Technological advances have prompted banks to look into new ways to offer services to their customers.

The shift towards digital banking is not a new concept. It started with the introduction of the first mainframe computers in the 1980s. Since then, banking has had to adjust to the importance of the internet and e-commerce in society.

One of the key drivers for digital transformation in banks has been the Covid-19 pandemic which has had a lasting effect on how banks offer services to their customers. The challenge banks are facing in the aftermath of the Covid- 19 pandemic is how to effectively transform the bank’s core functions to digital platforms while retaining customers.

Many banks have tried and failed to transform their core banking systems (McKinsey, 2022):

“An acceleration in customer appetite for digital experiences and rising competition from fintech and other digitally savvy companies are pressuring banks to modernise their core platforms.

 In response, banks are adopting modern technologies such as the cloud, a critical enabler of digital transformations and a potential solution to reduce technical debt (the accumulated costs from one-off tech solutions or integrations). Yet many banks soon realise that their core banking systems cannot support the demands of these digital solutions, such as real-time transaction processing and quick product releases.

To enable digitisation, some banks are pursuing core-banking-system (CBS) transformations. Yet over the past decade, only about 30 percent of CBS transformations succeeded in carrying out a complete migration of ledgers and products to a new system, suggesting that banks have not yet cracked the code on full implementation.” (Adapted from McKinsey, 2022)

According to McKinsey (2022), these breakdowns in CBS transformation can be attributed to issues found in three key areas namely, people, processes and technology. To assist banks in transforming their systems effectively, they have collated eight problems which banks should avoid. Read the full article here:

McKinsey and Company, (2022). “How to get a core banking transformation right: Eight mistakes to avoid.” https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/tech-forward/how-to-get-a-core- banking-transformation-right-eight-mistakes-to-avoid (accessed 3 August 2022)

The need for transformation in bank’s CBS has highlighted the importance of effective and robust information and communication technology (ICT) infrastructure and systems as well as identified the problems most banks face. Your bank has asked you to write a report on the ICT systems and business operations. With the above in mind, use the assignment question to compile your report.

QUESTION/SECTION 1   [100 MARKS]

Start your report by writing a short introduction on your bank and why ICT systems are important

Then, compile your report by discussing the following:

ICT value in banking

  • Briefly discuss the ICT components and identify how these components are affected based on the information provided in the case study.
  • Discuss how ICT can create value in your bank. Consider the various matters that are impacted by an effective ICT system.

Key problems in integrating ICT systems and business processes

  • Identify the key problems banks face when integrating ICT systems with business processes.
  • Discuss the benefits of introducing an Enterprise resource planning (ERP) system in your bank to assist in integrating ICT systems and business processes.

Using ICT to improve Customer relationship management (CRM)

  • Briefly discuss how you can use the CRM phases to improve customer relationships.
  • Briefly discuss how customer relationships can be improved by the successful transformation of your bank’s core-banking-system.
Business intelligence in transforming core banking systems
  • Define business intelligence
  • Briefly discuss how your bank can use business intelligence to successfully transform the core banking systems.

 Conclusion

Write a summary in which you discuss the importance of ICT in your bank and how successfully transforming the core banking systems can benefit your bank.

References

Include a reference list for your report. Remember to reference properly according to the APA referencing style.

Answer to the questions above

Information Communication And Technology (ICT) is highly important for modern day businesses because it defines the infrastructure and components that enable modern computing. Information Communication and Technology is defined as an extensible term for information technology that is responsible for the integration of telecommunication and computers. The role of technology is significant in modern day businesses in allowing them to perform their business processes effectively, and communicate with their stakeholders in an efficient way. The role of information communication technology is also higher in the case of the banking industry, as the entire banking channel is dependent on telecommunication and computers in order to perform their business processes. This report includes an introduction of my bank and why ICT systems are important for my bank. The report also includes the discussion on how ICT creates value in my bank, and discusses the challenges and problems in integrating ICT systems at my bank. The ways in which ICT can be utilised in order to improve customer relationship management at my bank is also discussed, and finally an analysis of the role of business intelligence in transforming the banking system as a whole is discussed…..

Get complete solution on the ICT systems in banking industry from the assignment writing experts of Assignmenthelp.co.za in South Africa.