Introduction to Information Technology - Individual Report - CFPBUS003-1

This report explores the impact of information technology on the UK banking industry, focusing on Barclays bank. It examines the use of computing terminologies, ethical and social issues, network types and technologies, the importance of internet and intranet, and the different stages of system development. The report analyzes the benefits and challenges of IT implementation in the banking sector, highlighting its role in enhancing efficiency, productivity, and customer satisfaction.

Introduction to Information Technology
Individual Report - CFPBUS003-1
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London School of Commerce
In association with the University of Suffolk

Contents
Abstract............................................................................................................................................3
Literature review..............................................................................................................................4
Computing terminologies in Barclays.........................................................................................4
Ethical and social issues associated with Information Technology.............................................5
Network types and technologies..................................................................................................6
Importance of internet and intranet in banking............................................................................7
Different stages of system development......................................................................................7
Analysis and Discussion..................................................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11
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Abstract
UK banking industry presently is in the midst of a revolution of Information Technology. In
context to the banking industry, information technology refers to the utilization of sophisticated
communication and information technologies in combination with computer science, through
which better service to customers is provided. In this report, impact of information technology on
banking business is discussed by taking case scenario of Barclays bank. Issues associated and
potential benefits offered by IT and implements are discussed in this report.
Introduction
Information technology has revolutionized the banking industry from the last few decades.
Emerging IT and its applications have changed the UK’s banking industry from branch and
paper-based banks to networked and digitalized banking services. Barclays plc is multinational
financial services company and investment bank of UK. Barclays has embraced the utilization of
information technology to provide better service to customers in affordable, reliable, sustain and
secure manner. It is very clear that Information Technology is changing the whole scenario of
banking industry forever. In this report, internet research has been conducted and analyzed to
determine the role of IT in success of Barclays. Social and ethical issues along with limitations
associated with information technology in regards to the banking sector have been discussed.
Intranet and internet play vital role in exchanging the services, importance of both internet and
intranet in Barclays will be discussed in below report. Also, role of IT in management and
various stages of systems development have been discussed in this work. In order to succeed and
survive in growing competitive world, it is mandatory for banking companies to use the
applications of IT.
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Literature review
Computing terminologies in Barclays
All-embracing convergence of communications, computing, knowledge and information have
been noticed in current era of banking. Enhancement of high-speed networks and falling cost of
computation power is turning applications possible which were undreamed in past. Computer
terminologies are getting sophisticated and have given high potential for banks to perform
according to customer expectations. According to Chin, et al. (2019), computer terminologies
have brought enormous changes and influence on bank employees and customers. Utilization of
computer systems has allowed bankers to access critical information more rapidly and securely
and quickly respond to that. Basically, Information Technology has been used under two diverse
avenues in Barclays bank. One is business process reengineering and another one is connectivity
and communication. Furthermore, as per Guiñazú, et al. (2019), through Information technology
is possible to develop sophisticated products, implement reliable techniques and better market
infrastructure through which risks are controlled and financial intermediaries are reached to
diversified markets. In view of IT, it has changed the contours of three vital functions performed
by Barclays bank; this includes transformations of assets, access to liquidity and risk monitoring.
Furthermore, communication networking systems and Information technology have vital bearing
on efficiency of capital, money and foreign exchange markets. In contrary to these benefits of
information technology, it has created massive impact on the staff of Barclays bank. The advent
of innovation and use of IT application has eliminated the role of tellers and job positions are
evaluated. Adoption of Information technology has played contributory role in achieving new
heights of success and benefits to Barclays from context of individual and banking business:
From context of employees or individuals
 Employee satisfaction is increased. Through IT, employees at Barclays are empowered to
serve customer in a better manner. By employment of IT services ad quick access to
customer data, employees now spend less time obtaining information and more time in
retaining customers.
 Remote banking through computerization. Deployment of remote terminals at sites of
customers connected to bank branch through modem, allows customers to make online
inquiries regarding accounts (Nadiri, et al., 2018).
