The Impact of IT on Lloyds Bank: A Comprehensive Service Analysis

This report explores the impact of information technology on service-based businesses, with a specific focus on Lloyds Bank. It discusses the relevance of IT on the growth and development of such businesses, elaborating on the impact of IT advancements and addressing the ethical and social challenges that arise from the increasing use of technology. The report also covers the concept of application software and its various types, particularly within the banking sector, highlighting how institutions like Lloyds Bank use advanced digital techniques to maintain account records, facilitate financial transactions, and ensure data security. Furthermore, it analyzes the role of information and communication technology (ICT) in improving business operations, communication processes, and overall efficiency, while also considering the potential drawbacks and challenges associated with over-reliance on technology, such as privacy concerns and cyber threats. The report concludes by emphasizing the critical role of IT in modern banking and its broader implications for the service industry.

Introduction to
Information
Technology
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Abstract
The relevance of information technology on growth and development of service based
businesses are major and immensely significant. In this report, impact of IT advancements on
businesses are broadly discussed and elaborated. The ethical and social challenges raised due to
growing emergence of information technology are also included. In this report, concept of
application software and their types are being discussed.
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Table of Contents
Abstract............................................................................................................................................2
Introduction ....................................................................................................................................4
Literature review .............................................................................................................................4
Application software and its types..............................................................................................4
Ethical and social issues of IT in businesses..............................................................................5
Impact of information and communication technology on businesses.......................................6
Role of IT in businesses..............................................................................................................7
Analysis and discussion ..................................................................................................................8
Application software and its types in banking sector.................................................................8
Ethical and social issues of IT in banking services.....................................................................9
Impact of information and communication technology on banking sector................................9
Role of IT in banking sector.....................................................................................................10
Conclusion ....................................................................................................................................11
References ....................................................................................................................................12
......................................................................................................................................................12
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Introduction
Information technology refers to the application of computerised programs, gadgets,
software and hardware which facilitates storage of data and helps in automation and processing
in providing services. The term information technology is referred to the usage of technology
and modern advancements in the area of business organisations and professional world rather
than in personal context. The use of information technology is immensely significant and
relevant in this era, where operations of businesses and corporations are complex and extremely
widespread. Information technology is used by businesses and organisations in the form of
artificial intelligence, cloud computing, networking, software research, complex systems and
biometrics and other computerised programs. The concept of Information technology is used in
various business sectors and corporations which enables organisations to perform functions with
reduced efforts and high accuracy. IT sectors make effective use of numerous software and
forms of digital technology and rely on information technology to manage business operations.
Nowadays, it has become practically impossible for large companies and medium or small scale
enterprises to perform their operations without using tools and techniques of information
technology. The inventions and methods used by information technology to support various
functions is extremely diversified. There are numerous software and computerised systems
which are included in the concepts and terms of information technology (Khanyile, 2019). The
introduction of information technology have redefined the ways of working patterns in which
organisations manage corporate activities. In this report, the application and impact of IT is
broadly discussed in context to a service sector business. The chosen organisation for this
purpose is Lloyds Bank which is a commercial bank headquartered in London. The service
sector relies completely on information technology to conduct their professional functions in
today's era. In this report, the role of ICT in management and the significance of growing use of
internet is being discussed.
Literature review
Application software and its types
As per the view of Priya Pedamkar (2020). Software are programs and computerised
systems which are invented to facilitate specialised tasks and perform particular functions on a
system. Application software are programs which are designed and installed in computers and
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laptops in order to support a specific task. Systems software are those which are already installed
in computers to support the working performance of its operations. The use of application
software has become way too much relevant in recent years. In order to support complex
functions of organisations, application software are being developed and designed to complete
specific and complicated tasks. Application software are categorised into various categories like
database software, word processing software, educational software, product development and
engineering software and other numerous applications. The usage of these application software
is executed through either online or accessing their features through installing them. These can
also be classified in terms of generic programs, utility programs, integrated programs, specific
software, accounting software and other categories (What is Application Software & Its Types,
2020). The word processing software helps in editing, formatting and creating documents and
customised reports in precise formats. The spreadsheet software helps in organisation of data in
clear and summarised formats where information is easily accessible. Accounting software are
widely used in recording monetary transactions and keep organised formats of revenues and
expenses with ensured accuracy. The relevance of these software are very much remarkable in
the process of managing operations of a business entity. There are multiple accounting software
which allows organisations to organise and manage data of clients in order to provide them
services and facilities to satisfy their requirements. Internet browsers which are specifically
installed in computers and laptops due to their better features helps companies and corporations
to conduct research and coming up with innovative ideas based on current trends. Software
suites is referred to collection of application software which facilitate online communication and
collaboration and other functions like data collection, organisation, storage and analysis.
