Introduction to Information Technology in Banking

This document provides an introduction to information technology in the banking industry. It discusses the role of information technology in the success of banks, ethical and social issues, types of networking technologies, and the importance of intranet and internet in the banking industry.

Introduction to Information
Technology

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
ANALYSIS AND DISCUSSION...................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Information technology is broadly used in many businesses and turned out to make them
successful. It is the application of computers, networking and physical devices to create, store,
process, secure, retrieve, exchange, manipulate and transmit all types of electronic data. Many
industries are associated with computer networks or information technologies, including internet,
e-commerce, computer hardware, software, telecommunication equipments and computer
services. Uses of information technology in banking sectors has been continuously increased.
Information technology brings the biggest revolution in banking sectors such as Digitalization.
Information technology helps banks to provide proper services to their clients in a reliable,
secure and affordable manner. In this report there will be discussion on the major role of
information technology in the success of an organization like HSBC bank and also highlights
different stages of system development life cycle. This report will also include the social and
ethical issues that will generate from the uses of information technology system. This report will
also highlight different types of networking technologies uses in the organization and various
importance’s of the intranet and internet in the banking sectors.
LITERATURE REVIEW
As per stated by Dutta, Geiger, and Lanvin (2015) information technology plays a vital
role in an organization. Information technology has helped to inquire a particular issues of the
employees, managers and organization in a more effective and efficient way. IT helps in
improvement of productivity and growth of an organization. On the other hand the Schwalbe
(2015) contradicts that information technology affects security of confidential data and
informations. Lloyd (2017) supports that It is very useful in an organization to perform various
task in a very easier way. Information technology also provides communication technology
system in an organization to interact with clients, suppliers and distributors. The Marchewka
(2016) also supported that It is very quick, clear and fast technology to communication and
better communication creates a better image . The Baller, Dutta and Lanvin (2016) contradicts its
very expensive process because it requires many costly equipments and devices.
According to Senft, Gallegos and Davis (2016) IT also assists in many days to day
transactions processing in organization. Information technology has several benefits such as
tangible and intangible. These benefits will helps organization to achieve its goals and

objectives. It will also helpful in making more money and satisfy its clients according to their
desirers. On the other hand Schnoll (2015) contradicts that information technology many
generates several errors and production cessation. It will also create complexity in operations and
may encourages crime and terrorism.
As per stated by Sittig and Singh (2015) information technology generates many ethical and
social issues in an organization's functions and indecent use of IT can generate several issues of
an organization. There are various ethical and social issues that will pertain to running business.
With the use of information technology, posting inappropriate post for an organization on social
media can lead to legal proceeding and failure of business. According to Avgerou and Walsham
(2017) information technology create major issues related to cyber-crime. An inappropriate use
of IT to commit crime. This may create big financial losses and also loss of human life. Uses of
huge devices can enhance cyber-crime.
McKeown (2015) support information technology has several social issues that can interrupt in
business development. Information technology may generates violence between customers,
employees and organization. Many organizations adopt huge IT systems in its functions and this
over dependence on these systems will increases system errors and emerges low data quality.
According to Xiang, Magnini and Fesenmaier (2015) with the help of information technology,
multiple data and information can be maintained by single person but its disadvantage is, this
will create privacy and security problems. And an individual can hack all data and information’s
by gaining unauthorized access.
Different types of networking technologies- As per stated by Marchewka (2016) organisations
prefers many networking technologies in its operations such as accessing the internet, download
file from an email attachment etc. Explanation of different types of networks that are use in all
organisation. According to Schwalbe (2015) Local Area Network (LAN) is a most basic
network. This will connecting various devices within the same area. These network connections
are creates through Ethernet cables. LAN is classify as wireless LAN (WLAN). Wireless LAN
is created through the use of WiFi. Metropolitan Area Network (MAN) is larger than CAN and
LAN. These can span an entire city or town. These network is maintain by an individual or a
company. As per stated by Baller, Dutta Lanvin (2016) Campus Area Network (CAN) is larger
than Local area network and smaller than MAN. It will comprises various LAN's. Wide Area

