Table of contentsIntroductionLiterature reviewMajor applicationDisadvantagesFuture workIntroductionThe 21st will bring a global convergence of computing, communication, information and knowledge. It will radically change the way we live, work and think. The growth of high-speed networks, combined with the falling cost of computing power, makes possible applications unimaginable in the past. Voice, data, images and video can now be transferred anywhere in the world in a microsecond. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay The explosion of technology is transforming the banking industry from paper banks and branches to digitalized and networked banking. It has already modified the internal accounting and management system of banks. This now fundamentally changes the delivery system banks use to interact with their customers. Banks around the world are still struggling to find a technological solution to meet the challenges of a rapidly changing environment. It is clear that this new technology is changing the banking industry forever. Banks with the ability to invest and integrate information technology will become dominant in a highly competitive global market. Bankers are convinced that it is essential to invest in IT. Its potential and its consequences on the future of the banking sector are enormous. Electronic banking: execution of a financial service via the Internet, reducing costs and increasing the convenience for the customer to access the transaction. Electronic banking is a generic term for the process by which a customer can conduct banking transactions electronically without visiting a physical institution. Mobile payments are the path to the next generation of retail payments, and while they threaten to minimize - or atomize - the idea of ​​what a bank's brand is worth, it's not there. has no reason to avoid the reality that there is a lot of money to be made in the future from payments, and clinging to the old forms is unlikely to be a useful response to the new facts. ATM is an example of a computer application in the banking sector. The adoption of ATM technology has increased community efficiency, resulting in reduced costs, improved quality and increased customer value. Literature Review Computers are becoming more and more sophisticated. They have given banks potential they could only dream of and given their customers high expectations. The changes that new technologies have brought to the banking industry are having a huge impact on bank managers, employees and customers. Technological advances make it possible to deliver banking products and services more conveniently and efficiently than ever before, creating new grounds for competition. Rapid access to critical information and the ability to act quickly and effectively will distinguish successful banks of the future. The bank gains a key competitive advantage by having a direct marketing and responsible customer service environment as well as new, streamlined business processes. Coherent management and decision support systems provide the bank with a competitive advantage moving forward in the banking market. Major application The advantages resulting from computerization are three-way for the customer, for the bank andfor the employee. For the customer. Banks are aware of customers' need for new services and are considering making them available. This has increased the level of competition and forced them to integrate new technologies in order to satisfy their customers. They have already developed and implemented a certain number of solutions among themselves. For the customer: Banks are aware of their customers' need for new services and plan to make them available. IT has increased the level of competition and forced them to integrate new technologies in order to satisfy their customers. They have already developed and implemented a number of solutions among them: Self-Inquiry Facility: Facility to connect to specified self-inquiry terminals in the branch to view and view transactions on the account. Remote banking: Remote terminals at the customer's site connected to the respective branch via a modem, allowing the customer to inquire about their accounts, online, without having to leave their office. Anytime banking - Anywhere banking: Installation of automated teller machines offering cash withdrawal facilities, fund transfers and continuous information. The networking of intercity and intracity computerized branches will enable customers of these branches, when interconnected, to carry out transactions from any of these branches. Telebanking: a 24-hour service through which inquiries regarding account balances and transactions can be made. by telephone. Electronic Banking: This allows the bank to provide corporate or high value customers with Graphical User Interface (GUI) software on a PC, to inquire about their financial transactions and accounts, money transfers, issuance of checkbooks and rate requests. without going to the bank. Additionally, LC text and invoice details can be sent by the customer and the bank can upload them. The technology used to provide this service is called electronic data interchange (EDI). It is used to transmit business transactions in computer-readable form between organizations and individuals in a standard format. As information is centralized and updates are available simultaneously everywhere, a one-stop service becomes possible, leading to effective reduction in waiting time. banking: Over the past decade, banks have applied IT to a wide range of back-office and front-office tasks, in addition to a large number of new products. The main advantages for the bank of implementing IT are: Availability of a wide range of investigative functionalities, assisting the bank in developing and monitoring business. Immediate responses to customer inquiries without reference to the accounting using terminals made available to managers and leaders. Automatic and rapid execution of standing instructions when due and generation of reports. Generation of various MIS reports and periodic declarations on due dates. Rapid and timely transfer of information enabling faster decisions, by interconnecting computerized branches and control offices. For employees: IT has increased their productivity through: Accurate calculation of bulky tasks and tedious works such as balancing and calculating interest on due dates. Automatic printing of coverage schedules, deposit receipts, passbook/pass sheet, freeing staff from carrying out