 Electronic Banking. One of the major contributions of IT is bringing out electronic
banking, which allows bank to provide corporate customers with Graphical User
Interface software to inquire about accounts, financial transactions and cash transfers
without actual visit of bank.
 Self-inquiry facility: Facility of logging into particular self-inquiry terminals is provided
to view transactions.
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From context of banking business
 Banking solution on IT platform consumes lower cost and can be implemented faster in
comparison to those which are based on competing infrastructures.
 Wide range of facilities of inquiry is available that help Barclays bank in follow up and
business development.
 Through Information technology, Barclays bank able to achieve greater return on
investment and more value out of legacy system.
 Immediate replies can be made to the queries of customers without reference to ledger
keeper (Madon & Krishna, 2018).
 Speedier decisions can be made that enable up-o-date and fast information transfer by
controlling offices and interconnecting computerized branches.
 Time-consuming jobs like interest calculations and balancing are automated and accurate
computing of cumbersome is achieved.
Ethical and social issues associated with Information Technology
Through the Information Technology Act 2000, legal recognition to creation, retention of data to
be used as valid proof in judiciary has been provided. One of the major contributions of
Information technology i.e. online banking is one of the developing methods among Barclays.
Understanding the growing trends, IT is the main subject that controls all system around the
world. Online banking, part of internet allows customers to access information about financial
accounts through mobile devices or computers. So, with online banking, financial and non-
financial transactions in Barclays may be conducted online. However, there are several issues
and challenges come with online banking that includes ethical issues, in the views of Al-Agaga
& Nor (2013). The major issue is of hacking, through which hacker can simply able to collect
sensitive information and data. Security of sensitive information and privacy is the major issue
with deployment of IT applications on banking industry. There are no specific ethics and laws
for online banking and because of which client needs to face ethical issues when using online
banking facility. In comparison to the other issues, privacy issue is the key challenge in use of
Information technology in banking. Many social issues are structuring day by day through
privacy issues on banking industry. In modern society banking, customers are always concern
about the use of their personal data while registering for online banking. Legal issues are also
associated with IT in banking, in which there is high requirement of bankers to manage them, not
only by establishing individuality but also by making enquiries about honesty of future
customers. Therefore, of request is made by customers for opening account, then these
procedures should only be processed after getting physical verification and correct information.
For privacy and safety protection of both bankers and clients, there are some legally accepted
banking laws that must need to be followed (Olanrewaju, et al., 2020). Concerning about the
privacy issues, IT professionals’ needs to follow ethic values and proper code of conduct for
protecting the client’s privacy while transactions. Ethics play crucial role in banking because
chances of information abuse in online banking which is result of IT services is quite high.
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Unauthorized access to systems is carried out using new methods and issue of hacking in
banking industry is increasing by every passing day. Presently, greatest challenges have been
posed by hackers against IT ethics, they make numerous efforts to influence banking and
commercial accounts and try to violate privacy of individuals. Cases of anonymous
communication, stimulating content on internet and cyberbullying have been recognized as
dangers of communications in new era of IT.
Network types and technologies
Network technology is the use of connected systems either through wireless connections,
satellites or optic cables to relay on several data, resources and communications. It uses build
infrastructures to exchange information either through internet networking, communications,
voice calls etc. Banking industries are experiencing technological metamorphosis (Borky &
Bradley, 2019). For Barclays, wide and local area networks (WAN, LAN), internet and advanced
computer operating systems are becoming essential strategic areas. In context of banking
business, following networking technologies are employed:
 Personal Area Network (PAN): This one of the smallest type networks, that constitute of
modem, phones, tablets and computer etc. and works in one building for one person. In
context of bank, these networks are found on a very small scale.
 Local Area Network (LAN): LANs are most frequently used networks in business and
are of the simplest type of networks. In Local Area Networks, a group of low-voltage
devices and computers are connected together for short distances generally within
between group of two or three office buildings to share resources and information. In
particular branch office of Barclays, LAN technology can be used to link computers and
devices and information can be exchanged (Chen, et al., 2018).
