What is the impact of technology in banking?

Banking is one of the most important sectors of any given economy. There are many economies throughout the globe that rely on hundreds of financial institutions and banks are usually one of them. This is why government needs to come up with various laws, regulations and policies to look over how these institutions are managed.

With the passage of time, banks are being regulated in a number of ways. Technology has had a major impact on the overall global banking system. There are many technological differences experienced by the world in recent times. This influenced the banking system in many ways.

However, the real question remains that what are the major impacts of technology on the banking and banking itself as a field has changed given the change that technology has created. Here are some of the major impacts that can be discussed:

Online banking

This is the first and foremost change that has been prominent in recent years. Online banking has now become a norm. Gone are the days when only traditional form of banking existed. In this recent time, online banking remains more convenient to the potential customers. They prefer dealing with a number of aspects through online banking applications. Different institutions like Ikano Bank has incorporated online systems in their services and the customers can resolve their banking issues online only.

Data protection

There are millions of cases being reported in the past few years in relation to data protection. Cyber security has become a real concern. According to many statistics, there has been tremendous amount of data theft. Keeping the financial information safe and secure for customers is one of the major responsibilities that banks need to undertake. Phishing scams are the most common of all. Therefore, one of the major changes that banks have experienced is that they need to ensure online safety. Banks are being transformed into safest places where customers can save their money.

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Better customer service

With the progression in technology, banks are able to provide better customer service to their clients. Banks are able to provide positive customer experiences which have resulted into an increase the customer base. In earlier days, customers were not keen enough to take the banks word for the products like mortgages and investments being offered. Mobile banking means that the generic service is no longer needed. The concepts of service have been transformed into more modern ones. Customers are rarely expected to visit the banks. They can contact the banks through mobile phones or even deal with the matter through their online applications. Things have become much more convenient now.

The bottom line

Above are some of the major impacts in the banking field through advancements in technology. However, this is not an exhaustive list. There are several other things that can be considered as major influences. It also depends on the type of bank you are considering. Different banks have incorporated technological mediums in different ways.

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