Information Technology in the Banking World

Another common criticism heard is that their family has been in the banking business for generations and has never had to use such a system before. Therefore, unless weak credit administration and/or underwriting practices become evident by the bank's primary regulator, who then forces correction action in those areas identified, management has been generally slow in revising current practices.
             Introducing the Problem.
             As noted within the Division of Supervision Manual of Examination Policies, lending errors frequently result because of management's failure to obtain and properly evaluate credit information (Federal Deposit Insurance Corporation). Although the regulatory agencies do not require that a bank utilize a software system to evaluate credit information, it would seem beneficial to deploy some type of a software program to aid in assessing for credit risk within the institution and to provide a more beneficial approach in analyzing comparative financial statements, income statements, cash flow statements and other pertinent statistical information. .
             Vast Amount of Data for Analysis.
             Since loan officers are charged with the responsibility for ongoing credit analysis and the prompt identification of emerging problems, it would seem feasible that loan officer would utilize some type of information system tool that could aid in their problem solving and decision making abilities.