In the 21st century, communication is
undergoing major change because of the
development of information communication
technology (ICT). First, explain information
technology development in the banking
sector in the last ten years. Next, describe one
benefit of using ICT to communicate in
banking. Finally, describe two negative effects of
ICT on communication in the field of
banking.
Following
is a sample student essay in response to this topic:
Throughout
the twenty-first century, the ways in which people communicate have rapidly
changed and developed. Increasingly, people are using information communication
technology (ICT). One of the most notable examples of the use of ICT
is in the banking industry, where both the banks themselves and their customers have
embraced the use of technology. This essay will argue that while the use of ICT in
the banking sector offers one major benefit it also results in negative
effects. The
essay
will first tell how electronic banking came to be the way it is, taking into account
the changes occurring over the last decade. It will then write down the most relevant
qualities of a benefit that flows from the implementation of ICT, focussing on
the effectiveness of the communication provided by technology. However, there are
two drawbacks because of the possibilities of cyber crime resulting from the implementation
of ICT for both banks and bank customers. The first negative effect is
that banks can come under attack from criminals leading to corruption of data. Secondly,
clients’ computers may be infiltrated by malware developed by attackers who
are then able to steal the banking passwords of these customers.
In
the banking sector, ICT has brought extensive changes to the way business is transacted
between customers and banks. This new form of communication is wideranging and
covers the provision of and access to a number of financial services. It is characterized
by the fact that both banks and their customers can easily be connected locally,
nationally and globally with speed and flexibility. Bons et al. (2012, p. 197) explain
that the transition to the use of technology was initiated some years ago:
‘Banking is an information-intensive business
and an early adaptor of IT.’ The use of technology
throughout the banking system has had extensive implications for the way financial
matters are transacted. Throughout the last decade, as these authors explain, paper
money has, to a large extent, been replaced by electronic transactions and such facilities
as bank books have been superseded by online alternatives (p. 197). Throughout
the last ten years, the changes to banking have continued: internet banking
has increasingly been augmented by mobile banking. Bons et al. recently conducted
a survey demonstrating that the trend to mobile banking has become a priority
for many banks and their customers (p. 197). Mobile banking is one way of assisting
interaction within the sector. Because ICT facilitates a number of communication
practices, it is increasingly seen as the most up-to-date way to conduct
business within the banking industry.
The
benefit of ICT in the banking world is that it is far more effective, and
applies to both
the banks themselves and the customers. For the banks, speedy and accurate communication
is essential, particularly as it relates to their clients. Technology helps
banks to develop better customer relations because, as Dong and Bliemel (2008)
point out, research shows that the use of technology enables banks to understand
their customers and therefore to tailor financial plans to the clients’ needs. The
enhanced communication resulting from the effective use of ICT has permitted a smooth
transition from face-to-face contact to communication at a distance. Good customer
relations are therefore integral to a vigorous banking sector but customers also
derive advantages from the use of ICT, particularly from online banking. As an example,
customers who use mobile banking ‘enjoy anytime anywhere banking with the
help of their mobile phones’ (Vinayagamoorthy & Sankar 2012, p. 24). Rather than
being limited to specific opening times, they can communicate with their bank
at a
time and place of their choosing. Thus, for banks and customers, the
transformation ICT
has brought to communication has been beneficial.
However,
not all of the developments that come from the implementation of ICT have
been positive. Banks may be able to exchange information more easily, but technology
can also permit that information to fall into the wrong hands. Security can
easily be breached. The internet has no boundaries and therefore it is
difficult to police
effectively. As Bamrara, Singh and Bhatt (2012) explain: ‘When a bank’s system
is connected to the internet or intranet, an attack could originate anytime, anywhere.’
The same ease and flexibility of communication that makes online
banking
so useful for customers brings risks for the banks because hackers can infiltrate
banking systems from any location, causing network failures or corruption of
financial data. The easy sharing of information can easily be extended to cyber criminals
who are able to receive and transmit information that is not intended for them.
Because
ICT facilitates communication in a ‘virtual’ world, it has led to a proliferation
in cyber attacks that have a major impact on customers as well as banks. Whereas
bank clients previously undertook financial transactions in person, usually in a
branch of their bank, they are now far more likely to use online banking. The convenience
of ICT and the ease of communication must be set against the opportunity
given to fraudsters to commit crimes. As Költzsch (2006, p. 243) explains:
‘The virtual nature of transactions and the increasing automation of financial
processes have generated virtual crime.’ This crime can take a number of forms.
