Impact of Innovation Technology in Banking Sector

The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka  the information technology and its impact in efficiency and effectiveness of the banking sector in sri lanka (with refernce to people’s bank and plc commercial bank plc in sri lanka) author: m. r. m. fazmeer 2005/2006 fmc south eastern university of sri lankaWhat is information technology? The study or use of computers and telecommunications for storing and sending Information (Oxford dictionary, 2003) â€Å"The information technology refers to all forms of technology applied to processing, storing, and transmitting information in electronic form.The physical equipment used for this purpose includes computers, communication equipment and network, fax machines, and even pocket organizer. Information on system executes organized procedures and/or communicates information. We define Information as an intangible or intangible entity that severs to reduce uncertainty about some state or event. Data can be originated from the internal operation of the form external entities such as suppliers or customers. Data also come from external data bases and services, for organization purchases a great deal marketing and competitive information.An information technology usually process these data in some way and present the results to users with easy availability of personal computers, users often process the output of formal system themselves in an ad ho manner. Human interpretation of information is extremely important in understanding how an organization reacts to output of system . Different result may mean different things to two managers. A trends or problems with sales. A financial manager may see problems with cash flow given the same sales data, where the marketing manager may use the statistical programs and graphs to look for trends or problems with sales.The recipient of a system’s output 2 1 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka may be an individual, as in the examples of the marketing manager, or it may be a workgroup. Many systems are used routinely for control purpose in the organization and require limited decision making. The accounts receivable application generally runs with little senior management over sight. It is a highly structured application with rules that can be followed by a clerical staff.A department manager handles exceptions. The output of some systems may be used as a part of a program or corporate strategy. The system it self could be implementing a corporate strategy, such as simplifying the customer order process. A system might help manager make decision. Information technology, however, extends far beyond the computational capabilities of computers. Today, computers are used extensively for communications as well as for traditional roles of data storages and computations. Many computers are connected t ogether using various kind of communication line to form networks.Through a network, individuals and organization are link together and these linkages are mass market networks like CompuServe, America on – line, and prodigy are a more recent phenomenon of course, the most famous network of all is the internet and shall explore its potential for business. Today every organization is faced with various information technology architectures. A manager is always concerned with various sources available for product and services. In the technology field. There are options on suppliers for both hardware and software.The area of information technology as an integration of communication technology. (Asoka S. Karunananda,1998) History of Impact of Information Technology In 21st century, the role of information technology is very important in every sector, whether it is agriculture industry and services. The information system’s functions in an organization have expanded significa ntly over the years. Information systems of the 1950’s forecast on reducing the cost of routine paper processing, transaction data processing, record keeping, accounting and other electronic data processing.By the 1960’s organizations started viewing information system differently recognizing that information system could be used for general management support, such system was called as Management Information System (MIS) that collected, stored and processed were seen as providing special purpose, customized management control over the organization, such 2 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka system were called Decision Support System (DSS) and Executive Support System (ESS).Their purpose was to improve and speed up the decision making process. Now information technology has become very important all activities of the organization. On the other hand, service sector more contributes to the economy of the country under the service of the banking sector is very important one. In our country, there are two forms of banks namely, State banks and private banks. The State banks are financed by the government through budget and controlled and managerial functions are carried out by them.On her hand private banks are financed by private sector itself and control and management is in the hand of them. Today we can see the private bank highly use the information technological systems in their every activity rather than in state banks. So, for my research study purpose I’m taking the sample as People’s bank as a state bank and Commercial bank as a private bank. Now information technology is changing day by day. So these two banks introduced system to their organizations. So information technological system has become the one of the important resource of the organization.Today world is globalized. It has startling polemical phe nomenon that brings nations into â€Å"one global village† with â€Å"One broad less economy† so the effective and efficient use of information technology is vital to the organization. Information technology is vital like other resources such as man, money, material, machinery and methods. Without information technological system cannot function in the competitive market. The banking sector is very important to the country because it has contributed lot to the country’s national income.And also each and every bank facilitates to every citizen to maintain accounts and other facilities as well. So there is a need to identify the impact of the information technology on efficiency and effectiveness of banking sector. In the case of Sri Lankan banking sector there are two leading domestic banks one is People’s bank another one is Commercial bank PLC, and IT usage of People’s bank (state bank) in their banking activities are very rare with Comparing with Commercial bank PLC (private bank).So we need to find out the reasons for the varies of IT usage between state banks and private banks. 