Importance of Information System in Financial Sector

Asad Mazhar
 GROUP MEMBERS
Institute of Business
Technology (BIZTEK)

Asad Mazhar
 WHAT IS
INFORMATION SYSTEMS?

 Interactionbetween people,
processes, data and technology.

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 Importance of Information technology

 All medium to large organizations depend on

Information technology.

 Technology is changing society, business and jobs.

 A recent article in the Daily Telegraph IT supplement

suggested that many large organizations could last no
longer than 24 hours without IT support!

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Importance Of Information TECHNOLOGY In
Financial Sector

 STOCK EXCHANGE

 BANKING SECTOR

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 The Importance Of Information
Technology To The Stock Exchange
 It is true that in modern times like today, the stock
exchange market cannot function effectively without
the use of information technology.
 Information technology has helped the stock exchange
market in being more dynamic and productive.
 People and companies can make investments in stocks
with the click of a mouse.
 Companies can see the exact position of their stocks in
a very short time with the help of IT.

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 The Importance Of Information
Technology To The Stock Exchange
 Information technology improves the viability of
stock market investments for individual savers.
Access to information increases stock market activity
because of the improved ability to make decisions.
Still, financial markets are susceptible to risks
associated with technology.

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 Identification

 concerned with stock quotes and trade confirmations

 Stock quotes were originally submitted by telegraph
onto ticker tape at brokerage houses, where clerks
recorded the data by hand.

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 Features

 Traders make decisions based on information

supplied by stock exchange technology
 Electronic stock tickers export data to report individual trades,
share prices and volume.
 Trading activity is submitted to international terminals via
networking equipment. These capabilities increase global
commerce.

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 Risks

 Increased access to information may result in

confusion.
 Today's investors have difficulty sorting through the
infinite amounts of financial products, news and
transaction data that have been made available.

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 ROLE OF IT IN BANKING
SYSTEM
 IT has been used in two different avenues.

 Communication and connectivity

 Business process re-engineering

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ROLE OF IT IN BANKING
SYSTEM
IT enables,
 Product development
 Better market infrastructure

 Implementation of reliable techniques

 Helps the financial intermediaries to reach

geographically distant and diversified markets

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 ROLE OF IT IN BANKING
SYSTEM
 In view of this, technology has change in three
major functions performed by banks
 Access to liquidity
 Transformation of assets

 Monitoring of assets

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 TECHNOLOGY PRODUCTS IN
BANK
 Net banking
 Credit card online
 Instant access
 Mobile banking
 Bill payment
 Card to card funds transfer
 Funds transfer(eCheque)

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 ADVANTAGES OF
TECHNOLOGY
 Conducting business online easily.
 Many features are available,
 Apply for loans.
 Check progress of your investments.

 Review interest rates.

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 Disadvantages technology
 Not always secure
 Before using website of bank, check to make
sure that their deposits are FDIC-insured. if
not you could possibly lose all of your deposits
if bank goes under
 Not all online transactions are immediate.
Online banking is subjected to same business-
day parameters as traditional banking

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 Conclusion:
 Through this system we can perform our daily
tasks very easily and we can achieve our
targets on time which increases the efficiency
of work which is directly proportional to
generation of revenue/profit and organizational
reputation and growth.

Asad Mazhar
 Institute of Business
Technology (BIZTEK)

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