INFORMATION SYSTEMS IN BANKING INDUSTRY
Information systems are extremely vital for the growth and survival of business organizations in today's world. All sectors of the industry are entirely dependent on these for the management of important information and data. Small organizations to large, powerful businesses such as high street banks and central and local government are taking the help of information systems to regulate their data. In this paper, we will discuss the various advantages of the use of information systems in the banking industry. We will thoroughly analyze the requirements of information systems at the various different levels and review the security needs for these purposes.
Use and Benefits of Information Systems in the Banking Industry:
The advent of computers has given rise to information systems being used as a business tool on a large scale. Computers and more specifically information systems are being used on a large scale by almost all businesses. The application of the capabilities of Information systems and technologies brings out improvement in business processes (Davenport and Short, 1990). One of the major sectors to reap the benefits of computers and information systems is the banks. The nature of the banking industry along with other financial industries involves information and trust. Being in the service industry, banks are in the most need of information. Technologies like cloud computing and other internet based information storage systems have allowed banks to deliver state of the art customer services to its customers while maintain the market competitiveness required for gaining business. The following paper analyzes the information needs of the banks at various departmental levels and compares the security levels used by banks with those in other sectors. At the end of the paper, one should be able to understand the most commonly used technologies in banks, the security measures currently used in banks and whether or not there is scope for further improvement.
Information Needs in Banks:
The need of information was first realized in the banking industry. Being in the service sector, banks needed to store information to better their services and gain a competitive edge over their competitors. Basic services include the book keeping records of the customers while the luxurious ones include the facility of an IVR (Interactive Voice Recording) through which customers can get answers to their F.A.Q's. However, developing an information system needs huge investments, responsibility of non-leakage of information (robustness of the system), and various other security measures. Banks therefore need information at every stage possible. The benefits of information are many. Today, decision making systems are also used by banks for purposes of marketing newer loan schemes. Typically, banks might need information at the following levels.
Basic or Level 1:
This is the most basic level. Information at this level might be used purely for administrative purposes. Tasks include book keeping, account handling of customers etc. The revolution of internet banking has made the basic level much more attractive to customers than it used to be. Moreover the concept of phone banking through IVRs has further proved to be a major technological step towards the progress of banks and IT systems.
Advanced or Level 2:
At this level, information is crucial and is used at the managerial level. Managers use certain information like stock listings, annual general meetings etc in databases that is to be kept secure. This information is supposed to be secret and cannot be distributed without consent and proper authoritative power. Information at this level is hardly for customer use. However, in cases of fraud and cheating, banks can use this as a safety measure to ensure their reputation does not lose.
Evaluation of Information Systems:
Majority of the banks in the…