The Role of Information Technology in HSBC Bank: A Detailed Report

This report examines the pivotal role of Information Technology (IT) in the success of HSBC bank, highlighting its impact on various aspects of the business. The report delves into the ethical and social issues associated with IT in banking, such as privacy concerns, security vulnerabilities, and the potential for cybercrime. It differentiates between different types of networking technologies, including LAN, WAN, and MAN, and explores the importance of intranet and internet within HSBC. Furthermore, the report outlines the stages of the system development life cycle (SDLC) and analyzes how IT contributes to both the success and failure of businesses, while also addressing ethical and social considerations. The study also covers the benefits of IT investments, such as globalization, cost reduction, and employment generation, and points out associated drawbacks such as the need for continuous upgrades and employee training. The report concludes with a discussion on ethical issues like viruses and data loss, and social concerns such as cybercrime and cyberstalking, providing a comprehensive overview of IT's multifaceted role in HSBC's operations.

INDIVIDUAL REPORT

ABSTARCT
The study has discussed role of information technology in success of HSBC bank along
with issue of ethical and social nature of the same. Also the report has discussed several types of
networking along with importance of internet and intranet in HSBC bank. Further it has
discussed different stages of system development life cycle.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................2
ROLE OF SUCCESS OF THE INFORMATION TECHNOLOGY IN THE HSBC BANK : 2
Ethical and Social issues for HSBC.......................................................................................2
DIFFERENTIATE BETWEEN DIFFERENT TYPES OF NETWORKING ......................2
IMPORTANCE OF INTRANET AND INTERNET IN THE HSBC BANKS:....................4
Different stages of system development life cycle:................................................................4
TASK...............................................................................................................................................5
Role of IT in success and failure of business.........................................................................5
Ethical and social issue of information technology................................................................6
Importance of internet and intranet in banking business........................................................8
System development life cycle...............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Information technology is use of computers, storage, networking along with other
physical devices, infrastructure along with process create, process, store, secure and exchange
form of electronic data. HSBC is British multinational investment bank established in 3 March
1865 by Sir Thomas Sutherland in London UK dealing in retail, corporate, investment bankings
along with loan and management of wealth. The report will cover role of IT in business along
with ethical and social issue in business along with different networking technologies. The study
will also reflect difference between internet and intranet. Further different stage of development
life cycle will be addressed upon HSBC bank.
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TASK
Role of success of the information technology in the HSBC bank :
Information technology have a great role in the success of the HSBC bank. With the help of the
information technology the HSBC bank connects with there customers from all over the world .
Information technology in the HSBC bank works as the networks or links between the
employees or the customer of the bank. With the use of information technology, and provide
many services to them through online. Information technology helps HSBC bank employee to
take smart decision for there future growth or work the effectively under the HSBC bank with
use of IT . Customers can check their account balance or transfer funds from one account to the
another, from one bank to another or within the bank instantly with the use of the mobile banking
or internet banking (Dutta, Geiger and Lanvin, 2015).
Ethical and Social issues for HSBC.
Ethical -
 Privacy – HSBC consider individual privacy as area of ethical complicates. Hackers can
easily access internet usage, banking activities along with personal information about
potential clients.
 Security – HSBC employees along with customer information are on edge in name of
security. Several time employee's data are leaked from bank along with their data
transaction track and personal information. Along with an account owner can also get
involved in cyber crime losing it's data and money contently (Lloyd, 2017).
Social -
 Surveillance – The data of HSBC might be tracked by individuals about baking activities
and availability of fund threatening the belonging of consumers as well as banks.
 Phishing – Hackers might spread messages to account holders of HSBC bank asking for
personal information might mislead several personnel resulting in personal loss (Avgerou
and Walsham, 2017).
DIFFERENTIATE BETWEEN DIFFERENT TYPES OF NETWORKING
Basis LAN WAN MAN
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STANDS FOR LAN stands for Local area
networks.
WAN stands for Wide
area networks.
MAN stands for
Metropolitan Area
Network.
Meaning Local area network is the
group of the computers
which share common
communication its serve
around 2 or 3 users in a
particular area
Wide area network is
the private
communication
network that connects
with multiple local area
network (Avgerou and
Walsham, 2017) .
It is the network that
interconnects with
computers and there
resources in a particular
region that covered by a
large local area network
Allows Local area networks allows
individual set of device to
communicate.
Wide area of networks
allows to communicate
at the same time to the
large chain of
computers.
Metropolitan Area
Network allows to
communicate multiple
computer at same time.
Speed Local area network have a
competitively high speed as
compare to other two
networks.
Wide area networks
have low speed.
Metropolitan Area
Network have the
moderate speed of
networks.
Ownership Local area network have a
private ownership of
network (Dutta, Geiger and
Lanvin, 2015).