3 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka The Importance of information technology Organizations have various managerial levels. These all managerial levels have different managerial functions, such as planning, organizing, staffing, and controlling. These functions are necessary for successful organizational performance.To support these functions, especially planning and controlling systems for supping information to managers are of special importance. Only with accurate and timely information can managers monitor progress toward their goals and turns plans into reality. (Peter Drucker, 2000) The manager must handle the information system effectively and efficiently to achieving their goals of an organization. Therefore we have seen information, requirement of information organization characteristics of information and information system of their types.Information is not natural resources. Data are facts, events, transactions and soon witch have been recorded. They are input raw materials from which information is produced. Briefly data is pool of observation . Information is data that have been processed in such a way as to be useful to the recipient, in another view the information is a statement about the structure of an entity that enables a person to make a decision or commitment. System is a group of components that interact to achieve purpose.Commonly, system 3 basic components they are inputs, output and processing. In this way information system is a group of components that interacts to produce information. Here data or raw materials as input information as output is gotten and processing component help to change the inputs to outputs. Briefly the minimum information system consists of people, proced ure and data. People follow procedures to manipulate data to produce information. The following figure explains it. Impact of Information Technology (Henry C. Lucas. 998) Many times information technologies have failed because the reactions of users were ignored or because designers did not consider the impact of the system on the organization. A technology elegant system is successful only it is used. Most 4 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka early studies of the import of computers were completed after the systems had been installed. These studies were broad not are and in general were not oriented toward the design of better information system.More recent research has leg to the development of a mode of information systems in the con text of the organization, that describes how in formation systems impact and in tract with organizations. From this mode it shou ld be possible to predict the impact of systems in advance and plan for a successful inter face with the organization Best – known sets ore dictions for the impact of computers on organizations (Leavitt and whistler 1998) These authors sequester that firms would recentralize as a result of new computer technology, the availability of more information than previously possible would allow management centralize.The trend until the development of computer technology to word decentralization because centralization. Management could not cope with the amount of information and number of decision required in lounge organization. Computers offer the power to make centralized management possible so the organization can be tightly controlled by a group of top managers.Little evidence supports this early redetection (Lucas 1975) another problem in validating precisian of computer impact occurs in defining variables such as centralization and decentralization (Information systems concepts for management Moreover, early predictions assumed that decentralization is negatively motivator there make other reasons to decentralize In other hand the information technology effect the distribution of power among the department of the organization. Different departments in organization have different levels of power and a theory proposed by Hick son et al (1971) offers some insight into these power relationships.As were shall see, the information services department meets conditions that are describes by the Hick son et al for high power, and by its activities, this alters the distribution of power in the baking sector. There are four major conditions describes by the several researchers. The one hypothesized determinants of power is the extent to which the department copes with uncertainty for other departments. Uncertainty is destined as the lack ok information about future events that make their outcomes less predictable. An information services 5 AUTHOR: M. R. M. FAZMEER 2 005/2006 FMCSOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka department cope swath aureate deal of uncertainty for user departments. When a new system is designed the user often yields control over an operation to the information services department. For example consider the department that used to prepare budget statements manually but that has just implemented a computer system to process budgets. Before the information technological system. When a gluepot clerks and analysts prepared the budget the manager of the department had complete control.If the department was behind schedule the manager could arrange over time or employment help to see that job was completed. A solution to most problems wow within the manager is own department Now, with the computer system, the manager has added uncertainties about whether the information services department will finish processing on time and with acceptable accuracy. The development of this computer system has created uncertainty for the manager where non existed before. Interesting enough, only the information services department can cope with this new uncertainty.The information department of every organization is very important in every organization. So the uncertain ting also controlled by the information services department. A second hypothesized department of high power is whether or not a department can be replaced easily. These are a few alternatives to mature information services department. Dissatisfied company management could hire an entirely new computer staff, but this would create chaos during the transition period. One can also turn to service bureau for processing, but it would be difficult and expensive to covert all present applications.Another alternative to the information services department is a facilities management arrangement in which a consultant contracts to run an information service services department. However, most f acilities management contractors hire proportion of the people currently working in the information services department. A facilities management agreement also meets hesitance form management, which is often uneasy about hexing another organization