Benefits of IT in Banking Sector

This paper develops and tests a model to examine the effects of information technology (IT) in the banking industry. It is believed that IT can improve bank’s performance in two ways: IT can reduce operational cost (cost effect), and facilitate transactions among customers within the same network (network effect). Information Technology infrastructures have various advantages for business organizations like financial institutions, and more particularly banks. They assist to improve their service quality, increase speed of service delivery, minimize cost, increase profitability, offer convenience in providing anytime and anywhere banking. Hence, adoption of such technologies is highly appreciated. However, the implementations of the technologies depend on the attitude of customers towards the technology to be adopted. Therefore, this research is concerned with investigating the factors affecting attitude of customers towards Information Technology adoption in the banking sector; because, customers are the ultimate users of the technology to be adopted. The attitude of the banks’ staff to technology adoption is also important; since they are stakeholders of the technology adoption, and it is assessed that they have positive attitude towards technology. Similarly, descriptive statistics is used to examine the existing status of the banks in Information Technology adoption and most commercial banks are found lagging behind in adopting Information Technologies that can provide them with multi-directional benefits.