Frontiers of Risk Management, Volume II

CHAPTER 7

Developments Within IT and Online Banking

Dilip Krishna

NCR Teradata

Introduction

Information technology (IT) has now become a key enabler of business advantage. Banks such as the Commonwealth Bank of Australia1 and the Royal Bank of Canada2 have used IT to “change the game” in their respective markets. The advent of the Internet has accelerated this trend. There are now real companies generating sustainable profits whose business models are entirely dependent on the wired online world. Many “bricks-and-mortar” financial organizations are becoming increasingly dependent on Internet technology in key functions ranging from customer experience to human resources.

This increased dependency on IT has increased systems-based corporate vulnerability ...