Wide area of networks
have both private and
public ownership of the
networks.
Metropolitan Area
Network have private as
well as public
ownership of the
network.
Design, structure
and maintenance
Local area network have
easy Design, structure and
maintenance.
Wide area network
have difficult Design,
structure and
maintenance.
Metropolitan Area
Network have difficult
Design, structure and
maintenance.
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IMPORTANCE OF INTRANET AND INTERNET IN THE HSBC BANKS:
Intranet
Under the HSBC bank employees or managers shares the information to each and everyone with
the help of intranet.
Intranet use in the HSBC bank for the sharing of the best practice and sharing of the resources.
.with the help of the intranet HSBC bank improved there customer services . Or its easy to solve
the customer problem instantly without wasting a time
using intranet in the HSBC bank helps in the better internal communication its act as a
communication hub for the staff and customer
Internet
HSBC bank keep eye on each and every customer account or transaction with the help of the
internet. it is very simple and easy.
Internet is the great medium for the HSBC Bank to provide there services to each customer of
there bank through the mode of online its easy to provide information anywhere in the world
With the use of internet in HSBC bank, managers can easily manage and control their financial
account or services in very correct way (Avgerou and Walsham, 2017).
Its helps the customer or executives to do transaction online from one bank to another.
Different stages of system development life cycle:
generally there are the five stages of the system development life cycle which are discussed
below.
PLANNING:
The very first step of the system development life cycle of the HSBC bank is the planning.
Calculating the weakness of the project or the strength is meaningless without a perfect or
effective plan (Dutta, Geiger and Lanvin, 2015).
ANALYSIS:
this stage is the related to analyzing of the performance of the HSBC bank at a various level .
Analyzing the performance of the HSBC Bank is the very important part to move next stage of
the system development life cycle.
SYSTEM DESIGN:
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after completing of analyzing the performance of the HSBC bank. The stage of system design
take place, this stage is helpful to remove the defect or to detect the defect from the HSBC bank.
IMPLEMENTATION:
project related to the software development offset here with data recording of the HSBC banks
after the system design or develop the stage of implementation comes in. under which to check
that the product is functioning properly or not (Marchewka, 2016).
MAINTENANCE:
after the proper completion of the all the above stages of system development life cycle without
any defect or error , the maintenance is done to promote timely to readjust the changes ( Senft,
Gallegos and Davis, 2016).
TASK
Role of IT in success and failure of business
Business that ignore IT have chances to go bankrupt. HSBC manages majority of transactions,
loans with support of informational technology and computers which provide efficiency to
working conditions. The IT helped HSBC developed in following ways -
Globalization
Technology has opened gates for sales, purchase along with other business transactions.
It helped to bring and connecting people together throughout the world with complex computers.
The HSBC has successfully operated transactions for it's customers throughout the world by
World Wide Web and online services by HSBC ((Marchewka, 2016)).
Cost reduction
HSBC had made business practices cost effective by providing banking services through
phones, faxes and online services. The activity made their business process cost effective
resulting in increased efficiency and productivity leading to greater profits and better allowance
rates for its employees. The cost incurred will also be considered low as compared to that of
generated from human resources of the company (Baller, Dutta and Lanvin, 2016).
Employment
The most important factor of information technology in any business is to generate
employment. Same as HSBC through it's OT department generated employed for its employees
in various field and sector such as computer programmers, system analysis, software and
hardware developers along with web designers. HSBC provide lot of employment to people
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through it IT department resulting in effective operations of business for it's success (Senft,
Gallegos and Davis, 2016).
Accuracy
The involvement of technology in HSBC banks will result in occurrence of less mistakes as
compared to be performed by humans. There is very less or few chances in occurrence of
mistakes as compared to that of humans and will result in better working conditions by the bank.
It can be concluded that involvement of Information Technology into commercial
practices will result in better communication, providing timely accessibility for transactions
making it cost saving and time efficient.
Linking cultural differences
Information technology will help combining different cultures across different countries allowing
exchange of traditions and views increasing better understanding. As HSBC operated in almost
every region the help of information technology in their process will bring effectiveness in their
business processes running across the countries (Dutta, Geiger and Lanvin, 2015).
Benefits of investments in IT for HSBC bank -
HSBC while investing in Information technology will attain
 Assisting HSBC bank to follow up customers by managing wide range enquirers along
with assisting bank for development.
 Employees are benefited by immediate replies for enquirers and complaints.
 Quick information transfer interconnecting computerized branches along with controlling
offices (Senft, Gallegos and Davis, 2016).
 Employee satisfaction by automated printing, updating, deposit machines providing
customer with better and efficient services.
Thus motivate HSBC bank to invest in information practices for better services and customer
satisfaction.
Drawbacks of investment in IT for HSBC bank -
HSBC while investing in IT will result in following drawbacks.