responsible for the processing of vital information. These for a mature information services department, there are not many possible substitutes. AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka A third proposed determinant of high power for a department is the number of links between other department, the great its power clearly, here is another situation where the information services department has the potential for becoming quite powerful. The information services department may accept input from a wide variety of departments in the organization and provide the all with some type of service.The importance of each link also must be considered in assessing departmental power. It a link were separated, how long would be only an in convenience; In most organizations the final output would no the affected drastically. For the information services department, the number of links and the importance of out put depend on the type of applications developed. Transactional and operational control systems are usually associated with greater power since these systems have immediate impact on workloads in the company.Most organizations, For an examples, are heavily dependent or on line transactions processing systems. The degree of interdependence between the department of interest and all other departments in the organization is a final condition for power, The greater the dependence of department marketing on department human resources department, the greater is department Marketing's power. The information services department tends to exhibit reciprocal interdependence with user departments. That is the information se rvices department and user departments mutually depended each other to process work, and unfortunately.This type of mutual dependence is the most demanding An information services department depends on users during systems design to supply information and provide and understanding of what is needed. On the other hand, the user is dependent on the information services department for the technical aspects of design and for seeing that a system is implemented. During operations, the user must supply input and help maintain the database. The user in turn is dependent on the information services department to provide processing services.Information Technology (IT) refers to hardware, software, procedures, personnel, and data employed in the production, dissemination, and utilization of information, both formal and informal, in an organization (Davis and Olson, 1985). While traditionally IT has been 7 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka defined to include only â€Å"formal† information systems, such as reporting systems generated by a database, increasingly IT is utilized to facilitate informal interpersonal communication.The key technologies include computers, computer-controlled devices, and telecommunications networks; we also include electronic mail, teleconferencing, voice mail, and facsimile transmission as part of IT. IT consists not only of tangible pieces of equipment and programs; it represents the capacity of the organization to produce, disseminate, and digest information. IT has been used in a number of ways including the mechanization of information processing, the augmentation of knowledge work, and for supporting coordination in the organization.A significant amount of investment in IT is for basic mechanization of the records of production and distribution of goods and services (e. g. , invoices) or the actions themselves ( e. g, electronic money transfer). A centralized database makes it possible to produce and disseminate information for management control as a by- product of mechanization. This category also includes technology used for manufacturing such as CAD/CAM and computer-integrated manufacturing (CIM). Information technology also contributes to the support of individual workers.Drucker (1964) identified â€Å"knowledge work as a specifically human activity, distinct from physical labor which could be automated. The notion of augmentation was first defined by Englebart (1963) as â€Å"increasing the capability of a man (sic) to approach a complex problem situation, gain comprehension to suit his particular needs, and to derive solutions to problems† (p. 1). Today, personal computers are used widely by individuals to augment knowledge work. Increasingly IT is being used to increase the ease of connection between individuals, organizational units, and even different organizations.Applic ations such as electronic mail, voice messaging, and facsimile transmission facilitate the communication and coordination of information required for organizational Processing. Some terms used for this class of applications are: interpersonal computing (Goldberg, 1987), coordination technology (Holt, 8 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka 1988; Malone, 1988), groupware (Richman, 1987a), and computer supported groups (Johansen, 1988).Efficiency and Effectiveness of Information technology Advances in information technology and intensified competition in the marketplace have contributed to the timely delivery of products and ser- vices. This in turn has contributed to increased benefits and reduced costs of IT project management. Depending on the size, scope, and complexity of a project, a number of conflicting elements challenge IT project management. Project deliver y may address the equally important need for reliability in delivering the project as promised, as well as its cost and benefits. equirements for effectiveness and efficiency in IT project management. Given the critical importance of project delivery and reliability as well as the economic rationale in project planning and implementation, the future of any business will be determined by how well projects are managed today. In general, short period cycle times may lead to substantial incremental earnings while the penalty for long project cycle times may mean missing market opportunities al- together. In addition, multi-project organizations may often tend to launch projects as soon as they are understood.These organizations launch the projects concurrently with existing projects, simultaneously with other new efforts, or without sufficient regard to the capacity of the organization. This would commonly lead to an array of projects with conflicting priorities. Project resources and m anagers are responsible for sorting these priori- ties. Of particular concern in this regard is that the priorities established within a functional area may not be in synchrony with other areas, or more importantly with the company-wide priorities.It can be argued that smaller projects are more manage- able and it is usually easier to ensure their success, and thus, smaller projects are more likely to succeed than large projects. On