ISY10212: Role of IT in Online Banking - Contemporary Issues Report

This report delves into the multifaceted role of Information Technology (IT) in online banking, highlighting its positive impacts such as cost and time savings, enhanced security management, and improved accuracy and performance. It acknowledges the increasing adoption of online banking services and their benefits to both banks and customers. The report also addresses the negative impacts of IT, including security issues, lack of user knowledge, poor management practices, and potential health concerns, providing insights into the challenges and risks associated with online banking. Furthermore, the report proposes mitigation strategies to minimize the negative impacts, such as promoting cybersecurity awareness, implementing firewalls, and adhering to legal and ethical processes, emphasizing the importance of sustainable development in the banking sector. The conclusion underscores the significance of IT in transforming the banking landscape and the need for continuous improvement and adaptation to ensure secure and efficient online banking practices.

2/4/2020
Running Head: ROLE OF IT 0
Role of IT
Report
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Table of Contents
Introduction................................................................................................................................2
Positive impact of IT on online banking....................................................................................2
Cost saving.............................................................................................................................3
Time saving............................................................................................................................3
Security management.............................................................................................................4
Privacy issues.........................................................................................................................4
Accuracy................................................................................................................................4
Performance...........................................................................................................................5
Productivity............................................................................................................................5
Negative impact of IT on online banking..................................................................................5
Security issues and challenges...............................................................................................5
Lack of knowledge.................................................................................................................6
Poor management...................................................................................................................6
Health issues because of IT....................................................................................................7
Minimize negative impact of IT in online banking....................................................................7
Knowledge about cybersecurity.............................................................................................7
Implementation of firewalls...................................................................................................8
Legal and ethical processes....................................................................................................8
Sustainable development........................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
There are many features of Information Technology (IT), which can be used for the
improvement of different things, such as performance, productivity, efficiency, and many
others. In addition, many industries have used IT-systems for managing their business
functions. Moreover, there are many things to change in business for improvement. There are
many positive factors for IT, which provide better outcomes for business functions (Akturan
& Tezcan, 2012). IT-systems have included better outcomes in business as well as other
places. This report will discuss about the positive impacts of IT in online banking and
purchase. In addition, the internet is a basic need of much daily life work including online
services. This report will discuss about the negative impact of IT on online services. This
report will provide various reasons to trust in IT.
The positive impact of IT on online banking
The number of users is increasing day-by-day in online banking. Moreover, online banking is
a better way to reduce complex processes. However, it is a difficult task to believe in the
various processes. Moreover, people can enjoy mobile banking and online banking rather
than offline banking (Al-Hawari, 2014).
Source: (Fractovia, 2019)
In addition, there are many good impacts of IT in the banking sector, which makes it better
for banks and their customers. In the case of online banking, resources have used for
increasing the performance, accuracy, and efficiency of the business processes in the banking
sector (Bainbridge, 2013).

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Moreover, people can use advance and latest services in the banking sector, as they are more
secure and safe from different types of attacks. There are some basic functions, which can
increase the speed of online services in the banking sector. In addition, users have adopted
online services because of its many benefits. There are many good things online banking
services, like time-saving, security, cost-saving, and many others (AlSudairi, 2012).
Cost-saving
There are many manual processes in banks, which requires the cost of many things. It
requires a physical presence at the bank. In addition, online baking saves transportation costs
for many users as well as banks (Ankit, 2011). Moreover, banks have provided support to
their customers using online services, as offline services are costly in terms of paperwork and
many others. It has required many resources for managing all the processes, such as
employees, stationary, and many others. Thus, online banking is a good way to decrease the
cost of various banking processes (BV, 2013).
Source: (Goasduff, 2015)
Time-saving
There are many processes in banks, which takes so much time. Therefore, online services
have used to reduce lines. In addition, there are many benefits in terms of time as well. Banks
are open for a particular time, which is an issue for some people. Online banking is available
for 24*7 hours, which is a good thing for banks and users (Bainbridge, 2013).

