Hello Guyz: I Am Prabhat Verma. and I Going To Give You Some Interesting

HELLO GUYZ
I am Prabhat Verma. And I going to give you some interesting

Information with my partner Apurva Upadhyay.
So, lets start with me
What is IT?
Meaning of IT
• Information technology (IT) is the use of any computers,
storage, networking and other physical
devices, infrastructure and processes to create, process, store,
secure and exchange all forms of electronic data
• Typically, IT is used in the context of business operations, as

opposed to technology used for personal or entertainment
purposes. The commercial use of IT encompasses both
computer technology and telecommunications.
Key Operational Areas of IT department:
1. Railways
2. Airlines
3. Inventory Control
4. Hotel Management
5. Education
6. Health
7. Entertainment
8. Financial Systems
Lets Understand more about Financial Systems
Meaning
• A financial system is a set of institutions, such as banks,
insurance companies, and stock exchanges, that permit the
exchange of funds.
• Financial systems exist on firm, regional, and global levels.
Borrowers, lenders, and investors exchange current funds to
finance projects, either for consumption or productive
investments, and to pursue a return on their financial assets.
• The financial system also includes sets of rules and practices
that borrowers and lenders use to decide which projects get
financed, who finances projects, and terms of financial deals.
Evolution of IT in Financial System
• The Software Packages for Banking Applications in India had their
beginnings in the middle of 80s, when the Banks started computerizing
the branches in a limited manner.
• The early 90s saw the plummeting hardware prices and advent of cheap
and inexpensive but high-powered PCs and servers and banks went in
for what was called Total Branch Automation (TBA) Packages.
• The middle and late 90s witnessed the tornado of financial reforms,
deregulation, globalization etc. coupled with rapid revolution in
communication technologies and evolution of novel concept of
'convergence' of computer and communication technologies, like
Internet, mobile / cell phones etc.
APPLICATION OF COMPUTERS AND INFORMATION
TECHNOLOGY IN ACCOUNTING AND FINANCIAL
MANAGEMENT
1. Business Accounting and Financial Management are crucial management functions

in every enterprise.
2. Whether you manage a small department, a major division, big company, small
company or your micro enterprise, you work with numbers every day.
3. Numbers are the language of business and industrial enterprises.
4. Use of computers in general and electronic spread sheet in particular can
economically and effectively replace traditional tools of accounting like ledger
pager, stubby pencils, worn-out erasers, desktop calculators etc.
5. Use of computer and spread sheet in today’s complex business can take you ahead
in speed, accuracy and capability
Role of information technology in financial systems
The impact of information technology on financial services also allows

customers to be able to easily complete online transactions, which
creates a better convince in finance, allowing for the development of
information technology and initially create a more fast and efficient
service. Financial reporting is also an industry within information
technology that has greatly impacted the financial service industry. The
growing modernizations that are surrounded around information
technology have greatly enhanced the way we use financial reports.
ROLE OF INFORMATION TECHNOLOGY IN VARIOUS
FINANCIAL SYSTEMS, SUCH AS:-
1. Banking sector
2. Insurance sector
3. Stock Exchange
4. Financial Reporting
IT in Banking sector
1. Entry of new banks resulted in a paradigm shift in the ways of banking in India. The
growing competition, growing expectations led to increased awareness amongst banks
on the role and importance of technology in banking.
2. The arrival of foreign and private banks with their superior state-of-the-art technology-
based services pushed Indian Banks also to follow suit by going in for the latest
technologies so as to meet the threat of competition and retain their customer base.
3. Indian banking industry, today is in the midst of an IT revolution. A combination of
regulatory and competitive reasons have led to increasing importance of total banking
automation in the Indian Banking Industry. Information Technology has basically been
used under two different avenues in Banking. One is Communication and Connectivity
and other is Business Process Reengineering.
4. At most banks, each functional area ticks by a narrow set of parochial metrics (for
example, sales is driven by revenues, and financial control is occupied with cost
containment). Consequently, adopting more holistic performance indicators entails
major cultural shifts across the organization.
IT In Insurance Sector
1. The information technology has a huge impact on the insurance industry

Productivity and efficiency: The productivity all the functional
management centres has increased.
2. The sales team has easy access to the company web site, and special
software are provided by the companies to calculate premium, show
benefits illustrations and know the status of the proposal forms.
3. The operation team has access to data of issued policies/lapsed
policies/renewal premium dates.
4. The underwriters have all the data in digital form and can take the
prompt decision
IT in Stock Exchange
• Stock markets across the globe are using information technology

advancements for secure transactions, management and monitoring.
• There was a time when brokers used to yell at each other for exchanging
orders creating a whole cumbersome environment. But today’s high trading
goes without yelling and provides a great way to research and purchase
stock.
• By inculcating information technology, the stock market has become more
user-friendly by providing faster trade settlement, increased transparency,
enhanced security, automated surveillance, and a lot more.
IT in Financial Reporting
1. Auditors & Regulators – Data analytics has allowed auditors to perform audits more efficiently
and potentially provide higher quality reporting. It has also allowed them to deliver reports more
frequently.
2. Investors – Investors are constantly looking for structured quantitative data to see the progress of
their investments. With newer financial technology, investors can now receive more insightful and
faster analysis in real time. This also allows analysts to perform better forecasting analysis that can
potentially help companies and investors understand what the next steps can be. In turn, with these
improved analyses, investors can make higher quality investment decisions that can positively
affect the market.
3. Policymakers – To improve society as a whole, regulators and policymakers must also have a strong
understanding of current events. With many technological limitations, lawmakers used to be limited
to outdated reports that could have been months or even years old. With today’s advancements, data
can now be extracted quickly and can be provided in more useful formats that can help to improve
policymakers’ understanding of current situations inherent in society.
Conclusion
• The first set of applications that could benefit greatly from the
use of technological advances in the computer and
communications area relate to the Payment systems which
form the lifeline of any banking activity.
• Internet has significantly influenced delivery channels of the
banks. Internet has emerged as an important medium for
delivery of banking products & services.
• Detailed guidelines of RBI for Internet Banking has prepared
the necessary ground for growth of Internet Banking in India.

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HELLO GUYZ

I am Prabhat Verma. And I going to give you some interesting

• Typically, IT is used in the context of business operations, as

1. Business Accounting and Financial Management are crucial management functions

The impact of information technology on financial services also allows

1. The information technology has a huge impact on the insurance industry

• Stock markets across the globe are using information technology

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