The Role of Information Technology on the Banking Industry

The article presents a study which aims to analyze the role of information technology (IT) in the banking industry. Technological innovations have enabled the industry to open up efficient delivery channels. IT has helped the banking industry to deal with the challenges the new economy poses. Technology is also changing the supervisory and regulatory landscape. It is creating new tools for supervisors and new supervisory challenges. Technology-driven issues such as privacy and the nature of electronic communications have reached the forefront of the policy agenda. And the line between electronic banking and electronic commerce is becoming more difficult to define clearly. More than most other industries, financial institutions rely on gathering, processing, analyzing, and providing information in order to meet the needs of customers. Given the importance of information in banking, it is not surprising that banks were among the earliest adopters of automated information processing technology.