Just as many establishments order and permits the smooth running of the society, the banking sector is such an enviable sector that protects properties of individuals, corporate companies and the government. To assert this protection, however, the use of IT in the banking sector has proved critical.
The use of IT in the banking sector isn’t restricted to telecommunications and mobile banking, there is the Automated Teller Machine, the E-Banking system, etcetera which has been put in place to impact on the efficiency of the banking sector. Further, IT which has opened the doors to new technology has influenced the activities of the banking sector, making mobile banking one of the fastest and latest growing banking network channels.
The banking sector features both retail and commercial banks, telecommunication networks and financial institutions. With the sophistication of technology, the use of IT has made banks accessible even through the mobile phone of a customer. A few examples of the banking sector efficiency through the IT is the SMS banking, debit and credit card, contactless payments, Wireless Point of Sale (POS), ATM, mobile money, telephone banks etcetera.
As banks and other institutions enjoy the benefit of IT in their sector, customers benefit from their services in many ways. Technology aids customers in keeping up with information on their accounts without visiting a branch of their bank. In a bank where the manual process of input and output is often done, technology alleviates the pressure on workers, permits a minimum volume of persons to use only the tools that are already available for the work of the bank.
There are numerous IT applications and manifestations of IT in the banking sector, thus, some important influence of the IT will be considered below.
The Automated Teller Machine (ATM): the ATM is a technology that is omnipresent throughout the world. The ATM is a machine that allows bank users or customers to cash out money anywhere without visiting the bank.
At the ATM stand, a unique pin that has generated during credit or debit card application is used. The ATM stand replaces the bank counter where a customer requests for his money and the pin serves as the verification of the account owner’s identity. Other transactions that can take place at an ATM stand include checking of account balance, viewing of a mini statement and its printout, PIN change and transfer of money to another bank, prepaid mobile top-up, credit card payment etcetera.
Mobile Banking: mobile banking is one of the latest and fastest-growing technologies in the banking sector. This technology permits a customer with a smartphone, a tablet or any personal digital gadget with mobile phone software to access banking services through his gadget. Such customers need an active internet connection to be able to access and utilize the mobile service.
With the mobile gadget connected with an internet network, a customer can access his account balance, view and download bank statement, transfer money, track transaction history, etcetera. This makes the banking activity very easy and accessible even without a physical presence in a banking hall.
Internet Banking: with internet banking which is closely related to mobile banking, a customer can access his details through the internet. However, with internet banking, a customer can make fund transfer both locally and internationally, they can create cards and make an order using debit or credit card for payment, they can do all other things as explained under mobile banking.
Secure Short Messaging Service (SSMS): this is a service used by the bank to send text messages on customer’s phones. Every banking sector keeps a record of customers’ mobile contact which permits the utilization of SSMS banking.
The customer receives a message of every transaction he makes even when it needs a pin/code to complete an ongoing transaction.
Further, as customers receive notifications via SSMS, so also do they receive notifications of bank activities through their mail. The mail has proved as a huge source of data protection should the need to present evidence of receipt for some transaction arises. Especially when a customer cannot but delete his text messages.
The wireless Point of Sale is another important influence of technology. It is connected to a bank account where both transfer and withdrawal of funds are made available by private or corporate companies. With the POS, bank fund transactions can be made without visiting a bank or an ATM center.
Effective communication: with information technology, communication has been made easier and better. At this, technology has proved a quicker and cheaper way to communicate with people both far and near places through our phone. Today, we have video conferencing apps such as Duo, Zoom all of which contribute to the progress of society.
Having incorporated this in the banking sector, communications with account officers become easy as one can track his/her account without necessarily visiting the bank. Further, banks often have hotlines for inquiry. Without these hotlines, a customer cannot be chanced to speak with a bank representative except he visits the bank. IT has made communication easier for banks through the development of communications devices universally.
Globalization: globalization is an important feature of IT in the banking sector. With globalization, the world has been brought to our hands through technology. At this, transactions can be made in any amount, anywhere and to anybody in any part of the world.
Information Technology in the banking sector has made the world a village that in a space of seconds, financial transactions can be made from a continent to another continent without delay. There are broken down boundaries here, there are no restrictions to particular geography through IT.
IT permits cost-effectiveness: with IT in the banking sector, the operation of the bank has been made effective without spending a huge amount of money. That is, a bank doesn’t spend so much on ensuring its operations are effectively carried out, it only requires employees with IT intelligence to carry out its activities.
Further, both input and output activities through the bank requires limited effort and stress as everything has been digitalized and only little error can be perpetrated.
Creation of new jobs: a bank hires more workers in the field of computer programming, system analysts and technical specialists on both hardware and software. A bank can also hire persons with web development skills as well as computer engineering network. All of which will permit the improvement of the banking system through technology.
Detection of Fraud: the banking sector through IT has been fashioned to detecting and investigating fraud. Humans cannot track fraudulent activities as a computer would, hence, the system tracks and the staff looks up the transaction to determine whether it is a threat or otherwise.
With the progress of IT, the sophistication of the banking sector has improved. Technology provides security measures for banks to ensure their protection. There are security doors and alarms which would ring out at the perception of a threat. With all of these, the banking sector has proved efficient and transactions have been made readily available, accessible, cheaper and faster.
With this influence of IT in the banking sector, the sector has changed positions from the traditional system to a global one. A shift that has been effective at managing the global shift from humans' advancement from archaic and old technology to today's form of civilization.
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