IT Systems in National Australian Bank: A Comprehensive Report

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Information Technology for Business
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Table of Contents
Introduction...................................................................................................................... 3
National Australian Bank – IT needs................................................................................4
The importance of IT for the National Australian Bank (NAB)..........................................4
Elements required applying IT into National Australian Bank..........................................5
Uses of IT in the National Australian Bank.......................................................................6
Benefits & Advantages of IT in the National Australian Bank...........................................6
Risks associated with IT systems to National Australian Bank........................................7
Ways to effectively monitor and maintain IT in the National Australian Bank...................8
Conclusion....................................................................................................................... 9
References.....................................................................................................................10
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Introduction
The report aims to identify the role of IT systems in the banking industry in the context
of one of the leading financial organisation ‘National Australian Bank’. In this report, the
requirement of the banking industry for adopting IT will be discussed in this report. The
importance, implementation steps, use of IT in National Australian Bank will be
discussed in this report. Along with all the benefits, the report explains few risks which
would be associated with IT to the banks and some recommendations to prevent.
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National Australian Bank – IT needs
National Australian Bank (NAB) is one of the four largest financial institutions in
Australia. The organization has been running successfully its business from last many
years, it employees over 40, 000 people and operating with more than 1800 branches &
service centers. The Bank is considered as responsible for more than 460,000
shareholders as well. The bank has been trying to expand its business to the Asia
continent as well, which will be easy to understand that the organisation must need to
adopt more advancements of IT system in the organisation. The following will be the IT
requirements of the National Australian Bank (NAB).
 Strong & secure networking – E-commerce will be one of the most advanced
ways to develop strong networking among customers and bank. For successfully
running e-commerce activities, the bank needs to develop a strong and secure
networking system and high information technology systems will be helpful to
effective run strong networks to the bank (Urbina, et. al., 2018).
 Cybersecurity – The more the internet uses has been getting increased in
banking or financial transactions these days, the more it developing a strong risk
to the data and information of the bank. Bank has a wide range of customers and
provides services; it will be helpful to prevent cyber threats of the loss of data,
information of the organization from cyber-attacks.
 Developing strong infrastructure – IT system will be helpful to develop strong
and secure infrastructure among the organization which would be considered as
the biggest requirements of the bank nowadays (Masa'deh, et. al., 2019). It will
be helpful to improve data storage, transfer as well.
The importance of IT for the National Australian Bank (NAB)
The following will be helpful to identify the importance of the National Australian Bank.
 High tech customer service – One of the biggest requirements of the
organisation will be to provide high-end customer services because, in this
competitive world, it is considered as one of the most important to make
customers happy and satisfied as well. IT system will be helpful to increase the
quality of customer service.
 Operational efficiency – National Australian Bank has been running with a wide
range of primary and secondary operational activities (Cheng, et. al., 2018). It is
one of the largest financial organizations in country and advances IT system will
be helpful to increase efficiency of the operational activities.
 Maintain risks and privacy - National Australian Bank has been running its
business with more than 1800 branches all over, it makes it required that the
bank will adopt and run effective IT systems to prevent risks and maintain privacy
policies for securing data & information of the bank.
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Elements required applying IT into National Australian Bank
The following steps will be required in order to effectively adopting IT system into the
National Australian Bank.
Budgeting – The budget will be vary because of various external affecting factors, an
estimated costs will be approx AUD 30k for adopting high tech IT systems.
Planning – The bank must need to first identify the requirements of the IT system into
organisation which will be helpful to choose effective and appropriate IT systems to the
banks as well. All below mentioned stages will be effectively monitored for achieving
desired outcomes.
Designing – Once the appropriate IT system would be finalized then only the suitable
designing process should be run to the organization. The bank includes important
financial information so the designing must be effectively run to the bank (Samper, et.
al., 2019).
Types of equipment – After finalizing IT system and its designs, it will be helpful to the
next step which is about choosing right equipment for effective and desired outcomes
from applying IT system so far in the National Australian Bank.
Installations – It is one of the major steps which will be followed and execute
effectively. National Australian Bank has been operating on a large level so it make it
really require that the bank must need to hire some IT services providing firms in order
to effectively install the IT system.
Training – National Australian Bank has 40,000 employees and all the employees
would be considered as IT expert so for effective utilization of the IT system to the bank,
training programs must be run for employees after installing IT system to the bank
(Katwa, et. al., 2018).