Ethical and social issues of IT in businesses
As per the view of Fraser Sherman (2020). In recent years, the existence of businesses
without information technology has became almost irrelevant as no large scale companies are
sustaining without using modern techniques of IT. The growing dependence on usage of IT raise
issues and concerns regarding privacy and it has became extremely difficult to keep data safe.
The increasing application of information technology has given birth to various ethical and
social issues which are to be dealt with. The advancements of IT offers numerous benefits but is
also misused by various users and hackers to gain misleading advantages. The application of
services of IT in businesses should be integrated with measures which are crucial in order to use
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technology ethically. The features provided by IT inventions have raised issues of plagiarism and
theft of original ideas and using them as your own. Businesses face multiple challenges
regarding IT application in the form of privacy invasion, hacker attacks and other forms of
unethical usage of Information technology (Ethical Issues With Business Technology, 2020).
The usage of technology can leads to harmful consequences as it can promote to invasion of
privacy and leakage of confidential data. The application of internet in promoting business
activities and to facilitate other operating functions, the threat of hackers can leads to erosion of
important data. The everyday reliance of business on technology make it easier to track activities
of their employees and history of browsing. The scams and misleading activities of imposters
promotes cybercrime and can access to important data of business which should be kept safe and
secure. The excessive use of technology by business organisations and corporations in making
their services available influence social aspects in different ways. Application of technology in
availing services is sometimes not liked and preferred by older generation who are more inclined
towards conventional ways of working.
Impact of information and communication technology on businesses
As per the view of Elisabeth Natter (2019). There was a phase where people used to
execute business operations and conversations verbally and through exchange of formal letters.
Nowadays the patterns of working and decorum of organisations have completely evolved
through continuous enhancements and adaption of newest technologies. The modern
advancements of information technology has changed the communication processes and methods
in which business employees exchange information and ideas. Most of these brilliant
developments have contributed in improved productivity but few aspects of quality of business
relationships have been compromised.
One of the most significant and major development in the field of business
communication is the constant and continuous use of emails in order to facilitate exchange of
messages in organisations. Despite being existing from a long time, in recent years email has
became a established method of communicating in corporations rather than a tool to randomly
delivering messages (Effects of Technology on Business Communications, 2019). The frequent
and constructive emergence of various methods and innovations have improved the workflow
management of business organisations. Implementing project management system is another
very effective and strong approach of information technology which improves the performance
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of an organisation and helps in better management. Workers do not need to be present in groups
at every time rather they can complete their targets through online means of collaborative tools.
The inventions of information technologies have automated processes and helps in reducing
individual manual efforts. The introduction of chatbots help in accomplishment of tasks through
processing systems and automatic functioning of targets. The communication process in
businesses have became more efficient through automated voice systems which minimise
employees efforts in tasks which can be performed with the help of digital technology. The
emergence of artificial intelligence helps in forecasting and decide future sales through analysing
consumer choices and interests. The methods of information technology has enabled companies
to hire workers living in remote areas through communicating online and facilitate working. IT
helps organisations in utilising potential of employees living in remote areas which was
previously not possible before invention of digital communication tools.
Role of IT in businesses
As per the view of Sebastian Duncan (2021). The IT sector has became one of the most
crucial element of business operations and management of functions. The maintenance of
records and data is facilitated through various methods and tools provided by digital
technologies. In this high tech era, no business entity or corporation can manage their working
efficiently without implementing effective usage of information technology. Nowadays, major
and minor tasks involved in routine operations of companies are being performed through the
application of IT tools and inventions. The use of information technology helps in bringing more
productivity and efficiency in the operations of the business organisations. The brilliant features
offered by the modern techniques of IT helps in safeguarding data and troubleshooting. The use
of information technology in supporting business functions helps in saving time and efforts of
employees. It also helps in saving costs as less employees would be needed due to the automated
services provided by IT tools and software (What is the role of information technology in
business?, 2021). Information technology allow employees and business organisations to find
quick solutions of problems through troubleshooting. It could be applicable to a numerous things
such as fixing digital processes or recovering data or sensitive passwords. The role of IT is
widespread and its influence on working of businesses and corporate world is multidimensional
as it facilitates numerous functions of organisations. The brilliant invention of cloud computing
has successfully supporting various business operations through storing data and information
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which is useful for companies. The methods of cloud computing is being used by every
organisation whether small scale or large scale due to its advanced features. In this era, digital
technology provides ease in communication where physical presence is not necessary to
facilitate conversation. It also enables company to interact with consumers through researching
current trends and reviews of audience which helps businesses in knowing their preferences
better.
