NatWest Bank IT Infrastructure Report: Semester 2, 2019

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Introduction to Information Technology: Individual
Report
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Abstract
The presented study has discussed technologies used in networking such as LAN, WAN, PAN,
and others. There has been explanation on social as well as ethical issues concerning with
technology. The importance of internet and intranet has been indentified and applied in the
context of NatWest Bank, UK. The various phases of system development such as design,
maintenance, implementation, and others have been provided with its application on the selected
company for enhancement of its systems. The functions of IT in business have been identified as
well as issues related to this such as breach of security has been discussed.
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Table of Contents
Introduction......................................................................................................................................4
Literature Review............................................................................................................................5
Analysis and discussion.................................................................................................................10
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16
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Introduction
Information technology includes utilisation of networking; computers, storage system and
physical devices, infrastructure as well as processes to process create, secure, exchange, and
store every form of electronics data. The present study will discuss the function of IT in banking
industry. The networking technologies will be explained and significance of internet and intranet
will be provided. The stage of SDLC along with literature review on the present topic will be
presented. NatWest is a commercial financial organisation that falls in the banking industry
(bloomberg.com, 2019). Services provided include fixed and saving deposits, credit cards,
internet banking service, loans, and others. This organisation has been formed in 1968 and there
are 55400 workers employed by it. NatWest is headquartered in Bishopsgate London, United
Kingdom. It has been listed in London Stock Exchange (londonstockexchange.com, 2019). The
organisation’s total income has been 9,532 million Euros in 2018 that has increased from 8,147
million Euros in 2017 (investors.rbs.com, 2018).
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Literature Review
Role of Information Technology in success or failure
The significance of information in banking sector is immense. Therefore, banks have adopted the
automation technology of information processing to process, analyse, and provide information to
meet the requirements of the consumers. As per the view of Shanmugam et al. (2015), internet
banking has facilitated banks of the United Kingdom by providing them with substantial
knowledge. It not only supports the banking sector but also assists the consumers. Internet
banking has enhanced the functions such as bill payment, money transfers, and others that has
attracted customers into utilising these facilities for developing their banking experience.
However, security concern is one of the social issues related to the banking sector. Therefore,
card readers and others technologies have been introduced to avoid fraud in the online banking.
It has been found as per Shanmugum that consumers’ satisfaction level has been increased since
the introduction of internet banking. Thus, it can be analysed that information technology leads
to success in business of banking industry (Guo and Liang, 2016).
Figure 1: Mobile banking
(Source: Shaikh and Karjaluoto, 2015)
Technology has introduced facilities such as electronic banking, internet banking, mobile
banking, and others. It has leveraged the reliability and speed of operations of the financial sector
that includes banks. The process involved in technology has decreased the cost in transferring the
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funds from one country to another. The demand of customers nowadays has been increased, as
they want instant banking facility. IT has assisted them in accounting and other requirements.
For instance, e-banks offer the services such as EDI or Electronic Data Interchange, Credit
Cards, Debit Cards, and other facilities. The major influences of IT in its implementation in the
banking industry are that the banks would get assistance in providing immediate response to the
customers. It can use IT to generate MIS reports and update information quickly. The banks can
have wide range of facilities in inquiry for development of business. However as opined by
Bouma et al. (2017), there are ethical and environmental issues related to the financial sector.
The researchers have debated for the promotion of technologies that would be environmentally
sound. This can be done through creating innovative products and supplying effective services to
the consumers.
Types of networking technologies
According to Benoit and Moore (2015), networking technologies such as wide area networks
(WAN), local area network (LAN) and others are supporting the financial sector immensely.
WAN is used in the banking industry to transmit data as well as to perform various functions.
Management of WAN includes controlling on-premise communication materials such as routers,
firewalls, and others and circuits that are used to make effective communication.
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Figure 2: LAN- networking technology
(Source: Benoit and Moore, 2015)
On the other hand, LAN security along with NACT or Network Access Control Technology in
banking sector prevents the challenges of economical risk associated with transactions. It can be
utilised to solve the challenge of cyber attacks, data access, limited availability of network, and
others.
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Figure 3: WAN- networking technology
(Source: Benoit and Moore, 2015)
As per the view of Peters and Panayi (2016), block chain technology assists the banking firms in
transaction process. It facilitates money remittance all over the world. The payment network has
enhanced the banks’ services quality immensely with their technology. This system assists in
reducing cost of transaction however, it require proper infrastructure for using solutions. It
reduces the challenges of failure in the process of transaction and offers efficient process of on
boarding. According to Mocetti et al. (2017), Informational Communication Technology is
essential for the banks in automation of the processes. This can be used in banks for account
opening, recording, transaction process, and others.
