Importance of IT in Banking for Commonwealth- MyAssignmenthelp.com

Question: Discuss about theImportance of IT in Bankingfor Commonwealth Bank. Answer: Introduction The report will discuss in detail about the Commonwealth Bank Group that is dedicated to fulfilling the overall corporate and legal related health and safety terms by executing and also maintaining the policies, process and practices to give some safe place of work to people, contractors and consumers. There are number of programs run by the company associated with health as well as safety polices that interact or shows the leadership based commitment to health and safety of people (Singh and Malhotra, 2015). Need of IT in Commonwealth Bank of Australia The technology is becoming the integral part of people lives and computer and related technologies are getting more and more sophisticated. These devices have given bank a potential that can become an only dream about and also have given customers some high level of expectations. The transformations that many new technologies have brought in banking are hue in their influence on officers, consumers and employees. When there is advancement in technology and it permits for the overall delivery of the banking based products and services (Singh and Malhotra, 2015). The product and services become more effective than before therefore further creates a new base for the competition. Quick access to number of critical base of information and the capacity to act rapidly and in effective manner that it will divide all the success of the banks in coming future. At the same time, banks also gain some crucial information on competitive advantages by having a direct impact on marketing and many re sponsible customer related services culture and a more streamlined business functions. The overall consistency in management and decision based support system also provides the company with an edge in competition in order to forge ahead in the banking sector (Rey, 2015). Importance of IT in Banking Sector Following are the advantages: - Banks these days are well aware of needs of the customers for newer services and a concrete plan to make them present. IT has further increased the overall level of competition and further forced them to get some integration as the new technologies to satisfy the customers. It is important to develop as well as execute a specific number of answers among the customers (Rey, 2015). Facility for filling in specific self inquiry terminals at the branch where customer can send in the inquiry and immediately see the transactions in the accounts. Remote banking: The concepts of remote based terminals at various customer based websites are connected with many branches through technology namely modem and it enables the customer to make some important inquires in connection with the accounts, without moving the accounts from the office (Rey, 2015). Facility of anytime banking can only be possible through technology. Installation of number of ATMs which actually offer withdrawal of cash non-stop at any time along with remittances and overall inquiry methods. The process of networking can be computerized within the city as well as intra-city, and it will further allow the customers of different branches when connected to properly transact from any of the branches at any part of the world (Brunnermeier and Sannikov, 2014). Tele-banking: bank also provides a twenty four hour service where inquiries related balances and other transactions can be made just on the telephone. Banking on electronic platform: the process makes sure that the bank provides some corporate as well as high amount of value to the consumers with the help of graphical user interface which is also known as GUI software on a computer. The bank also makes all the information centralized and updates the present information in simultaneous manner at all possible places with single window services. This leads to effective decrease in the waiting time (Brunnermeier and Sannikov, 2014). Requirement to Apply IT into Commonwealth Bank of Australia The Commonwealth Bank of Australia has also experienced a rapid change and because of the constant advent in the technology and possible automation a new trend is working in the present banking system. Constant advancement in the technology played an important part in saving the services in the industry. The concept of electronic banking is also giving a competitive edge to the bank over other banks. Present online electronic banking as well as banking on mobile and internet is some of the examples (Laeven and Valencia, 2013). Methods to use IT in Banking The bank has also introduced the concepts like Tele banking. Telephone related banking is actually a service which is provided by number of banks as well as financial institution where the customer can transact on the telephone. The function of banking can be carried out over number of networks and called as telephone banking. It also shows that the conducting different kind of financial transaction by using telephone or computers. The other technology which is used by the bank is Automated Teller Machine which is actually a computerized based device that gives an access for many transactions in public domain (Demirg-Kunt et al., 2013). The consumers can anytime have access to the bank account to make the cash related transactions as well as withdrawals and also check the balances. Banks also conduct SMS based banking which can be called as technology driven service offered by number of banks to its consumer based. They also allow the consumers to function the banking based services over a phone