ICT in Banking Industry

Running head: ICT in Banking Industry 1
ICT in Banking Industry
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ICT in Banking Industry 2
ICT in Banking Industry
Introduction
The present day hi-tech support the banking industry in its efficient and effective service
delivery. The success of banking industry squarely lies in the application of information and
communication technology. Most arguably, ICT has widened the role played by the sector in
most countries’ economies through streamlined service delivery (Anitha, Saranya, &
Vasantha, 2013). Financial transactions and payments, mobile and tele-banking, internet
banking and use of automatic teller machine (ATM), and credit cards are examples secured
services oferred by banks.
Services offered by banks are resource intensive. Additionally, banks process voluminous
data coming from different sources at different speeds. This implies that banks use computers
with high processing power and adopt technologies that can offer support for their data. Cloud
computing technology and the application of mainframes has remained a feasible solution for
many banks. The main purpose of this report is to investigate how banking industry enterprises
use cloud computing and mainframe technologies to support their day-to-day operations. In the
sections that follow, the report outlines core services offered by banks, banks increasing need for
IT, benefits of cloud computing technologies as applied in banking sector, and reasons why
banks use mainframes in their services.
Core Business Services Offered by Banks
The banking and finacial sector play a major role in financing economic growth.
According to economic growth theory, finacial institutions and particularly banks play a critical
role in the development of economy’s productive capacity (Schumpeter, 2017). Additionally,

ICT in Banking Industry 3
banks are an internal source of funds that are needed to finance ecomic development. This
success is determined by the type of services offered. Unlike traditional banking sector that only
offered new strategies for the sake of survival, the new generation banks create service delivery
paradigm shift as a way of responding to market dynamics. These banks provide financial
services that are enhanced using technology. These services include payment services, financial
intermediary, ancillary and financial services. Financial services include and not limited to new
services at particular time. These include retail baking, foreign exchange and investments
banking and wealth management. It is through this service people open new accounts, check
balances, etc. present day payment services include electronic fund transfer, mobile banking and
PayPal. Financial intermediary is one of the services offered traditional banks. It includes
accepting deposits and lending out money at a given interest.
At the wake of technology growth and adoption, security challenges continue to get more
complicated. The new-generation banking has multiple sources of data which can easily be used.
Data integrity, integrity and confidentiality must be maintained all day long. This data is at risk
of theft in addition to credit cards’ information which is at the highest risk of theft if not secured
(Tham, Mohd, Abdol, & Ferdous, 2017). The banking sector must work to protect their
clients’ financial data. Physical security is also needed to limit access by unauthorized persons.
Bank’s Needs for ICT Workload Types
Technology and information systems have been used by many organizations as the
lifeblood of their business. The modern economic world assumes that the banking industry
greatly depends on technology. Tech revolution that was coupled with great changes in the legal,
technical and economic spheres of banking have caused great competition in the sector,
prompting high consumption of IT services in order for the sector to remain relevant and