IMPACT OF INFORMATION TECHNOLOGY ON THE FINANCIAL SECTOR

Abstract

Information Technology (IT) is set to play a big role in enhancing the activities of the financial sectors in most parts of the world today. As Singapore is an important financial services hub for emerging markets in Southeast Asia, IT will have a great impact on our financial sector. In this exercise, I would like to examine the changes that have occured in the financial sector of Singapore due to the introduction of information technology. In my discussion, more emphasis is placed in examining the effects of this technology on financial institutions especially banks which have experienced the greatest impact from it. The objectives of this study are as follows: i To explain the importance of IT in Singapore and to discuss its contributions to Singapore's financial sector, especially in the products and services provided by banks. ii To discuss the reasons for banks adopting this new technology. iii To take a closer look into certain innovations in financial intermediaries' products and services, like automatic teller machines, electronic fund transfers at point of sale, counter terminals, etc., and understand how these items function. iv To investigate the belief that machinery and automation will eventually replace human element in the financial sector, thus leading to higher unemployment.