Assessment Item 1 ICT in Business
Today, Information and Communication Technology (ICT) has been adopted by the business organizations to control complex business processes. The adoption of ICT increases overall performance and productivity of business organizations. ICTs have considerable potential to foster innovation, promote economic growth and improve productivity. The main purpose of this report is to analyze the value and usage of ICT in the everyday business operation of a financial institution such as financial transactions, investments, currency exchange, deposits, approval of loans etc. Currently, financial institutions like banks are using information and communication technology to manage human resources, communication, vehicle maintenance, sorting and delivery process.
Values and usage of ICT in financial institution
Financial institutions use new ICT based delivery channels to enhance satisfaction level of their customers. Most of the banks in Sri Lanka offer electronic banking services to few local banks, overseas banks and retail customers (Jayasena, 2009). The major objective of e-banking services is to allow customers to perform instant transactions at lower price. The biggest benefit of e-banking is that it has ability to maintain privacy and security of customers by using various types of security solutions such as end-to-end encryption, SSL etc. Presently, various methods of e-banking are available such as online banking, interactive TV banking, telephone banking, short message service banking etc.
Currently, Nigeria banks are using various types of ICT products like MICR (Magnetic Ink Character Reader), Automated Payment Systems and Automated delivery channels to perform their routine business operations efficiently (Imhonopi and Urim, 2013). Financial institutions use MICR for cheque processing. MICR system is capable of sorting, reading, encoding cheques. Very Small Aperture Terminal (VSAT) is a satellite communications system which allows customers to perform transactions from anywhere without any kind of location barrier. VSAT medium has been used by customers to gather information about their bank balances, withdrawals and deposits. The implementation ICT based products allows financial organizations to maintain high level of proficiency and efficiency of banking services.
The quality of banking services delivery enhances at rapid rate by using information and communication (ICT) enabled services and delivery systems (Kariuki, 2018). Financial institutions are able to track changing customer service needs effectively by using these systems. These enable customers to perform their own transaction by accessing banking services from anywhere.
In the end, the report summarized ICT enhances overall quality, flexibility, proficiency and efficiency of banking services. In this report, various journal articles have been evaluated to examine values and usage of ICT in the everyday business operations of financial institutions.
• Jayasena, S. (2009). Information and Communication Technology Usage and Bank Branch Performance. The International Journal on Advances in ICT for Emerging Regions, [online] 2(2). Available at: https://icter.sljol.info/article/10.4038/icter.v2i2.1386/galley/1234/download/ [Accessed 12 Mar. 2019].
• Imhonopi, D., & Urim, U. (2013). ICTs AND THE DIGITISATION OF THE BANKING INDUSTRY IN NIGERIA: A SOCIOLOGICAL APPRAISAL. Retrieved from https://www.researchgate.net/publication/307911295_ICTs_AND_THE_DIGITISATION_OF_THE_BANKING_INDUSTRY_IN_NIGERIA_A_SOCIOLOGICAL_APPRAISAL
•Kariuki, D. (2018). Effect of Information and Communication Technology on Service Delivery in Commercial Banks in Kenya. IOSR Journal Of Business And Management (IOSR-JBM), 20(6). Retrieved from http://www.iosrjournals.org/iosr-jbm/papers/Vol20-issue6/Version-5/E2006052734.pdf