How technology has changed banking over the years
E-banking, online banking, net banking, etc. have completely changed the way banking is done today.
Ever since the 18th century, the banking sector has been evolving, and it is known as one of the oldest businesses in the world. It has progressed and grown with every passing year. Although in the recent years, the industry has transformed with the help of technology. Banks were always regarded as a place with long queues, and an unmanageable amount of paper work. Due to technological advancements in the banking sector, the need of labour and papers has reduced a lot.
HOW TECHNOLOGY HAS CHANGED THE FACE OF BANKING INDUSTRY?
Ever since the 18th century, the banking sector has been evolving, and it is known as one of the oldest businesses in the world. It has progressed and grown with every passing year. Although in the recent years, the industry has transformed with the help of technology. Banks were always regarded as a place with long queues, and an unmanageable amount of paper work. Due to technological advancements in the banking sector, the need of labour and papers has reduced a lot.
Ways in which Technology is making the Banking Industry More Efficient
1. The World at your Fingertips
A lot of people will be able to relate to this, because in some way or the other, all of us are being effected by technology.From ordering food or shopping for clothes, everything is only a tap away. You also do not have the need to carry cash in hand, you can just make a digital payment from your E-Wallet. Similarly, through net banking, one is allowed to transfer money from one account to another, order for cheque books, check the balance, make payments, create Fixed Deposits, and so on.
2. Less Errors and Better Data Protection
In the olden days when banking was completely dependent on the human accuracy and skill, mistakes and errors were more apparent. As human capabilities have a limit, they are prone to skip certain things or make calculation errors. With the introduction of computers, the frequency of errors has reduced to almost nil. Also, another important perspective to this, is that it can protect the data much more efficiently. Today’s technology provides complete security of your transactions and safety of your data that there are very rare occasions on which the data is misused.
3. Better Customer Experience
The ancient system of banking was extremely tiring and lengthy that resulted in poor customer experiences. This was because one had to stand in long queues, file a lot of papers and be physically present. The advent of net banking and mobile banking has reduced the time you spend for banking related tasks and has also ensured hassle-free customer service even from a remote location.
4. Business Intelligence to Drive Profitability
RBI has encouraged all the Indian Banks to adapt Business Intelligence (BI) to increase the overall profitability in the industry. Business intelligence system provides data for historical, current and future trends. This data aids the banks in a way that they are able to take accurate decisions and thereby can bring an overall increase in the productivity, efficiency and profitability.
stored in a much more convenient and efficient way.
different examples of how technology has changed banking:
1. Online Banking
Online banking is perhaps one of the biggest changes that has ever happened in the banking sector. Previously transferring money involved going to the bank physically and making the transfer, but now that is not the case. Today you can easily move money by just keying in your account details online to access your bank account and then making the transfer. This allows you to easily and quickly transfer, manage or check your money from virtually anywhere.
It also means that money stays in the bank adding to the bank's cash reserves as you no longer need to get out physical cash to pay a bill or a debt. There are also banking apps and services like Honestly Now that allow users to easily find details about different services and details of banks.
Some apps also have voice recognition capabilities where a user can just speak into the phone and it does what he or she wanted. Online banking has literally made it possible for people to access banking services from anywhere in the world easily and conveniently.
2. ATM Machines
Can you imagine life without ATMs to dispense your money on the spot whenever you need it? These devices grew in popularity in the mid 80's and there are now over 10 million of them globally.
Super ATMs today sell things like gift cards and stamps while Drive-thru Automatic vending machines make it more convenient for people to get their money. ATMs have made life easier for almost everyone as they can be found anywhere: from bars to movie theatres, hotels, grocery stores and more.
3. It has gone global
Another big change that has been brought about by technology is globalisation of the banking sector. For example, sometime back banks in New York and London were the only big financial hubs, but today banks in Sydney, Sao Paolo and Beijing have all joined the fray. Banks throughout the world now enjoy global presence and are able to transact from anywhere at any time. They can operate across the globe, the cloud making it possible for them to share data easily and conveniently.
4. Financial Integration
Increased online activity in the banking sector has also attracted the attention of other players that are not in the banking sector. Many institutions now provide different banking services such as pay-day loans, prepaid credit cards, check cashing services and business loans for a fee. Other online services provided at banks are also available at such institutions.
5. 24-Hour Access
Online services allow consumers to access banking services throughout the day, 7 days a week. You can easily log in to your bank's site at anytime of the day and perform any transaction. This provides people with the convenience of conducting business on holidays and weekends when banks are closed