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Security management
Online services are secure and safe from various security tools and techniques. Offline
services are also affecting various issues, such as theft, missing, and many others. Security
systems are better in online banking. There are many security layers in the banking process,
which have provided a high level of security to the users. There are some international
security frameworks, which are necessary for online banking and other processes, as it has
included legal procedures as well. IT acts have used for any type of fraud as well (Chavan,
2013).
Source: (Saxena, 2018)
Privacy issues
Banks have used proper security systems for security and privacy of user’s data and
information. In addition, there are many processes, which are good for the user’s sensitive
data and information. There are many security and privacy policies in online banking, which
is for the privacy of data (Chen, 2013).
Accuracy
There are many errors in manual work. Therefore, online banking is a good way to reduce
errors from various processes. In addition, basic services can be managed with a high level

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of accuracy using online banking. All the transactions have recorded properly, which is easy
for data analytics and other works (De Haes & Van Grembergen, 2015).
Performance
There are many benefits of online banking, which has improved its performance. People can
trust online banking services because of various things (Markgraf, 2018). Moreover, users
can easily trust on banks, as they have used a trusted system for banking and other things.
Many people have adopted online services for many things, such as purchase, sales,
marketing, and many things. It is a better way to improve the performance of a system
(Fractovia, 2019).
Source: (AlSudairi, 2012)
Productivity
Offline systems can reduce performance, as manual work has taken a level. Moreover, a
single person can work for many people with less time. In the case of users, a user can
complete many works within a few seconds, which has taken a long time (Goasduff, 2015).
The negative impact of IT on online banking
There are some negative impacts of IT on online banking and purchases. There are some
issues related to IT, such as security, privacy, and many others.

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Security issues and challenges
Users have faced security issues because of less technical knowledge about IT. There are
different types of threats for online banking, which can create security issues, such as viruses,
malware, ransomware, trojan, worms, phishing, social engineering, many more (Isik, et al.,
2013). In addition, basic services can be affected because of these security threats (Hamadi,
2010).
Lack of knowledge
Users are not aware about the internet and baking applications, which can create a huge issue
in front of them (Saxena, 2018). Moreover, there is some basic education program and
training modules for the security of data and information. Banks have provided proper
direction to users about online banking, such as a manual for banking, security for personal
credential, and many others (Zhou, 2018).
Source: (Bainbridge, 2013)

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Poor management
Many users are careless with their personal credentials, which is a huge reason behind the
security issues. In addition, the banking sector has faced challenges in its processes. Many
people have believed in unknown calls, which has taken the username and password of their
online accounts (Prater, 2020). Moreover, there are some hurdles in the management of
various processes, which are a reason for fraud in online banking. There are some technical
issues in the management of banking services. Thus, we cannot trust online services for a
huge amount and financial processes (Zhang, et al., 2010).
Health issues because of IT
People are using mobile phones and laptops, which is a long process. Users have used online
services for all things. Long-time use of electronic gadgets can be a health issue. Thus, the
user should avoid continuing the use of electronic gadgets (Zhang, 2015).
Minimize the negative impact of IT in online banking
The banking sector has provided better services, which are good for a user. Banks provide
necessary training modules and manuals, which are used for managing various things, such as
security and privacy of their personal data (Notenboom, 2012). There are many issues in the
online processing and transactions. The international framework can be used for managing
various things (Zarei, 2010).
Knowledge about cybersecurity
Users should know about cybersecurity, which is necessary to avoid many security and
privacy issues (McNeish, 2015). In addition, security is a huge issue in front of users, as
hackers have used different types of malicious programs for accessing banking processes.
Thus, users should take proper security systems for online banking and purchase (Yu, 2013).

