Banking in a digital economy

In the past, we could not imagine the world with high technology where everything is connected…

With a convergence of disruptive technologies, everything we know about business is changing rapidly, as smartphones and social media platforms replaced film and photo albums.

As for changes – we have greater access to the internet, digital developments have created a wave of innovation and changed the way businesses operate and deliver products to consumers in many sectors.

One sector that I think most people are familiar with is the financial sector as banks. As Banks play a vital role in the economy for offering a service for people who wish to save money and to businesses who want to invest and expand (Pettinger, 2017).

With advanced technology, banks now realise the possibilities of digital technologies such as revolutionising the mobile and digital banking system, updated ATM, and fraud detection.

This system will be more effortless because it builds up more comfortable to use and give more usability for customers.

While, for the traditional banking methods, we have to go into town to the bank to withdraw or transfer money – now, we can do it with just the push of a button.

Now, if you have your phone, you’ll be able to conduct contactless ATM transactions.

A few ATM technologies are already accessible overseas. For example, biometric authentication is already employed in India, and iris recognition is used at Qatar National Bank ATMs. These technologies can enable thorough bank security by securing against ATM hacks.

The system would help to track potential fraudulent transactions, by using AI to trace through the history of the victim, then calculate and predict the likelihood of fraud based on previous patterns.

The digital developments have created significant business opportunities by giving customers more choices, being smarter and faster, making fewer mistakes, and saving customers’ time and money. These changes pose opportunities and challenges for both individuals and organisations. 

With the increasing necessity for digital change, the progression of technology becomes more efficient than the people. Therefore, the problem will occur to bankers who can be replaced by AI.

The most significant factor is managing the balance between technology and manual intervention, and how harmonising this will further revolutionise the industry for both businesses and consumers.

(How technology is impacting the finance and banking sector, 2018)

References

Finnegan , M. (2014). Barclays expands digital cheque imaging trial to one million customers. Retrieved from techworld: https://www.techworld.com/news/apps-wearables/barclays-expands-digital-cheque-imaging-trial-3590133/

How technology is impacting the finance and banking sector. (2018). Retrieved from InformationAge: https://www.information-age.com/technology-finance-banking-sector-123471800/

Pettinger, T. (2017). Purpose of Banks. Retrieved from economicshelp: https://www.economicshelp.org/blog/glossary/banks/