Why Technology is important for Banking? – Press Hub

Why Technology is important for Banking?

Banking and technology have always shared a close link between each other since they facilitate advancements in others. Numerous IT initiatives regarding banking came into being around the late ’90s, or the early 2000s. However, the concept of technology and banking becomes entangled. The banks are embracing technology to improve their facilities in various ways. With modern technology, the customer becomes more tech-savvy and therefore, accepts technology advancement at a very fast pace.

Nowadays, the majority of the banks have completely transformed their systems to the technology-driven organisation since decades. Banks come a long way from scale-constrained, manual environments to fully automated systems and processes. Those days are gone when getting a simple withdrawal of cash or deposit requires one whole day. Customer’s need to physically visit branches like ATMs, mobile banking, and online bill payments facilities to vendors and utility service providers have almost been obviated. They no longer require to be physically present to receive their services.

Technology gives us the most significant advancement. It reduces the time consumption and makes work more efficient and fast. We need not stand in a queue for hours in the bank anymore; with technology’s involvement, the bank experience has become less tedious.

Banks have resorted to up to date monitoring of the customer’s information. It is easier now to access the details for loan benefits or otherwise. The best part of banking technology is the customer service provider. You don’t even have to visit the bank with every little problem. You can contact the customer service, and they will resolve your issues for you in the comfort of your home online.

Nowadays, most of the payments have shifted from cash to online banking, which helped the customers experience the perks of cashless transactions. Also, customers don’t have to visit the bank to have access to the money. Even during the time, the bank is not open; you can have all the authority over your cash through the advantage of technology.

What happens if you need to purchase something at an odd hour when the bank facilities are not available? That is not a problem anymore because you have the 24/7 comfortable access communication facility. Even if you have a complaint, you can mail the authorised body at the very hour and expect the message to reach them.

You can not imagine banks without the comfort of technology because, without them, it would have been a very lengthy errand. It is easy to use online banking and cheques, and cards that we can not even imagine when these were not prevalent. Honestly, we do not have to. Banking and technology are inseparable today, and that is what makes our work easier.

Telephone banking is a service provided by a banks and financial institution where customer performs their transaction, over the telephone. Banking carried out over computer network is called telephone banking.

It represents conducting financial transactions using computer and a telephone. Banking carried out over computer network is called as Tele banking. Most telephone banking services use an automated phone answering system. This technology facilitates to call the bank and give order to a bank computer for carrying out of operation under your account.

1. Automated Teller Machine:

An automated teller machine is a computerized device that provides access for financial transaction in a public place. The customer can have access to his bank account to make cash withdrawals and check balances. Apart from these functions ATM facilitates to transfer money from one account to another and can request for a cheque book.

2. SMS banking:

SMS banking is a technology-enabled service offered by banks to its customers. They permit the customers to operate banking services over mobile phones using SMS messages. SMS banking is more advantageous than Internet banking because people carry mobile phones everywhere. SMS banking reduces the distances between banks and the customers.

3. Debit cards:

A Debit card is a plastic card with a magnetic strip that can be used by a consumer as a means of payment. Unlike a credit card, there is no line of credit; the debit card is linked to the account.

Funds charged to a debit card are directly deducted from the bank account it is associated with. It is card that provides an alternative payment method to cash for making purchases. It can also be called as electronic cheque.

4. Credit card:

Credit card is a plastic card with a magnetic strip authorised to purchase upto a predetermined amount i.e. a credit limit. Banks issue it to their customers to enable them to purchase on credit. These cards store the information relating to customers account.

5. Internet Banking:

Internet banking means conducting financial transaction through a website. Internet banking is also known as online banking. In Internet banking consumers have an access to their account through a server.

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