 Employees and customer having knowledge of old technology will find it difficult to
inherit change in short notice and will fail to cope up with technological changes.
 Up-grade of technology will require lot of investment of funds for HSBC bank and will
make it hard to shed enormous amount of money in such program ((Marchewka, 2016)).
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Ethical and social issue of information technology.
Ethical :
 Virus : virus is the unwanted error occur in the system due to the dowload or exchange
of the some corrupt file from one system to another computer virus affects the processing
of the system or function of the system . This is the one of the ethical issue of the
information technology (Schnoll, 2015).
 Loss of the data: issue related to the data loss facing by the IT. sometimes the situation
of the lose of the data arises in the organisation under the department of the information
technology this is due to the negligence of the IT department.
 Social : the very 1st social issue of the information technology is the Cyber crime .
Which means that the crime done with the set of the computers and the network .
 Cyber staking this is the one of the social issue of the information technology under
which with help of the internet and computer to torment any particular person or an
organisation / group (Sittig and Singh, 2015).
Difference between different type of networking technologies
Several of types of networking technology are -
LAN
MAN
VAN
Local area network -
The Local Area Network in HSBC is computer network operating in small operational
area. Basically if this type of technology will be use din HSBC it will be implied in single room
or building which can be connected to distance through various telephones lines and radio
signals as well (Lloyd, 2017). These networks to be used by HSBC are available in different
forms such as topology i.e. arranges of device network in geometry for HSBC, protocols where
rules and encoding will be specialized for specific data. The HSBC will ensure the networks use
peer to peer client along with sever architecture. These if implied for HSBC banks will transmit
data quickly over telephone line for HSBC to attach to a single common signal for better
connection ((Schnoll, 2015)).
Metropolitan Area Network -
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The implication of metropolitan area network in HSBC bank is similar to local area
network but will span entire campus ranging. These are formed basically by connection of
various LANs for HSBC banks which are extremely effective and potential for fast
communication through fiber optics, carriers (Marchewka, 2016).
Value Added Network -
Value added network in HSBC is private and is hosted providing them secure way to
send and share data to counterparties as being banks they need to keep and secure their data by
effective means (Schnoll, 2015). These networks in banks reduce number of parties in
communication simplifying the process. The involvement of VAN in HSBC bank is capable of
audit capabilities so data exchange is formatted correctly along with validity so that they can be
transferred to validated parties in effective time. These networks for HSBC banks will operate in
mailbox setting, sending transaction to VAN where VAN will place it in receiver's mailbox.
Where receiver will contact VAN and pick up transamination to send to transaction for own.
HSBC will simplify the communication process by allowing company's communicate fewer
parties (Sittig and Singh, 2015).
important and essential for the process as well.
Importance of internet and intranet in banking business
The HSBC banking activities purely rely on internet and internet for wide variety of
works.
Internet
Account opening
The availability of internet activities in HSBC bank will enable and help employees for
fast and quick account opening options without being physically there.
Watch account activity
With the internet facilities an individual in HSBC bank is able to look after the
transaction activities and keep record of banking transactions at times facilitating them by saving
time. The HSBC customers can see their account activity if any credit or debit is occurred at
times (Schwalbe, 2015).
Availability
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The HSBC bank can operate it's business activity in any given period of time with
inability of internet services at times. The customers of bank will be facilitated by this facility
and saved their time and money as well.
Operation
With the availability of internet banking the customers of HSBC bank can operate
business transaction fast and quick in any given period of time and place as well.
Intranet
Increase customer satisfaction
The availability of intranet for HSBC bank will increase customer satisfaction for it's
employees delivering them effective products and services expressing professional front. By this
effort employee can do their job easily and effectively and will result ion increased customer
satisfaction (Senft, Gallegos and Davis, 2016).
Information related to branch operation
The HSBC bank with involvement of internet will inform employees about day to day
activities of branches informing about safety protocols, opening and closing procedures, branch
inspection and counter pick up time as well. As different branch have different operating
functions for their specified activity in HSBC banking norms and activity ((Sittig and Singh,
2015)).
Knowledge sharing and employee engagement
The HSBC banks consider employee engagement important for helping them in duties
and responsibilities by providing employee directory, forums about services, share staff
knowledge. They also tend to segment for staff engagement activity for the involvement of
business activity. As well the affect of this practice will also help in evaluating customer
feedback at times as well (Sittig and Singh, 2015).
System development life cycle
The system development life cycle o9f any business involves several steps that involves
in development of business.
Planning that is responsible for obtaining approvals for projects, initiate along with accessing
feasibility and planning schedule activity for business operations (Schnoll, 2015).
Analysis that help in understanding of business needs and requirements along with ot's
processing needs for further evaluation of it's activities.
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