Accounting System in Australian Banks-Free-Samples for Students

Question: Discuss how the Information Technology has affected the Accounting System in Australian Banks? Answer: Literature Review Introduction Banking industry is the heart of every strong economy and IT and communication is an inherent part of banking. To cope up with the development on a global scale, modify the system of customer service delivery, lessen the cost of transaction, Australian banks have started investing to implement information and communication technology. Adopting the implementation of ICT has been beneficial for providing a wide range of services and goods. Developing the information and communication technology tools has a notable effect on the development of customer- friendly banking services. Due to globalization and competition in the banking industry by the service providers it has become necessary to understand the aspect of customer behavior after responding to the customer service delivery. This paper reflects the review of the previous researchers to analyze the impact of information and communication technology on the accounting system. Customer service and satisfaction are the prime factors of this research along with the impact of banks performance and delivery of customer service in the banking sector is a wide area. While, the areas related to the customer point of view are considered to be less debatable (Asongu, 2014). Background To understand and scrutinize the impact of the information and communication technology on the performance of the Australian bank, the researcher reviewed several journals, literature and articles regarding the subject. Due to the recent competition and globalization banks these days have started offering 24 hours of services but still there arises question about safety and inconvenience. Information and communication technology tends to offer the services like reducing of payroll expenses and increasing the market share along with the profit and revenue. The crisis situation has lead to reduction in income of the banks and strategic responses are also hampered. The trend of internal cost cutting, accusation and mergers seem to alter the shape of banking industry. The paper shows if the banks have had enough income and providing high quality services. It finds out the significance and impact on the performance of the bank and the delivery of customer service. The important issues tha t can help in preventing the customers from facing inconvenience are ease of use and being compatible with the life style (Gossart, 2015). Aim and objectives The aim of this research is to identify the characteristic of the customers in contemporary banking industry, find out the factors influencing the service availability of customers after adopting ICT and to analyze the strategies that can help in reducing the challenges faced by the Australian banks. Role of ICT in Banking Whenever there is any crisis the bank suffers insufficiency. Improvised information and communication technology which is supported by a better control of mechanism is needed to convince that information and communication technology has attained the necessary process of insufficiency. A review of some literature by researchers showed that information and communication technology or ICT might have a negative impact on the efficiency of banks and lead to a decrease in productivity. As ICT has become modernized, there is outstanding improvement in the overall procedure of the banks. Development of the banks worldwide has decreased the value and transfer of global funds. Such banks that use ICT related products like information exchange, electronic payments, security investments, online banking and financial organizations can provide the best quality of customer services with much lesser effort (Heeks, Subramanian Jones, 2015). The two beneficial outcomes for the merging of ICT and bank s performance are- ICT is responsible for lowering the operational cost of banks. For example, internet facilities in banks have sped up their system and have accomplished standard value with extra transaction like payment of bills and enquiring about balance through online. ICT can also help in promotion of transaction among customers who are in the same network. ICT has totally amended the shape and size of competition in the banking sector. According to some researcher it is claimed that the positive impacts of ICT expenses to business value are approved. The interest of network effect is remarkable in using the ATMs or Automated Teller Machines. The influence of the evolution of ICT on the cost effectiveness and profit of the banking sector within a time period, describes the relationship between the usage of ICT, cost savings and productivity. ICT or information communication technology has a large impact on the level of firm. It is determined that IT capital contributes to 81% of increase in output and non IT capital contributes to 6%. In the same way it is elucidated that information system professionals are more than double the productivity of the non information system professionals (Holtgrewe, 2014). Challenges of IT application The significant changes in banking sector have forced them to improvise their services and strategies. The primary challenge faced by the banks are to hold on to advancing ICT for creating and retaining long term relationship with customers by adopting new techniques that help in electronic banking. The review has showed that ICTs are an appropriate medium for operation of banking activities with the customers because of saving cost and the speed at which information is disseminated. Global banking industry is the most updated industry with respect to the usage of mobile and internet technologies. Most of the countries, especially the developing ones are yet to embrace the technologies (Khan Fasih, 2014). Due to this reason both the banks and the customers are likely to face hurdles. There are certain factors which indicate that banking sector can use their self- service technologies for building relationships. The infrastructure of Australian banks is another challenge faced by the m which should be better in order to serve the customers better. Their need to associate for new technological equipments will provide a standard service on part of the banks. They also need to improve their IT system and develop the operational activities of the bank. There is a need for them to modify the contemporary telecommunication infrastructure. Governments and the Australian citizens need to be more aware for gaining long term investments in the telecommunication industry. They should also emphasize on the maintenance of the previous infrastructure and the equipments (Moradi-Motlagh Babacan, 2015). Consumers behavior Consumer behavior is such a characteristic that needs regular observation. Standard of living, urbanization, increase in awareness, deregulation, globalization, has resulted in the increase of preference change which has forced the banks to change their original features of products and the customer service delivery. Observing and studying consumer behavior is necessary in the banking sector to know about the needs and wants of the customers so that the services can be offered accordingly. Customers have their demand in a specific segment and banks need to study their characteristic in order to meet that specific demand (Salahuddin, Alam Ozturk, 2016). Research questions To what extent has IT affected the financial performance of Australian banks? To what extent the use of IT has helped the employees of Australian banks in their operational activities? Methods of analysis The research could be done with a proper plan and methodology by collecting secondary data. It refers to the data collected from the journals, books or articles of the previous researches. For the successful completion of the research both primary and secondary data needs to be collected. But in this research only secondary data needs to be collected which will the researcher to go through the articles, books, journal that has already been published (Sassi Goaied, 2013). Activities Week 1 Week 2 Week 3 Week 4 Selection of topic Literature review Methodology Secondary data collection Interpretation and analysis Recommendation Conclusion Final submission Table 1: Gantt chart Source: As created by the author Conclusion Banking sector is the main platform on which every economy stands. There are various challenges like competition, deregulation, globalization, and an increasingly high cost for installation of ICT and their maintenance. Utilizing of ICT can help in reducing the cost but the impact on the profitability is indecisive due to the possible outcome of ICT. The feasible result arises because of the consistency in an increasing demand for skilled labor, high expectation from the customers end to meet the service delivery, truthfulness of the information system and competence in the financial services. This assignment has focused on some reviews from the literature where the authors did not find ICT, for delivering customer service and profitable for banks financial performance. Moreover, there are studies that state that as a result of the risk of security, lack of awareness, lack of convenience or comfort or age factor or may be some other reasons are responsible for rejection by the custom ers. In spite of these factors, banks sometimes are unable to provide high quality customer services due to which customers who were ready to adopt the new system moved back. Banks sometimes failed to build up the required electronic system for customers which made them shift away from the new innovation. References Asongu, S. A. (2014). Knowledge economy and financial sector competition in African countries.African Development Review,26(2), 333-346. Gossart, C. (2015). Rebound effects and ICT: a review of the literature. InICT innovations for sustainability(pp. 435-448). Springer, Cham. 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