Technology has always been important in the financial services sector, but it is becoming an increasingly vital differentiator for banks these days, according to Avid Modjtabai, CIO at Wells Fargo (NYSE: WFC). In a Q&A with Ed Sperling at Forbes, Modjtabai discusses how online banking gives Wells Fargo a competitive edge and how technology is changing the banking business.

Most of the bank's IT--including the network, mainframes, core data centers and most regional data centers--is managed by a central technology group, Modjtabai said. The effectiveness of the central management model has made business units more open to being part of the larger IT organization rather than doing things on their own.

One of the major ways in which IT is supporting Wells Fargo right now is in the integration of legacy systems from Wachovia. Not only do accounts have to be converted, but new systems have to be developed to leverage both organizations' assets. This initiative involves upgrading the network and consolidating data centers, among other things.

There are also projects underway to transfer paper records to electronic records and deliver real-time data to customers, Modjtabai said. Wells Fargo is working on ways to provide services more effectively and in a manner that will be easier for customers. Looking ahead, the bank plans to expand its mobile banking abilities.

For more:
- see this interview with Wells Fargo CIO at Forbes

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