Litreature Review on Banking Essay

It was emphatic that the use of computers changes the processing, storage, retrieval and colloquy of financial selective information and may affect the accounting and internal reckon systems employed by a posit. The potential for human errors in the development, forethought and execution of computer nurture Systems may be greater than in manual systems, due to level of details inherent in these activities. done audit reviews, a thorough look and accord of IS in bank can be seen.The audit of IS would provide us general understanding of IS in bank, managing authentication of users, access control, data security, data integrity, audit 14 2. Literature poll and synopsis logs, testing, accounting entries, data migration, network and RDBMS security, blood line continuity and disaster recovery plans, hacking, identification of execution for substantative checking, use of reports generated by system and documentation. The paper entitle Application of IT in patoising by K. S.Ra jashekara (2004), talked closely concussion synopsis of IT on banking. The problem of doing proper impact analysis is due to difficulty of measuring output accurately when the quality of assist is changing as a result of such factors as convenience, speed, and inflict risk. Through IT, banks anticipate reduction in operating costs by means of such efficiencies as the streamlining back office processing and elimination of error-prone manual input of data. Owing to IT, bank can offer youthful products and services. beachs are able to develop and implement sophisticated risk, information caution system and techniques with more powerful data storage and analysis technologies. IT has positively affected the stakeholders of bank like management, employees, and clients. Vasant Godse (2005) in paper titled engine room An tint compendium talked about role of Information Technology in banking. Banks faced the enormous task of re-orienting their technology infrastructure towards s uch interactional decision support and information gathering tools, much different from transaction processing and final accounting.The impact of technology could be on blood with information technology providers, organizational aspects, banker-customer relationship, control and supervisory aspects, new concepts and processes, which process in further gaining competitive advantage. 15 2. Literature Study and Analysis A paper titled Information Orientation People, Technology and the croupe line by Donald A. Marchand, William J. Kettinger, John D. Rollins (2000), stressed upon the effective usage of information for business performance.It was stressed that IT improved business performance only if combine with competent information management and the right behaviors and values. The research was applied on banks. Banks were evaluated on three broad scales i. e. IT Practices (including IT practices for Operational support, IT for Business-process support, IT for Innovation support, IT for Managerial support) Information Management Practices (Sensing information, Collecting information, Organizing information, Processing information, Maintaining information) Information behaviours and values (Information Integrity, formality, control, sharing, transparency, proactiveness).Companies that in corporald a people-centric, rather than merely techno-centric, view of information use and that are just at all three information capabilities would improve their business performance. A paper titled Understanding the impact of IT-based coordination on the performance of Information-intensive firms A Gestalt approach in Banking Industry by Yannis A. Pollalis (2003), moved towards the development of such an explanatory and predictive model of IT-based performance by distinguishing coordination) three that types impact of the organizational performance systems of integration (or nformation-intensive organizations Technological Integration (i. e. the integration of different I T components such as data, applications telecommunications, and systems) Functional integration ( i. e. , the coordination of responsibilities and roles 16 2. Literature Study and Analysis across a firms value-chain activities between corporate and IT planning activities) and Strategic integration (i. e. effective decision-making at all levels, increase productivity and better return on investment).The organizations with coordinated elements (i. e. strategy, structure, and technology) will be more successful than uncoordinated ones. Banks were chosen as the context for the verifiable phase of the study because of their high information intensity and their focus on customer service and cost management. The research indicated the existence of successful and foiled patterns of integration, that is, certain combinations of technological, functional, and strategic integration might lead to better or worse performance. Strategic and Technological integration were found to be virtually important elements of success, which indicated the importance of consistency between echnological and strategic infrastructure. The paper titled Learnings from Customer Relationship Management (CRM) Implementation in a Bank by M. P. Gupta and Sonal Shukla (2004) attempted to highlight the learnings from CRM implementation in the banking sector. CRM systems were particularly applicable to retail financial services companies, allowing much of the management of the customer relationship to be automated with the objective of maximizing the profitability of individual customer relationships while minimizing the cost of managing those relationships.The study was supported by a human face study of CRM systems in a major Japanese BankBank of Mitsubishi and also a field survey of scenario in Indian banking sector. The motley issues examined included organizational information, the CRM strategy, strategic changes resulting from CRM 17 2. Literature Study and Analysis implementation, implem entation priorities for the banks and the factors indicating the performance after CRM implementation. The study revealed that CRM was gradually picking up and was definitely considered as a viable proposition by banks in improving services to their customers.One of the major challenges experienced during implementing CRM was resistance to change. To sign up CRM to work, high commitment was required in those who were implementing it. The paper titled Impact of Information Technology on the Indian Banking Sector by Harmeen K. Soch and H. S. Sandhu (2003) emphasized that impact of IT on banking was so radical that it would be a secernate determinant of success or failure in the industry, a signalize determinant of whether banks as a recognizable grouping continue to exist, and a key determinant of the differentiation between competitors in financial services.