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

The Impact of Information engine room on the UK Financial SectorI have studied that in business, teaching technology can be used ifeffective in a st judgegic way in order to gain a competitive advantageand this can be seen in the UK monetary service. In such an industryit can be said to be one(a) of the most dynamic and rapidly growingsectors of the economy. Such a rate of change and growth has created aprolific environment for the innovation of randomness technology. The industriousness of information technology has had a qualitative impact bychanging the mode of operation in the fiscal sector, modifying therange of run provided and linking together geographicallyisolated financial hubs into a global financial community in order totrade 24 hours a day.For the departed two decades organisations have noted that informationtechnology is important for gainfulness on both the cost and revenueside. In the financial services sector costs arise from two broadareas of operation those committed with the management ofinformation, and those with the execution of transactions. Financialservices have always been a labour-intensive industry. The rising costof labour, relative to the cost of other factors of production, has obligate a burden of rising costs as a residual 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 theearly 1960s has dramatically reduced the size of back-officestaffing, eon the growth of expensive paper-based systems for moneytransmission (cheque and credit clearing systems) has been curtailedby the victimization of paperless computerised payment systems such asBACS (Bankers Automated Clearing System) in the UK and the developmentof EFTPoS (Electronic Funds Transfer at Point of Sale) systems.The role of information technology has grown and changed continuouslyin the banking sector. The banking industry has used IT to enableincreases in the volume 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 specie transfer to more strategic innovations such asautomated bank clerk machines and new kinds of securities. The use of IThas also had some important customer - provider effects. For thecustomers of service providers, it has been used to improve thequality and variety of services in many industries, especially throughits ability to amass, analyse, and control large quantities of work data. Such improvements include error reduction orincreased precision, sudden or more convenient service, and improved