Impact Of Technology On The Banking Industry Essay

The World banking system has witnessed some major transformation. Changes in regulations and laws, advances in information and banking technologies, acceptance of the market economy by less open economies and the adaptation and integration of international financial markets which offered opportunities and challenges

Firstly you have increased automation within a banking environment you now have three main ways of banking. 1. Online 2. Telephone Banking 3. Branch most major banks have introduced productive ways of banking to suit economy. Know two individuals bank the same everyone likes something different you will find that generation will fuel the channel in which and individual will decide to bank.

Security is one of the major challenges that is being faced by the world today, as seen by continuous revelations about breaches and incidents. On this note of insecurity and unpredictability, banking industry is keen to redefine its approach to security thereby making an attempt to balance three critical factors i.e. cost, innovation and risk. On parallel grounds, the domain of internal security is undergoing drastic changes that mandates banking institutions to embrace new set of skills and practices. Fraud can be categorized as a business risk – it is like a sword of Damocles over a bank’s future. This must change for the good. The rapid pace with which the technology is changing, like the recent explosion of cellular customers, is

Banking is undergoing a revolution similar to the one seen on high street travel, betting and book-selling. Banks should be afraid, the disruption of financial services has only just begun.

Information technology has taken a further step in the fundamental development in the banking system. Over the years there has been a high increase in the use of internet and mobile banking. As a new way of performing banking transaction through the internet as a distribution channels. The development and increase in the information technology on the banking system has made operations and

Banking technologies allow for online transactions, standing orders and the use of ATMs to make bill payments. Cardholders of some banks may use others ' free of charge and the banks themselves are becoming more open-plan, providing easy access to business

Characteristics in the Banking Environment: Positive and Negative Impact of Information Technology in Banking: Trends in Banking: How Sectors can affect Banking and Technology: Works Cited:

(Ernst&Young, 2015). It is essential for capital markets institutions to upgrade technologies – in-house or through joint ventures, strategic alliances or acquisitions of ‘permitted’ technology firms that are closely aligned with banking – to make valuable operational and financial decisions. (KPMG, 2015). Bank must also invest in technology preventing financial crimes and cyber threats. Furthermore, investment banks can enable their staff to access necessary information to perform their work more efficiently and support better connectivity with clients by using social media and mobile technology. Technology will enable the bank to transform , to take control, to rebuild trust, to drive efficiency and to become digital.

The field of Banking and finance is still developing and not every organizations are yet organized to deal with IT risk in an integrated way nor do all of them face the same levels of IT risk and or share similar risk side view. It is different to one another however, is compelling those are facing rising incident rates in the areas of security, availability, performance and compliance with noteworthy impact on revenue, reputation, productivity, and cost. (ISIT Risk Management in Banking Industry, 2011)

This made the people hesitate to invest any significant amount of money at the time. The idea slowly began to catch on after easing into E-commerce. Major and minor banks are trying to enhance the security of their firms using different methods. The security system of some banks requires highly trained, capable individuals who can protect progression of activities in their allocated areas, be it inside the bank, at ATM portals and in monitoring CCTV cameras.

Technology has been the main driver for globalization of banking operations. Various advancements in technology have not only changed the banking business but also the way customers perform their banking activity. Banking industry is moving from the traditional brick and mortar set up to the virtual channels at a very rapid rate. Technologies like ATM, POS terminals, internet and mobile banking have increasingly influenced the use of e-money over paper money. The purpose of my research paper is to examine how the advancement in technology affects the banking services. I will also examine how technology impacts the financial transaction costs and revenue generation for banks. For the purpose of this research paper I have reviewed academic peer reviewed articles, case studies and internet resources. Since virtual channels can be used to offer standardized banking products, banks can shift their focus on relationship management. On one hand banks are adopting newer technology to reduce cost and provide convenience to customers, but not all technology is easily adopted by customers as they raise some serious security concerns. In order to bridge this gap, banks will have to provide advanced security measures and assure information quality.

A group of people working together to achieve a common goal is known as organization. They use the resources from the environment as inputs and process them to produce outputs. Conversion of inputs into outputs is known as production function. The products are consumed by the external environment in return for the supply of input.

The banks are governed by some regulations and policies, yet it does have a scope for the well-equipped sophisticated fraudsters to function with seeming impunity. Besides, the complexity that governs these frauds is even more baffling. A bank fraud can cause notable damage at an unprecedented scale, be it to an individual customer or the complete organization. Over and above, today a bank fraud cannot be claimed as furtiveness and anonymity are apparent rewards of choosing Internet as the base platform. Every niche of our socio-economic environment is technology dependent which proportionately increases the vulnerability of the entire plot to frauds. Threat such as breach of certitude necessitates constant awareness and diligence for mitigating and preventing unseen frauds. Definitely we cannot suppress these frauds but their

Small businesses / small borrowers, post-recession (i.e. before 2008) are come across for more than just a lender. They are seem to be for an own bank benefits and business partner.

The last time that technology had a major impact in helping banks service their customers was with the introduction of the Internet banking. Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and