Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Advantages of ICT in banking operation
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Advantages of ICT in banking operation
In the current reality, most banking activities are propagated by the advancing technology in information technology (BankNetIndia 2011). Moreover, since the discovery of Automatic Teller Machines (ATM) most of the back-office work has been automated and most of the transactions in the banking industry are being carried out automatically. Success in banking in the world today depends on a bank’s ability to specialize in advancing in information technology. Though many banks assume that IT is more of a technological necessity, IT is also a very resourceful aspect in a bank and can help it in earning a competitive edge over its competitors. This paper is intended to come up with a competitive strategy based on IT and its implementation process. A bank’s success is determined by appropriate use of its resources both tangible and intangible to earn a better competitive strategy in the market that will drive it to the right direction. Resources could be a good reputation, human skills and financial endowments.
Financial institutions deliver a variety of financial services like investment services, offering loans and banking to a large number of consumers both individuals and small business enterprises. Banks also gives full financial products and services to satisfy the needs of both big and small corporations, institutional investors, individual investors and also governments (WebFinance 2011). A bank can have several branches that comprise local offices in the areas they are found and are complimented by automatic teller machines, internet banking services, electronic delivery systems and cell phone/mobile banking platforms. Specific products and banking services offered by banks include accounts, loans for individuals and business ...
... middle of paper ...
...t
Retrieved from: http://ddc.aub.edu.lb/projects/business/it-banking.html
Investopedia ULC, 2011. Research and Development. Retrieved from:
http://www.investopedia.com/terms/r/randd.asp
Jackson R. 2011. The practice of strategic Management, Manchester Business School of MBA,
MBS worldwide, pp 16. Retrieved from: document attached
Michael E Porter Publications, 2011. Competition and firm strategy, Institute for Strategy and
Competitiveness. Retrieved from: http://www.isc.hbs.edu/firm-competitve.htm
The Gemini Geek, 2011. What is business Environment. Retrieved from:
http://www.thegeminigeek.com/what-is-business-environment/
WebFinance, 2011. Financial institutions. Retrieved from:
http://www.investorwords.com/1950/financial_institution.html
WorldWidePanaroma, 2005. Bargaining Power of Buyer. Retrieved from:
http://www.photopla.net/wwp0503/buyer.php
Retail banking is the cluster of products and services that banks usually provide to consumers and small businesses through branches, the Internet, and various channels. “Bank of America serves more than 38 million consumer and small business relationships in the nation’s fastest-growing and most diverse communities. Sales, service, and fulfillment are provided through more than 5,800 banking centers and nearly 17,000 ATMs in 29 states and the District of Columbia. We also offer our customers the leading online banking service in the United States, with more active online bill payers than all competing banks combined, as well as a 24-hour telephone banking service that earns high ratings for speedy and easy self-service”. Bank of America is
As stated by JP Morgan Chase, “We see a huge opportunity in this fragmented marker- there is no dominant bank for the 28 million small businesses in the United States.” Their aim is to become the easiest bank to do business with. Now serving 3. Million American small businesses, JP Morgan Chase has successfully grown all of these businesses, adding more value to the market as well. Another direction in which they are planning on changing their plan is to do a better job of covering family and private offices in both the Private Bank and Investment Bank. Their approach is simple yet effective, they have notice a growth in family offices, and due to them becoming so large they feel a need tackle the needs that they have more efficiently. These offices have become more sophisticated and global, while actively buying whole stakes businesses or minority businesses. JP Morgan already works with these families but feels they can do a better job of providing a higher grade of services and products offered by their Private Bank and Investment Bank. These examples of JP Morgan Chase & Co.’s strategic plans are only the tip of the iceberg. With a total of 8 plans set into action, they hope to grow beyond any boundary and continue to overcome any obstacle set in front of
The banking industry is under pressure in today’s business climate. Banks have been through big changes. There is opportunity, but there is also increasing competition. To be the preferred bank means changing “good enough” into a unique value proposition. And that means changing the way people have always done things, change on this level requires cutting edge technology. Change cannot be achieved with a simple directive or surface adjustment especially within the banking industry. It requires an innovative rethink of the entire system, in a strong partnership between bank leaders and their change agents. New systems and policies must support the strategy to be successful. The real test of a good strategy implementation plan is whether the people understand the strategy, are motivated and enabled to implement it, and actually start achieving its goals.
