- Banking Sectors
- Positive Impacts of technology in the Banking sector
- UPI 2.0
- What are the negative effects of technology in financial services of the banking industry?
1. Banking Sectors
The banking sector is presently undergoing tremendous impact due to the implementation of modern technology. In the past two or three years, the impact is very much and multifold. If the comparative study is observed, then it will be established that the changes are numerous and most advanced technological tools have been implemented. To quote few BHIM, UPI, mobile banking by payment banks, a lot many technology revolutions are impacting the banking sector. The technology is of great use in the banking sector, it has changed the banking industry from paper and branch based banks to digitized and network services.
Technology further enabled you to not go onto a branch: you could withdraw cash at an ATM, first your banks’ ATMs than at other banks’ ATM machines. Technology further allowed you to perform various transactions via the internet and mobile banking – you could now start to create your own beneficiaries and perform local and international payments without going into a branch.
Some banks even allowed you to open accounts without going into a branch – opening banking up to rural folk, previously unbanked people.
You can now get a more real-time and accurate view of your finances, like never before.
2. Positive Impacts of technology in the Banking sector
Banking can’t survive today without technology. Needless to say what technology has done to us and how easy life has become. Let’s go back to the era where there were no ATM’s, can someway tell me how life was at that point of time and how life is today. The same goes for things that we can do online these days, I don’t remember going in the last 4 years.
- Chip and pin on cards ensure cards cannot be cloned.
- Multiple apps on-card chip you could consolidate cards, carrying less plastic in your wallet.
- Travel wallets have meant people don’t need traveller’s cheques, and need to arrange less (if any) foreign currency when travelling.
- It improved various services like online trading, online bill payment, shop online …etc.
- Customers ATM cards, cash deposit machines, online banking, mobile banking …etc.
- It helps banks function in an organized way, that means it’s used in all the bank’s systems.
This has spawned a host of innovative initiatives revolving around fund transfers, investment advice, and, which is being replaced by technologically advanced systems.
This technology reduces the risk of errors and fraud and is also the best way to mitigate intermediary costs.
3. UPI 2.0
Unified Payments Interface (UPI) launched by the National Payments Corporation of India, in 2016, is soon being upgraded to UPI 2.0. Ap. Other features designed are bill payment options, biometric authentication, and Aadhar linked transfers.
The application of artificial intelligence is beginning to disrupt the existing practices of financial industries. AI overcomes speed limitations by attributing human knowledge to digital
Banks now make less than half of the mortgage loans in the US for example. The next phase of technology will likely be a little less obvious to consumers, as automation is applied to all types of processes and back-office operations.
4. What are the negative effects of technology in financial services of the banking industry?
- The most obvious aspect is the loss of jobs.
- Technology has replaced huge numbers of jobs in the banking industry and will continue to do so.
- Many people argue that this is a good thing but ATM’s don’t pay any tax, they don’t buy anything and they don’t contribute a single thing to society.
- Duplicating human activity may provide short term cost savings but is actually eroding economic well being by reducingactive participants!
- The loss of jobs due to automation was never the added value jobs in the finance industry, to begin with – the jobs added due to automation are partially adding value – the other part (IT) is not.
The most obvious aspect is the loss of jobs.
Technology has replaced huge numbers of jobs in
the banking industry and will continue to do so.
Many people argue that this is a good thing but
ATM’s don’t pay any tax, they don’t buy anything and they don’t contribute a
single thing to society.
Duplicating human activity may provide short
term cost savings but is actually eroding economic well being by reducing
The loss of jobs due to automation was never the
added value jobs in the finance industry, to begin with – the jobs added due to
automation are partially adding value – the other part (IT) is not.