Information systems in the banking sector

25 Feb

One sector that has grown & improved dramatically with IS is the banking sector.  The advantages of information systems are not confined to the banks but let’s see how exactly it has helped banks to improve and become more efficient.

Before information systems, banking was a very timely process; everything had to be done manually.

Information Systems have improved banking in several ways:

  • More work can be done in lesser time- This benefits both the banks themselves and the bank users, queues are shorter & less staff need to be employed
  • Quicker decision making- Important decisions can be made a lot quicker- for example when applying for credit, banks can quickly assess the person through the IS system by simply using their name & details.
  • Process the transactions quickly- Transactions can be done a lot faster not only in the bank but also by use of debit card by bank users elsewhere or at ATMs.
  • Manage online transactions- People can now do their banking without going near the bank by simply using online banking. This again saves on labour for the banks. You can make payments, transfers or check your bank statement online. Online banking is a result of implementation of Information systems in the banks.
  • Providing better customer care along with other customer support services- Banks have more information at hand on a person & so can be more helpful. For example if you wanted to cancel your bank card, information systems allow the bank to look up one detail about you and find the account you wish to cancel within minutes.

 

Together this results in improved efficiency and productivity for banks.

Recently we have also seen how important every element of the system is for banks, with the Ulster Bank computer break down (June ’12) causing major problems & proving to take a long time to get fixed- some people not getting their wages until weeks after they were due!

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