It was emphasized that the use of computers changes the processing, storage, retrieval and communication of financial information and may affect the accounting and internal control systems employed by a bank. The potential for human errors in the development, maintenance and execution of computer Information Systems may be greater than in manual systems, due to level of details inherent in these activities. Through audit reviews, a thorough look and understanding of IS in bank can be seen.

The audit of IS would provide us general understanding of IS in bank, managing authentication of users, access control, data security, data integrity, audit 14 2. Literature Study and Analysis logs, testing, accounting entries, data migration, network and RDBMS security, business continuity and disaster recovery plans, hacking, identification of transaction for substantative checking, use of reports generated by system and documentation. The paper titled “Application of IT in Banking” by K. S.

Rajashekara (2004), talked about impact analysis of IT on banking. The problem of doing proper impact analysis is due to difficulty of measuring output accurately when the quality of service is changing as a result of such factors as convenience, speed, and lower risk. Through IT, banks anticipate reduction in operating costs through such efficiencies as the streamlining back office processing and elimination of error-prone manual input of data. Owing to IT, bank can offer new products and services.

Banks are able to develop and implement sophisticated risk, information management system and techniques with more powerful data storage and analysis technologies. IT has positively affected the stakeholders of bank like management, employees, and customers. Vasant Godse (2005) in paper titled “Technology: An Impact Analysis” talked about role of Information Technology in banking. Banks faced the enormous task of re-orienting their technology infrastructure towards such interactive decision support and information gathering tools, much different from transaction processing and final accounting.

The impact of technology could be on relationship with information technology providers, organizational aspects, banker-customer relationship, control and supervisory aspects, new concepts and processes, which help in further gaining competitive advantage. 15 2. Literature Study and Analysis A paper titled “Information Orientation: People, Technology and the bottom line” by Donald A. Marchand, William J. Kettinger, John D. Rollins (2000), stressed upon the effective usage of information for business performance.

It was stressed that IT improved business performance only if combined with competent information management and the right behaviors and values. The research was applied on banks. Banks were evaluated on three broad scales i. e. IT Practices (including IT practices for Operational support, IT for Business-process support, IT for Innovation support, IT for Managerial support); Information Management Practices (Sensing information, Collecting information, Organizing information, Processing information, Maintaining information); Information behaviours and values (Information Integrity, formality, control, sharing, transparency, proactiveness).

Companies that incorporated a people-centric, rather than merely techno-centric, view of information use and that are good at all three information capabilities would improve their business performance. A paper titled “Understanding the impact of IT-based coordination on the performance of Information-intensive firms: A Gestalt approach in Banking Industry” by Yannis A. Pollalis (2003), moved towards the development of such an explanatory and predictive model of IT-based performance by distinguishing coordination) three that types impact of the organizational performance systems of integration (or nformation-intensive organizations: Technological Integration (i. e. the integration of various IT components such as data, applications telecommunications, and systems); Functional integration ( i. e. , the coordination of responsibilities and roles 16 2. Literature Study and Analysis across a firm’s value-chain activities between corporate and IT planning activities); and Strategic integration (i. e. effective decision-making at all levels, increased productivity and better return on investment).

The organizations with coordinated elements (i. e. strategy, structure, and technology) will be more successful than uncoordinated ones. Banks were chosen as the context for the empirical phase of the study because of their high information intensity and their focus on customer service and cost management. The research indicated the existence of successful and unsuccessful patterns of integration, that is, certain combinations of technological, functional, and strategic integration might lead to better or worse performance. Strategic and Technological integration were found to be most important elements of success, which indicated the importance of consistency between echnological and strategic infrastructure. The paper titled “Learnings from Customer Relationship Management (CRM) Implementation in a Bank” by M. P. Gupta and Sonal Shukla (2004) attempted to highlight the learnings from CRM implementation in the banking sector. CRM systems were particularly relevant to retail financial services companies, allowing much of the management of the customer relationship to be automated with the objective of maximizing the profitability of individual customer relationships while minimizing the cost of managing those relationships.

The study was supported by a case study of CRM systems in a major Japanese Bank—Bank of Mitsubishi and also a field survey of scenario in Indian banking sector. The various issues examined included organizational information, the CRM strategy, strategic changes resulting from CRM 17 2. Literature Study and Analysis implementation, implementation priorities for the banks and the factors indicating the performance after CRM implementation. The study revealed that CRM was gradually picking up and was definitely considered as a viable proposition by banks in improving services to their customers.

One of the major challenges experienced during implementing CRM was resistance to change. To get CRM to work, high commitment was required in those who were implementing it. The paper titled “Impact of Information Technology on the Indian Banking Sector” by Harmeen K. Soch and H. S. Sandhu (2003) emphasized that impact of IT on banking was so radical that it would be a key determinant of success or failure in the industry, a key determinant of whether banks as a recognizable grouping continue to exist, and a key determinant of the differentiation between competitors in financial services.