Litreature Review on Banking Essay

It was emphasized that the use of computers changes the processing, remembering, retrieval and communication of financial information and may reckon the accounting and internal control establishments employed by a bank. The potential for human errors in the emergence, sustentation and execution of computer info Systems may be greater than in manual systems, due to level of details inherent in these activities. Through audit reviews, a thorough look and understanding of IS in bank can be seen.The audit of IS would provide us general understanding of IS in bank, managing credential of users, access control, selective information security, data integrity, audit 14 2. Literature hear and Analysis logs, testing, accounting entries, data migration, network and RDBMS security, business continuity and disaster recovery plans, hacking, identification of consummation for substantative checking, use of reports generated by system and documentation. The paper titled Application of IT in Banking by K. S.Rajashekara (2004), talked about impact analysis of IT on banking. The line of doing proper impact analysis is due to difficulty of measuring output accurately when the quality of dish up is changing as a result of such factors as convenience, speed, and lower risk. Through IT, banks anticipate diminution in operating greets through such efficiencies as the streamlining back office processing and riddance of error-prone manual input of data. Owing to IT, bank can offer new products and services.Banks are capable to develop and implement sophisticated risk, information management system and techniques with more powerful data storage and analysis technologies. IT has positively affected the stakeholders of bank like management, employees, and customers. Vasant Godse (2005) in paper titled Technology An impact Analysis talked about role of discipline Technology in banking. Banks faced the enormous task of re-orienting their applied science infrastructure towards such interactive decision support and information gathering tools, much different from transaction processing and final accounting.The impact of technology could be on relationship with information technology providers, organisational aspects, banker-customer relationship, control and supervisory aspects, new concepts and processes, which help in further gaining competitive advantage. 15 2. Literature correction and Analysis A paper titled Information Orientation People, Technology and the bottom line by Donald A. Marchand, William J. Kettinger, John D. Rollins (2000), stressed upon the effective usage of information for business carrying into action.It was stressed that IT improved business exertion only if combined 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 Innova tion 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 incorporated a people-centric, rather than merely techno-centric, view of information use and that are faithful at all three information capabilities would improve their business performance. A paper titled arrangement 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 integratio n of various IT 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 preparedness activities) and Strategic integration (i. e. effective decision-making at all levels, increased productivity and meliorate 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 existential 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 unsuccessful patterns of integration, that is, certain combinations of technological, functional, and strategic integration might lead to better or worse performance. Strategic and Technological integratio n were found to be most important elements of success, which indicated the wideness 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 relevant to sell financial services companies, allowing much of the management of the customer relationship to be automated with the objective of maximise the profitability of individual customer relationships while minimizing the cost of managing those relationships.The study was supported by a depicted object study of CRM systems in a major Japanese BankBank of Mitsubishi and also a surface area survey of scenario in Indian banking sector. The various issues examined included organizational information, the CRM strategy, strategic changes resulting from CRM 17 2. Literature Study and Analysis implementation, implementation 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 experient during implementing CRM was resistance to change. To get 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 free radical that it would be a key determinant of success or failure in the industry, a key determinant of whether banks as a recognizable grouping continue to exist, and a key determinant of the differentiation between competitors in financial services.