Information and computer technology on banking Essay

For over a decade, the rapid advancement in information and communication technology has significantly affected the banking industry. The banking sector has embraced the use of technology to serve its client’s faster and also to do more with less. Emerging technologies have changed the banking industry from paper and branch based banks to â€Å"digitized and networked banking services†. Unlike before, broadband internet is cheap and it makes the transfer of data easy and first. Technology has changed the accounting and management system of all banks. And it is now changing the way how banks are delivering services to their customers. However this technology comes at a cost, implementing all this technology has been expensive but the rewards are limitless. The banking sector was one of the first to embrace rapid globalization and benefit significantly from IT development. The technological revolution in banking started in the 1950s, with the installation of the first automated bookkeeping machines at banks. This was well before the other industries became IT savvy. However, in Bangladesh the revolution started in 1990s. Present Status: A good number of technology driven services are provided to the customers by the Private Commercial Banks (PCBs), Foreign Commercial Banks (FCBs)and Nationalized Commercial Banks (NCBs). The FCBs operating in Bangladesh like Standard Chartered Bank and HSBCare the pioneers to introduce technology driven banking facilities. Thesebanks provide services like ATM, debit card, credit card, Point of Sale (POS)services, internet banking, phone banking, any branch banking, ElectronicFund Transfer (EFT). Along with these services Standard Chartered Bank isproviding KIOSK service to its customers. Among the local banks, the PCBs are ahead of the NCBs in providingtechnology driven banking services. A limited number of technology drivenservices are being provided by the private Islamic banks in Bangladesh. For sending foreign remittance NCBs and some PCBs are working collaboratively with mobile phone service operators. Application of computer based services in Bangladesh: Electronic Fund Transfer (EFT), SWIFT and MICR cheque are being provided by all the banks. All the banks except Uttara Bank are providing any branch banking to the customers. All banks have debit card facilities for their clients except Citi Bank NA. First Security Islami Bank Limited, Uttara Bank Limited and Citi Bank NA have no own ATM booth. First Security Islami BankLimited is going to establish their own ATM booth. They have already selected the palce for 100 ATM booth and expect to launch within very short possible time.