Technology has changed the face of the whole world as there is no field that is unaffected by it. It has become an integral part of everyday life, and people cannot seem to spend even a few hours without it. If it is used for functional purposes, there is no limit to the advantages of technology. It has increased the efficiency of the business process, as communication is now on everyone’s tips. Technology has not only transformed people’s daily lives but also brought a revolution in various industries. For example, it has given a new dimension to the entertainment industry, and nowadays, people have a variety of options to spend their leisure time.
The digital revolution has not spared the banking industry, and technology has revamped almost all of the banking processes. The impact on banking is profound, and while it has created a lot of job opportunities, it has also narrowed down the need for laborers. What used to take an army to do in long periods now can be done through machines is less time. Depositing and withdrawing money does not necessarily need to be done in person. Neither does a bank require a person’s physical presence for transferring of money. Technology has changed banking in a lot of ways; some are listed below.
1. Loan: Taking a loan has never been as easy as it is now. All it requires is filling a form and a few other formalities, and if all things are in order, then your application is accepted. The old-age processes, like checking out authenticity, are still in place, but now with the use of technology, banks process the loan applications quickly. The Internet is full of information about the banks that provides loan, and one search of how to get a business loan online brings out several options. Technology has not only made the process of applying for a loan easier, but also following through and paying using a mobile phone has also eased people’s lives.
2. Online Banking
The most significant change that has ever happened to the banking industry is online banking, as depositing and withdrawal of money has always been an integral function of banks. A person is no longer physically required as now with technology depositing and transferring of money can be done while someone is on the move. Now a person is also able to keep a track on his account virtually from anywhere in the world. To make it further convenient and user-friendly, several banks have now launched their applications, and users have got access to their accounts on their mobile phones.
3. Automated Teller Machine
Lately, people have stopped carrying cash; instead, they prefer keeping an atm card with them all the time. Atm has changed the course of withdrawal of money and made it convenient for the user. These devices gain popularity in the decade of 1990, and now they can be found in almost every nook and corner of big cities.
4. Twenty-four Hour Access
Gone are the days when a person can only view his bank details by visiting a bank during working hours. Now a person can log into his online banking account at any hour from anywhere. This has brought convenience in conducting business as a difference in time zones used to be a big hassle in cross country businesses.
5. Customer Security
The primary reason for the existence of the bank is to keep people’s money safe. Digital revolution has provided layers of security to not only the user’s information but to their money too. The banking system has generated algorithms that abate potential frauds on customer’s accounts or cards. Banks have a whole system in place which requires verification through different methods when a user logs into his account and thus gives customers full security. If an unusual transaction takes place, a person is personally contacted to enquire if a transaction is being done with his consent. Technology has helped in gaining user’s trust, and customers deposit their money without fear.
6. Customer Service
Banks who go out of their way to provide excellent service to their customers gain popularity and win customer’s trust in no time. Technology has made it convenient for banks to satisfy their customers by being reachable to customers through calls, emails, or chat.
7. Global
The globalization of the bank sector is a significant change that has altered the functioning of the banks. All thanks to technology throughout the world, banks enjoy a worldwide presence and can do business online. It has not only impacted large industries or firms, but even entrepreneurs on a smaller scale have benefitted from banks going global. Banks can efficiently operate across the globe, and sharing of data and transaction of money from another continent has become a reality now.
8. Monitoring
Various banks which were indulged in illegal transactions have been caught in the last few years. Technology has played an essential role in detecting these unlawful practices. Instant messages, emails, or video conferences were the pieces of evidence that help in identifying these criminals. The Digital revolution has made it possible to monitor the flow of money, and thus transaction of a peculiar amount of cash is detected in no time.
9. Financial Integration
Banking has again gained popularity in recent years and attracted other player’s attention. Institutions that are not related to the bank are offering various banking services like cheque cashing, prepaid credit cards, pay-day, and business loans. They charge a fee and offer their services. Technology has helped in the integration of these institutions and provided with a system to offer these services.
10.One Quick Tap
Technology has made it possible for anyone to carry a bank account on the move. Shopping, eating out, trips to other countries used to be a hassle as people had to carry cash all the time. Now all they need to do is to pay via transferring money by a quick tap. Technology has made it possible for friends and family to transfer money for some occasion or if someone is in need. A tap and money is transferred from one account to another, even if accounts are in two different continents.
Conclusion
Technology is ever-changing, and it brings about changes in the banking industry now and then. It has given banks more competition and keeps on providing big challenges. Innovation in banking has delivered benefits to banks and clients too. A bank is no longer just a building structure but a framework that is accessible on anyone’s fingertips. This digital age has transformed the everyday lives of people and has impacted banking a great deal also. Banks and people now rely on the Internet for deposing, transferring, or withdrawing money as technology has made it convenient for them to do so from the comfort of their home. Various emerging businesses, entrepreneurs, and startups rely on technology to gain profit in their ventures. Cryptography and biometric have provided safety to customers’ information and money. Hence people have started relying on the bank for the safety of their money. Experts have predicted that the banking industry will be seeing a lot of changes in the upcoming years and will change the course of banking in its entirety.
