I.T. and communication : critical factors in the evolution of banking

Abstract

The reasoning of this dissertation, is based on the idea that banking is an information intensive industry and that its many routine activities can be more efficiently conducted with the use of information technology. The main objective is to collect information that leads to a better understanding of the trends relating to information and communication technologies as regards the banking sector, especially the Maltese Banking Sector. It is supposed to help the banking industry understand where, how and why they should spend a large and rapidly growing portion of the industry's total spending on these technologies. The pace of change in the banking and financial services industry promises to accelerate. As competition increases, banks need to compete effectively, to reduce costs and quickly meet customers' demands. Bank's success rely on customer service. In this increasingly competitive world of banking, financial institutions are having to think more intensively than ever about their relationships with their customers - and this is where Information and Communication technologies can help. Information and Communication systems can be seen as collaborative tools in organization and inter organizational systems. These systems in Banking are very useful, as each member in any financial institution must communicate with other members, and information must be collectively stored and shared so that each member can contribute and withdraw information. With the help of technology members of the financial institution share skills, resources and access to one another's market in pursuit of mutually beneficial objectives. In doing so, they are able to access and use the same information simultaneously and can communicate with ease across organizational and geographical boundaries. Banks are trying to find new solutions and are relying more on new information and communications' technologies such as the Internet, Extranets, etc. We will see how banks are turning their systems into strategic assets which can deliver solutions that return the money you invest in them. The core of any bank's IT operations is the portfolio of software applications on which its business is done. These applications cover a wide range of functions - decision support, basic data management, etc. We will look at how these software applications are at the heart of the bank's ongoing operations, the environment for services designed to directly support the development and maintenance of these applications which is of particular interest in understanding the overall IT-related services environment. We will see how banking applications are becoming increasingly specialized , interdependent and complex, making banking specific application knowledge and experience in large scale I.T. and Communication: Critical Factors in the Evolution of Banking development and integration projects in banks more important than narrow specialization in specific technologies.