CFPBUS003: Individual Report on IT in Banking, LSC, Suffolk, 2019

This individual report examines the role of IT in the success of banks, focusing on HSBC. It discusses ethical and social issues banks must address, various networking technologies used in the banking industry, and the importance of the internet and intranet for business operations. The report also outlines the six stages of the system development life cycle and evaluates the benefits and drawbacks of investing in information technology. Topics covered include the impact of IT on banking services, ethical principles in banking, the differences between LAN and WLAN, and the importance of internet and intranet for communication and efficiency. The report concludes by discussing the benefits and drawbacks of HSBC's use of information technology, such as improved customer service and portfolio management.

Individual Report

ABSTRACT
IT plays a major role in the success of the Bank. There are various ethical and social
issues which are to followed by the bank for running their businesses. Different types of
networking technologies are helpful in the banking industry growth and success. The internet and
intranet are important for the business. There are six stages of system development cycle.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW :..............................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
Individual report tends to provide customers the basic information which is necessary for
verifying with whom the deal is done and can also be used for monitoring existing customers for
ensuring secure and safe trading.
HSBC Holding Plc is Multinational British investment bank and financial services
holding company. In 2018, it was the 7th largest bank globally and largest bank in Europe. The
bank has an overall asset of US$2.558 trillion. Headquarter of HSBC is in London, United
Kingdom. In the study of report it is included that Identification of role of IT in success or failure
of the organization. Observing social and ethical issues which are helpful in running the
business. Further the study carried forward with the evaluation of different types of networking
technologies and accessing the importance of internet and intranet in the business with the help
of literature review. The report ends with the explanation of different stages of system
development life cycle and discussing the drawbacks and potential benefits of the company for
investing in information technology.
LITERATURE REVIEW :
As per the Ivanova, Solovyova and Shmatko, (2017)IT plays an significant role in the
success of organization. Enormous changes are brought by the introduction of IT in the banking
sectors which have a direct impact on employees, officers and customers of the bank. Advance
technology is helpful in delivering banking services and products effectively and conveniently
than ever before. Thus, this would have created a new base for competition. Rapid access to
captious information and quickly responding and distinguishing effectively leads to the future
success of the bank. It is the new streamlines business process where bank get though direct
marketing and accountable to the customer services which are effectively rendered. Decision
support system and consistent management leads to provide bank a competitive edge for gaining
success among the marketplace within banking sector. The IT is involved with the bank for wide
range of front and back office task with the great number of new products. The IT technology s
helpful for the bank in rendering accurate and quick services to their consumers. It is helpful for
the bank in assisting in business development and along with its follow up which can further
enhance growth of Bank.

As per Smith, (2018) Wide range of inquiry facilities are available for the consumers so
that the problems of consumer can be easily solved and easily gathered the correct information.
They can easily gave an immediate reply to their customers queries without referencing ledger
keeper for further details. Automatic reminder or standing instruction on the due date so that
bankers can easily go through that and avails to the customers for that and instantly generation of
report which can include MIS report and periodical return of the payment and easily monitor the
accounting of the customers. Up-to-date and fast information can be transfer by speedier
decisions and connecting the main branch with its sub-branches and controlled and monitored by
the main branch easily. With the help of technology banks can easily perform their task and
manage all services and accounts of the services effectively and satisfy their customer which is
helpful in the success of the Bank.
As noted by Rowley and Hartley, (2017) the banks are obliged to follow certain ethical
and social principles of banking professions which are integrity, honesty, accountability, social
responsibility and fairness. These are must be followed by the and very bank and financial
service provider. The banks must be work with the customers honestly and ensure the privacy of
their customers and safeguards the data. They must be accountable to their customers and render
them best services and value them and their time. Social responsibilities are must be followed by
bank while in their banking operation process and attaining their customers and rendering them
up with amazing services. Fair treatment should be done by banks to their customers and
employee and equally treat their customers no favoritism could be done and special regards are
to be provided to the senior citizens so that they can quickly solve up their problems and get
facilitated by bank easily.
The payment protection must be given to the customers as it is the most secure place where
individual deposit their money which can be further used if it is required. Bank should avoid
lobbying. Complexity and responsible for the lending which are provided by bank and must
perform all the task under legal rules and regulation.
As per the views of the Gunasekaran, Subramanian and Papadopoulos, (2017) LAN
stands for the local area networks and WLAN stands for the wireless local area networks. In the
LAN all the networks and the computer are connected through the UTP cable by the switches but
in the WLAN the data and the information is not transfer through the cables while they transfer
by the air with the use of wireless receiver and transmitter in the company. The uses of the LAN