Analysis and discussion
Application software and its types in banking sector
The banking sector and its services are highly technology oriented which implements
application of various techniques and tools in order to make their services available to the
customers. In context to Lloyds Bank, to maintain account records of customers and facilitate
financial transactions, the institution use highly advanced features and methods of digital
techniques in the form of software (Prasad and UpendraSastry, 2019). The application software
used in banking sectors stores data and information of account-holders and handle the monetary
transactions to facilitate processes and accounting functions. The software used by the bank
highly ensures that any data or information is not accessible by third parties. In addition to this, it
also provides high accuracy and avoid any mistakes and delays in transactions and processes. In
context to Lloyds Bank, the institution has discovered and implemented systematic usage of
application software which are most suitable to support services provided by the bank. The
functions and services of the bank are supported by SAP solutions which provides best
application software to perform specialised tasks. In addition to this, some major software used
by banking sectors are Finastra, FIS profile, Temenos, CorePlus and EBANQ etc. Beside this,
the types of banking application software used by the bank can be classified as follows:
SMS Banking software: this software allows consumers to recharge phones directly
through bank accounts or to avail prepaid services. These software also enables customers to
make requests regarding any updates on transactions and details about personal accounts through
messaging on numbers provided by banks.
Merchant Banking Software: These software allow Lloyds bank to manage and
maintain record of transactions in order to avail customised reports and analyse data through
providing relevant information about financial resources or accounts.
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Investment banking software: these software helps in accessing information which helps
the institution in gaining better understanding about current investment market trends and helps
in better decision making (Trimeranti, Gamayuni and Prasetyo, 2020).
Ethical and social issues of IT in banking services
The extreme reliance and dependence on information technology for purpose of
providing remarkable services has given birth to various ethical and social issues. Banks are
financial institutions which provide loans to customers and provide the services of keeping their
funds secure. In doing so, they acquire detailed information and personal details through
ensuring non-disclosure of confidential data and ensures privacy of their customers. Lloyds Bank
is one of the largest retail bank in Britain which is widely known as one of the “Big four”
clearing banks (Li and Yu, 2021). The bank has to ensure that the activities and functions of the
institution are performed considering the confidentiality and other privacy and safety concerns of
their customers who are putting their trust in the bank. The information provided by consumers
are protected by making effective use of access codes and these codes can be used by any
employee who has access to these codes. Employees are tend to know personal information of
some customers due to numerous reasons and circumstances. In order to prove their competence,
sometimes employees breach the aspects of secrecy and end up invading privacy of customers.
The involvement of methods and platforms of IT in every service and function of the
bank push customers to use digital applications in order to avail banking services. Digital IT
applications are tend to ask access to media and ask to grant permission to other sensitive data.
Sometimes, unaware users end up falling in trap of fraudulent imposters and hackers which are
serving as major ethical and social challenges in the application of IT advancements. One of the
major social challenge that the growing use of information technology serves to the society is
lack of employment opportunities due to automation of processes.
Impact of information and communication technology on banking sector
The impact of ICT on the development and progress of banking sector is immeasurable.
The service based sectors and businesses are highly dependant upon tools of information
technology and methods in order to deliver services to the audience. The growing advancements
of information technology influenced banking industries in attaining positive outcomes. In
context to Lloyds bank the application of information and communication technology has
directed the bank towards growth and remarkable success (Gupta, Raychaudhuri and Haldar,
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2018). The banking services includes usage of tools and techniques of IT in every step and in
supporting routine actions of the institution. The bank make effective use of software and other
computerised techniques to maintain records of transactions and keep track of balances of
account-holders. The working areas of the bank is complex and extremely complicated which
requires hundred percent accuracy in storage of information. The bank allow customers to check
their balance through availing features of specific applications or messaging on numbers
provided by banks (Singh and Srivastava, 2020). The bank supports management of actions and
keeps record of ATM withdrawals while maintaining exactness of data and information. The
bank is able to support such functions only through ensuring optimum and maximum utilisation
of information technology in day to day management of activities.
