What do new technologies offer to the banking sector?
This sector has adopted the use of technology to serve its customers much faster to save time and to do more with less. New technologies have revolutionized this sector with the change of paper and branches of banks to digitized banking services and connected to a network. The customer service is changing and the management and accounting system of all banks has changed. The technology and its implementation is very expensive but the advantages are unlimited.
A technology role in this sector is the emergence of ‘e-banking’. With ‘electronic banking’ the customers can find out information about their financial transactions and accounts, make cash transfers, checks and look up information about fees without visiting the bank. It is only necessary to have a computer. ‘Anytime, anywhere’: the installation of ATMs that offer the option to customers to withdraw money 24/7 and to check their balances. Also a customer of any bank can use the ATM of any bank anywhere in the world to facilitate the fast and easy transfer of money.
‘Telebanking’ is another form of customer service that is facilitated by technology. It is a 24 hour service where customers can search for information regarding balances and transactions in the account by phone.
A huge change is the use of ‘plastic money’ instead of cash. The use of plastic money as credit or debit cards has increased a lot in recent years. The experts have said with in the very next years the cash will be obsolete. With a card a customer can pay for anything and the money is deducted automatically from his bank account, you can also use the same card to deposit or withdraw money from your accounts using an ATM
It is clear that technology has many advantages for the banking sector but there are also negatives. In this sector currently employees are becoming unemployed with the replacement of employees with machines such as ATMs and the increasing use of ‘online banking’. There is also much more competition because through the web a bank can make huge marketing of potential customers all over the world without much cost.
What do you think about the use of technology in the banking sector? Is it a good thing?
THE CLIENTS OF THE FUTURE
Transaction costs and each type of banking services tend to fall. The biggest reason is the strong competition among banks seeking alliances. With each alliance they form, they manage to use economies of scale, that is, to reduce fixed costs in large transactions. This makes the cost always more attractive for the client. In the future, many banking services will be offered free of charge; among others, advice for investment in financial products. Use of letters of credit, information of the bag of etc.
The different markets of financial products that do not have a drop in prices, will facilitate entry to foreign banks and lead to better quality for the customer. Just think that with international alliances a national or local bank manages to connect with a network of branches around the world, which increases security and transparency for the customer.
Currently, banks are in a process of change, of alliances and expansion with an aggressive policy in the market; certain banks have achieved a position in the global market, which still has growth expectations. The banks follow a strategy of serving the local market and thinking regionally. All this is summarized in bringing the benefit to the consumer.
THE TECHNOLOGY IN THE BANK OF THE COUNTRY.
More transcendental changes are going to happen in the terms of banking technology. The entrance of new and strong partners with the creation of alliances between national and foreign banks leads local banks to the vertiginous rhythm of the latest technology.
Apparently, ATMs will increase in all cities. The cost of an ATM is not comparable to a traditional branch. It is estimated that a cashier costs a third part than a window. Therefore, many bankers prophesy a decline in traditional branches. Only those that by directive decision can be transformed into advisory and financial consulting centers, meeting points and contacts will be saved.
Strategic alliances in the banking sector bring benefits because they know their customers, banks increase the possibility of market penetration. Consequently, information flows between strategic partners lead to a thorough knowledge of the characteristics and needs of a broad group of claimants. Another characteristic element of the future will be the use of electronic banking. It is easier to use the computer from home to make transactions at the bank, such as payment of electricity, telephone, water, etc., than to go to the Bank’s branch or office. It’s a matter of habit.
Now the Telebanking, the Fono Bank, Tele consult offer the client all the facilities of terms of comfort and accessibility, so an ordinary citizen can do his banking business from the house or office at any time, without fixed schedules. The branch is transferred, virtually to the home, offering a fast, efficient service with minimum expenses for the bank. Therefore, the new technology offers more efficiency and speed at a lower cost. Open a simple savings account, which at the moment amounts to a loss of time of 30 or more minutes, within very little can take 30 seconds. The Software infrastructure for financial entities is one of the main tools to face a changing and demanding market. The possibility of offering customers truly innovative products depends on the flexibility, security, openness and robustness of this infrastructure.
For example, the automatic deposit account, the electronic check, the money at the time available, save a trip to customers, it is an experience, it is a challenge to reduce what was once an adventure to achieve it.
Featured images purchased from shutterstock by Mikko Lemola