is in the fixed networks but on the other hand the WLAN is used in those areas where the
computers can be moved easily. The use of WLAN is easier than the LAN for the public because
WLAN should be used where the large number of the computers connected in different areas. It
gives freedom to their customer but in the LAN the computer are fixed so it does not give this
advantages. The uses of the LAN in the company is more secure but on the other hand WLAN is
not that much secure. The transfer of the information and the data should be collected by the
hacker in the WLAN but in the LAN it is not possible.
As stated by the Sheikh, Sood and Bates, (2015) there are lots of importance of internet
and Intranet in the business of banks for their success and growth. Internet helps the business of
banking by increasing the opportunity of networking, communications, sales and marketing of
the banks. The banking sector uses the internet for the effective marketing strategies and increase
their customer by selling the effective products of the banking. For collecting the information
related to the customer, government etc internet plays an important role in the banks.
Development of the network internet is essential for the communications and activities of the
electronics. With the use of world wide web software private networks should be created and
manage so the intranet id the local networks in the company. It is the private networks which is
used by the staff of the company to complete their day to day activities. Intranet fulfills the needs
of the digital communication in the banking sector. Intranet helps to develop, store and access
the electronic material on the banks for their success and growth in the future. It helps to increase
the efficiency and decrease the risk of the business by replacing the older solution of the business
in the banking sector. Intranet also have the essentials applications which involves folders of
networks in which all the employee can use the same files, mail system of the internet and the
quick messaging software. With the use of the internet in the business operations of the banking
it helps to increase their efficiency in their works and also increase the sales in the baking. There
are lots of services which can be possible only through the internet such as world wide web,
email, transfer of files and chats in the company .
As per the views of Lioukas, Reuer and Zollo, (2016)System development life cycle is a
process and techniques of the planning, testing, creating, interpretation, development in the
business. It includes configuration of both hardware and software and combination of both.
Perfect and effective system requires step by step process of the development. System
development life cycle which is important for every business and includes various stages which

helps in understanding the business task and minimizes the errors and risk of the company. There
are seven stages which is explained below:
according to the Wójcik and Smolarz, (2017)planning is the most important stage for the
success and growth of the business in the system development life cycle. Effective and efficient
planning is necessary when the business is going to start for their better progress in the present
and future. Planning helps to decide the structure of the information system and evaluate the
different the resources for the development.
System analysis and their requirements in this stage the businessman the needs and wants
of the users should be analyzed for the fulfillment of the expectations from the new system. The
teams of the company identify the requirement which is needed in the task and finds the solution
of them.
Design is the stage of the information system which is used to describe their features,
specification and operations to fulfill the requirements of the system. This process has the
effective and better design of the database and interface of user and systems which helps to
achieve the successful operations of the systems.
Development is the next step which is used in this process for the development of the
hardware and software. In this process the businessman maintain and manage their information
system. Purchased of hardware and software should be coded and loaded for the development in
this stage.
Testing and Integration process involves the professional of the quality should do this
process of testing to make sure that the design of the system could achieve the goals and
objectives of the company or not.
After the development of the software implementation is the next step in the system
development life cycle. Implementation is comes when the testing of the software successfully.
This process consumes lots of time when the implementation of design is needed into the source
code from the coding system. In the software development life cycle implementation is the
longest process requires in the company for the success and growth.
Benefits and drawbacks of HSBC using information technology
HSBC as a bank serving UK residents and all over the world while they use information
technology as there new applications they have to face such drawbacks and through this they
also had some benefits as well so these benefits are as follows:

Benefits from information technology
1. After the start of information technology in HSBC started online account information
which helps the customers to know that what are the transaction and ow much credit and
debit transaction were there in the whole financial year.
2. Internet has really made life's easier for people because that way the customers do not
have to reach out to the banks and stand in ques for a long time and now can directly
withdraw money from ATM's and transfer money from one bank to the other
3. Through the use of ATM and information technology more users has been connected to
the HSBC.
4. Before Information technology customer grievances are in lots of numbers so after this
the customer does look more satisfied as the customers of HSBC. Customer were so
disappointed with the bank rules and regulations and these rules and regulation were so
hard and timid so IT helps and solve these problems.
5. Information technology help HSBC in the measuring problems while they have lot to
figure out in finding missing account information.
6. Portfolio management is the big task for the financial companies' information technology
helps and show the right and easy way to measure the risk and returns.
7. HSBC bank was not able to pay its employees the pay they were supposed to receive in
the past and this was so because the company lost its information or data out in public
8. Information technology help the HSBC bank to get more secure and this is by the help of
IT where they have more encrypted way of securing the information(Schmid 2008).
9. HSBC is now every protective about there security information using the technologies
therefore the bank is able to grow back up so fast from the loss they made in 2008. it is
more safe from the past they had.
Drawbacks
1. In 2008 they lost there data as because someone from the bank shares and unlock the
accounts through the help of information technology.
2. The bank failed in living up to its promises that they made which they made to the
customers and the employees that they will not paid for the services they provided to the
bank. In 2008, might never be forgotten from the history of this bank by the customers,

employees and the bank management since that was a tragic incident which took place in
the bank.
3. As security is the main issues where every bank failed to feel safe and failed to promise
there customers about safety and security of there accounts.
4. Where internet banking look so effective in the banking sector but the HSBC have loose
so many customers as they lose there money by using this technology.
5. The security factor plays a major role in the field of banks and the company did not
focus on that when they got on the internet provision for the customers. Though the
company has learned its lesson and will never make such mistakes again.
6. Security is one of the major steps which the company must focus on so that the bank can
give there best to the customers without making a loss.
7. Using information technology where some peoples failed to understand the use of
technology and HSBC also failed to describe the uses of information technology to its
customers(Smith J 2018).
8. HSBC lose there customer with the entry of internet banking in the fear of losing there
funds.

REFRENCES
Books and Journals
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and drawbacks. Journal of Industrial and Intelligent Information. 3(3).
Gunasekaran A. Subramanian N. and Papadopoulos T. 2017. Information technology for
competitive advantage within logistics and supply chains: A review. Transportation
Research Part E: Logistics and Transportation Review, 99, pp.14-33.
Ivanova T.D. Solovyova N.L. and Shmatko, A.D., 2017. The introduction of information
systems in small and medium-sized businesses. Экономика и предпринимательство,
(5-2). pp.688-691.
Lioukas C.S Reuer J.J and Zollo M 2016. Effects of information technology capabilities on
strategic alliances: Implications for the resource‐based view. Journal of Management
Studies. 53(2). pp.161-183.
Menachemi N and Collum T.H 2011. Benefits and drawbacks of electronic health record
systems. Risk management and healthcare policy. 4. p.47.
Rowley J and Hartley R 2017. Organizing knowledge: an introduction to managing access to
information. Routledge.
Schmid E.C 2008. Potential pedagogical benefits and drawbacks of multimedia use in the
English language classroom equipped with interactive whiteboard
technology. Computers & Education. 51(4). pp.1553-1568.
Sheikh A Sood H.S and Bates D.W 2015. Leveraging health information technology to achieve
the “triple aim” of healthcare reform. Journal of the American Medical Informatics
Association. 22(4). pp.849-856.
Smith J 2018 Introduction to Web Accessibility.
Wójcik W and Smolarz A 2017. Information Technology in Medical Diagnostics. CRC Press.