Information Technology in BAnks

2.0 EXTERNAL ENVIRONMENT

Information technology will emerge as a critical competitive weapon over the next five years as banks rely increasingly on new business models rather than new product lines to succeed, according to a global survey of business leaders.

Speed of execution on strategy and innovation was identified as the key management challenge facing Banks over the next five years, and more than four-fifths of respondents said that technology will be critical to the Bank’s ability to adapt its business models and implement strategy. Nearly three-fifths said IT is becoming more of a competitive tool, rather than simply a driver of cost efficiency.

To succeed in 2010, Banks will need to adapt faster to changing customer demands. As Banks increasingly focus on their core business, they will be ever more dependent on an integrated network of partners and suppliers to meet customers’ requirements of flexibility and convenience.

IT will play a strategic role in helping Banks efficiently and cost-effectively build and swiftly adapt to customer demand. We are entering the next wave of computing where IT is aligned with business and used as a driver of competitive advantage rather than simply a tool to drive down costs.

The survey also indicates that companies will increasingly turn to IT as a competitive tool for better predicting customer behavior. Respondents cited changes in customer needs and behavior as the single most significant challenge to product and service innovation that companies will face over the next five years. Nearly 40 percent said they expect to invest in improved customer relationship management capabilities to help meet that challenge.

Many of the competitive benefits of IT flow from its ability to capture, communicate and analyze information, the survey indicates. Respondents said that between 2005 and 2010, they hoped to see the most improvement in access to the right information at the right time.

Asked to evaluate emerging technologies, the majority of respondents said that new data management, analytical tools and the ability to access them any time anywhere via wireless technology will have the greatest impact on their companies’ ability to innovate over the next five years.

Many people have been disappointed in the Bank’ wireless network, they expected fast developments when the technology was laun...

... middle of paper ...

...onference room or a colleague's office. For disaster recovery, wireless communications allow the bank technical staff to access data applications using laptop computers. And by using the Wireless IP Phone, the technical staff can take their phone extensions to the disaster recovery center for continuous availability to voice callers.

Management tools are available for managing the bank's wireless access points, these reduce the time and costs involved in maintaining the access points to ensure consistent configurations and software levels. These savings will become even more important as the wireless environment grows to include the bank branches, both for routine operation and enabling rollout of wireless access more quickly. The regular monitoring and reports access point configurations allow the bank to comply with regulatory requirements and receive a favorable audit response.

Wireless network solutions provide national banks with an alternative for systems development that requires effective board and management oversight. Effective wireless network management includes maintaining adequate security, ensuring appropriate project management, and achieving performance goals.