Importance of Information Technology in HSBC Bank UK

The report discusses the importance of Information Technology in HSBC Bank UK and its impact on businesses. It covers social and ethical issues, different types of computer networks, and the impact of Artificial Intelligence. The report also highlights the use of technology by HSBC Bank in its operations and the impact of AI.

INTRODUCTION TO
INFORMATION
TECHNOLOGY
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ABSTRACT
The entrance of technology in the world has changed the living standards of the society
people. Every corner, each place is filled with the presence of technology and acts as an essential
factor especially for the businesses. The companies that does not applies technology generally
fails in their businesses or faces the situation of bankruptcy. The present report mentions the
information technology importance along with various social and ethical issues at HSBC bank in
UK. The bank performs its actions completely with the involvement of technology such as
maintenance of customer records, their banking transactions, providing financial services to
customers and many more. The report focuses upon the use of information technology by HSBC
Bank in its operations along with the impact of Artificial Intelligence.
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Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION ..........................................................................................................................4
LITERATURE REVIEW ...............................................................................................................4
Discuss the impact of IT in helping businesses to enhance their operations..............................4
The importance of ethical and social issues, that are increasingly becoming significant in the
virtual world................................................................................................................................4
Identify & discuss different types of computer network with their impact on businesses.........5
Impact of Artificial Intelligence in enhancing the business........................................................5
ANALYSIS AND DISCUSSION...................................................................................................6
Discuss the impact of IT in helping businesses to enhance their operations..............................6
The importance of ethical and social issues, that are increasingly becoming significant in the
virtual world................................................................................................................................7
Identifying & discussing different types of computer network with their impact on businesses
.....................................................................................................................................................8
Impact of Artificial Intelligence in enhancing the business........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
The information technology denotes to the concept of computer and the various networks
which makes the work easier and faster. The technology is backed by the feature of providing
different facilities such as developing & monitoring the database, providing complete safety to
any information or data, etc. The information technology is something which is present
everywhere and is highly used in businesses whether any company or a bank (Barton and
Pöppelbuß, 2021). The HSBC Bank is a multinational bank being headquartered in London, UK
which stands for Hong Kong Shanghai Banking Corporation. The HSBC bank has an
international presence as well as smooth functioning through the involvement of information
technology in its actions. The bank offers investment markets and banking, corporate banking,
private banking, e-commerce potential, financial services to the individual customers and many
more. This is smoothly done by the connection of computer networks which has shorten the
distance within the financial transactions as well as the time limit for the transfer of funds in
seconds instead for months or some years across the boarder.
LITERATURE REVIEW
Discuss the impact of IT in helping businesses to enhance their operations
According to Steven Scheck 2021, there are various impact of information technology
upon the operations of business such as now a days the businesses are heading towards the
adoption of cloud computing as this provides huge efficiency within the operations of
companies. The enhancement of automation in technology bring high efficiency in the workflow
of companies especially banks, etc. The system of information technology permits companies to
develop individual reports faster & easily for having various managerial decision makings. Other
potential of computerized accounting systems which is highly used in banks comprises of
Improved Accuracy, Increased Functionality, Better External Reporting as well as the Faster
Processing.
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The importance of ethical and social issues, that are increasingly becoming significant in the
virtual world
According to Rachel Farnese 2021, the various social and ethical issues are mentioned
below:
 It is highly essential to take care of access rights, that means a user must not access to the
site which is not providing right to everyone.
 Loss of computer property, theft of significant information, etc. also comes under the
category of ethical issues in IT. This issue restricts any other party or person to use the
concerned information technology in a way that results into loss of any information or
computer equipment.
 Cyber bulling is a major social issue that leads to a tragic situation through creating a
problem in technology or computer system and stoles all the necessary information from
the system.
 Maintenance of privacy for the computer data, information or for the password is an
another social issue which is hard to maintain in the world of social chats via different
apps.
Identify & discuss different types of computer network with their impact on businesses
According to Gary McCauley 2019, the different types of computer networks with their
impact are mentioned below:
 Local area network (LAN): The network connects different computers with a limited
scope such as in schools or offices. The easiest type of local area network is to join
computers & a printer in some office or at home. In common, LAN is used as single type
of transmission channel.