Despite being the essence of banking sector services, the use of information technology
also has some negative influence over the organisation and society as well. The advancements of
technology has rise the possibilities and events of cyber attacks due to the complications and
loopholes of modern techniques. The efficiency of the institution is being affected due to
technological errors which are very time-taking sometimes. In uncertain events of technical
disruption, manual techniques do not work because the organisation is completely relied on
technology and at last moment the patterns of working cannot be changed.
Role of IT in banking sector
The role of IT sector has bring expansion and diversification in the course of banking
services. The services provided by Lloyds bank use tools and computerised systems in order to
fulfil requirements of customers and ease their processes of transactions. The constant and
frequent evolution of IT services have reduced the duration of processes and ease the course of
transactions through providing customers with various options and choices. Through adopting
techniques of information technology, the bank has been able to introduce new methods of
transferring funds with one digital click (Chege and Wang, 2020). The invention of various
software and applications have proposed methods of digital payments where bank make various
payments on behalf of customers with the help of availing advanced features. The integration of
information technology with banking services are providing customers with ease and
convenience of transacting funds and facilitating various functions. The role of information
technology in performance of routine actions of the services of the bank is extremely significant
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and remarkable to expand the operations of bank. The complex data and massive amounts of
banking records are supported by various software and features of digital platforms.
Conclusion
From the above report, it has been concluded that the introduction of information
technology has reshaped the structure of working and completely changed the working methods
of business organisations and professional bodies. The use of IT has benefited businesses beyond
measure which has contributed significantly in the growth and expansion of various businesses.
The use of information technology has resulted in saving of time and efforts for the business
organisations and has helped corporations in increasing productivity and efficiency of
operational activities. The contribution of modern techniques and IT advancements has
facilitated automation of processes which ensures accuracy and results in fastening of processes.
It has been analysed that the influence of information technology on the performance of the
business also pose some ethical challenges and social issues through relying too much on the
advanced techniques. It has been concluded that service based businesses are majorly relies on
the usage of information technology in order to support their services. The banking institution
performs their functions through implementing effective usage of tools and techniques offered
by inventions of information technology. Although the impacts of information technology are
both positive and negative on overall functioning of the organisations and from the perspective
of society. The over reliance on information technology through banking institutions increase the
risk of privacy invasion and increase the threat of exploitation of customers by hackers and
imposters. In banking operations, misleading practices are rising and fraudulent practices related
to theft of funds are being fostered through increasing use of information technology. It can be
concluded that in order to ensure ethical and appropriate use of IT advancements, security and
ethical practices should be made as a top priority.
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References
Books and journals
Chege, S.M. and Wang, D., 2020. Information technology innovation and its impact on job
creation by SMEs in developing countries: an analysis of the literature
review. Technology Analysis & Strategic Management, 32(3), pp.256-271.
Gupta, S.D., Raychaudhuri, A. and Haldar, S.K., 2018. Information technology and profitability:
evidence from Indian banking sector. International Journal of Emerging Markets.
Li, P. and Yu, J., 2021. Financial Technology and Banking Industry Development-Take
Zhongyuan Bank as an Example. Frontiers in Economics and Management, 2(3), pp.244-
249.
Prasad, K.R. and UpendraSastry, S., 2019. Information technology and customer service in
banking industry-A study of State Bank Of Hyderabad.
Trimeranti, M., Gamayuni, R.R. and Prasetyo, T.J., 2020. Information technology investment
and digitization to improve banking performance. In The Future Opportunities and
Challenges of Business in Digital Era 4.0 (pp. 66-69). Routledge.
Singh, S. and Srivastava, R.K., 2020. Understanding the intention to use mobile banking by
existing online banking customers: an empirical study. Journal of Financial Services
Marketing, 25(3), pp.86-96.
Khanyile, B., 2019. The Role of Internal Auditing on Information Technology Within the
Banking Industry. University of Johannesburg (South Africa).
Online
What is Application Software & Its Types, 2020. [Online]. Available through:
<https://www.educba.com/what-is-application-software-its-types/>
Ethical Issues With Business Technology, 2020. [Online]. Available through:
<https://smallbusiness.chron.com/ethical-issues-business-technology-27297.html>
Effects of Technology on Business Communications, 2019. [Online]. Available through:
<https://smallbusiness.chron.com/effects-technology-business-communications-23045.html>
What is the role of information technology in business?, 2021. [Online]. Available through:
<https://realbusiness.co.uk/role-information-technology-business>
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