Since the growth of information technology there has been a change in the banking industry from branch banks and paper to net working and digitized banking services. The ways of communicating information and knowledge through computers has truly changed the way we think, work and live.
A good example is through Information Systems, which can be defined as any method of communication knowledge from one person to another and/or from one source to another. It works by providing the best possible information to its users while also taking into account that different users with their own specific tasks may need their information presented in different ways. Improving the ways ...view middle of the document...
Advances with this technology have enormously impacted employees, officers and customers. For instance, competitive advantage increases, with the use of information systems because direct marketing and 24 hour customer service is made possible. Allowing the delivery for banking products and services to be easily accessed and retrieved faster than ever before.
Here are a few more examples that create competitive advantage:
Operating expenses reduced
With the use of interconnected computerized branches and control offices, prompt and up to date information transfers can be achieved making the creation of reports and monthly returns made easier and faster for banks. Reducing over-time reimbursements for staff and the need to hire additional staff for support.
Also administrative tasks such as following up, storing, managing, including business development can also be possible with information systems. Again reducing the number of new hires, yet also speeding up the banks accuracy and efficiency saving a lot of money in the long run.
Less tedious work and more customer service
Information systems prevent the existence of duplication of data due to its single-point data entry, avoiding tedious jobs such as, double-checking interest and balancing calculations. Also tasks such as generating staff schedules and writing deposit receipts can be done with information systems. This therefore enables employees to spend more time and attention on customer needs and wants, as well as focusing on marketing strategies to improve business potential.
Management decisions made faster, increasing customer base
When properly designed, information systems can provide information specifically to the needs of the consumers, which increases the speed of decision-making. It works by providing specific information from automated/computerized and certain manual systems, to all levels of corporate professionals, managers and high-level executives with its streamlined system. And based on the data and information generated, board members and top management can make faster decisions such as strategic planning, future growth plans, or possible business expansion.
Information Technology can be used to collect and analyze information about markets, products, environmental changes, including information about competitors. Increasing the competitive business intelligence. This is because for example, when a company gets hold of information that its competitors do not have, or if it can make the appropriate interpretation of information before their competitiors, then they can be the ones to act first, increasing competitive advantage.
Moreover, retrieving information about one’s competition is also made even easier and can really make a difference between which company is going to win or lose the battle in business. Because it is through constant monitoring of their competitions activities that companies can truly...