these tedious jobs and allowing them to pay more attention to requirements. of the customer.Ease ofsignature retrieval, assisting in the verification of transactions, located on their own terminal. Avoidance of duplication of entries due to the existence of a single data entry point. Banks must also be able to sell insurance products and investment to obtain a better return on this investment. Telephone banking can bring financial services to the home or office, especially if they are affordable screen phones. By noticing the interest expressed by the customer, the bank can market stock quotes and insurance quotes. Interactive videos are a new technology that banks can make available to the customer to maintain personal contact while reducing delivery service costs. With interactive video, there is no need to have an expert employee in every branch. Complex life insurance products, open brokerage accounts, and custom product illustrations may be widely available if needed. Interactive videos will be a profitable expertise. The Internet is a means for banks to offer products to customers outside of an agency's usual clientele. Banks are aware of customers' need for these services and plan to make them available before other sources.DisadvantagesEarly experiences with e-commerce in bankingThe industry, a pioneer in the use of electronic systems, can be used to know some potential dangers and issues to consider. The use of automated teller machines and electronic home banking systems increasingly allows customers to bank outside of traditional banking services for many of their regular transactions. This was consistent with the strategy of most banks, which found that electronic transactions were about seven times less expensive than manually processing those transactions by a bank teller. However, the fact that customers' only contact with their bank was via (rather simple) electronic interfaces and the major difficulties in integrating a typical bank's existing systems have in many cases prevented banks from selling products additional costs to customers (cross-selling). ).In some European markets, insurance companies have taken advantage of this to take over the banks' business, selling savings products to customers through their extensive distribution network. Likewise, decreased human interactions with customers could also lead to a less sophisticated understanding of their needs, as they are not always able to express feedback, criticism, or requests for new products when interacting with the machines. This should lead to the design of e-commerce systems incorporating capabilities for understanding the customer and proactively selling new products. Electronic business transactions can only succeed if financial exchanges between buyers and sellers can take place in a simple, universally accepted, secure and inexpensive manner. Different systems have been proposed, some based on traditional mechanisms (e.g. credit card accounts) while others rely on new designs, such as electronic money. The key here will be to find a few widely accepted mechanisms, which can be used by most users. actors. The recent agreement between Master Card and Visa on a single security standard for Internet credit card transactions, and its support by most major software providers, constitutesa step in the right direction. This does not diminish the need for more specialized systems, for example to enable microtransactions, the exchange of very small amounts of money (a few cents) in exchange for information or services. These new payment mechanisms will in turn enable new business models such as pay-per-article journals. Technical Aspects: Computers in banking have improved customer service and productivity in account management, while streamlining back-office activities. The greatest impact in the field of competition. Small banking institutions can access the same technology as large banking institutions can access the same technology as large banking institutions and, therefore, can use them more effectively for business. In the banking sector, activities begin with the automation of customer accounts by banks, which allows staff to create, update and maintain customer records. Banking hardware and software have improved the accuracy of accounts than tellers and other personal banking processes. The banking software completes customer transactions through a centralized data recording system. Account management is the genesis and backbone of all banking information systems. 2. Banking systems must perform electronic transactions. Direct deposit is an example of an electronic transaction. Computer processing of electronic transactions must have hardware and software encryption capabilities to prevent data from being compromised during transmission. After computers make electronic transmissions, they transfer the information to the main computer system for processing and updating. Banks have extensive electronic capabilities through landline and mobile phones, the Internet AND ATMs.3. Web-based banking systems use a dedicated server through a banking network system. An area of ​​the banking system is partitioned for Internet applications. By law, web-based banking systems must include secure servers and authenticated certificates regarding transactions from the Federal Deposit Insurance Company and the Federal Reserve Board. Customers who choose to bank online can access their account through a web interface, which integrates with the main computer. Customer credentials (user ID and password) pass through multiple checkpoints before entering the backend system to complete a web transaction. Future WorkBanking is one of the oldest companies in the world. It has existed in one form or another since merchants in ancient Babylon began offering grain loans to farmers who needed to transport goods between cities. It was not until the 14th century in Italy that banking as we know it today developed: in fact, the oldest bank still active today (the Monte dei Paschi di Siena) was founded in 1472. The speed with which modern technology has developed has meant that traditional banks Slow-moving financial institutions have had to invest billions to remain relevant to customers and competitive in the market. So which aspects of technology have caused the greatest disruption - and which have changed the way banking works in the 21st century? No more queues: If you are over 30, you have probably spent hours in endless queues at the bank, at lunchtime or on Saturday morning, to.