the other hand, one can argue that larger projects would have more funding and resources and therefore should have a higher probability of success. However, 9 The recent developments in IT have also brought significant ramifications with regard to the critical AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKAThe impact of IT in efficiency and effectiveness of banking sector in Sri Lanka we argue that while the smaller projects may be more manageable, project management can be the critical factor in ensuring the success of the p rojects, regardless of the size. Some of the critical factors to project success are user involvement, executive support, and a clear statement of business objectives In this context, SWOT analysis and the Theory of Constraints provide a comprehensive framework that can address the effectiveness and efficiency of project planning. (Sabbaghi and Vaidyanathan, EDSIG, 2003, p. 2) (Wei, et al. 2002) proposed a resource con- strained-based project management model for project planning, implementation and control. The research does not include Theory of Constraints as a tool for effective project selection. Another model used SWOT analysis to make decisions on effective use of resources for housing projects (Ziara and Ayyub, 1999. ) The methodology considered both the options and constraints of relevant socio-economic factors in the planning and construction of urban housing-project developments. A selection of R&D projects models consist of integer decision variables for both the number of researchers allocated nd project selection. Re- searcher allocation and project selection are subject to several linear and nonlinear goal constraints (Taylor, et al. , 1982). In this study, we have pro- vided a framework for effectiveness and efficiency of IT project planning using SWOT analysis and Theory of Constraints. There is a potential for further research using both these tools to address the selection of projects in a more efficient and effective manner. (Sabbaghi and Vaidyanathan, EDSIG, 2003) 10 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKAThe impact of IT in efficiency and effectiveness of banking sector in Sri Lanka Information Technology in Banking Sector (Ranee Jayamaha, 2008) The rapid advancement in Information and Communication Technology (ICT) has had a profound impact on the banking industry and the wider financial sector over the last two decades and it has now become a tool that facilitates banks’ organizational structu res, business strategies, customer services and other related functions. The recent â€Å"IT revolution† has exerted far-reaching impacts on economies, in general, and the financial services industry, in particular.Within the financial services industry, the banking sector was one of the first to embrace rapid globalization and benefit significantly from IT development. The technological revolution in banking started in the 1950s, with the installation of the first automated bookkeeping machines at banks. This was well before the other industries became IT savvy. Automation in banking became widespread over the next few decades as bankers quickly realized that much of their labor-intensive information-handling processes could be automated with the use of computers. The first Automated Teller Machine (ATM) is reported to have been introduced n the USA in 1968, and it was only a cash dispenser. The advent of ATMs helped both to improve customer convenience and reduce costs, as before ATMs, withdrawing funds, accounts inquiries and transferring funds between accounts required face-to-face interaction between bank staff and customers. :-Rapid advancement and gains to the banking sector Overall, technological innovation has brought about the speedy processing and transmission of information, easy marketing of banking products, enhancement of customer access and awareness, wider networking and, regional and global links on an unprecedented scale.IT development has thus changed the product range, product development, service channels and type of banking services, as well as the packaging of such services, with significant efficiencies not only in the banks, but also the ancillary and feeder services to banks. The financial services industry has thus become virtually dependent on IT development. Most banks make visible efforts to keep up with new systems and processes. 11 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri LankaThe development in ICT has enabled banks to provide more diversified and convenient financial services, even without adding physical branches. The present day ATMs are more sophisticated machines that can scan the customer and a bank teller, accept cash or cheques, facilitate customer application for loans and allow for face-to-face discussion with a service representative via video. The development of Internet services, which is an extensive, low-cost and convenient financial network, has facilitated banking services to customers, anywhere and anytime.Along with Internet and Web-based services, a need for changing core banking architecture has emerged. The introduction of new core banking systems by some banks and their links with the improved telecommunication network has enabled banking transactions to be done on-line, in contrast to the batch-processing mode used earlier. The integration of etrading with internet banking and banks’ websites is also a notable feature. These IT advancements have enabled banks to gradually replace manual work by automated procedures with on-line real time processing. -Adoption of Information Technology in Sri Lankan Bank industry The banking sector in Sri Lanka has undergone a rapid transformation with the adoption of IT-based banking solutions. The widespread usage of IT in Sri Lanka’s banking sector began only in the late 1980s with the introduction of the first ATM by HSBC Bank in 1986. The introduction of ATMs and automated processes has reduced the cost per transaction significantly, as staff overhead costs have decreased. Initially, the banks adopted systems developed in-house or used vendor provided systems on a decentralized basis, thus transforming manual systems to automated processes.However, most of the core-banking systems provided by different vendors were ad hoc solutions and on piecemeal basis, i. e. separate modules and technology platforms for key operations such as deposit mobilization and lending, trade finance, treasury operations, and more recently card transactions. Those who opted to implement new core-banking systems together with other sub systems and integrations may have made relatively large 12 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka investments with sustainable gains to compensate costs.The arrival of new foreign and private banks with state-of-the-art technology-based services pushed other banks in Sri Lanka to move towards the latest technologies so as to retain their customer base and meet competition. The increasing competition in Sri Lanka’s banking industry has widened the scope of the IT infrastructure development to meet diversified demands made by numerous users. Today, customers of some banks enjoy services through Internet banking, Tele banking, Mobile telephone banking and Visa/Master Credit and Debit card facilities.The growing competition and expectations have also increased awareness amongst banks of the role and importance of technology in banking. ; -Information Technology of Commercial Banks. The Bank has vital information system to their organization activity. They have invested more and more on new information technology. Last year they have received the edge over other banks and they will continue to invested in information in order that they to stay ahead. Last year they invested Rs. 302. 