Impact Of Information Technology In Banking

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1 Introduction:
Since 2002, Pakistan has the fastest growing and most competitive telecom industry in the world. This is because of its ever growing population, rising per capita income, better connections and cheaper cost of connectivity. Hence, online technology has become the fastest growing technology making Pakistan. Online banking has had a remarkable success in Malaysia , Iran, Saudi Arabia, Egypt and Pakistan it became instrumental for banks to use this opportunity to adopt online Banking. Online Banking is a system that allows customers and banks to carry out financial transactions through internet. A big advantage of online banking is that it enables reaching online devices in far flung areas, especially rural locations. This allows
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Banking operations have evolved from the mere exchange of cash, cheques and other negotiable instruments to the application of Information and Communications Technology (ICT) to banking transactions. Through technology, banks are now able to offer convenience services to their customers. According to Moll (2005), Information and Communications Technologies (ICTs) have changed the way of conducting business transactions and meeting the growing demands of customers for most organizations. The promise of ICTs in the banking sector has been seen in terms of its potential to increase customer base, reduce transaction costs, improve the quality and timeliness of response, enhance opportunities for advertising and branding, facilitate self-service and service customization, and improve customer communication and relationship. Business via the internet or electronic commerce is providing a competitive advantage for banks by lowering operational cost and providing best satisfaction of customer needs. A strong banking industry is important in every country and can have a significant effect in supporting economic development through efficient financial…show more content…
Customers can use these services anywhere that is homes, offices and so on and anytime without visiting the banks. The banks can use the electronic commerce technology for meeting the competitive advantage and gaining the best level of profitability while providing best services to its customers. The banking system in developing countries is significantly different from that in developed countries such as the United State of America, Britain and South Africa. As with most developing countries, Canada has been undergoing a process of financial sector restructuring and transformation as an integral part of a comprehensive strategy for some time (Aqua

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