex
level of progress and which is paving the way forward. Now for such organizations who are
working in number of nations it is so easy to run their business.
Romashkova, et al. (2018) supported the views that LAN and PAN are having their great
importance since they are helpful for people to carry out their online operations with ease. These
computer networks allow them to get connected with other computers in nearby range. This is
very much helpful since if there is no such networking system then organizations would not be
able to approach them and their reflections could not be used.

On the other hands, WAN and MAN are other key forms of computer networks. They are
helping such big giant organizations to expand their business operations and hiking their
customer constellation. There are ample number of instances where due to these networks the
companies are highly able to serve more people and can enhance their area of services. HSBC is
using these networks efficiently to approach its employees, customers etc. this is helping to save
money, time, and efforts by the organization. Earlier it was not easy and affordable to use such
tools but now even the people of developing nations and underdeveloped nations can affords
these tools. They can directly acquire services using LAN, MAN etc.
Szymkowiak, et al. (2021) supported the notion that one of the biggest reason that
organizations are able to work with greater scale is due to availability of computer networks. It is
paving way to expand business operations. For instance MAN is helping to boost up
communication between different banks situated in different cities. They can work with greater
significance. Organizations like HSBC which is having range of services and providing in
different corners of the world is intensively using these networking for higher business gains. At
the same time, WAN is also helping in many ways such as it is aiding to the entities for
performing different acts like centralization of data, getting the files update, transmission of files
from one side to another, exchange of messages etc.
Theme:4 Impact of AI in the enhancement of business operations-
According to the Jain, (2019) the artificial intelligences is increasing and accomplishing success
in the department of technology and cooperate. The HSBC is one of the leading organisation
which is using for collecting and storing the data in an appropriate manner. Basically the
organisation Is offering the services all over the world in order to satisfy the large numbers of he
customers in effective as well as efficient manner. The motive of the organisation of using the AI
in the organisation is to reduce the cost and enhance the efficiency of the company that is also
responsible for providing the better experiences to the people. With the assistance of the
artificial intelligence the organisation is able to increase and maximize the profit in the domestic
as well as international marketplace. Apart from that the organisation is increasing the
productivity as it delivering huge support in formulation of the network. With the support of that
the organisation is able to hire the talented people for the operation of the company and deliver
the satisfying services in the marketplace. The organisation is offering the services all over the

world in order to satisfy the large numbers of the customers which belongs to different
marketplace.
Along with that it is allowing the company to improve the relationship with the potential
customer for the survival and success for the long period of time. Due to the utilization the
organisation id able to address the requirement of the consumer and resolve their problem in
short period of time. Along with that it allows the organisation to reduces the risk of human
resources in performing the task and deliver the competitive advantages in the marketplace. The
organisation is using the features of the artificial intelligences for offering the best quality and
standard services to the customers that result in improving the value of the brand in differ
marketplace. HSBC is utilizing the artificial intelligences for determining the trends of the mar
place for offering the right services top the right customers. Along with that the organisation is
able to detect the fraud cases and manipulation of money through the digital payment. As per the
views Soni and et.al.,(2020) of the motive of using artificial intelligences it to keep the
information of the customer private and provide the security in an adequate manner.
ANALYSIS AND DISCUSSION
Impacts of Information Technology on the business in order to augment their operations-
HSBC is engaged in banking related services the organization is now having around
219697 employees and working in more than 64 countries, with annual revenue of 49 billion
USD. It all became possible for HSBC due to wide prevalence of IT. The entity is also among
FTSE 100 organizations and registered in NYSE. These all information are providing great
performance of the organization but the fact is remained undisclosed that the key driver behind
this success is information technology (Wang, 2021)
The organization was stabilized in the year 1864 since then the organization has notched
up greater success. The main reason has been IT which enhanced its capability to widen its
diaspora to serve people and helping them to get services for the entity. Earlier the organization
used to deliver a few services and main service was just banking but now it is covering range of
services such as asset management, investment services, mortgage loans, mutual funds, risk
management, wealth management etc. and the main driver is Information Technology.

