Impact of information technology on banking industry

This paper addresses the general impact of Information Technology (IT) on the Banking industry. Advancement in technology is a means to enjoy economies of scale in production, development of new product and services, creation of knowledge, as well as to instill product quality and services efficiency. India's banking sector has made rapid strides in reforming and aligning itself to the new competitive business environment. As a result, the growth of investment in information technology (IT) has cause the acceptance of user decision-making process via IT and its usage, an increasingly critical technology implementation and management issue. The aim of this paper is to examine the applications of IT in the banking Industry. It brought to light the fact that IT has increased competition within the industry; Latest trends of IT in banking; IT application and system problems; Security of information systems is found to be very vulnerable; IT Fraud is also a major problem of the banking industry. The data for the study was collected from Published Literature, existing research, Interviewed bank IT, Reviewed current IT trends, Library Resources, annual Reports, Case studies and Other Archive Reports. The banking today has re-defined with the use of Information Technology and it is sure that the future of banking will offer services that are more sophisticated to the customers with the continuous product and process innovations. Thus, there is a paradigm shift “conventional banking to convenience banking” and “mass banking to class banking”.