Role of Information Technology in the Banking Sector
ROLE OF INFORMATION TECHNOLOGY IN BANKING SECTOR
Information Technology (IT) concerns with technology that treats information. Through a microelectronics-based combination of computing and telecommunication, IT acquires, processes, stores and disseminates vocal, pictorial, textual and numerical information. Remarkable innovations in the field of information technology has been deciding and changing the way we live and the nature of economy. E-Commerce refers to exchange of goods and services within or among countries. E-commerce refers to the same, but it is mediated and regulated through the internet. E-banking evolved in the mid-1990s when the internet and the World Wide Web began to catch on. It is a web based service that enables the bank’s authorized customer to access their account information. It allows the customers to log on to the bank’s website with the help of bank-issued Personal Identification Number (PIN), technologies. A security analyzer constantly monitors login attempts and unauthorized attempts to log in are prevented. In a typical e-banking transaction, customers’ requests for online banking information are passed on from web server to the bank’s e-banking server through the www interface. These requests pass through a firewall before they reach the e-banking server. The customer information database is stored on a bank’s server. When customer requests reach the e-banking server, it passes the requests to the bank server holding customer database. The database provides the required information to the e-banking server, which is in turn passed on to the web server, through the firewall, from where the customer is able to access it. The sort of architecture, known as the ‘three-tiered architecture’ creates a controlled environment, which allows quick incorporation of internet security.
Electronic Funds Transfer (EFT): EFT scheme enables an account holder of a bank to transfer funds to another person having an account with
Information Technology (IT) concerns with technology that treats information. Through a microelectronics-based combination of computing and telecommunication, IT acquires, processes, stores and disseminates vocal, pictorial, textual and numerical information. Remarkable innovations in the field of information technology has been deciding and changing the way we live and the nature of economy. E-Commerce refers to exchange of goods and services within or among countries. E-commerce refers to the same, but it is mediated and regulated through the internet. E-banking evolved in the mid-1990s when the internet and the World Wide Web began to catch on. It is a web based service that enables the bank’s authorized customer to access their account information. It allows the customers to log on to the bank’s website with the help of bank-issued Personal Identification Number (PIN), technologies. A security analyzer constantly monitors login attempts and unauthorized attempts to log in are prevented. In a typical e-banking transaction, customers’ requests for online banking information are passed on from web server to the bank’s e-banking server through the www interface. These requests pass through a firewall before they reach the e-banking server. The customer information database is stored on a bank’s server. When customer requests reach the e-banking server, it passes the requests to the bank server holding customer database. The database provides the required information to the e-banking server, which is in turn passed on to the web server, through the firewall, from where the customer is able to access it. The sort of architecture, known as the ‘three-tiered architecture’ creates a controlled environment, which allows quick incorporation of internet security.
Electronic Funds Transfer (EFT): EFT scheme enables an account holder of a bank to transfer funds to another person having an account with
Bibliography: ________________________________________ 1. Encyclopedia of information Technology and e-world (volume 5): Vasu Deva 2. Information technology and E-business: Prof. N.P.Agarwal, Prof. Sugan C. Jain 3. Banking theory, law and practice: Gordon and Natarajan 4. Internet source: www.en.wikipedia.org 5. Internet source: www.slideshare.net