Earlier one of the biggest issue for the organization was to communication. It was not
possible to reach every and each client or personnel who are engaged with organization, but
Information Technology has made this task simpler and paved way for HSBC to go and explore
some new markets. It can be seen in last couple of years that the company has expanded its
operations and now working of countries. It came to its favour due to information technology.
There are some negative impacts too which can be seen happening. HSBC is a global
organization and faced some IT related issues. It was alleged by local media or China that the
organization was disseminating some misinformation about Huawei and it created a burning
turmoil. Which affected its market goodwill and also reduced its diaspora of serving others.
Importance of ethical and social issues and their significance to the virtual world-
There are number of ethical and social issues can be experienced. HSBC is known for its
high quality services on affordable prices. The organization is working in more than 64 nations
so having great responsibility to perform its operations keeping social and ethical norms in mind.
As it has been seen in the literature review that there are three main issues which are there in the
practise but also opening great window of opportunity to the organization. By practising and
keeping eyes on these issues HSBC can improve its practise and can also eradicate such perils in
order to give new heights to its performance (Wang, et al. 2020)
The first issue was Data insecurity. The organization is serving millions of people and
due to IT, it is so handy to generate billions of information and personal data. The data security
becomes a great challenge. As it has been seen multiple times that such big organizations are
found guilty when it comes to data security. The organization can use this as an advantage and
can provide the best set of data security practises in attempt to get its customers attracted. For
achieving the aims, HSBC is using hybrid policy for data management.
The second ethical issue was website insecurity. People are directly using such banking
services through their mobile phones or some other instruments. They generally use LAN type of
network which is very easy to get penetrated. The organization is having severe challenge to
work on network security. It can be taken as a challenge and organization can improve its
operations. There are range of steps are taken by it in order to restrict crimes such as online theft,
misuse of information, data leak etc (Zhang and Lu, 2021)
There is one horrendous issue too, which is known as Online Crimes. There are multiple
forms of online crimes such as extortion, misuse of data, data selling, personal threats, misuse of

account information etc. Being engaged in banking sector the organization is timely updating its
security policies and due to its wider diaspora, HSBC is having well-articulated set of practise.
These all risk areas are needed to be worked upon in order to perform on merit and also
being competitive in such drastic market where range of competitors are prevailing and striving
to change the market equations (Prisgunanto, 2018) If organization takes these risks into
consideration and fabricate appropriate data management and IT protection policy then would be
able to eradicate all forms of such threats and can transmit best services to its clients.
Different types of computer networks and their impact on the organizational performance-
The network refers to the feature or the programme that allow the people to sharpie information
with the variety of the people for the welfare of the organisation. For the performing the task of
the company the organisation considers various computer networks that are mentioned as follow:
personal area network: the organisation is using this area network in order to share the
information among the people working in the organisation in order to protect the information to
be spread. With the assistance of this network the organisation is able to secure the information.
With the assistance that the organisation I able to transfer the information in the short period of
time(Ramadhan, and Anwari, 2022).
local area network: with the assistance of this network the HSC bank is able to collect and
store all the information in a protective manner. With the assistance of that the organisation is
able to share the information without switching one place to another. Basically it is renowned as
the service which the organisation used to connect with the variety of the people associated with
the organisation. It also solves the issues of the people associated with the security regarding the
software used by the HSBC.
wireless local area of network: it is one of the effective network which save the cost and time
of the organisation and it deliver help in reducing the barriers in the ways of communicating
from one person to another. Due to that the organisation disable to survive in the long period of
time. Along with that the company is able to enhance the mobility of working and bringing the
flexibility that workplace that further result in improving the satisfaction of workers as it reduces
the stress of the people(soni, and et.al., 2020)
wide area network: it delivers assistance in increasing the capability and efficiency of the
company in effective as well as efficient manner. Due to the utilization of this network the
organisation is able to communicate people easily as and allow bank to share the information to

the consumer in a quicker for that increase the satisfaction of the consumer as well as keep the
propel up to date with the services and programme. With the utilization of that the organisation
is able to cover the large areas in short period of time.
Impact of AI in enhancement of business operations-
With the utilization of the artificial intelligences the organisation is able to save the time and
able to generate more profit from the domestic as well as international marketplace. Along with
that as it allows the organisation to collect all the information associated with the potential
customers the HSBC is able to enhance the productivity and profitability of the company. Along
with that the company is able to form the effective decision in short period of time that also
result in improving the brand image and value in the different marketplace. Along with that with
the support of that the organisation is able to avoid the mistakes which is created by the humans.
Due to thatch organisation like HSBC is offering the best quality services in the various
marketplace (Borges, and et.al., 2021).
Basically the artificial intelligences are the biggest reason for the growth of HSBC. on the basis
of the artificial inelegance the organisation is able to develop the effective plans of action for
addressing the requirement and needs of the consumers. Along with that it allows the
organisation to accomplish the professional goals in short period of time. Art from that it also
delivers huge support in reducing the operational cost due to which the organisation is able to
deduct the expenses to and Isabel to invest more capital in increasing the capability of the
individual person working in the organisation. Along with that it is helpful in dealing with the
forthcoming challenges and improve the performance of the company. In context to that the
HSBC company is serving the best services to the people since many years and leading the
marketplaces in an appropriate manner. Apart from that the determination of the artificial
intelligences allow the organisation to bring the changes and innovative ideas to remain
competitive in the marketplace as well as deliver the competitive advantages in the various
markets Gulsanam, 2022 )