Network (WAN) network is more complex than LAN. According to internet WAN can cover
entire world and also connects all computers together across earth.
As per the statement of Sittig and Singh (2015) Personal Area Network (PAN) is smartest
network from all above. These type of network is used by small businesses and handled by an
individual from a single device. Wireless Local Area Network (WLAN) working like a LAN.
And don't require that devices connected through physical cable to operate internet. According to
Schnoll (2015) for sustainable functioning of an organization, intranet and internet plays an
essential role. Intranet means organization's private network. It will be used and controlled by a
single organization. Intranet quickly connects organization's employees, managers and workers.
Organization can use intranet for various reasons. It can enhance employee engagement by
centralizing and minimizing 'locked up' data. It can quickly and clearly provides personalized
data to users according to their role.
Intranet can improve communication between employees. It will also help in spreading
organization charts and company news arccos organization. It provides an employee to access of
important information like company's policies, rules, regulation of an organization, company
updates and employee's benefits policies. It will also enhance company's bottom line by
engaging their workers and employees. Intranet also provides a secure and safe platform for
storing, developing and accessing electronic data. On the other hand the Avgerou and Walsham
(2017) contradicts that it can spread various unnecessary information in working environment.
Dutta, Geiger and Lanvin (2015) support internet plays a vital role in any organization. Internet
provides various opportunities to business such as networking, sales and marketing facilities by
providing grand platform and this can also attract customers from various destinations or areas.
They also assist in providing quick and clear communication facility to organization's employees
to connect with world. Organization can use internet to fulfill their distant clients needs in a very
fast way. Companies can also use internet to collect much information about their clients desires
and government regulations regarding its organization. It will generate awareness amongst them.
On the other hand the Schwalbe (2015) contradict that internet has increases many unnecessary
and fraudulent activities in organization.
Stage of system development life cycle- Perfect system makes the development process is very
smooth. Perfect system also helps an organization to producing an advanced quality part of
software. As per stated by Schwalbe (2015) There are usually six stages of system development

life cycle such as planning, analysis, system design, testing and development, implementation or
coding, documentation and evaluation. All stages of system development life cycle are
interlinked with each other. The first stage is planning. Analysis is first stage of system
development life cycle. In this stage stakeholders, managers and users are involved.
Stakeholders, users and managers are collects requirements or desires from the clients. They will
analysis all requirements and works accordingly. System Design works according to requirement
specific document. In this stage, software and system will be designed on the basis of
requirements. This stage will be prepared according to the first stage. System design can help in
identifying hardware and software needs and specify system architecture. In this Development
stage work is divided into units and proper development is begun. This stage of system
development life cycle is very longest from all. This phase is completed through immense hard-
work and clear dedication of developer.
Testing, In this process all developed elements are tested on the basis of all requirements and
also tested new information system's work ability as compared to existing system. It made sure
flawless work of information system. After the software development, process of System
Implementation is start. After testing of information system, the software is absolutely ready for
implementing. Maintenance is required when customers start using the system. Maintenance of
the system can be done from time to time. This stage is totally depends on customers' feedback.
This process will include resolving errors and issues which may occurs even after all processes.
ANALYSIS AND DISCUSSION
Role of information system in success of banks like Barclays-
Information system has helped banking industry to complete various challenges. Many
banking industries are going towards the latest technologies to grow in completive market
environment. Information technology provides flexible structure to Barclays. It will also help in
cost reduction and also generates effective communication between people and banking
institutions.
Increment in approach-
Information technology enables proper market infrastructure, implementation of proper
technologies for reduce risks, smoothly product development and assists clients to reach long
diversified market.

E-Banking-
Barclays have updating their services with information technology. E-Banking includes
electronic fund transfer facility through which customers can transfer their money from one
country to another country with use of various devices. It will generate flexibility in banking
functions and its very beneficial for customers. With e-banking technology, the burden of large
account registers and huge paper works has been reduced.
Plastic money and remote banking-
It has offers several services to its customers- credit card and debit card facility, ATM,
De mate accounts, telephone banking, e-cheque, internet banking and electronic data
interchange.
With the involvement of information technology in Barclays, it reduces frequent client
visits to bank. It also helps in promotion of many banking schemes. It will attracts customers
through 24\7 services, customers withdrawal their cash from any branch and clients also does
online payments.
Ethical and social issues of information technology in banking industry-
Information technology create many ethical and social issues in Barclays functions. There
are several ethical and social issues that will influence banking operations negatively.
Information technology has different social issues that can interrupt in Barclays's
development. Information technology may generates violence between customers, employees
and organization. With information technology, multiple data and information of banks
operations can be managed and maintained by single person but its disadvantage is, this will
create privacy and security problems for a customer because that person can fraudulently use all
information or data of customer.
Improper use of IT can generate several issues for Barclays (financial services' company).
Information technology produce large issues related to cyber-crime. With use of information
technology, spreading inappropriate schemes of banking on social media can lead to lawsuits. It
can also liable to failure of operational activities of Barclays. Wrong use of information
technology to commit crime related to money transfer, investment activities, loan processing and
fraudulently uses of credit card. This may generates big financial loss for a banking industry and
may also loss of human life.

