The banking sector has experienced a tremendous technological revolution that has paved the way for creating newer, better opportunities for its customers. The impact of technology on the banking industry is manifold and can be witnessed with the speed at which banks operate in the country today. Gone are the days of standing in long queues to open an account, receive a physical statement of account or wait days for loan approval. Each of these processes and more have improved with accuracy and precision, thanks to the positive impact of technology.
POSITIVE IMPACT OF TECHNOLOGY ON THE BANKING SECTOR-
(1)The biggest revolution that comes in banks is Digitization.
(2)Banking process is faster than before and more reliable. Maintenance and retrieval of documents and records have become much faster and easier.
(3)Computerized banking also improves the core banking system. With a core banking system, all branches have access to common centralized data and are interconnected.
(4)With the innovation of the MICR cheque processing system, the processing of cheques become more faster and efficient than before
(5)Unstructured supplementary service data (USSD) was launched by Government so people with no internet- connectivity too can access their bank accounts without visiting the branch.
(6)With increasing internet reach, internet banking was developed and is now offered by almost every bank. Through this, every transaction detail and inquiry can be performed online without visiting the bank.
(7)It offered more transparency in transactions.
(8)The scope of fraud in banks is being minimized through the use of passwords, and double authentication in online banking.
(9)Technology also leads to competition among the banks which eventually provides better services to people.
(10)With the introduction of mobile banking, one can access their bank from anywhere- anytime. Everything is one quick tap away.
(11)To facilitate better service, Banks have introduced Automated Banking Services Solutions like Cash Deposit Machines, Cheque Deposit Machines, and Passbook Printing Machine this service have become easier.
NEGATIVE IMPACT OF TECHNOLOGY ON THE BANKING SECTOR-
(1)The biggest negative impact of technology is the loss of Jobs as automation has replaced a number of jobs in the banking sector.
(2)Through technology comes to the threat of Cyber Attacks, a loophole in the system, and millions of data can be lost in the blink of an eye.
(3)These technologies consume less time, but they also sometimes make people careless which causes loss of personal details as happened in 2016, many debit card details of big banks were compromised.
CONCLUSION
It should be noted that innovation is a standout amongst the most significant variable for the advancement of humankind. Data innovation and correspondence is the greatest volumes in the field of innovation, the telephone is for the handling, stockpiling and scattering of data by electronic methods. Banking is developing quickly with the utilization of innovation in the ATM, bank web-based banking, versatile banking and so on. Plastic card is a financial item that accommodates the necessities of the retail fragment and has seen their numbers develop in geometric movement lately. This development has been unequivocally impacted by advancements in innovation. Since the coin has two sides, innovation additionally has different sides in the financial sector- positive and negative. The dangers are high, however, they are generally limited and technology will become the backbone of the banking industry in the near future.
