Chief Information Officer’s Role in E-Banking Essay

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Updated: Jan 22nd, 2024

Introduction

In the contemporary business world, competition has increased, and managers have been devising strategies to enable them to gain a competitive edge. One of the key strategies has been the use of information technology as a tool to enhance business operations and at the same time to reach to a wider market through online services. In the banking sector, there has been a revolution which has seen many banks shift attention to the use of online platforms to facilitate the customer experience. Bearing in mind that IT has become an important component of modern business operations, there is the need for IT executives to come up with strategies that ensure technology delivers value to businesses. Today, it is common for organizations to divert a lot of resources in processes that enhance IT. Therefore, the following paper centers on emerging trend of e-banking. The paper defines the roles of CIO in trying to align the e-banking.

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Theoretical Understanding of E-Banking and CIOs’ Job

E-banking or virtual banking entails the use of electronic payment to carry out transactions on the institutional website. This implies that the bank provides an online platform in which the customer can transfer funds from one account to another. In the current business environment especially in the banking sector, the bank CIOs have become integral players in aligning the business to strategies that will help it gain a competitive edge. Being tech-savvy has become a part of business acumen. Thus, the CIOs are tasked with great roles to assist their banks to overcome increasing competition and at the same time to ensure that they comply with regulations for e-banking. It is apparent that CIOs have to devise strategies that ensure that e-banking processes are in line with the prevailing business environment. For instance, the IT executives have to put a lot of focus on technological innovations that increase the focus on the customers in the e-banking.

E-banking has increasingly become prevalent, in which financial institutions use to reduce the costs that are associated with the physical service provision to the customers. It has improved the flexibility of business transactions and ensured that there is better service for all. Also, the technology has been critical in changing the way retail banking is carried out. As a result, CIOs are supposed to foster relationships inside and outside of a business enterprise to strike a balance between the business mandate and the e-banking initiatives. This implies that they have a role of instituting strategies that ensure that processes of e-banking provide excellent customer experience and the other services provided on the bank premises.

It is common that retail banks and other financial institutions of different sizes have been taking measures to capitalize on the modern technology, i.e., they are aligning to the digital age. To achieve the transformation and fit in the digital age the CIOs are placed as front runners of delivering success. This is because of the unique positions they hold in fostering collaborations across the entire business. For instance, in e-banking CIOs are tasked with ensuring that there is an IT value chain which is key to linking the online processes to other activities of the bank in a seamless manner.

Implementation of E-banking

The implementation of e-banking is done by considering the needs of the customers and that of the bank. It is through needs assessment that different services are created to enhance the usage of e-banking. Also, the implementation is based on understanding the forces that drive the IT sector. One of the key drivers is the accelerated pace of innovations that are technologically enabled. For instance, the opportunities for enhanced service provision through the virtual platforms. Also, there is the need for customer-centric initiatives in which the CIOs are supposed to prioritize service-oriented strategies to ensure that e-banking for the business remains relevant.

The CIOs are tasked with putting in place measures that ensure that there is an online platform that is secure for use by the customers. The platform takes into the consideration that e-banking is a high order construct that has many facets. It can help the bank to expand exponentially due to the efficiency. However, there are challenges that CIOs have to address to ensure e-banking is used efficiently. One of the challenges has been the security of e-banking; it requires security features that protect the customer’s data and that of the bank. However, the increase in the internet technology has also seen a rise in the internet scams that can be used by criminals to penetrate the bank security system and obtain crucial data that can be used to hurt the financial institutions. It is important to note that with the increasing use of Smartphones, the e-banking services are normally customized to applications such as Android that are commonly utilized in the Smartphones, and they can compromise the data security of the customer and the bank.

Conclusions, Recommendations, Lessons learned

Conclusions

The paper has presented a brief about e-banking, its roles in the banking sector and the roles of CIOs in ensuring that it delivers the desired values and processes to the bank. It has been established that e-banking is a revolutionary customer service strategy that is not just limited to banking via the internet. It encompasses the processes in which the banks use computer, and mobile phones to provide information to the customers. IT executives in the field of e-banking are tasked with many roles of ensuring that banks leverage the technology to enhance customers’ service and efficiency. It is apparent that IT executives have an immense role to play in order to ensure that e-banking delivers efficient services to customers.

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Recommendations

Despite the increasing roles of CIOs in aligning e-banking services to ensure that both the bank and the customers benefit, the challenges of security have remained to be a big issue. For e-banking services to be highly acceptable to customers, it is recommended that the banks come up with modern security features. For example, CIOs should foster partnerships with the technological leaders in the field of online security in order to set up systems that guarantee the safety of the data. Also, for the e-banking to be effective, there is the need for clear policies and regulations that will deliver secure platforms that enhance value for the entire banking system.

Lessons Learned

I have learned that in the modern business environment, technology is a key feature of banking and it forms the next frontier in revolutionalizing the industry. As a result, CIOs are supposed to guide the process and ensure that IT is used in a manner that value is created for both the bank and the customers. The CIOs are expected to lead and at the same time come up with strategies to contain innovations by coming with regulations on how data and networks technology are used. For instance, it is the role of banks to lead innovations by forecasting the technological requirements for new applications and services in line with the industry requirements.

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Reference

IvyPanda. (2024, January 22). Chief Information Officer's Role in E-Banking. https://ivypanda.com/essays/chief-information-officers-role-in-e-banking/

Work Cited

"Chief Information Officer's Role in E-Banking." IvyPanda, 22 Jan. 2024, ivypanda.com/essays/chief-information-officers-role-in-e-banking/.

References

IvyPanda. (2024) 'Chief Information Officer's Role in E-Banking'. 22 January.

References

IvyPanda. 2024. "Chief Information Officer's Role in E-Banking." January 22, 2024. https://ivypanda.com/essays/chief-information-officers-role-in-e-banking/.

1. IvyPanda. "Chief Information Officer's Role in E-Banking." January 22, 2024. https://ivypanda.com/essays/chief-information-officers-role-in-e-banking/.


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IvyPanda. "Chief Information Officer's Role in E-Banking." January 22, 2024. https://ivypanda.com/essays/chief-information-officers-role-in-e-banking/.

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