 Wide area network (WAN): This type of network covers a large portion of geographical
location generally greater than a kilometre radius. Wide area network system can be a
connection of a local area network that joins with other LAN through telephonic lines &
radio waves. It is generally limited to an business or a service.
 Personal area network (PAN): This form of network is dependent upon the personal
workspace. The centre of network in this type is the device of an individual which is
connected with other device.
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Impact of Artificial Intelligence in enhancing the business
According to Diego Pineda 2019, the impact of Artificial Intelligence in the business
enhancement is mentioned below:
 The Artificial Intelligence enhances the company's sales as well as the marketing in
personalised way. This acts more faster & effective as compared to human beings and
provides results accordingly.
 This saves company's time & money through optimising and automating the daily tasks
of the business and enhances their productivity as well as efficiencies.
ANALYSIS AND DISCUSSION
Discuss the impact of IT in helping businesses to enhance their operations
The presence of technology at workplace is away from targetting ramifications. The
company can have easy contact with the customers through call or by internet technology &
though this generally provides high efficiency with productivity instead of traditional customer
service method. The various impact of information technology upon the business performances
for their enhancements are discussed below: Globalisation: The technology has made easy process for the businesses to spread their
business at global level and maintain the same through the help of technology. This has
developed an unified network as well as enhanced the workings of HSBC Bank as this
has opened new scope of financial transactions or account opening with other corporate
transfers. The presence of information technology has permitted the HSBC Bank to carry
its business with various transactions across the world with the use of WWW (World
wide web) as well as providing the facility of online bookings (Dos Santos, 2020). Minimises the cost: The existence of information technology has assisted the procedure
of HSBC Bank through computerizing the work and making them cost efficient. The
different online financial services provided by the bank to its customers in saving
different operational expenses which can be done by mobile phones, faxes or even
through emails. Connecting cultural distance: Information Technology assists in joining the different
cultures by supporting customers from various nations to contact with each other &
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permitting them to exchange their thoughts, views as well as the traditions & thus heads
to enhancement in understanding. The bank HSBC functions in almost each country
across the world (Fan and Tan, 2020). Accessing the utilisation of technology: In HSBC Bank the access of information
technology is easier for data and information from anywhere across the globe via
Internet. So it can be said that technology has developed easier & highly efficient ways
for their clients. It could be for the consumers to use data that is stored on a large
technological devices & equipment in binary form.
 Accuracy: The best feature of technology is that it creates less chances of mistakes if
compared with people. The benefit of technology is that it could solve tough calculations
in few seconds only. Certain calculations may consume huge time for the result to bring
but, the outcomes of the calculations are correct always. Through the technology the
HSBC bank may come either with no or very few errors in rare situation (Ge and Xu,
2020).
The HSBC bank has became a world wide recognized bank which has linked cultures &
nations together. It also made interaction easier serving all time access & accuracy within their
transactions. HSBC bank has initiated new scope for employment because of regular
developments in technology. The application of technology in any HSBC bank has created the
bank & its services cost effective & time efficient.
The importance of ethical and social issues, that are increasingly becoming significant in the
virtual world
The various social and ethical issues with their importance that became significant in the
virtual world is discussed below: Security: The internet offers numerous services & advantages for HSBC bank, but it also
supplies hackers as well as viruses. HSBC bank all time tries to look for solutions to
safeguard the privacy of data & information which is stored from unauthorized access &
viruses. Online banking is one of the highly essential services in bank. This service
permits the clients to approach their accounts at any time from any area of the world, but
this facility could be dangerous in some conditions as it involves certain issue such as
hackers & viruses that could hamper the security for clients' accounts as well as in their
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information. HSBC bank provides full security system to safeguard their sites, the data
related to the bank & the customers information. HSBC bank also gives provides the
client's instructions to safeguard their bank accounts as well as their information
(Handoko and Suryadharma, 2020). Confidentiality: HSBC trusts strongly on its confidentiality of information, and for this
the bank utilises SSL for securing the various transfer of information between 2
computers via the internet using encryption, this converts the data into an encoded way
prior to the sending the same over the internet. The encryption assists to keep the client's
data private among the internet browser & bank’s computer system. Through using 128-
bit SSL (Secure Socket Layer) protocol of authorized & with proper signature, this
system functions to encrypt each information & data. Secure Socket Layer is one of the
highest secure way to transmit the information as well as data among two devices on the
internet through encryption (Kamberaj, 2020).
