The customers can also access their bank accounts, withdraw cash, pay bills, get bank statements, deposit cash and even buy products without having to visit their bank branches. Indeed, what technology has facilitated is the reduction of physical conduct between the customer and the banker bringing in a new phenomenon known as virtual banking. Information technology can offer a bank a competitive edge over other banks (Singer, Ross & Avery 2005) The internet invention was the greatest breakthrough for banks in carrying out their transactions with customers (Wanderi 2012). As internet access is enhanced, more and more banks are turning to online banking services. Such services are more convenient to customers and the banker, they also save time and costs and increase efficiency. Banks that do not adopt technology are likely to be unpopular among the customer base. Automated teller machines, television banking, virtual banking, internet banking, mobile banking, online pay bill, mobile commerce, social media payments, credit cards and debit cards are some of the examples of how technology is changing the banking industry (Kendrick 2011). This paper will discuss the evolution of information technology in the banking industry with emphasis on internet banking, growth of e-commerce and virtual banking and new delivery channels such as PC banking, mobile banking and TV banking. Discussion The most important concept is the internet. In early years of internet, banks normally used the internet for internal purposes such as publishing of corporate data and offerings. At this time, internet was mainly used in banking as a tool of information dissemination to customers and the general public. This was then followed by banking internet services such as checking account balances online, paying utility bills online and online transfer of funds. Many banks feared transacting over the internet because of the security threats. However, with the growth in software and information technology infrastructure many banks have embraced this technology (Vaidya 2009). Internet has enabled banks to open up websites where customers can now access their products and services. The banks do not need to put up advertisements in the media or do customers have to go to the banks in order to learn about the products and services of banks. All they need to do is just access the website and learn about the banks products and services. These calls on banks to embrace information technology because not doing so might make their products and services unpopular. Internet has facilitated a new concept called virtual banking in the banking industry. In this case, the banks offer their products and services only through electronic means without any physical contact with their customers. This is gaining popularity as the global economy grows and access to the information technology is enhanced throughout the world. This model normally operates without many branches because they do not need to physically interact with customers. Given that they do not require many personnel and the maintenance costs are low, they normally offer competitive prices for their products and services. The people around the world are getting busier and have no time to spend on bank transactions and hence there is a shift from traditional banking to virtual banking.