13million in IT. Two new cutting edge products they rolled out.In partnership with Dialog. They enabled the customers to top up their pre-paid mobile phones by way an SMS to the Bank. The SMS debits the customer’s Bank account and tops up his/her pre-paid mobile phone account. Intermediary truncation are eliminated truncation costs reduced and a win-win scenarios is created for the services provided, the customer and the Bank This year th ey will clinch deals with other operators as well and offer the product to abroad group of the customers. This new product has concept of â€Å"pre-paid† telephone cards.A similarly facility has now been extended to customers who have obtained â€Å"Pahan† personal loans obtained those eligible to get their loans immediately topped up merely by sending SMS to the Bank. Thorough the Mobile ATM process the collective wealth of the Bank is enhanced enabling the previous of superior potations to our customers. They have several electronic products which are operating using an information technology; they are e-Exchange, e-load, Com Tel, Mobile ATM operating on GPRS Technology, Online banking, Telephone Banking and etc. 13 AUTHOR: M. R. M. FAZMEER 2005/2006 FMCSOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka They have giving several facility and technology to their customer to attract the customer and impr ove the efficiency and effectiveness as well in the committee market. So they have use effective information technological system to their function. ;-Information Technology of the People’s bank. Having worked on a revolutionary IT platform last two years, 2005 become the year in which information Technology became the platform, for People’s Bank to drive its business. he strategic plan 2005-2008 maps out of the years, in which the bank will create a business responsive IT culture, built on an anytime anywhere sever ice; where Information is available at the click of button- easily accessible and very comprehensive; where knowing their customers empowers employees to develop the required business Through the responsiveness, and where carrying for customers become priority integrated banking solutions and multi-channeled delivery systems, the Bank will be able to deliver a complete range of banking services .This will enable to the Bank to earn revenue which turn contri butes to the business performance that makes it a vital financial instate. The implication of Bank’s Core Banking solution vital for the enhancement of the function and severances which the management and the employees could extent to provide excellent customer service e core Banking salutation will also bring in effective control, policies and dissiliences in providing a customer centric knowledge based cultural which enhances productivity and competitiveness.The Core Banking salutation was rolled out to 37 branches including corporate Banking division, trade finance division, overseas customer services unit, central clearing and cash and the finance and MIS division of the bank during2005. During the year 2006, the Bank copes to roll out the salutation to 200 branches. This would enable all the main branches of the bank to use the Core Banking salutation. The Bank has also installed a central Archiving system and the MIS / Data Ware house system during 2005.The effectivenes s and productivity relating to the MIS / Data ware house system and the Central Archiving system would be important areas to fours during 2006. The linguini of the credit card center, FCBU and the corporate II system would be some of the key areas of the Core Banking implementation other than the automation of 14 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka the 163 branches during 2006archiving system.The It personnel of the Bank attached to the Data Center, operating IBM e Server I Series system have also been provided with specialized training from IBM, their partners Blue Chip Customer Engineering Lanka (Pvt) Ltd. And silver lake. The training provided covers the technical aspect and operational aspect of IBM e Server I Series, the Archiving system together with the application system in use (SIBS). Training was also provided to the team managing the Central switch with regard to the operation and technical aspect of the Central switch system and its connectivity.The PABS team was provided with advance SCO – UNIX, training conducted by SCO- UNIX. USA in Sri Lanka. The IT department staff continues a process providing training to branch uses using the PABA system and the ATMs in odder to the tramline the operational efficiency and support to the branch. This training program was conducted through out the year. The offices attached to the IT department continued to receive training areas of technical Development, Management, Management Development and Leadership. The aim of developing their skills in adaptation to technical skill has been constantly addressed.During 2005 the bank has strengthen its control with regard to IT operations and Viruses protection, relating to all system used by the Bank. The Bank is continue sly working on improving its vigilance process and maintains stringent security with regard to all its system. During 2006 se tting up of firewalls will be given priority consideration. 15 AUTHOR: M. R. M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka REFERENCES 1.Abdul QawiAthman & Lynn Owen, â€Å"Adopting and Measuring Customer Service Quality (SQ) in Islamic Banks: A case study in Kuwait Finance House†, International Journal Of Islamic Financial Services Vol. 3 2. Banking Journal, 1996-2000, Institute of Banks of Sri Lanka. 3. Copeland and Mc Kenney, 1985 the impact of information technology in air lines industry 4. Haron. s, Ahamad. 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FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA