Impact of Information Technology on Barclays Bank

This report analyzes the impact of information technology on the Barclays bank, which is one of the stable and profitable banks worldwide. It discusses the importance of IT for business survival, the benefits and advantages it brings, the risks it poses, and how Barclays bank uses IT in its operations. The report also explores the requirements for implementing IT in the banking sector and how to maintain and monitor IT systems.

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Information Technology for Business
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Executive Summary
Technology advancement has brought rapid changes in many sectors of the
economy. Service delivery has improved after adoption of the information technology in
business operation. Technology development has resulted in competitions in business.
IT has led to better productions as business try to outshine a competitive industry. The
banking and finance sector has significantly benefited from technology development.
Availability of attractive and favorable features tends to attract customers hence leading
to constant growth. The business stability mainly depends on management and how the
business invests on technology and research. This report analyzes the impact of
information technology on the Barclays bank, which is one of the stable and profitable
banks worldwide. Barclays banks, like any other banking and finance institutions,
experience a similar impact of technology.

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Introduction
Technology advancement has brought competition in various sectors. The business
that has not utilized technology in its operation has ended up closing down due to
competition from businesses that have embraced technology in its process. The
banking sector is very dynamic; banks that comply with market standards tend to make
losses which make stakeholders withdraw funding. Over decades Barclays bank has
continued to grow and expand branches all over the world. This achievement is a result
of proper management and investing in technology. The purpose of this report is to
analyze varies ways IT has assisted the banking sector to face competition and
increase efficiency in its service delivery (Jeston, 2014)
1. Does your chosen business need IT?
Barclays bank, as any other banking institutions needs IT to function effectively.
Information technology is like the main engine for bank operation. A fully functioning
system must be in process for the staffs to analyze currency trends (Wagner, 2014).
Ticketing system enhances service delivery to clients seeking services from Barclays
bank. Clients’ details stored in the bank information system; hence, the bank can track
the loans applicants for and individuals. The information technology has also improved
security in banks through the use of security cameras to monitor the banks. Also, the
use of fingerprints and electronic cards has significantly helped in overseeing the staffs’
operations order to identify lazily and staffs who practice unauthorized activities.
Nowdays information technology is applicable in almost every sector.
2. Why IT is important for business survival?

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Banking and finance sector is dynamic, with many institutions changing its
strategies. To counter competitions for business survival, Barclays has utilized
information technology in conducting market research and carrying out promotion
through varies media platforms. Introduction of ATM has been very beneficial to
Customers and banks; besides offering services like balance inquiry and withdrawals,
the ATM operates 24 hours (Löfsten, 2016). Communication is essential to any
businesses; use of telephone and encrypted emails has ensured data are secured.
Also, the use of a management information system has enhanced service delivery
hence attracting more customers. Use of billboards, attractive decoration, animation
among others has attracted many customers to invest in Barclays bank, which makes it
withstand competition from other banking Institutions (Coulbeck, 2012).
3. What is required to apply IT into your business?
To fully benefit from information technology, the banks incur the expenses to have a
functioning IT infrastructure. In any event, there must be planning; the management has
to set aside a sufficient budget to purchase equipment’s and to cater for the workforce
(Azhar, 2011). When banks digitize, its appropriate operation plan must be in place to
ensure the smooth flow of bank operation is not interrupted. Computers, servers,
network system, working tables are some of equipment’s when installing information
system to a business. The designing of the IT system must ensure the staffs serve
customers effectively. Installing up-to-date software ensure the business compete
actively with other company in the banking and finance sector. The network topology
adapted in any business has to ensure there are no communication breakups.
Employing experienced staff ensures quality in the business services. Training staffs

