INFORMATION TECHNOLOGY

P

I.T has many uses in finance. Companies nowadays use I.T in many different ways from financial trading to reporting the earnings of a business. Information technology allows companies in this industry to quickly calculate “financial statistics”, as well as for the use in electronic transfers of money.  A good IT system in funds is of major benefit to companies too and allows them to compete for new business.

Companies typically prefer to do business with banks or financial institutions that offer many different services that they can access through some kind of technology based device. The ability by a customer to access their information quickly and securely through there information system allows many banks to increase their customer base and thus showing the high importance of the I.T in Finance.

P

Reasons why Information Technology is so important in Finance:

P

Function

Customers can easily transfer and complete online transaction instead of people using checks which are quickly becoming outdated. A debit or credit card purchase can be very quickly compared with the customer’s account balance, this either then allows the transaction or not. But a lot of big Finance companies that are in funds area develop their Information systems for use in producing NAVs as quick and accurate as they can, good I.T. systems within a company of this nature provides the company the most up to date information on market prices on stocks and also the system itself must be user friendly and accurate.

Convenience

A person looking after their own finance can receive great value from  information technology in finance and with the development of IT this has made personal finance so much easier and quicker . Banks provide data on current and savings accounts on line as well as withdrawals. A customer can download all there account transactions and if the need arises can store them in records on a home computer, companies can also nowadays do the same and nearly always have their own accounting system built into the Information system network to make things even easier for them and it also make things more accurate.

Social Media

The Finance Industry can use Information Technology to create benefits from the likes of the social media on the Internet which provides financial institutions with useful information on their customers. By trying to get  online communities associated with their products, companies in the financial industries  not only receive information but it can  also encourage ” brand loyalty”, it also allows finance companies to contact the” younger demographics” that will be their future customers.