 Wireless Local Area Network (WLAN): Functioning like Local Area Networks, wireless
network technologies including WiFi is used in the Wireless Local Area Networks and
available in same type of applications as that of LAN. In contrast to LANs, WLANs does
not require physical cables for connection of devices with network. Barclays bank relay
on wireless connections and WiFi which makes it easy to exchange whole bunch of
information. However, this type of network is more vulnerable to attacks and hacking
threats.
 Metropolitan Area Network (MAN): These networks are larger than LANs but are way
smaller than WANs and are comprised of elements of both type of networks.
Metropolitan Area Network covers a whole geographical area (generally city or town)
(Rajput & Brahimi, 2019). Ownership of these types of networks is maintained by single
company or person. MAN technology is used very often in banking industry.
 Wide Area Networks (WAN): More complex in comparison to LAN, but Wide Area
Network technology connects systems together across large distances. This allows
devices and computers to get connected to each other on large network for
communication process, even when they are apart by miles. The most basic example of
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Wide Area Network is internet that connects all computers around the world. Since WAN
carry vast reach hence it is typically owned by public or multiple administrators. The
major contribution of internet is online banking, through which it is possible for bankers
and customers to get information about financial accounts. WAN optimization is essential
part of enterprise network strategy for Barclays bank.
 Enterprise Private Network: These types of owned and developed by business units who
want secure connections at its various locations for sharing computer resources (Al-
Fedaghi & Alsulaimi, 2018).
Importance of internet and intranet in banking
Internet has magnificently impacted the delivery channels of banks. As a channel, internet has
emerged significantly in delivering banking services and products. The banking offered to
customers that include services such as account dealing, enquiry about balance, and payment of
bills, account statement and other services in bank is described as Internet in banking. Through
internet banking, many banking transactions through personal computer can be handled. For
instance, by use of internet, request transfer between accounts, account balance viewing and bills
paying can be performed through internet banking. Electronic revolution has been initiated in
global banking sector by the advent of internet, as reflected by Safeena, et al., (2018). The
flexible and dynamic nature of communication channel has assisted in leveraging several
banking activities. Internet has emerged as major distribution path of banking services and
products. The major advantage of internet banking is that it is easy and cost-effective.
Administrator work can significantly get reduced by utilization of internet banking. In context of
Barclays, internet banking is providing high flexibility in transactions and making financial
transactions faster. Barclays, today is able to provide novel services to clients by effective
exploitation of internet. This has given benefits in twofold that is for customers as well as for
banks. Through internet, Barclays has emerged into hi-tech services providers and been able to
eliminate banking concerns for optimized focus on requirements and needs of clients. Internet in
banking has allowed customers to handle their savings and save their time. All essential factor in
intranet for Barclays is providing reliable navigation system to store information about products
and services. Through navigation system, which is easy to operate, amount of searching time
spend by employees can be reduced, employee satisfaction can be increased and productivity can
be enhanced. The advantage of intranet software is that enables banks to communicate more
effectively and keep everyone engaged and informed and changes can be drawn more uniformly
and swiftly. Through intranet, business productivity of Barclays is accelerated and can be
enhanced more by eliminating information silos and developing multiple-way communication.
The major purpose of intranet is to share resources and information among employees of bank.
Through sure financial intranet software, relevant information about bank products and services
can be delivered to front line staff. Through intranet and internet, customer confidence and
satisfaction can be improved.
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Different stages of system development
With advancing of technology to great extent, it is evident that organizations are opting modern
ways for every purpose. The first process that has significant place in technology-driven banking
industry is system & software development (Yin, et al., 2019). Software is most crucial and
steadily growing from every corner in business units. Development of system and software is
highly precise and intelligent process that includes several stages. Stages are explained by means
of system development cycle, which is multistep procedure, structured in methodical way.
Following are the stages of system development:
1. Planning: In this stage, plan is creating about how new information system will look like
and essential resources required to develop system are identified in this stage.