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Source: (Fractovia, 2019)
Implementation of firewalls
Firewall systems are helpful for securing online banking, as it has reduced the chances of
cyber-attacks and cybercrimes. Thus, every user should consider the basic needs of online
banking services (McGregor, 2018). IDS and IPS systems can be used by banks to improve
their security of databases and networks. In addition, security policies must be followed by
users and bankers as well (Khare, 2010).

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Source: (Yu, 2013)
Legal and ethical processes
Banks assure all the legal and ethical rules that are related to the security and privacy of data
and information, as it is an important asset of a firm or person (Bruen & Forcinito, 2011). It is
a basic need to develop proper ethical and legal processes in online banking and purchase
(Mahalle, et al., 2018). In the present era, e-business has developed in most of the industries.
However, online banking makes it better for users. In addition, banks provide all the
procedures to secure access to online applications (Khrais, 2013).

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Source: (Prater, 2020)
Sustainable development
Online banking has reduced the use of papers and other things, which is not good for the
environment. In addition, banks have provided many facilities, which are secured from all the
threats using firewalls and other systems (Liu, 2015). In addition, online services provide full
security from internal and external threats. Thus, users can trust online banking services
(Lehnis, 2018).
Furthermore, online banking services can be better for a person in various processes. In
addition, this service is available for 24*7, such as account and services accesses. This is a
basic process that increases the speed and efficiency of many processes. Online bill payment
is an easier process and users have used this service mostly. Users can request new services
using an online account. Processes can be managed in a proper manner. Online service can be
taken at low fees as well (Zarei, 2010).
In addition, technological issues can be resolved using a proper audit and risk assessment.
There are many benefits to users, such as a higher rate of interest. Besides, lower fees are the
biggest example. Moreover, mobile banking has improved the benefits of online services.
However, there are no physical locations. Online banking services can easily monitor.
However, users can handle any issue using mobile banking. The biggest benefit of online
services is green computing. It has used less paper, which is sustainable development. Most
of the banking services have adopted sustainable development. With internet banking, your
business uses much less paper and so does the financial institution. certainly, many banks
globally are an increasing number of paperless, who prefer to provide their customers e-

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statements, paper-free transfers, on-line client help, and other environmentally-accountable
enterprise offerings (Al-Hawari, 2014).
Making transfers via on-line banking is plenty quicker and less complicated than traditional
strategies. internet banking permits transfers to be accomplished overnight and is also
remarkable for making direct deposits and twine transfers, which might be a number of the
fastest methods to transfer finances (McNeish, 2015).
Banks are regarded as one of the maxima depended on companies of records safety, adopting
more than one protection layer to preserve your enterprise statistics safe. through the usage of
the modern virus detection software, closely encrypted transmission and several firewalls,
banks and financial institutions offer the exceptional technological solutions and security
features to combat data robbery, meaning that your company statistics will advantage from
most advantageous protection. Whichever online banking machine you pick out, it is vital
which you follow the safety protocols installed with the aid of your financial institution. All
debts must be password protected, while passwords ought to be changed frequently
(Bainbridge, 2013).
In addition, there are many benefits of online banking, which has changed the market
scenario, such as marketable securities and other financial processes. In addition, accounting
is easier because of online banking services. Supermarkets are successful because of online
banking services. However, few issues have faced in this process, but they are negligible in
front of benefits. It will be the future of financial companies and many industries. Moreover,
AI will provide many tools and techniques to improve the security of online banking (Zhang,
2015).
IT-system has ended up a vital and critical part of every marketing strategy. From multi-
countrywide groups who maintain mainframe systems and databases to small businesses that
personal a single laptop, IT performs a position. The reasons for the omnipresent use of the
laptop era in business can fine be determined by way of looking at how it's far being used
across the commercial enterprise world (Markgraf, 2018).
corporations are using IT to enhance the way they design and manipulate consumer
relationships. customer relationship control systems capture each interaction an employer has
with a consumer so that a greater enriching experience is viable. If a consumer calls a name
middle with trouble, the customer support representative might be able to see what the