IT use leads to successful banking

Deputy governor, State Bank of Pakistan, Yaseen Anwar says future success of banking industry lies in the effective use of IT and passing on its benefits to banks' customers in terms of cost, speed and convenience, reveals the Pakistan Observer.

He said no bank today can survive without sound IT infrastructure.

The reason is that banks do not sell tangible products rather they sell 'customer experience' and 'customer possibilities', he adds, saying these experiences are driven by possibilities generated by use of technology.

He notes that in recent decades, technological innovation has continued its inroads into banking sector.

According to The Express Tribune, the central bank's deputy governor says numerous banking services through the technology platform have not only enhanced business volumes of banks and increased access to unbanked geographical regions they have also brought about operational and cost efficiencies.

More recently, he notes, IT has brought another revolutionary change in the form of branchless banking. He asserts that banks have vast space to work in this area as 85% of the population still remains unbanked.

Anwar observed though banks have come a long way in implementing IT, they are still quite far from the desired level both in terms of quality and quantity of IT-based solutions for customers.

He says that use of IT is now defining customer service standards of banks due to increased usage of phone banking, IVR systems, Internet banking, ATMs, POS, credit cards and other host of transactions of different modes under the band of e-banking.

“IT has transformed our local banking sector and has redefined the concept of banking and financial services,” he says, reports the Daily Times.