Technology in Banking (Part-02)
The Changing Relationship between IT producers and the Banking Community
The traditional image of the relationship between IT suppliers and their customers is one in which the suppliers provide tools and concepts with the customers must then apply to their business. Today, however, banks and other financial institutions have an impressive amount of influence over IT industry which supplies them. The computer industry is reliant on the IT expenses and innovative uses to which banks put information systems. The importance of IT to modern banking is reflected in the high percentage of banks’ expenditures which is targeted at computing and communication. Despite the growth of packaged software and external services, the majority of this spending still goes on hardware costs and staffing costs. The billions of dollar spent by the IT industry on research and development has to be done with a clear focus on what the financial community, as one of the largest user bases, really wants. This requires that IT suppliers and financial institutions need to establish a new paradigm for the way they manage their relationship [Gandy and Chapman, 1997]
To be continued...
Professor Rafiqul Islam
Faculty of Business & Economics (FBE)