 Monitoring and security systems: HSBC bank is operating its functions with powerful
protection systems that is performing accurately to identify any sort of unauthorized
access & illegal actions over the HSBC bank network systems. The system comprises of
anti-virus protection, firewall systems, 24 hours security surveillance & sound data
encryption. This form has been created to safeguard the information from intrusion & to
defend the network from any illegal actions or unauthorized access.
Also, the HSBC bank has appointed an auditor to check the bank's security systems
internally. With the up-gradation of e-banking there comes the security problems which needs to
be focused at every step of the process to get sure for the clients' safety of money, transactions,
details or financial statements from getting into the unauthorised hands. An HSBC bank security
management procedure is being built around internal as well as external firewalls & IDS which
assures the bank server protection.
Identifying & discussing different types of computer network with their impact on businesses LAN(Local Area Network): This type of network is a group of computer devices that are
connected with each other within an limited area like office, school, or separate building.
The LAN network is being utilised for joining two or more computers via a
communication channel like coaxial cable, twisted pair, and many others. This is less
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expensive as it is created with cheaper hardware such as network adapters, hubs, &
Ethernet cables. Here the data gets transmitted at very faster speed within local area
networks with a combination of surfing higher level of security. Through LAN the HSBC
bank connects its all computer systems within the premises of bank and performs their
tasks with the use of such network. This on the other hand, provides high level of security
to the bank in maintenance of their data or information (Khosrojerdi and et. al., 2021). WAN(Wide Area Network): A WAN is a network which spreads over a large
geographical location like states or nations. This is quite large network than that of LAN.
A WAN is not only limited to a single areas, but it extended over a huge geographical
area via a fibre optic cable, telephonic line or through satellite links. The worlds largest
WAN is internet which connect through a system called World Wide Web. This kind of
network is being utilised generally by business or services companies which offers their
services at national as well as at international level. The HSBC bank through this is able
to maintain all its information of overseas branches as well as provides a facility of each
and 24*7 access to the bank accounts of their clients across the world (Li and et. al.,
2021).
 PAN(Personal Area Network): PAN is such network that is structured in an individual
personal device, generally in a range of ten meters or less. The Personal Area Network is
being utilised for interconnecting the computers of individual use which is refereed as
Personal Area Network. This network is only extended to an area of thirty feet. Personal
computers which are utilised to create the personal area network comprises of laptop,
media player, mobile phones as well as play stations. With the help of this the employees
of HSBC banks are able to perform their tasks from their home also especially in the
situation of global pandemic. Also, the customers of HSBC bank can make their
transactions by self or can avail various banking services at their mobile phones or via
their computers. The clients are not required to visit branch or stay in queue and wait for
their turn. This allows bank to attract more and more customers towards the services of
bank and avail their services with ease.
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Impact of Artificial Intelligence in enhancing the business
Artificial intelligence refers to a broad & general concept that denotes to any sort of
computer software which indulges in human tasks such as planning, learning as well as solving
different types of problems of any level in just few minutes. Instead of offering as a replacement
for human ingenuity as well as the intelligence, artificial intelligence is commonly experienced
as a supporting equipment. However, artificial intelligence presently has a tough time for
accomplishing common activities in the actual world, it is proficient at analysing & processing
data troves more faster than the brain of human being. AI software could then return with
combined set of action & represent them to the individual user. The impact of artificial
intelligence in the enhancement of HSBC bank is analysed below:
 The indulgence of artificial intelligence allows bank to save its time as well as expenses
through automating & optimising their multinational routine procedures or tasks
(McMenemy, 2021).
 Enhancement of bank's productivity as well as the operational efficiencies of their
employees through the utilisation of technology which assists the staff in faster
completion of their actions with proper sequence and accuracy.
 The application of Artificial intelligence assists HSBC bank in making quick banking
decisions depended on results from cognitive technologies as well as the needs of
customers & market (Paul and et. al., 2020).
 The artificial intelligence avoids mistakes or those errors which can be made by a human
being while working upon the task, provided that artificial intelligence systems are
established properly.
