In today's reality, most of the banking activities are propagated by advancements in information technology (BankNetIndia 2011). Additionally, since the discovery of automated teller machines (ATMs), most back-office work has been automated and most transactions in the banking industry are carried out automatically. The success of the banking industry in today's world depends on a bank's ability to specialize in the advancement of information technology. Although many banks assume that IT is more of a technological necessity, IT is also a very resourceful aspect in a bank and can help it gain a competitive advantage over its competitors. This article aims to propose a competitive strategy based on IT and its implementation process. The success of a bank is determined by proper utilization of its resources, both tangible and intangible, to implement a better competitive strategy in the market that will lead it in the right direction. Resources can be a good reputation, human skills and financial endowments. Financial institutions provide a variety of financial services such as investment services, offering loans and banking services to a large number of consumers, individuals and small businesses. Banks also offer comprehensive financial products and services to satisfy the needs of large and small businesses, institutional investors, individual investors as well as governments (WebFinance 2011). A bank may have multiple branches which include local offices in the areas where they are located and are supplemented by ATMs, internet banking, electronic delivery systems and mobile phone/mobile banking platforms. Specific banking products and services offered by banks include accounts, personal and business loans...... middle of paper ......t Retrieved from: http://ddc.aub.edu. lb/projects/business/ it-banking.htmlInvestopedia ULC, 2011. Research and development. Retrieved from: http://www.investopedia.com/terms/r/randd.aspJackson R. 2011. The Practice of Strategic Management, Manchester Business School of MBA,MBS Worldwide, pp 16. Extracted from: attached documentMichael E Porter Publications , 2011. Competition and business strategy, Institute of Strategy and Competitiveness. Retrieved from: http://www.isc.hbs.edu/firm-competitve.htmThe Gemini Geek, 2011. What is Business Environment. Retrieved from: http://www.thegeminigeek.com/what-is-business-environment/WebFinance, 2011. Financial Institutions. Retrieved from: http://www.investorwords.com/1950/financial_institution.htmlWorldWidePanaroma, 2005. Bargaining power of the buyer. Retrieved from: http://www.photopla.net/wwp0503/buyer.php