Uses of IT in the National Australian Bank
In National Australian Bank, the IT systems will be used in both internal and external
environment. The following will be the uses of IT systems in the bank.
Internal environment
 Effective monitoring – IT system will be helpful to the bank management to
make effective monitoring to the employees. Their attendances, remunerations
and incentives programs will be easily managed with the help of appropriate IT
system (Bhatti, et. al., 2018).
 Increase productivity – IT system helps to run and monitor training programs
for the employees at bank. It will be helpful to enhance skills which directly going
to increase the productivity of employees.
External environment
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 Improved customer experience – IT system will be helpful to increase the
intensity of the customer experiences as well. It will help to provide the
customers a smooth, fast and secure ride while using the functions of the bank
(Sahu, et. al., 2018).
 Improve process – IT systems will be helpful to increase the efficiency of the
process as well also increase the safety of the transaction's path. It will be helpful
to maintain the records related to suppliers and customers.
Benefits & Advantages of IT in the National Australian Bank
 Improved functionality – IT system will be helpful to improve the quality of the
functions as well. The data will be safely stored, transfer and easily manageable
so far with IT system help.
 Operational activities – IT system will be going to improve the operational
efficiency of the bank. It will make it easy to run primary and secondary
operational activities which belong to day to day activities of National Australian
Bank as well (Lee, et. al., 2018).
 Cost efficiency – With the help of IT systems, it will become easy to reduce
wastage of resources which would be considered as the prime factor of
increasing the costing of National Australian Bank as well. IT systems will be
helpful to increase the cost efficiency of the functions which helps to increase
bank’s revenue and growth in future.
Risks associated with IT systems to National Australian Bank
 Operational risks – IT system will be responsible for ineffective or
mismanagement at the bank. There are many risks such as failure of IT systems,
human error, and failure to internal process and along with that, the IT system
will be centric to one person or department which will increase the operational
risks as well.
 Cybersecurity risks – Using IT systems, will also be going to increase the risks
of losing data or personal and financial information because the risks of hacking
and cyber threats are getting increased by each passing day. In past few years,
few important banks lost its financial information because of hacking as well.
National Australian Bank is one of the largest financial organizations which make
it riskier to lose important information of its customers as well.
 Reputational risks – These days, losing reputation is the biggest risks for the
larger organization because it will be going to impact their market image which
the organization built up in past many years. Cyber hacking or losing data could
be a reason for increasing the damage to the market image of the National
Australian Bank (Raguseo, 2018).
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Ways to effectively monitor and maintain IT in the National Australian Bank
 Multi-level monitoring – More often the IT systems are centric to one person or
one department which would be the one reason for not achieving desired
outcomes. Running multi-level monitoring programs will be helpful to manage IT
system in National Australian Bank (Sanchez, 2018).
 Effective pieces of training – Human errors will be second biggest risks which
ended up failure of the IT systems in banking. National Australian Bank must
need to run some effective training programs for employees in order to reduce
such errors.
 Two-way authentications – For preventing cyber threats, the bank must need to
run some effective two-way authentication programs in its functions for safety
and security of the personal and financial information of the customers.
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Conclusion
In this report, it is concluded that the banking industry has a strong requirement of
adopting IT system to improve the flexibility of its functions in the context of the National
Australian Bank (NAB) as well. The role, importance, uses, and benefits have been
discussed in this report. The report included the risks along with benefits of IT system to
the National Australian Bank. Few recommendations to mitigate those risks have been
discussed as well.
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References
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 Cheng, Q., Goh, B.W. and Kim, J.B., 2018. Internal control and operational
efficiency. Contemporary Accounting Research, 35(2), pp.1102-1139.
 Katwa, A.P., Jenner, C., MacDonald, K. and Barnett, N., 2018. Improving
advance care planning for care home residents with dementia: Evaluation of
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adoption, benefits and risks for companies. International Journal of Information
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 Sahu, N., Deng, H. and Molla, A., 2018. A capability based framework for
customer experience focused digital transformation. In ACIS2018 (pp. 1-10).
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 Samper, M.E., Eldali, F.A. and Suryanarayanan, S., 2019. Risk assessment in
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 Sanchez, J.M., 2018. The information technology revolution and the unsecured
credit market. Economic Inquiry, 56(2), pp.914-930.
 Urbina, M., Moreira, N., Rodriguez, M., Acosta, T., Lázaro, J. and Astarloa, A.,
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