The Impact of Information Technology on the UK Financial Sector :: Business and Management Studies

The Impact of Information Technology on the UK fiscal SectorI commit studied that in business, randomness engineering can be customd ifeffective in a strategic way in order to gain a competitive rewardand this can be seen in the UK financial services. In such an intentnessit can be said to be one of the most high-octane and rapidly growingsectors of the economy. Such a rate of change and festering has created aprolific environment for the innovation of information technology. Theapplication of information technology has had a qualitative impact bychanging the mode of operation in the financial sector, modifying therange of services provided and linking together geographicallyisolated financial hubs into a global financial community in order totrade 24 hours a day.For the past two decades organisations fix noted that informationtechnology is important for profitability on both(prenominal) the cost and grossside. In the financial services sector cost arise from two broadarea s of operation those connected with the management ofinformation, and those with the functioning of transactions. Financialservices begin always been a labour-intensive industry. The travel costof labour, relative to the cost of other factors of production, hasimposed a preventative of rising costs as a proportion of total revenueearned in such organisations as retail banks. The function of IT hasbeen one very important way in which financial services firms havesought to contain their costs. For example, in commercial banking theapplication of successive generations of computerisation since the archean 1960s has dramatically reduced the size of back-officestaffing, while the growth of pricy paper-based systems for moneytransmission (cheque and credit clearing systems) has been curtailedby the development of paperless computerised fee systems such asBACS (Bankers Automated Clearing System) in the UK and the developmentof EFTPoS (Electronic capital Transfer at Point of Sale) sy stems.The role of information technology has braggart(a) and changed continuouslyin the banking sector. The banking industry has utilise IT to enableincreases in the script of transactions as well as the development ofnew products applications have ranged from back-office (check andaccounts) processing, mortgage and loan application processing, andthe electronic funds transfer to much strategic innovations such asautomated teller machines and new kinds of securities. The use of IThas also had some important customer - supplier effects. For thecustomers of service providers, it has been used to improve thequality and variety of services in many industries, curiously throughits ability to amass, analyse, and control large quantities ofspecialised data. Such improvements let in error reduction orincreased precision, faster or more than convenient service, and improved