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from time to time on new technology is essential in ensuring customers get the best
service from staff (Eastman, 2018).
4. How does your chosen business use IT?
Information technology is so vital for the daily operation of Barclays banks, among
other banking and finance institutions. The staffs shared files over the business network
system. Everyday cashiers have to share all transaction via the mail to the branch
manager (Bryson, 2017). To access offices, crews have to use fingerprints and
electronic cards; this move ensures efficiency and transparency among the staffs.
Customers enjoy online service to check their account balance and can even apply for
loans without traveling to banks do paper works. Mobile banking is among the services
offered IT specialist of Barclay’s banks and other commercial businesses. The Barclays
banks communicate with their esteem customers through social media such as
Facebook, Instagram, Twitter, and website where clients can get services without
necessarily going to banks.
5. What benefits and advantages does IT bring to your chosen business?
IT in banks is essential in delivering services to clients. Any business always tries to
minimize expenditure and maximize profits. With a functioning system where all
transaction is done over the computer, very minimal errors will occur as other as all
procedures are recorded and shared with varies departments. Use of information
technology in Barclays bank has assisted the bank in changing its operations to
compete effectively. This flexibility ability has enabled the banks to formulate favorable
guideline that attracts Customers to invest in Barclays banks. Another advantage of IT
is enhancing security efficiency to banks through the use of video cameras and CCTV,

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which is more efficient. Use of CCTV and other IT tools has significantly reduced staffs
in most company. Therefore banks save funds used for paying employees. Most
businesses spent most of its income to pay workers, but with the use of IT, salary
expenditure is reduced significantly (Willcocks, 2013).
6. What type of risk does IT bring to your chosen business?
Implementing information technology in the banking sectors has a negative impact
also. First, IT leads to staff retrenchment as most work is done by computers and staffs
who don’t have computer skill lose jobs while securities offices will also lose jobs with
the installation of CCTV, which is more accurate. CCTV in work place will also cause
discomfort to staffs make them to panic while at work. Privacy of crews is most affected
by the use of CCTV in workplaces. With technology advancement, cases of
cybersecurity and internet hacking have increased at an alarming rate. Weak security
system and the unsecured system has seen many customers complaining of their bank
account hacked, thus losing a lot of money through such incidents. Customers’
confidentiality is lost when unauthorized people hacked and access their details due to
the loop in the bank's server system (Teneyuca, 2011).
To ensure Customers confidential Barclay’s banks and other banking and finance
sectors have put in place appropriate security to ensure the client’s data are secured.
Most banks system has firewalls and encrypted keys, which make it difficult for
unauthorized persons to access the bank system. Another security measures that most
banks are now implementing is the use of fingerprints and linking bank services to
mobile services where the client is updated on the status of their accounts. Developing
a customer relationship management system will ensure all relation of business and

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customers are captured. This move has built the trust of clients to Barclay’s banks,
making it expand its branches worldwide (Piyare, 2013).
7. How can your chosen business maintain and monitor IT?
To fully benefit from IT, Barclay's bank managements have put numerous measures
that ensure the bank enjoy the advantages of using IT in its operations. Regular
maintenance and updating the bank system ensure a smooth flow of activity. Each day
technology keeps changing; hence, the business has to keep updating its policy to
compete effectively. Installing updated security programs such as Antivirus will ensure
files are not lost or corrupted. Sharing server security password with few staff members
is another security measures which ensure the business files are stored safely. Banks
jobs are very tempting, having staffs data keep in a computer system and issues of
electronic cards ensure the business make loses in terms of theft cases. Most
businesses use a management information system to monitor the banks' operations.
Management Information System (MIS) is a digitized database containing financial data
of the company programmed in a manner that it produces an operation report of every
department in a company (Abomhara, 2015).
In conclusion, the impact of information technology on banking and finance are
very many. As discussed, IT is vital for business survival; Barclay's bank does online
advancement and promotions to obtain more customers. Also IT is essential promoting
internal and external communication, enhancing service delivery efficiency,
safeguarding clients’ information, reducing salary expenditure among others.
Implementing IT infrastructure in banking has some challenges like initial installation
cost tend to be high, funds is also needed to train staffs and clients on using new

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technology from time to time and also ensuring Customers confidentiality is a challenge.
Technology keeps advancing each day. Therefore banks are required to develop the
best platform that provides Clients with best service. Conducting market research from
time to time will help system developers to come up with the best information
technology system that will best serve the customers.

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