Reflective One Minute Paper: My Views on the Future of Information Systems in the Banking Industry

 

I’ve learned much about information systems in the banking industry through the creation of this portfolio and the study of this course. The effects of information technology on industry is sometimes forgotten, with all of the attention brought on the exact results, but none on the system itself (Flinders 2015). With such a multitude of concerns these days related to information systems in the banking industry—cryptocurrencies, universal basic income, cyber security and cyber criminals, e-signatures, and more—it would be safe to say that the banking industry will be, over the next few decades, one of the industries that will have the highest amount of involvement and interruption from information systems.

Whether or not this will ultimately be a good thing depends entirely on how the current situation is approached, and how further adoption of predictive analytics and Big Data and more information system approaches is handled. Without a clear and concise plan in moving forward, many institutions may see themselves crumble beneath the inexperience of the new system they are implementing or integrating—much of the field that we are venturing into now are completely new and innovative, meaning there will be plenty of mistakes along the way. To survive the current interesting field of information system mass adoption in the banking industry, financial institutions must make the most of their understanding of what information system is, and must be completely aware of every possible outcome for the information system choices that are made (Brown 2017).

There will be two major changes that banks may find some difficulty getting used to as we move forward into an age where information system rules over human interaction. The first change will be the shift of power from the location of the bank to the location of the customer. Convenience is the number one result of the adoption of information system, and more and more customers are banking from home rather than ever going to the bank at all. Banks may have to readjust their systems and employees and reallocate their funds to prepare for a world where customers never visit a local branch, and communicate solely through the Internet. There may come a time where bank branches are a thing of the past, and nation-wide and global banks operate with just a single percent of the staff they once did, most of whom are concerned with operating the website and other information systems involved with the bank (Santiago 2016).

The other major change is the shift in the way money is treated. With cryptocurrencies and universal basic income on the horizon, banks must prepare themselves for a shift in thinking, where they are not the de facto source of finances and savings anymore, but rather an option. They must innovate and evolve, just as culture is evolving around them, if they wish to stand any chance at keeping up with the trends.

The banking industry is in for some rough and hard times over the next few decades, and only through embracing the information system available to them now can they find themselves still alive over the next half century.

Reference:

Santiago, G. (2016). Cybercrime and Fraud Scale Revealed in Annual Figures. BBC.

Flinders, K. (2015). Big Banks’ Legacy IT Systems Could Kill Them. Computer Weekly.

Brown, H. (2017). How To Fund a Universal Basic Income Without Increasing Taxes or Inflation. Truth Out.

INFORMATION SYSTEM- Digital portfolio blog post RKC

Information Systems in the Banking Industry:

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Shafi A. Yusuf shafi@shaafi.com

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