Impact of Information Technology on the Banking Sector

Abstract

Purpose: This paper presents a brief overview which is linked to the bank network and its role in IT. It is also about the study of the role of the Government which has also played a proactive role in this by formulating policies and providing infrastructure, there are some advantages and disadvantages too, which need to be examined, and challenges faced by banking sectors and a few key positive and negative opinions on basis of SWOT analysis. Methodology: The data has been collected from a variety of sources, including newspapers, research papers, websites, and journals. The information has been analyzed and synthesized to provide a comprehensive overview of the topic. Findings: This research aims to provide a comprehensive overview of the extant research on the impact of information technology (IT) on banking. The findings suggest that IT has had a positive impact on banking in terms of efficiency, profitability, and customer service. However, the findings also reveal that IT has harmed employment in the banking sector. The banking sector in India is passing through tectonic changes with the onslaught of digital technologies. Traditional banks, which were dependent on human interaction and paperwork, are today struggling to keep pace with the new-age disruptors such as mobile payments, peer-to-peer lending, etc. They can now easily switch between banks depending on their needs and requirements. At the same time, banks are also looking to partner with FinTech to gain a competitive edge. Originality: A robust banking system makes the lives of the average individual easier, its real impact is felt in the smooth functioning of businesses. The smooth flow of credit and mobilizing of savings are the hallmarks of an economy with an effective banking system. Research Type: Descriptive Study.