Impact Of Technology On The Banking Industry

Technologies have allowed the banking industry to expand . Cell phones are now able to monitor consumer expenditures effectively and have become a new banking tool within the generation. Many opportunities arise with technology increasing. The banking institutions must be able to determine what future technologies may arise in order to be able to capitalize on that market. Recognition is essential during this time period for CIBC as they must maintain the technology consumers demand. The Canadian Imperial Bank is placed extremely well with a significant and assured customer base from the level of the government and the public sector business. Many government parties will do business with

1- What benefits does mobile banking provide to consumers? At the time of the case, why

The world today is as interconnected and interdependent as never before mainly due to rapid globalization. The process of globalization has long began with human migration and trading of goods (Chanda). More recently, the world has experienced three rapid globalization periods. First, from the Industrial Revolution in Europe that opened up new resourceful lands in many other countries which encouraged the flow of people and foreign investments for productions (Salvatore and Dominick, page 2). The second phase of rapid increase in international trade happened during post WWII when heavy trade protections during the depression period were dismantled (Salvatore and Dominick, page 3). Present, globalization is at another peak development as

In many developing countries it's common for a person to have a mobile phone but not a bank account. In fact, more than 1 billion people fit this description, and the number is only likely to increase. To that end, many companies are considering how to give residents access to banking services via their handsets. The GSM Association predicts that by 2012, nearly 300 million of the previously "unbanked" will be using some form of mobile banking.

Furthermore, the development of the mobile phone also benefits the banking services. People can easily access to their account through the mobile Internet. Secondly, particular applications have been invented for mobile users to manipulate their banking service. For example, HSBC has

The emergence of smartphones, such as iPhone, Android, and BlackBerry, allowed banks to provide a richer

Across Latin America, about one-third of personal banking customers are adopting, and using regularly, online banking, and an even newer digital banking channel, mobile banking. The percentage doing so, varies country to country. Yet not every bank is performing equally. Finalta benchmarking studies have set out to uncover how some banks, during the past three years, have managed to increase their digital advantage over the laggards, being left behind.

I am greatly honored to be here as Chairman of the Basel Committee on Banking Supervision. I’d like to begin by thanking the Swiss National Bank, Kurt Hauri and the Swiss Federal Banking Commission, and Andrew Crockett and the BIS for organizing and hosting this important conference. They’ve done a wonderful job, for which I know we’re all very grateful.

In 2009, 10 million customers used mobile banking and this is expected to grow to 37 million by 2014. Customers that use mobile banking are not the same as online customers. Customers that use mobile banking represent a different segment of the market that other banking customers. Security issues, a perceived low value and expense, were the primary reasons that customers did not switch to mobile banking. Potential customers were reluctant to try a new banking service that are represented an extra cost and they were also afraid of losing control of their finances. Debit cardholders were the most active users. It was convenient for them because they could check their account at any time. Customers that used this service changed their usual banking channels and as a result -the bank had a higher retention for these users of online services.

Hence, there is a possibility that mobile banking remains unidentified and under-utilized by bank customers. (AMIN, et al., n.d.) Some non-users feel that they have not received enough information from the bank and so suffer from lack of knowledge. Older consumers have some difficulties to make use of new technologies and they respond negatively towards innovations. (Karjaluoto, et al., 2002).

Furthermore, smartphone-bankingindustry ismature toagreatextentthanearlierperiod.Ithasdevelopedsuperbimageintheirvarious activitiesincludingelectronicbanking.Nowmodernbankingserviceshavelaunched bysomemultinationalsandnewlocalprivatecommercialbanks.Novelty & curiosity regarding the use of mobile banking services was mentioned in the survey as one trigger for adoption. The present results reflect the fact that mobile banking services are at a relatively early stage in the path of diffusion. It is often the case that the first adopters of an innovation are motivated simply by the desire to get their hands on the latest & greatest innovation; the stimulus is curiosity regarding anything that is truly brand new. Mobile banking has not yet gone beyond this phase, indicating clearly that mobile banking services are not yet fully institutionalized; they have not entirely become part of the ongoing practice & way of life of the adopters. Adoptingm-bankingservices,banksin developingcountriesarefacedwithstrategicoptionsbetweenthechoiceof delivery channels andthelevelof sophistication of services providedbythesedelivery channels (Ahmed and Islam, 2008). Banks will reap the benefits of IT truly and totally, if and

Mobile banking changed the landscape of personal banking. As the Internet became more ubiquitous and smartphone and tablet use is increasing, the desire for consumers to conduct their banking on the go grew exponentially. Financial institutions are expanding the services offered through mobile banking to attract younger customers as well as reduce costs. In an effort to reduce costs, banks are investing in technologies to change the banking landscape with do-it-yourself banking, teleconferencing with customers, eliminating paper, and reducing branch size.

Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions associated with the banking business.

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

Similarly, banking products such as insurance, property and financial investments, which till a decade or so ago required cumbersome processes and paperwork are now conveniently possible with a few clicks on your mobile phones. Cash withdrawals have shifted from the branches to the popular cash machines (ATMs) with their ubiquitous presence all over the country and in most places around the World. This has resulted in shutting down of several bank branches and corresponding cost reduction. The remaining branches are being retooled for branding and merchandising in high streets as well as meeting places for retail customers dealing with more complex products such as financial investments and mortgages. Whereas footfalls at bank branches started falling in the 1990s with the spread of ATMs this trend was further augmented with the Phone Banking service introduced around the same time which allowed customers to talk to a bank representative 24/7 all days of the year for a range of services. This service became popular for speedy and convenient service delivery, however, over the last few years is reported to being seen in a decline as new technologies are taking over.