Grade 12-Impact of It in Business

IT in banking and finance

"Information Technology (IT) has revolutionized the banking industry, enabling efficient operations, enhanced customer experience, and the development of innovative financial products."

Database Management and Record Keeping

• Traditional Methods: Discuss the challenges of manual record keeping, including physical storage space, accuracy, and efficiency.

• IT Solutions: Explain how databases are used to store and manage vast amounts of transaction data, ensuring security and accessibility.

• Benefits: Highlight the advantages of IT-based record keeping, such as improved accuracy, reduced costs, and faster retrieval of information.

IT in banking and finance

You have already studied how IT is used in the development and management of a range of electronic currencies.

Banks rely heavily on the use of IT to keep very large databases of records about all the transactions that are made on a daily basis. If this had to all be recorded on paper, the physical storage space required in buildings to do this would be immense!

IT is used to enable people to access physical currency through the use of ATMs. The introduction of IT for this purpose meant that people no longer needed to queue in the bank to withdraw their money. It also introduced the ability for people to access their money 24 hours a day, and not only when the bank was open.

Many banks now also provide access to an online bank account using a mobile app. Customers download the app onto their mobile device, set up access to their account by entering their personal details, and use their login details (or set up new ones) to access their online account using the app.

ATMs and Automated Services

• Before IT: Describe the limitations of traditional banking, including long queues and limited access hours.

• IT Impact: Explain how ATMs were introduced to provide 24/7 access to cash, reducing wait times and improving customer convenience.

• Other Automated Services: Discuss other IT-enabled services, such as automated teller machines for deposits, bill payments, and balance inquiries.

Features: Discuss common features of mobile banking apps, such as bill payments, transfers, account balances, and investment options.

Evolution of Online Banking: Trace the development of online banking from early web-based platforms to modern mobile apps.

Online Banking and Mobile Apps

Benefits: Highlight the advantages of online banking, including convenience, accessibility, and real-time transaction monitoring.

Online banking services now allow people to check their bank account quickly using IT.

They can carry out most banking services online, such as:

• checking their bank balance

• viewing bank statements

• setting up direct debits

• applying for loans and overdrafts

• paying bills

• transferring money between accounts.

Open Ended

"Imagine having to travel hours just to deposit a check or withdraw cash. How would this affect your life?"

Answer

Online banking has significantly improved accessibility and choice for consumers, allowing them to access financial services more conveniently and independently."

​Limitations of Traditional Banking

• Geographical Constraints: Discuss the challenges faced by individuals living in rural or remote areas, where bank branches may be scarce.

• Limited Choice: Explain how the availability of local bank branches often restricted consumers' options for choosing a bank.

• Inconvenience: Highlight the time-consuming nature of traditional banking, requiring individuals to visit physical branches for various transactions.

Advantages of Online Banking

• Definition: Provide a clear definition of online banking and its key features.

• Benefits: Discuss the advantages of online banking, including:

  • Accessibility: Emphasize how online banking eliminates geographical barriers and allows individuals to access services from anywhere.

  • Convenience: Explain how online banking saves time and effort by enabling 24/7 access to accounts and services.

  • Choice: Discuss how online banking has increased competition among banks, offering consumers a wider range of options and potentially better rates.

Impact on Financial Inclusion

Discuss how online banking has contributed to financial inclusion by making banking services accessible to previously underserved populations.

• Reduced need to visit a branch: Many banking services can be accessed online.

• Avoidance of queues: No need to wait in line at a bank branch.

• 24/7 access: Banking services are available anytime, anywhere.

• Convenience: Use banking services from the comfort of your home.

• Real-time transaction viewing: Access transaction history immediately without waiting for paper statements.

• Better deals: Some banks offer better interest rates and loans for online banking customers to reduce costs.

• Investment management: Set up and monitor online investment portfolios.

• Financial services applications: Apply for loans, mortgages, and insurance online.

• Comparison shopping: Easily compare deals from different financial companies.

• Aggregate websites: Find the best deals for your needs through comparison websites.

There are many advantages brought about by online banking.

​"Information Technology (IT) has revolutionized the way businesses operate and consumers shop, leading to the rise of e-business and its far-reaching implications."

​"Imagine a world without online shopping. How would you purchase your daily essentials?"

The Transformation of Business

• Traditional Business Models: Discuss the limitations of brick-and-mortar stores, including high overhead costs and geographical constraints.

• E-Business Revolution: Explain how IT has enabled businesses to establish an online presence, expanding their reach and reducing operational expenses.

• Advantages of E-Business: Highlight the benefits of e-business, such as lower prices, convenience, and global market access.

The Impact of IT on News and Media

How has the way we consume news changed in the digital age?"

"Information Technology (IT) has revolutionized the way we access and share news, offering both benefits and challenges."

Social Media as a News Source

• Rise of Social Networking: Discuss the increasing popularity of social media platforms and their role in disseminating information.

• Real-time Updates: Explain how social media provides immediate access to news stories from around the world.

• Citizen Journalism: Explore the phenomenon of citizen journalism, where individuals use social media to report on events and share their perspectives.

The Double-Edged Sword of Citizen Journalism

• Positive Impact: Highlight the benefits of citizen journalism, such as providing unfiltered accounts of events and holding authorities accountable.

• Negative Consequences: Discuss the potential drawbacks, including the spread of misinformation, biased reporting, and privacy concerns.

Personalized News Feeds

• Technology Behind News Feeds: Explain how algorithms are used to curate personalized news feeds based on user preferences.

• Benefits: Discuss the advantages of personalized news feeds, such as saving time and providing relevant content.

• Challenges: Address the potential risks of filter bubbles, where users may be exposed to a limited range of viewpoints.

The Rise of Online Shopping

• Factors Driving Growth: Discuss the key factors that have contributed to the popularity of online shopping, including technological advancements, improved internet connectivity, and changing consumer preferences.

• Convenience and Accessibility: Emphasize how IT has made online shopping more convenient and accessible, particularly with the advent of mobile devices and apps.

• Customer Experience: Discuss the benefits of online shopping for customers, such as personalized recommendations, easy returns, and 24/7 availability.

The Environmental Impact

• Reduced Transportation: Explore the potential environmental benefits of online shopping, such as reduced transportation emissions due to fewer trips to physical stores.

• Increased Deliveries: Discuss the potential negative environmental impact of increased delivery traffic, particularly in urban areas.

• Product Returns: Address the issue of product returns and their contribution to transportation emissions.