The advantages and disadvantages of ict in banking and finance?

Answer 1

Without it we would not be able to use cheques, use 'hole in the walls' and we would not be nicknamed the 'cashless society'. However also due to advances in ICT, people are getting more and more paranoid about whether their information is secure and this paranoia is not without reason because the more we rely on technology, the more we will fall if that technology ever fails. I will try to explain both sides to the story in my piece of writing.

Information and communications technology (ICT) has played a significant role in banking over the years. In fact it has made definitely the banking industry more competitive. ICT allows the banks to cater to the needs of customers by strengthening their internal control systems which are then backed by effective communications mechanisms. Widespread use of ATMs (Automated Teller Machines), internet banking, phone banking and computers allow for 24/7 services, together have enabled banks to improve their service to customers. ATMs were one of the first significant improvements in technology as they gave banking customers greater access to their cash. Now they no longer had to queue up in banks to get their money, and they can do so at whatever time of day they wanted, as cash machines are available 24 hours a day, seven days a week. The rise of Internet and phone banking has made banking even more convenient. Customers can now check their balance and pay bills online without having to leave the comfort of their own home. Customers can also apply for loans and credit cards and access a number of pages offering advice on saving and protecting yourself from card fraud. It is also enables customers to keep a track on their finances and lets banks offer services which can help customers to manage their money and see more clearly what their incomes and outgoings are. Cheques can now be cleared easier and quicker through the use of Magnetic Ink Character Recognition (MICR). This is hard to fake because the companies that produce it have strict rules about how they supply it and who they supply it to. Phone banking enables you to talk to an advisor and resolve any urgent issues quickly and efficiently. Banks have taken advantage of ICT developments by offering more products, such as online savings accounts. They can also make special offers for their online customers, offering in some cases better deals on insurance and credit cards compared to those who bank in branch. This means gives the customers an incentive to stop going to their local bank and to bank online instead.