Banking industry information systems

Vahida Noorjahan^*
*Correspondence: Vahida Noorjahan, Department of Economics, Aligarh Muslim University, Uttar Pradesh, India, Email:

Received: 17-Aug-2022, Manuscript No. IJBEF-22-74480; Editor assigned: 19-Aug-2022, Pre QC No. IJBEF-22-74480 (PQ); Reviewed: 02-Sep-2022, QC No. IJBEF-22-74480; Revised: 16-Sep-2022, Manuscript No. IJBEF-22-74480 (R); Published: 23-Sep-2022

Description

In today’s environment, information systems are critical to the growth and survival of corporate enterprises. For the administration of critical information and data, all industries rely fully on them. Small to big, strong organisations, such as high street banks and national and local government, rely on information systems to manage their data. In this article, we will look at the numerous benefits of using information technology in the banking business. We will extensively assess the requirements of information systems at all levels, as well as the security requirements for these reasons.

Application and advantages 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. 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 computing and other internet-based information storage technologies have enabled banks to provide cutting-edge customer care while maintaining the market competitiveness necessary to win new business. The following study examines the information demands of banks at various departmental levels and compares bank security standards to those of other industries. At the end of this paper, you should be able to grasp the most often used technology in banks, the security measures already in use in banks, and if there is room for further development.

Banks’ information requirements

The banking industry was the first to recognise the importance of information. Banks, as service providers, required to keep information in order to improve their services and acquire a competitive advantage over their competitors. Clients’ books are kept in basic services, whereas deluxe services include an IVR (Interactive Voice Recording) system via which customers may receive answers to their frequently asked questions. However, establishing an information system necessitates large investments, accountability for non-leakage of information (system robustness), and a variety of additional security measures. As a result, banks want information at all stages. There are several advantages to having access to information. Banks are now using decisionmaking algorithms to sell newer lending plans. Typically, banks may want information in the following grades.

Basic or grade 1: This is the most fundamental level. At this level, information may be used solely for administrative purposes. Bookkeeping, client account management, and other duties may be assigned. The online banking revolution has made the basic level considerably more appealing to clients than it was previously. Furthermore, the notion of phone banking via IVRs has proven to be a significant technical step forward for banks and IT systems.

Advanced or grade 2: Information is critical at this level and is used at the management level. Managers store sensitive information such as stock listings and annual general meetings in databases. This information is expected to be kept private and cannot be shared without the agreement of the appropriate authorities. This degree of information is unlikely to be useful to customers. However, in situations of fraud and dishonesty, banks might employ this as a precautionary step to protect their image.

Information system evaluation

The majority of banks in Western nations, and more recently in Asian countries, have used the introduction of information technologies to boost their operations. Banks utilise a variety of decision-making tools, account management systems, and internet-based platforms to entice consumers. Because they operate in the service industry, banks must recognise that they cannot afford to have their customer service suffer as a result of technology improvements. To analyse the information systems used by banks, one must first understand the overall nature of the information systems now in use by banks.