Importance of intranet and internet
According to Nuredini and Gërvalla (2018), banks have become multifunctional therefore; there
has been need of introducing new concept to meet the requirements of globalisation. The
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banking operations have been changed recently form traditional banking methods to standard
ones such as security in business operations, provision of mortgage service, and many others.
The financial organisations have been transformed to offer the customers with services of varied
range. Bank intranet is a tool that assists the members in effective collaboration, engagement,
and involvement. It provides workers with tools to make them perform effectively. Intranet helps
in personalising navigation, creation of financial sites and forms as well as replenishment of
equipment and supplies. Internet in banks is helpful in providing the customers with functionality
of various kinds such as online transactions. This is a time-effective method and has more
convenience with the incorporation of mobile banking in this industry. However, usage of
internet in banking is a security concern.
Different stage of system development lifecycle
Figure 4: System Development Lifecycle (SDLC)
(Source: Carroll, 2017)
The cycle of system development has some stages that provide framework to ensure quality of
the system that would meet the expectations of a business and aids in its progression. This cycle
is used to define the actions clearly for attainment of goals. As per the opinion of Carroll (2017),
in the stage of planning, the objective of the phase is to determine the problems and find out the
effective solutions. In this phase, cost, time, resources, and related things are considered. In the
stage of system analysis and requirements, the need of project is considered. The specifications
and operations are detailed in systems design stage, while in development phase, production
starts. In integration and testing stage, procedures and programs are tested and professional
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assures quality. In implementation stage, the program’s code is written while in the stage of
operations and maintenance, performance is boosted with incorporation of new abilities or by
meeting the additional requirements.
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Analysis and discussion
Identify the role of IT in the success or failure of your chosen organisation
Information technology has supported the NatWest Bank by facilitating its serves and functions.
It has focused on applying the Quantum technology to predict the defaults in loan books.
NatWest has commenced testing of quantum technology in the organisation for solving the
complex calculations. This would be time effective and less costly to the organisation as the
challenging problems would be solved simply. The technology would be much more powerful
than a computer as well as it speed would be much higher. Its accuracy of output would be of
greater degree than a traditional system. This would be helpful in calculating the portfolios in the
NatWest Bank. It would be beneficial for detecting fraud and money laundering. These functions
will be carried with ease and in large scale that would be important in reducing the cost.
Artificial Intelligence used in this would bring high level of performance as well as there will be
reduction in tie consumed in training process. The bank will be able to manage risks, provide
chat bot customer service, and AI trading with this computing power. Quantum technology has
the capability to verify the system of Information Technology. The validation of IT would be
ensured with the utilisation of Quantum. The process involved in verification and validation
would b done in less time and cost effectively. The risk of outages would be reduced with the
reduction in defects quantity. As per the Director of Innovation at NatWest, Quantum technology
would make the operations of calculating and problem solving simpler (rbs.com, 2018). The cost
of managing this would be decreased and performance would be enhanced. He has predicted that
incorporation of this technology would provide the consumers with more benefit and enhanced
service facility.
The company has launched biometric card that includes fingerprint of the users for secured
transactions (Vilar, 2019). This is an alternative to passwords that is beneficial for maintain
image of the enterprise. It is going to launch voice-banking service by using AI technology. The
consumers can access through this system, their bank account, details of pending transactions,
and other services (Fearn, 2019).
Find ethical and social issues that pertain to running business
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Some social issues related to the information technology include access to the details of
organisation’ information would lead to financial loss. This would make it difficult to run the
business sustainably and effectively. Cyber crime is one of the social issues related to the use of
information technology that would harm the business of NatWest. Criminals in order to gain
personal interest can create inauthentic websites to generate details and credits from customers
(Gillespie, 2019). This can harm the reputation of NatWest as well as would result in loss of
business opportunity to be successful. Security vulnerability in a computer system would leads
to unauthorised access that would further result in exploitation of information.
The attacker or hacker can harm the system and gain profit by using the details of the firm. This
would be highly unethical, as the loss of financial resources from the bank accounts of
customers would disrupt their trust towards the organisation. The latter would be affected
negatively as it would be vulnerable in its operations, processes, and information. Therefore, it
can be assumed that information technology has its own advantages as well as disadvantages. It
can lead to success or failure of business. Therefore, NatWest would need to install security
system to safeguard its information and access to its financial and other details.
Identify and differentiate different types of networking technologies
Basis of difference Local Area
Network
Wide Area
Network
Metropolitan
Area Network
Personal Area
Network
Area of span It connects the
network devices
that have short
distances
between them.
This spans
larger distance
physically.
This network
has spanned into
a larger are
physically in
comparison to
LAN’s but
narrower than
WAN.
This is the
smallest
network that is
made of a
wireless
modem.
Owned and
managed
It is owned and
controlled as
well as managed
Router makes
the connection
between them
It is owned and
functioned by
single entity.
This network is
managed by
single person
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