 The artificial intelligence uses insight to assume the preferences of their account holders
or other clients & offers them better as well as personalised experience so that they stay
connected with the HSBC bank.
 The artificial intelligence uses huge amount of data to develop quality results & grows
the bank's customer base through attracting towards the smooth and flawless services that
a bank provides with AI (Rousi, 2021).
 The application of Artificial intelligence enhances the bank's revenue through identifying
& maximising their sales opportunities as well as providing a scope of employment.
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CONCLUSION
From the above report it can be concluded that the computers & technology has
became an inseparable part of any business, especially in a service providing multinational
company like HSBC. The HSBC bank is classified as one of the biggest banking group &
financial services company that offers variety of service to its customers’ like saving account,
investing banking, personal loans, monthly profit account, current account, local or worldwide
transfer of funds, SME banking, ATM cards, e-banking, mobile banking, as well as online utility
collection of bills. Also the HSBC bank ensures the complete safety with high protection of its
clients data by compelling its consumers’ to aware about different ethical and social issues.
Hence, the sum up is that the use of technology as well as of the computers are highly important
for the flawless running of banking operations in service organization or particularly one that is
internationally widespread & operated along with an access by employees & the account holders.
HSBC bank must make get assured that the bank is aware about its functionality, benefits,
drawbacks & the impact of technology as well as the computer systems in their branches. This
would assist to manage transactions or operations without any difficulty or delay & also supports
in solving the various problems through artificial intelligence.
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REFERENCES
Books and Journals
Barton, M.C. and Pöppelbuß, J., 2021. Ethical aspects in and building blocks of AI business
models. In ISPIM Conference Proceedings (pp. 1-7). The International Society for
Professional Innovation Management (ISPIM).
Dos Santos, M.J.P.L., 2020, January. Big data and artificial intelligence: challenges and
opportunities for management and business. In 1st International Conference on Business
& Technological Trends. American College of Dubai.
Fan, Y. and Tan, X., 2020, December. The Development and Application of Artificial
Intelligence Based on Computer Network Technology in the Background of Big Data.
In International conference on Big Data Analytics for Cyber-Physical-Systems (pp.
1499-1504). Springer, Singapore.
Ge, B. and Xu, J., 2020, December. Analysis of Computer Network Security Technology and
Preventive Measures under the Information Environment. In 2020 5th International
Conference on Mechanical, Control and Computer Engineering (ICMCCE) (pp. 1978-
1981). IEEE.
Handoko, B.L. and Suryadharma, W., 2020, December. Planned Behavior and Social Cognitive
Model on Auditor's Attitude in Adopting Information Technology. In 2020 2nd
International Conference on E-Business and E-commerce Engineering (pp. 35-43).
Kamberaj, B., 2020. The Importance of Organizational Learning As Imperative for the Use of
Information Technology in E-Commerce. Available at SSRN 3594083.
Khosrojerdi and et. al., 2021. Integrating artificial intelligence and analytics in smart grids: a
systematic literature review. International Journal of Energy Sector Management.
Li and et. al., 2021. Intelligent Decision Support System for Business Forecasting Using
Artificial Intelligence. Arabian Journal for Science and Engineering, pp.1-11.
McMenemy, D., 2021. Ethical Issues in Digital Signal Processing and Machine Learning. In
Intelligent Computing for Interactive System Design: Statistics, Digital Signal
Processing, and Machine Learning in Practice (pp. 15-19).
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Paul and et. al., 2020. Information Systems: The Changing Scenario of Concepts, Practice and
Importance. SCHOLEDGE International Journal of Management & Development.
7(07). pp.118-129.
Rousi, R., 2021, July. Ethical Stance and Evolving Technosexual Culture–A Case for Human-
Computer Interaction. In International Conference on Human-Computer Interaction (pp.
295-310). Springer, Cham.
Online
Types of Computer netorks, Gary McCuley, 2019 [Online] Available through
<https://www.fieldengineer.com/blogs/what-is-a-computer-network>
Impact of IT, Steven Scheck, 2021 [Online] Avaliable through
<https://tweakyourbiz.com/technology/8-major-impacts-of-information-technology-on-
businesses>
Ethical and Social issues, Rachel Farnese, 202 [Online] Available through
<https://www.slideshare.net/rachelfarnese/legal-ethical-and-social-issues-in-
technology>
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