Technology in today’s modern environment plays a major role in all aspects of society, with widespread use in a majority of industry and business sectors. In today’s global economy many industries have to invest heavily in Information technology in order to keep its competitive advantage and to ensure they will be able to compete with competitors who now operate within a global economy.
It can be said that there is an established trend within the financial services sector of increasingly heavy dependence on technology for delivering services and that this will continue in the future.The reliance on technology comes from the enablement, as a result of its use, to provide services and process tasks which would not otherwise be provided. The financial service industry could not provide the level of service it does without the support of advanced information processing and telecommunication technologies. The numbers of checks (over 37 billion annually), credit card drafts (over 3. 5 billion annually), and securities trades (over 30 billion shares traded annually) would swamp any manual system that tried to handle them.
Technology is influencing competition and the degree of contestability in banking and financial services.How information technology is supporting banking sector: Computers are coming with their more sophisticated version. These computers have given a potential to the banks and they could only dream about and have given bank customers high expectations. Changes those technologies bringing are enormous in their impact. Computers are coming with their more sophisticated version. These computers have given a potential to the banks and they could only dream about and have given bank customers high expectations.
Changes those technologies bringing are enormous in their impact.In 21th century we can see embracement of convergence of the following skills such as Computing Communications Information Knowledge And all the above thing change the way we live, work and think. You can see it in your life. As the speed of the network increased, it coupled with the falling cost of the computing control, is making possible applications undreamed in the past. Nowadays transfer of video, images; data’s can take place in micro seconds.
Due to this explosion of information technology is changing the banking services. Due to this internal account and management system has been changes.Delivery system of banking sector: Due to this information technology delivery system of banking sector has been fundamentally changed. This system they are using to interact with their clients.
And all over the world banking sector is still struggling to find the technical solution to meet the challenges of rapidly changing environment. Now it is clear that this new technology is changing this banking sector. If the bank has ability to invest and integrate information technology will become dominate in the highly competitive global market.Technology and bank transformation:Computers are coming with their more sophisticated version. These computers have given a potential to the banks and they could only dream about and have given bank customers high expectations. Changes those technologies are bringing are enormous in their impact on of banks.
Officers Employees Customers Advances in technology are allowing for delivery of banking products and services more conveniently and effectively than ever before - thus creating new bases of opposition. Rapid access to critical information and the ability to act quickly and effectively will distinguish the successful banks of the prospect.The bank gains a vital competitive advantage by having a direct marketing and accountable customer service environment and new, streamlined business methods. Consistent management and decision support systems provide the bank that competitive edge to forge ahead in the banking marketplace. Some major applications: The advantage occurring from computerization are three directional for the customers and bank employee.For the customers: Bank’s always want to increase the facilities for their customers.
They always care about their facility and convenience. This thing has increased competition and forced them to integrate the new technology in order to satisfy their customers and they have already developed certain number of solutions among them. Following facilities are provided for customers Self-inquiry facility Remote banking Any time banking Tele banking Electronic banking For the bank: In last two decades bank provided IT to a wide range of back and front office tasks in addition to a great number of new crops. The major advantages for the bank to implement IT are following You can do wide range of inquiry facilities.Facility to reply to customers queries without reference to ledger keeper. Prompting carrying out of standing instructions on due date and generation of report.
Supervision in the Twenty-First Century: And so what is the purpose of supervision in the twenty-first century? What are the objectives, and how can those objectives be best pursued? Let me say first of all that there is no easy or single answer to these questions. The twenty-first century financial marketplace is too dynamic, too complex, and supervisors must work within the political realities of our respective nations.What I envision is a flexible, multi-faceted strategy that emphasizes prudence and problem With these priorities in mind, I believe there are three essential elements of a modern supervision framework, Effective bank-level management, Market discipline, & Official supervision. Let me discuss each of these in turn, noting that each should reinforce the others to effectively promote a safe and sound financial system.
Effective Bank-Level Management: Primary responsibility for the safe and sound operation of a banking institution lies with its board of directors and senior management.Boards of directors should oversee the development of the overall strategy of the organization and the decisions made by senior management in pursuit of those strategic objectives. In effectively executing these responsibilities, boards make a critical contribution to the long-term success of the institution. This is a fundamental principal of banking that has not changed with technological advancement.
Indeed, if anything, the greater complexity and sophistication of the modern financial services firm require more energy, effort and expertise from directors than ever before.I see two areas of board operation as being particularly crucial. First, banks and other financial institutions must ensure that specific skills and competencies, consistent with the institution’s strategic focus, are represented on their boards. Institutions that engage in complex credit or market activities, utilize sophisticated financial products, or expand their Internet or e-commerce capabilities, should include one or more board directors with pertinent expertise in such areas.Second, boards should establish clear guidelines regarding the independence of their directors.
Generally, it is desirable for at least some directors, and perhaps a majority, to be independent and from outside the ranks of the management of the institution. Further, the board should set parameters regarding at what point, or under what circumstances, a director’s outside business interest becomes as significant as to raise questions of a possible conflict.Serious measures to ensure relevant competencies and independence will greatly enhance boards’ effectiveness and go a long way toward ensuring they perform their increasingly critical role in overseeing the decisions of senior management. The role of senior management, in turn, is to set the business strategy, oversee day-to-day decisions made within the organization, and ensure their consistency with long-term objectives and policies as determined by the board.
