Information technology in banking

This paper argues that since the use of information is a fundamental part of all forms of activities, both corporate and private, throughout society the introduction of a new technology for using information inevitably has widespread effects. These effects are particularly far reaching in those service industries, such as banking, the very heart and essence of whose business is the handling of information.A review of the developments so far in the use of the new information technology in payment systems brings out the essential nature of its effects and shows the all-pervasive influence of the form and capability of the technology itself. It tries to illustrate where the benefits are derived and the nature of illusory gains and undesirable effects. An attempt is then made to derive an historical perspective.To try to anticipate future events, current trends in the technology and in the ways in which its use might change, are identified. The change in the technical means by which financial and other information-based services are delivered is seen to be salient feature of these developments and the important influence upon institutional relationships is discussed under the heading of the politics of the technology. Parallels in the introduction of other new technologies are drawn by way of illustration.The final part of the paper tries to develop a broader perspective and sketches out a longer scenario of the development of information technology indicating the major influence which this is likely to exert upon the development of society throughout the world.