INFORMATION TECHNOLOGY IN FINANCIAL SERVICES

Introduction

Banking is one sector where the all invasive influence of information technology is felt very strongly. Banking is no longer confined to brick and mortar form; there are alternate delivery channels now, essentially technology driven, like ATMs, internet banking, mobile banking, tele-banking, e-banking etc., which have ushered in the era of convenience banking. Technology has resulted in tremendous reduction of transaction costs, speedy execution of voluminous transactions, introduction of new innovative products and services.

Objectives

The subject will develop students’ ability to determine the needs in planning and organizing flow of information, selecting and structuring of data, manipulating, sorting and indexing of data, using appropriate methods for in-time retrieval of required information, Networking and Data Communication. This course also deals with the emerging trends in banking, consequent to the onset of technology. This has been divided into seven sections namely: Computer Systems Concepts, Hardware Technologies, Software Technologies, Network Technologies, Database Concepts, Internet & Electronic Banking.

Section – I Computer Systems Concepts 

Introduction: General system theory, systems objectives,

Types of Systems: Open/Closed systems, well/ill structured, formal/informal, manual/automated systems, sub-systems, distributed systems.

Information flows: Control, feedback, processing, input, output and data.

Section – II Hardware Technologies  

Hardware trends: I/O Devices, processing, storage technology trends, types of computers, Central Processing Units (CPU), server, main memory, cables, different types of cards etc.

Section – III Software Technologies

Software Trends: Software generations, types of software, operating system Open/Proprietary/Shareware Systems: Comparison of various Operating Systems 

Programming Trends: Machine code/assembly/procedural/4^th generation languages (IDE), Object Oriented Languages, Multi-programming, multi-tasking & multi-processing client/server and file server.

Section – IV Network Technologies 

Networking Trends: LAN, WAN, MAN, micro to mainframe links, mobile systems, data transmission options & media, carrier services, types of service providers, network applications, operations, management and control of networks,

Network Hardware: Modem, switch, router, terminal, monitor, primary/backup network server.

Section – V Database Concepts 

Data storage, access and sharing: File processing Vs Database processing, sequential access, direct access, indexed sequential access, file/ record design, relational databases characters /files/records, data types, rows, columns

Conceptual Data Modeling: One-to-many, many-to-many, master/ transactions tables, File layout/ schema/ data dictionary,

Data Management: Database administration, data organization and access profiles

Section – VI  MIS: Managing Digital Firm

Information Systems: A Business Perspective, Contemporary approach to IS, Redefining Organizational Boundaries, Types of IS System.

MIS: Decision Support Systems & Executive Support Systems

Functional Perspective: Finance & Accounting Systems, CRM

Changing Role of IS in Organizations: IT infrastructure & Services, IS & Decision, IS & Business Strategic Making

Introduction Systems Analysis & Design

Section – VII Internet & Intranet

Internet concepts: History, The new IT infrastructure for the digital firm.

Internet tools for communication: Email, Chatting.

The World Wide Web: Intranets and extranets, the wireless web.

Section – VIII Electronic Banking  

e-Banking: Types of  e-banking ( ATM, telephonic, Internet )

The ATM Network: Basic structure and functions, The ATM network design,

Communication infrastructure

E-Commerce:  Categories of e-Commerce, e-commerce payment system, e-Commerce Vs e-Business

Electronic Funds Transfer:  Background, How it works, Process and procedure, Issues involved (security, verification, acknowledgement etc.), Online Banking, SWIFT, Automated dealing rooms, Electronic Data Interchange

E-Products and Services:  Debit cards, Home banking / PC banking, m-commerce, smart cards

Section – IX Risk Management in IT

Accountability, Liability & Control: Ethical Issues, social issues & political issues

System Vulnerability & Abuse: Computer crimes, hacking, viruses & anti-virus software, disaster, security, bugs & defects, user profile, password, transaction logging, backup and recovery

Creating Control Environment: Implementation controls, software controls, hardware controls, operation controls, data security controls, administrative controls, I/O & processing controls

Internet Security: IP control, encryption, authentication, integrating, fire wall, digital signature, secure electronic transaction, e-cash

Developing a Control Structure: Costs & benefits, role of auditing

Ensuring System Quality: SQA methodologies, resource allocation, testing, quality tools 

Core Readings

1. Pakistan, Institute of Bankers                Information Technology in Financial Services

2.        Donald H. Sanders                                Computer Today                                                                                                                                                                                             

3.        Deborah, Morely &                               Understanding Computers : Today & Tomorrow

Charles Parker

4. Kenneth C. Laudon &                           Management Information Systems:

Jane P. Laudon                                       Organization & Technology in

                                                                        Networked Enterprise          

Supplementary Readings

1.         John R. Ross                                        Peter Nortons’ Introduction to Computers                                                    

2.         William Stallings                                    Business Data Communication

3.         Tannenbaum                                         Computers Networks

4.         Gordon B. Davis                                  Management Information Systems : Conceptual

Foundation, Structure & Development

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