Various banking industries adopt many IT systems in its operations and activities and this excess
dependence on these systems will create system errors and produce low data quality.
Types of networking technologies that are used in banking-
Banking industries opts many networking technologies in its various operations.
Statement of different types of networking technologies that are used in maximum banking
sectors.
Personal Area Network (PAN)- The smartest and basic network for concluding banking
operations. These type of network is used by many banking industries and their branches and
maintained by a manager of a bank from a single device.
Wide Area Network (WAN)- On the basis of internet WAN can cover the entire earth. It can
connects all computers from different banking branches across the world. This network is very
difficult to operate and also its application is more critical than LAN (Marchewka, 2016).
Wireless Local Area Network (WLAN)- These type of networks similarly works like a LAN.
Through which all the devices of banking industry connected through Wi-Fi. It doesn't requires
physical cable to operate network.
Campus Area Network (CAN)- It will includes various LAN's. Campus area network is bigger
than Local area network and smaller than MAN.
Local Area Network (LAN)- LAN is categorized as wireless LAN (WLAN). It is a most
elementary network. These network will connect the diverse devices within the same town or
area. Its connections are creates through the Ethernet cables. Wireless LAN is operated through
the exercise of WiFi.
Metropolitan Area Network (MAN)- These network can cover the distance of an entire city or
town. These network is handled by a single user or a company. It is bigger than CAN and LAN.
Importance of Intranet and Internet in Barclays bank
For the proper functioning of an Barclays, intranet and internet plays an necessary role. Intranet
helps to quickly connects the Barclays's employees, managers and workers. Intranet means
Barclays personalized network. It will be used and controlled by a personally. Banks can use
intranet for several reasons-
Intranet can provides an employees and managers to access of essential data like
company's policies, rules, regulation of a banking industries, company updates and employee's
benefits policies. Intranet can also helps in improvement of communication between the

employees of Barclays. It will also help in spreading Barclays's important news and
informations. Intranet will also enhance Barclays bottom line by engaging their workers and
employees.
Internet plays a crucial role in banking industries. It provides many opportunities to Barclays to
enhance their network worldwide also facilitate its services to distant clients. Banking industries
use the internet to quickly approach to their clients (Senft, Gallegos and Davis 2016). Barclays
uses internet services to gather much data and information about their clients requirements.
Internet helps in providing quick communication hospitality to the Barclays employees and
customers to grow worldwide.
Stage of system development life cycle-
Perfect system is very necessary in any banking industries. This will helps Barclays to
advance their technology.
There are six stages of system development life cycle such as analysis, system design, planning,
implementation or coding, testing, development and documentation.
Planning- Company will plan about the resources so that they can efficiently use them.
Analysis- This is the first stage of system development life cycle. In this stage Barclays
stakeholders, managers and users are involved.
System Design- In this stage, Barclays designed the software and system on the basis of the
requirements. System design can help in distinguishing requirements in banking sectors.
Development- This stage of system development life cycle is very lengthy. Barclays conducted
this through huge hard-work of their developer.
Testing- In this process banking industries tested all the developed elements and analysis new
information system's work culture. It will enhance the great work in Barclays.
System Implementation- the process of implementation is start after the testing. If all are
resultant better than bank will implement it.
Maintenance- Barclays will conduct this process when clients start using the system. Bank will
do this activity according to clients desire.
CONCLUSION
From the above study it is concluded that information technology have essential role in the
success of any banking industries. Information technology helps the Barclays in all operational
activities. It helps in enhancement of organization's development. But information technology

may also occur various ethical and social issues in banking industries, that will affects Barclays
functions and operations. It can also be concluded that networking technologies plays a vital role
bank's growth and success. Internet and intranet affects the banking industries in both positive
and negative ways. The developed system in an organization essentially developed the
productivity in industry and by adopting this process Barclays motivates their employees
effectively.

REFERENCES
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