2. System analysis and requirements: In this stage, performance of software is analyzed at
several stages and notes are made for future requirements.
3. Design: In comparison to the other stages of system development life cycle, this stage is
relatively simple. In this blueprint of required software is created. This process includes
design of network, application, user interfaces, databases and system interfaces.
4. Development: From this stage, actual procedure of developing software begins, In this
information system is developed, hardware is installed and software is coded. After
coding, it is loaded on testing platform (Tavana, et al., 2018).
5. Integration and testing: Testing process is conducted in this stage by quality analyst
staff. Analyst staff makes sure that developed information system work without any
flaws.
6. Implementation: After software is developed, implementation course is performed.
After excess testing, it is making sure that nothing wrong is occurring with system and
system is ready to implement. In this stage, coding design is implemented into source
code. This stage is time-consuming and longest phase of system development cycle.
7. Maintenance: This is the final stage of system development life cycle in which
maintenance process is performed and software will be upgraded and maintained from
time to time depending upon feedback.
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Analysis and Discussion
Information technology has revolutionized the working structure of banking industry particularly
Barclays. IT has opened up new products, new markets, new services and delivery channels for
banking sector. Deployment of Wireless Area Networks (WAN) technologies in banking
business units has allowed enjoying services like online electronics banking, internet banking
and mobile banking (George, 2018). On the basis of authors views discussed in literature review
section, it can be said that Information technology has provided wherewithal to banking industry
to deal with challenges posed by economy. Deployment of IT and applications have been turned
as cornerstone to current banking sector reforms, targeting at enhancing the reliability and speed
of financial and non-financial operations and of advantage of strengthening banking sector. On
basis of research it was noted that information technology is implemented in all industries across
world. It is realized that by deploying IT services in banking industry, modern functions of
banking like information collection, storing, retrieving and transforming of critical data can be
performed efficiently. Banking industry has been converted from paper to digitized banking
services by means of information technology and have improved efficiency of banking
operations and enhanced productivity.
It was analyzed that employment of information technology in banking industry has been
beneficial to customers, employees and banks. The clients have had several benefits. First, self-
inquiry services are available through which customers can log into financial accounts and
inquire about anything. Through mobile applications, bank accounts can be operated by
customers on their phones. After deployment of information technology, banks able to manage
numerous tasks at same time. Transactions can be updated in real-time. Several inquiry facilities,
facilitated by information technology can help banks in business development. Also, generation
of financial statements and reports can be done automatically and because of this automatic
balancing of accounts, productivity can be increased greatly. It can be said that if information
technology will be applied strategically, productivity if banking industry can be enhanced.
Through easy decision-making process, transactions can be automated. However, there are
concerns and issues associated with use of information technology in banking industry. There
have been cases of hacking and cyber-attacks on banking systems. Money transferred to overseas
accounts is tough to track and in addition to that information technology cannot be relied on
completely. Risks of failure are possessed by IT applications that would be disastrous. Over
these issues and concerns, information technology possesses numerous advantages to banking
industry that includes the increased productivity and operational efficiency.
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Conclusion
In context of banking sector, information technology has significantly revolutionized the
business. This has changed the manner people work and live. Transforming from paper-based to
networking and digitalized banking services is what, information technology has provided to the
banking industry. The above report discusses the impact of information technology in the UK’s
leading financial company, Barclays. In above report of role of information technology in
success of banking industry was discussed. Aspects and ideologies by mean of which
information technology is enhancing the modern life were discussed in this report. Along with
these social issues and ethical issues associated with IT in implementation in banking industry
were investigated. Along with this, type of networks, importance of internet and intranet in
banking business were discussed. Also, generic discussion about stages involved in system
development life cycle was provided in above report. Research works of authors on introduction
of information technology in banking were analyzed and on basis of that it can be concluded that
by use of IT and its application efficiency of banking operations can be improved and
productivity and customer satisfaction can be enhanced.
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Reference
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