Banks that are equipped with a good grasp of the e-banking phenomenon will be more able to make informed decisions on how to transform them into e-banks and to exploit the e-banking to survive in the new economy. Given the e-banking is a financial innovation (Liao and Cheung, 2003) [9], the change may render the organizational capabilities of the traditional banks obsolete. From the resource-based view (Mahoney and Pandian, 1992) [10], in such a context, the banks must constantly reconfigure, renew, or gain organizational capabilities and resources to meet the demands of the dynamic environment. Developing core capabilities can help the banks redeploy their resources and renew their competencies to sustain competitive
This paper will encourage readers to learn more about Bank of America, the second largest in the world and is the fastest growing business in America, the investments that the bank has to offer is up to standards. Its revenue is one of the highest in the country, the headquarters is in Charlotte, NC, with dates of starting as back as far as the 1900’s. Also, people may not realize that Merrill Lynch is part of Bank of America, the bank is also with the NYSE. The company has expanded and grown over these years, and are still improving their services to continue with the work that is offered for individuals, corporations, international operations as well as the investment managements.
Banking is defined as a bank and can provide loans, deposits, and other financial services for financial institutions. Financial services industry is defined as all kinds of financial inter mediation activities in respect of financial services offered by service providers posed. In the last two decades, the economies of developed nations have seen a big shift away from being manufacturing-oriented to being more service-dominated (Ostrom et al., 2010). As one of Asia's leading financial services center, Singapore has attracted many major international financial institutions stationed. Singapore's financial institutions through the effective use of its pro-business infrastructure and highly cost-effective business environment to provide better services to individuals and groups from around the world. Supported by its sound macroeconomic fundamentals and prudent policies, today, Singapore ranks among the
The customersˈ satisfaction will be improved by increasing the Bank's ability to serve the specialized needs of each customer, examining separately the product/service offered to each client; when it is offered and how. Nowadays, the needs of these customers can be achieved successfully only with the help of CRM Technology because of the enormous volume of information that is required to be managed. In the field of management information are addressed the needs, communications, links, adjustments, behaviors and relationships that have developed the customers between them, with the Bank, with the products/services, with the officials and with the technology available to the Bank.
Metwally, E. (2013). Using the case research approach in understanding the effect of managing change through technology to achieving strategic competitiveness in private banks: gains and perils. Journal of International Finance & Economics, 13(2), 5-20.
Investment bank can be referred to as an organization or institution founded and united for the purposes that specifically involves fiscal matters. They also act as an assistant in a subordinate or supportive function for large company or group of businesses, recognized in law and acting as single entity, and the organization that is the governing authority of a political unit in increasing in quantity or value of their assets through the guarantee of financial support and serving as brokers in the issuing of bonds. In line with this an investment bank can be categorized as financial institutions which carry out the role of the investment banking, thus having or performing the activities of other finance related operation, as well as asset management, equity research and many others. Additionally, the set of financial institution may be just one of the portions of a more extensive financial institution like a commercial bank.
It is commonly agreed that Universal Banking is an expansion of the power of banks (Macey, 1993). Institutions which offer clients an entire range of financial services of commercial banks as well as investment banks are known as universal banks (Benston, 1994). They are a superstore for financial products under one roof where firms can not only lend and deposit but can also advantage from different services such as insurance, factoring, mutual funds and housing finance (Singal, 2012). One of the defining feature of universal banking is its ability to hold equity in firms (Rajan, 1995). Switzerland, Germany and various other Continental European countries, compared to the Anglo-Saxon counties, have had universal banks playing a major role
Commercial banks are the most important savings, mobilization and financial resource allocation institutions. Consequently, these roles make them an important phenomenon in economic growth and development. In performing this role, it must be realized that banks have the potential, scope and prospects for mobilizing financial resources and allocating them to productive investments (Olokoyo , 2011). The importance of efficient financial system is mostly felt in developing countries since their financial markets are underdeveloped and not strong thus banks plays a crucial role of integrating the whole economic sector of a country by serving as a vital source of finance for the enterprises (Ntow–Gyamfi
Commercial banking is a monetary institution that offers various services. These services include auto loans, basic investments, certificates of deposit, business loans and savings accounts. Functions of commercial banking varies but are divided into two categories being primary and secondary. Primary functions include accepting deposits, granting loans and granting advances. Secondary functions include overdraft facility, discounting bills of exchange, and agency functions. The commercial bank plays a very crucial role in the economy being the money dealer. They transport payments by telegraph or internet, issue bank drafts, lend money, provide letters of credit, stores important paper work, advice on sale and distribution, private equity
up with the changes - they happen so fast. A good way to think about
Today, global retail banking sector is grappling with a myriad of challenges. The business environment has never been as difficult before, as it is now. In past years, especially post the global crisis in 2008, the industry has been characterized by rising costs to retain existing customers and add new ones, depressed profits, muted economic activity and low consumer confidence in investments. Citibank, the third largest bank in the US, closed its retail business in 11 markets across the world that were not profitable, to lower its operating expenses. It’s worth noting some of the vital factors that have put retail banking on cross-roads.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified