SBI PO 2015 - Essay: Role of Technology In Banking Sector

Role of Technology In Banking Sector

Technology has been a boon to many industries and especially to the banking industry. With the help of technology banks are able to reach out to more customers and provide better services to them. Also, it helps them function in an organized and in a secure way. 

As for us (the customers) we have ATMs, Cash deposit machines, online banking, mobile banking etc which are all fruits of technological advances which have made our banking experience much easier.

The following points prove the importance of technology in banking industry:

1. Mobile banking: Telephone or Mobile banking is a service provided by a banks and financial institution where customer performs their transaction, over the telephone. This technology facilitates to call the bank and give order to a bank computer for carrying out of operation under your account.

2. 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.

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. Internet Banking: Internet banking means conducting financial transaction through a website. In Internet banking consumers have an access to their account through a server. It provides various services like online trading, online bill payment, shop online etc.

Conclusion: Emerging technologies have changed the banking industry from paper and branch based banks to ”digitized and networked banking services. Therefore we can conclude that "Technology has played a big role in reducing fraud in banks which protects its clients".