Role of technology in Banking

banking

Technology has taken the banking system to the level of greater transformation. The introduction of computers and other electronic devices has made banking easier for everyone. Technology has its impact on all the sectors and in our daily lives but the changes brought in the banking sector have transformed the lives of the people to another level. Efficient and quick services not like before with burdens of lots of paperwork and maintenance of files. New banking has helped the industrial, agricultural system to such an extent by providing loans to the small farmers at small rates and also taught and helped them in making an investment. With the globalization of trade, the bank provides the funds to the customers, if they require foreign currency and that too with safety measures.

Some of the developments brought by the technology driven banking sectors are like

E-Banking

E-banking facilities are through the usage of the computer via the internet. In modern times e-banking has really made the lives easy and cheap too.

Some of the advantages of E-banking are like.

 The customer can view his balance, details of recent transactions any time a day and as many times he wishes too.

 He can download bank statements, view images of the paid cheque, can order new cheque books online, and can also download the periodic account statement.

 Fund transfer can be made between the customers linked accounts.

 Fund transfer to the third party within the bank.

 Fund transfers to the third party having his bank account in another bank.

 Investment, purchase or sale.

 Bill payments and many more.

It is convenient to the customer as now they don’t have to go to their respective banks and wait for their chance. In fact, not only the customer but also been very flexible to the banking business.

ATM services

Automatic Teller Machine has become common in many parts of the nation. People can draw cash from their accounts in the bank from 24 hours working ATMs spread across the length and breadth of the nation.

Debit and Credit cards

Debit and Credit cards have again added to the convenience of the consumers, who can make payments using these at a reasonable rate of interest. This has reduced the element of risk involved in carrying cash to all places.

Telebanking

Telebanking is a system in which banks provide their customers with the facilities of performing transactions through telephone.

NRI banking services

In many countries like India, this technology has been adopted. In this, the ones who work abroad send money to their family and bank within no time convert the currency and give to his family members.

Rural Banking

The majority of the population in India is living in rural areas. The development of banks in remote areas has helped the people, economy, small scale industries to develop and contribute to national income. Previously, people living in rural areas have to travel miles for banking but now with one swipe thing, everything gets possible. It has helped a lot of agricultural sectors by providing loans at lesser interest and many more schemes.

“The views of the authors are personal

Frequently asked questions

What is plastic money?

All the debit credit, visa cards come under the category of plastic money. These are the hard plastic cards used instead of banknotes for e.g., the debit cards used to withdraw money instead of using the withdrawal form. These smart cards have helped the users to transact in a flexible way and encourage easy banking.

Which was the first bank to introduce e-banking in India?

ICICI bank was the first to provide its customer with the e-banking in the year 1987.

Our online banking, internet banking, and web banking the same?

Yes, three terms are used interchangeably. It is enjoying the banking services at our own desk without going to the branch.

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I am Aditi Anand pursuing my BLS LLb from KES Jayantilal H Patel Law College , Mumbai University . Currently I am in my Vlllth Semester. I have chosen law as my career as this field have a dynamic characteristics which fills me with an enthusiasm and attracts me the most. The sections of law like Constitutional Law, Criminal Law, Civil ( property and contract) are preferred the most. Infact, these days I am heading my interest towards the taxation Laws. During my law school I have been a part of many debate, Moot and writing competition where I have achieved my best results. I always love to keep myself updated with the current socio- eco and political situation Beside this I am good debater and leader with good supervising and managing skills . During my leisure time I like to read, chit chat , watch movies /series , baking and to teach.