Answer to Question #197723 in Management for Peter Masih

Question

Retail Banking is a mass segment that has a large customer base involving high-volume

and low-value transactions. Describe the role and application of Technology that Banks

are using to manage business volume, operational complexities, risk, and customer

service

Answer 1

IT has enabled lowering the costs of teamwork, communication, and data processing. It increases efficiency, according to empirical evidence . Communication, digitization of business processes, new consumer channels of entry, and knowledge sharing have all been enabled by general IT applications in banking. IT has a variety of effects on the complexity of a business.

The range of firm products, the sophistication of job tasks, and firm conglomeration are all influenced by IT and its applications. Banks, it is argued, are no different in this regard; however, banks can become excessively complex in order to hide their excessive risk taking.