Is there any field that has not seen the impact of Information Technology? Is there any business that runs without an IT team in place? Is there any office without computers? Well, the answer is a no, at least in most cases. That is how predominant the influence of IT is today. Tech trends keep changing year after year. But if there is one thing that is stable, it is the fact that information technology is making communication and business management a whole lot simpler.
One of the industries that have seen a remarkable change due to the impact of information technology is the Banking sector. Financial transactions, bank accounts, and payments are all not the same as they were years ago. IT has changed the way we transact, the way we pay and the way we manage our bank accounts.
Some of the ways in which technology and IT, in particular, has changed the banking sector are:
The very first major revolution in the banking sector happened perhaps with the launch of the ATMs. Banks have always been synonymous of a bustling environment where people are always waiting for their turns, in long queues to deposit as well as to withdraw money. No matter how small or big the amount, one had to wait. And not to forget, filling out the withdrawal or deposit forms! But that changed with the introduction of ATMs. Though there are still queues in the busiest ATMs, the form filling process is avoided and the processing times are now reduced as well.
Internet banking is a concept that has taken banking to the next level. Managing accounts, checking the account balance, checking the status of financial transactions including deposits and withdrawals and cheque credits are all easy with the advent of internet banking. Even modifying the personal records with the banks like the address for communication, nominee details, and other such information has become simple with internet banking. Single login to your internet banking account from your computer or your smartphone can give you all the information you need. This avoids the trips to the banks to get all your account related information.
Better customer care:
Not everyone is fond of having to wait to be answered by the bank’s help desk in the brick and mortar branches of the banks. With internet banking, customer service also has now evolved. Internet banking and mobile banking apps allow a more convenient and personalized customer experience.
Tech trends that would influence banking in the coming years:
Bank data security:
One of the major concerns that banks face today is information security. A large amount of financial data, records of the account holders stored are vulnerable to be hacked and accessed. We have heard about a number of small banks that shut down due to such cyber security interruptions. With the growth in technology come associated risks as well. Tackling these risks is a primary area of focus now, especially in the banking sector. Banks have to invest in secure servers and information security measures. The customers would have to be more discreet in maintaining their bank records and passwords.
Digital payments and mobile wallets:
Now money has transformed from being currency notes to figures on the digital banking accounts and mobile wallets. We now don’t need currency notes, no more cheques or even ATM cards to make a money transaction. With the digitization of payments, the payment process is quick and convenient. The entire loop of standing in ATM queues to get currency notes, then giving them to the retailer or service provider and the service provider then depositing the currency notes to his account is shortened. Digital payments will keep growing in the coming years.
Banks relying on the cloud:
When it comes to moving to the cloud, the banking sector is the one sector that has been hesitant to move to the cloud. But now with the ever-growing cloud computing trends, there has been a lot of focus on improving the cloud data security. The agility, scalability and convenient that cloud offers are all features that the banking sector requires. This makes cloud data solutions an apt solution for banks. So there are many banks that are slowly now adapting to the cloud trends.