This final work will be describing and through the examples showing how informationtechnology is applied in the banking system in the modern information age. As the Internet andInternet technologies have been developing, the banking information technology has beendeveloping along side with it, because the banks have realized the great potential that technologyoffers in their everyday work. Through the paper it is explained the infrastructure (hardware)and software part of technologies used in banks. Through physical devices such as ATM's toapplications that allow users to perform a large number of services that would normally requiredof users to stand in lines waiting to speak with bank tellers. Through several examples the paperdescribes and explains the functionality and advantages of its use in banking systems technologyprovides and its development from the very beginning until today. Although technology replacesa large number of services that can be done without going to a bank branch and services thatused to be able to be completed only with a help of a bank teller, trough research of this topic itis recognized that there will always be a need for human interaction in the work of modernbanking system. Data protection and the prevention of their abuse to the detriment of users,occupy a large part in the use of modern technology in the banking system. From usage ofencryption and data protection to multiple entries of unique passwords, to access the desiredcontent, are just some of the methods of protection used. In accordance with the development ofinformation technology that is used daily in the banks,it is essential to develop, build andimplements new ways to protect users and their data against possible fraud and damages thatmay possibly arise if the user's information gets into the wrong hands .With further developmentof technology and the Internet as a medium which is increasingly used in the daily work ofmodern banking system, there is a need, and it has become a standard for every day devising andimplementation of new types of data protection and authorization access to data, in order tomake use of technology in the banking system protected and on very high security level whichultimately for end-user means a safe and transparent use of services. The paper also points to theguidelines for further research and extension in an area that is progressively developing, and inmodern age as a necessary structure and support in all business systems, including the sovereignbanking system