via SMS. This kind of banking gain more benefit than Internet based banking since people these days carries mobile every place. Debit card and credit card are also an integral part of bank like any other bank. A Debit card on one hand can be called as a plastic card which has the magnetic strip which can be utilized by the customers as a main means for payment. In case of credit card, there is line of credit and the debit card is directly attached with the account (Schlagwein et al., 2014). As discussed credit card is plastic money with a magnetic strip and have a right kind of authority to buy up to specific limit which is called as a credit limit. At the same time Commonwealth Bank of Australia also issue it to the consumer to make sure that there is purchase on the credit. Internet banking has now become the most crucial source of spending which means it conducts number of transaction with the help of a website and internet banking is also called as online based banking. This type of banking can also be called as a virtual form banking which can be found on net and interactive by nature. So many additional services are added in it like trading on internet, bill payment, shopping and many more. Rapid development in internet and accessibility, number of users has also increased and are more open to internet banking (Murray et al., 2014). Customers also function on the bank account from any part of the world from any kind of personal computer at any point of time with a proper internet connection. Benefits of IT in Commonwealth Bank of Australia Following are advantages: In last ten years, Commonwealth Bank of Australia has seen the wide range of benefits from IT in terms of managing the front as well as back office function in addition to a large number of newer kinds of products. The major benefit for the bank is to execute the IT functions. Presence of huge range of inquiry helps in facilitating as well as assisting the bank in many development processes with follow-up. Constant answers to different customer question without proper reference to ledger keeper as the main terminals which are provided to the managers as well as chief managers (Vasyunina et al., 2013). There is automatic as well as immediate action on carrying out the present guidelines on the due date along with generation of proper reports. The generation of many MIS based reports as well as proper periodic return on various due dates is also expected. There is also fast as well as up-to-date data that transfers and further make sure that the decisions are speedier by easily connecting the branches along with many controlling offices (Vasyunina et al., 2013). Type of Risks that IT Brings in Commonwealth Bank of Australia Constant changes all across the world are bringing in new kind of strategic, operational and systemic form of risks. There are number of participants that have highlighted many pressing issues like the consequences of many uncoordinated as well as insufficient amount of transformations on many concerns (Vasyunina et al., 2013). Following are the risks: - The impact of insufficient analyzed issues in supervision as well as regulation. New risks associated with systemic from various regulations The influences on bank based business models along with risk related profiles as well as different resultant bubbles. Increased amount of consumer based protection related to litigation related risks in cyber security and other risks like geopolitical put forward a unique type of challenge (Demirer et al., 2017). Methods to Maintain and Monitor IT in Commonwealth Bank of Australia It is very important to have risk related transaction supervision process that needs to be put in place to understand the technique. Banks should also consider different dynamic in scoring a proper models and the associated process will help in triggering an alert specifically in case of transactions that are not cordial to improvise the preventive as well as detective technique (Demirer et al., 2017). There are number of techniques for the detection of any kind of fraud as well. The machine will help the bank to decrease the overall losses and also serve as a main element for many frauds. Conclusion The overall banking culture has become highly competitive in the present time and to survive and grow the changing market banks required to stay updated with all the latest technologies which can be perceived as an important source that can assist in development of many learners and be more flexible about the overall structure that can confidently respond rapidly to dynamics of changing market situations. It can also be viewed as a main tool for reducing the cost as well as effective communication with number of people as well as institutions related with the banking sector (Demirer et al., 2017). Reference Brunnermeier, M.K. and Sannikov, Y., 2014. A macroeconomic model with a financial sector.The American Economic Review,104(2), pp.379-421. Demirer, M., Diebold, F.X., Liu, L. and Y?lmaz, K., 2017.Estimating global bank network connectedness(No. w23140). National Bureau of Economic Research. Demirg-Kunt, A., Feyen, E. and Levine, R., 2013. The evolving importance of banks and securities markets.The World Bank Economic Review,27(3), pp.476-490. Laeven, L. and Valencia, F., 2013. The real effects of financial sector interventions during crises.Journal of money, credit and Banking,45(1), pp.147-177. Murray, D., Davis, K., Dunn, C., Hewson, C. and McNamee, B., 2014. Financial system inquiry: final report. Murray, D., Davis, K., Hewson, C. and McNamee, B., 2014. 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