Abstract:

Information technology has become a key element in economic development of many countries in the world. The evolution phase of the world today is by the development and application of various technologies in businesses, the global market, industries and personal affairs. Organizations today are confronted with rapidly changing market conditions indicated by high merger rate and strong competitors. Information Technology has provided self-serving capacity for users where accounts and transaction details can be accessed at any point in time through available and connected networks. Financial institutions have come to recognize the positive impact of information technology to work processes and the usefulness of technology in reducing costs and optimizing resources while carrying out functional operations. This therefore calls for a need to embrace information technology. IT have been developed to reduce costs while yielding high productivity level in operations and performance. With high quantity input, information technology aims at cutting down costs and releasing quality outputs (Powell & Dent-Micallef, 1997). Madadipouya (2015), stated that this objective of IT would increase the competitive advantage of firms at a large scale. The characteristics of information technology are used for providing up-to-date information, quicken operations, ease access to communication and transfer of information and reduce costs. Effective application of these features would lead to quality improvement, reduce wastage and add overall value to the company.