INFORMATION TECHNOLOGY AND BANKS

Information Technology and Banks

Information Technology and Banks

How do banks use information technology? Banks and financial institutions increasingly rely on information technology to support growth and expansion in the global market. The main technologies that are currently in use include Internet banking, mobile banking, telephone banking, smart cards, credit cards and automated teller machines (ATM). These methods allow customers to perform many routine transactions, not going into the industry. But with all the advantages of this technology bring to the banking sector; it also brings increased risks and threats. Many banks are faced with growing concern about the impact of disgruntled employees, unauthorized users; industrial spies and hackers exploit and undermine their information systems and networks.

As technology becomes increasingly complex, so that those who wish to enter the world of information, such as these professional hackers; therefore, banks should not only invest in providing new IT services, but they must also invest in a good security system to protect themselves and their customers from viruses, spyware, keyloggers and eavesdropping program. (Jordan, 2005) Information technology does not always mean a lower cost for the banks operate, but it has become a necessity in today's competitive market. This very clearly shows how when you visit the leading bank branches in Malta. It seems that they compete by offering new IT banking services. For example, Bank of Valletta started to use mobile banking while HSBC launch this service in March 2005.

Mobile and wireless technologies enable banks to meet customer demand, which in real-time information and the availability of mobile payments such as purchase cards for the completion of your mobileSmart and credit cards are two more electronic forms of payment offered by banks. The actual smart cards differ from students' smart cards, because, although the latter has a magnetic strip, and is ...