CONCLUSION
From the report above it can be summarized that in the development and operational
efficiency of organizations the role of Information Technology is quite higher and vital. The
report deeply analysed contribution of IT in the overall performance of organization. With this
regard, literature review was carried out where some areas such as contribution of IT, different
types of computer networks and their contribution to the organizational performance, role of AI
etc. were deciphered.
For fulfilment of the purposes HSBC company has been taken into consideration the
organization is engaged in banking and insurance related business form more than 150 years. It is
extending its services to millions of employees. The impact of Information Technology and how
it was brining better to the organization was evaluated. At the end of the report some other
aspects such as different computer networks and AI were evaluated in relation to the taken
organization.

REFERENCES
Alfalah, S. F., 2018. Perceptions toward adopting virtual reality as a teaching aid in information
technology. Education and Information Technologies. 23(6). pp.2633-2653.
Borges, and et.al., 2021. The strategic use of artificial intelligence in the digital era: Systematic
literature review and future research directions. International Journal of Information
Management, 57, p.102225.
Chen, L., Chen, P. and Lin, Z., 2020. Artificial intelligence in education: A review. Ieee Access,
8, pp.75264-75278.
Gulsanam, S., 2022. THE NEED FOR THE INTRODUCTION OF INFORMATION
TECHNOLOGY IN THE TEACHING OF HISTORY IN HIGHER EDUCATION. SO
‘NGI ILMIY TADQIQOTLAR NAZARIYASI, 1(1), pp.358-362.
Holzinger, A., et. al. 2019. Causability and explainability of artificial intelligence in
medicine. Wiley Interdisciplinary Reviews: Data Mining and Knowledge Discovery.
9(4), p.e1312.
Khisamova, Z. I., Begishev, I. R. and Gaifutdinov, R.R., 2019. On methods to legal regulation of
artificial intelligence in the world. International Journal of Innovative Technology and
Exploring Engineering. 9(1). pp.5159-5162.
Madan, R. and Mangipudi, P.S., 2018, August. Predicting computer network traffic: a time series
forecasting approach using DWT, ARIMA and RNN. In 2018 Eleventh International
Conference on Contemporary Computing (IC3) (pp. 1-5). IEEE.
Martynov, V. V., Shavaleeva, D. N. and Zaytseva, A. A., 2019, September. Information
technology as the basis for transformation into a digital society and industry 5.0.
In 2019 International Conference" Quality Management, Transport and Information
Security, Information Technologies"(IT&QM&IS) (pp. 539-543). IEEE.
Mirza, A. H. and Cosan, S., 2018, May. Computer network intrusion detection using sequential
LSTM neural networks autoencoders. In 2018 26th signal processing and
communications applications conference (SIU) (pp. 1-4). IEEE.

Naheem, M. A., 2018. Illicit financial flows: HSBC case study. Journal of Money Laundering
Control.
Prisgunanto, I., 2018. IMPLEMENTASI PROMOSI BAURAN KOMUNIKASI PEMASARAN
KARTU KREDIT DI INDONESIA (Studi Deskriptif Bank Mandiri, HSBC, Citibank,
BCA dan BNI): Ilham Prisgunanto. Commed: Jurnal Komunikasi dan Media, 2(2),
pp.106-124.
Ramadhan, Y.S. and Anwari, M., 2022. Introduction of Information Technology as Education
for SDN 2 Barangas Students. Prosiding Pengembangan Masyarakat Mandiri
Berkemajuan Muhammadiyah (Bamara-Mu), 2(1), pp.286-289.
Romashkova, et. al. 2018. Application of information technology for the analysis of the rating of
university. In CEUR Workshop Proceedings (Vol. 8, pp. 46-53).
Soni, N., and et.al., 2020. Artificial intelligence in business: from research and innovation to
market deployment. Procedia Computer Science, 167, pp.2200-2210.
Szymkowiak, A., et. al. 2021. Information technology and Gen Z: The role of teachers, the
internet, and technology in the education of young people. Technology in Society, 65,
p.101565.
Wang, B., 2021, April. Library cataloging work under the background of computer network.
In Journal of Physics: Conference Series (Vol. 1881, No. 3, p. 032077). IOP Publishing.
Wang, J., et. al. 2020, October. Research on computer network teaching reform based on
simulation software. In Journal of Physics: Conference Series (Vol. 1654, No. 1, p.
012127). IOP Publishing.
Zhang, C. and Lu, Y., 2021. Study on artificial intelligence: The state of the art and future
prospects. Journal of Industrial Information Integration, 23, p.100224.