Banking Industry and MIS Banking essay

Download this essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from essay:

From the rudimentary and often primitive approaches to dial-up banking in the 1980s and 1990s to the 24/7 rapid access of Internet banking accessible to customers from anywhere in the world in 2009, there continues to be a revolution of convenience solidly anchored in security taking hold (Wang, Wang, Lin, Tang, 2003). All of these benefits are also dominated by the fact that many banks now have guided selling systems online (Beasty, 2006) that make it possible for consumers and businesses to design their own unique financial services programs and made-to-order programs. Banking is entering a new era of personalization and exceptional security as more and more services once entirely completed in branches are now completed online. The concept of "cloud" computing or the development of Software-as-a-Service has made these services available on a 24/7 basis as many banks turn to this platform for hosting services (Orr, 2008). The risks of having banking transactions running on SaaS-based platforms have been mitigated by the continual improvement of XML integration standards specifically for this industry (Orr, 2008). All of these benefits taken together then have contributed to an industry that competes for customers with an intensity never seen before.

With all of these benefits there many more challenges. First many consumers resist change and still want to walk into a branch and do all their transactions with a teller. This has proven to be exceptionally expensive and despite many innovative and creative ways to get consumers and businesses to adopt Internet banking (Wang, Wang, Lin, Tang, 2003) many have resisted out of fear. Studies by independent research firms and the banks themselves indicate that the cost per transaction with a teller is today well over the cost of an automated one (Katuri, Lam, 2007). Banks need to switch consumers to automated means of interacting with them to save on costs, yet there is high resistance to change, especially technology many consumers do not understand. This is the most difficult challenge this industry is facing today as it seeks to stay profitable and attract customers, reducing churn or customer turnover in the process (Katuri, Lam, 2007). There are also the problems of security and the continual phishing of accounts by online criminals and even entire gangs of cyber thieves. Scaling transactions across geographies and doing a better job of translating currencies on the fly as customers are increasingly traveling globally is also a challenge. Globalization and the myriad of transactions necessary for supporting individual and business accounts is forcing MIS system platforms to redefine their own scalability limits. On top of all these challenges, customer churn is rising due to consumers expecting more based on the wide variety of services offered by this industry.

Conclusion

The banking industry in the United States has down through fundamental re-definition as a result of banks continually looking to streamline their most complex processes and make them more cost-efficient. The progression for manual processes that when automated showed the extent of how fast and far banking business models could grow as a result of automation continues to revolutionize this industry. The 24/7 banking business model has given rise to the 24/7 consumer as well, with many traveling globally and expecting the same level of service at an ATM in Sydney,, Australia as they would have at their home branch's windows. The continued legislation and bailout of this industry further forces the need for greater levels of automation, accountability and security than ever before.

References

Colin Beasty. (2006, September). RE: TOOLING. Customer Relationship Management, 10(9), 46.

Srinivasa Katuri & Monica Lam. (2007). Switching customers from branches to internet: A credit union's journey. Journal of Financial Services Marketing, 11(3), 229-248.

James L. McKenney, Richard O. Mason, & Duncan G. Copeland. (1997). Bank of America: The crest and trough of technological leadership. MIS Quarterly,

21(3), 321-353.

Kojo Menyah. (2005). International Cash Management in the 21st century Theory and Practice. Managerial Finance, 31(10), 3-17.

Orr, B. (2008). Will it of the future have its feet firmly planted in the "Cloud"? American Bankers Association. ABA Banking Journal, 100(9), 50,52-53.

Stone, Marilyn a., & Clarkson, a.H.. (1989). MIS and the Strategic Development…[continue]

Cite This Essay:

"Banking Industry And MIS Banking" (2009, October 17) Retrieved December 6, 2016, from http://www.paperdue.com/essay/banking-industry-and-mis-18530

"Banking Industry And MIS Banking" 17 October 2009. Web.6 December. 2016. <http://www.paperdue.com/essay/banking-industry-and-mis-18530>

"Banking Industry And MIS Banking", 17 October 2009, Accessed.6 December. 2016, http://www.paperdue.com/essay/banking-industry-and-mis-18530

Other Documents Pertaining To This Topic

  • MIS in Banking Automating Key

    Assuming the increased attention to customer satisfaction saves at a minimum just 10 accounts, this will be worth approximately over $200,000 over the life of the accounts assuming a modest level of financial activity per account. The fixed costs of this recommendation are none as Google Analytics is free and the incremental IT-based costs of maintaining the linked code and the internal training could be covered by Overhead Cost

  • Businesses and Information Technology

    Strategic Planning in IT IT Impact on Service Industry Performance Cooperative Competitive Competitive Advantage Implementation of IT Innovations 1992 U.S. VALUE-ADDED AND EMPLOYMENT BY INDUSTRY AVERAGE ANNUAL GROWTH IN GDP PER HOUR, MAJOR SECTORS OF THE U.S. ECONOMY Management TASKS IN BUREAUCRACY VS ADHOCRACY ORGANIZATIONS This paper addresses the following problem statement: "Without information technology (IT), a business will not be able to compete globally in any industry, nor in any market it wants to enter. It will

  • Managing Information Systems Introduction in

    Furuholt, (2006) argues that lack of management engagement to the acceptance of information systems has been a barrier to the implementation of information systems. The issues are even common with organizations in the developing countries where management does not give enough priority to the information systems implementation. Importantly, implementation of information systems requires management support since management will need to approve fund that would be used for IS implementation.

  • Trade Show Industry in Germany

    Therefore, this study is significant because it explores a very important channel of marketing and communication in the B2B market. The study is important for a second reason that international trade is becoming a cause for concern after the global recession. The economies of various countries have been affected after a decline in their purchasing power. It is said that economic recovery is possible through an increase in trade and

  • Venezuelan Banking Sector Bbva

    This would then imply an increased on-the-job satisfaction, generated by a reduction in stress and organizational pressure. The increased satisfaction on the job materializes in increased performances and an increased support in helping the bank reach its overall objectives. Aside from the direct impacts upon the satisfaction of the customers, the benefits of introducing the newer technological advancements have also resulted in more efficient communications. This was available between company

  • Living in the Middle Ages What New

    living in the Middle Ages. What new things are available for you to experience? The prelude to modernism The history that establishes origin and evolution of the modern society has its basis from the ancient time. Initially, the world and society featured various practices that today we may perceive as being barbaric and outdated. However, it is essential to acknowledge that it is through the various ages of revolution that the

  • Securitization and Bank Liquidity the

    .." The Federal Reserve continues to keep a watch on both "current and potential exposures..." And are in the process of a review of the collateral valuation methods of the banking industry." (Kohn, 2008) Kohn states that disruptions in liquidity in some financial markets have resulted in banking organizations facing challenges and specifically at present "significant liquidity demands can emanate from both the asset and liability of the bank's balance sheet."


Read Full Essay
Copyright 2016 . All Rights Reserved