One major example, according to Giles (2010), results from the development of
malware (or malicious software) that enables criminals to gain access to a computer.
Once they have accessed a customer’s computer, it is simple for an attacker
to appropriate online banking passwords, often leading to significant problems
for the client whose privacy has been breached. The opportunities for communication
have certainly expanded with the introduction of ICT, but it can easily
be the wrong person who accesses the information. With the attacks on the integrity
of banking passwords comes a loss in customer trust in the process of communication.
Cyber criminals have benefited from online banking, to the detriment
of customers whose accounts have been illegally accessed.
This
essay has argued that the use of ICT in the banking sector has had both
positive and
negative results. Both bank customers and the banks themselves have benefited from
the enhanced facilities offered by online banking that have made communication
more effective. However, banks have increasingly been exposed to security
risks because of the wider access to information which can easily fall into the hands
of criminals, leading to corruption of data. Moreover, cyber attacks can very
easily
be directed at unsuspecting customers, so that unauthorized people are able to develop
malware which provides access to customers’ accounts and therefore the theft
of banking passwords.
(1154 words)
·
List of
references
Bamrara,
A, Singh, G & Bhatt, M 2012, ‘An explorative study of satisfaction level of
cyber-crime
victims with respect to E-services of banks’, Journal of Internet Banking
and
Commerce, vol. 17, no. 3, viewed 31 July 2013,
<http://www.arraydev.com/commerce/jibc/>.
Bons,
RWH, Alt, R, Lee, HG & Weber, B 2012, ‘Banking in the Internet and mobile
era’,
Electron Markets, vol. 22, pp. 197-202.
Dong,
J & Bliemel, M 2008, ‘Strategies for increased integration of online and
inbranch
services
of banks in Canada’, Journal of Internet Banking and Commerce, vol.
13,
no. 3, pp. 1-8, viewed 1 August, 2013, EBSCOhost, Business Source Complete,
item:
AN: 36659938.
Giles,
J 2010, ‘Cyber crime made easy’, New Scientist, vol. 205, no. 2752, pp. 20-21,
viewed
1 August 2013, EBSCOhost, Computers & Applied Sciences Complete, item:
AN
48974090.
Költzsch,
G 2006, ‘Innovative methods to enhance transaction security of banking
applications’,
Journal of Business Economics and Management, vol. 7, no. 4, pp.
243-249.
Vinayagamoorthy,
A & Sankar, C 2012, ‘Mobile banking: an overview’, Advances in
Management,
vol. 5, no. 10, pp. 24-29.
<www.usq.edu.au>
·
Read the introduction again and note its
three sections.
Throughout
the twenty-first century, the ways in which people communicate haverapidly
changed and developed. Increasingly, people are using information communication
technology (ICT). One of the most notable examples of the use of ICT
is in the banking industry, where both the banks themselves and their customers
have embraced the use of technology. [Background/Context] This essay
will argue that while the use of ICT in the banking sector offers one major benefit
it also results in negative effects. [Thesis statement] The essay will first tell
how electronic banking came to be the way it is, taking into account the changes
occurring over the last decade. It will then write down the most relevant qualities
of a benefit that flows from the implementation of ICT, focussing on the
effectiveness
of the communication provided by technology. However, there are two
drawbacks because of the possibilities of cyber crime resulting from the implementation
of ICT for both banks and bank customers. The first negative effect
is that banks can come under attack from criminals leading to corruption of data.
Secondly, clients’ computers may be infiltrated by malware developed by attackers
who are then able to steal the banking passwords of these customers.[Outline]
Concluding paragraph
Here
is the conclusion of the sample essay. Its two sections have been marked. Read
the
conclusion
again and note its two sections.
This
essay has argued that the use of ICT in the banking sector has had both
positive
and negative results. [Restates the thesis statement] Both bank
customers
and the banks themselves have benefited from the enhanced facilities
offered
by online banking that have made communication more effective.
However,
banks have increasingly been exposed to security risks because of the
wider
access to information which can easily fall into the hands of criminals,
leading
to corruption of data. Moreover, cyber attacks can very easily be directed
