Technology in Banking industry
Today technology is having a major impact on the banking industry. Many bank services that once required a teller person to handle money withdrawal or deposit are now using ATMs that allow people to access their accounts 24 hours a day. With direct deposit and electronically payments, the banks allow people and companies to directly transfer money into various accounts at the speed of the Internet. Many banks have banking services online so access to accounts, or any transactions can be made anywhere at any time. These automation processes have reduced the need for people which means fewer costs and more profits to the banks.
Advancements in technology are being used in the ways banks process information. The use of check imaging, which allows banks to store photographed checks on the computer instead of paper checks, can reduce processing errors, increase accuracy and efficiency. With Big data analytics technology the banks have all information they need to make the right decisions on loans quickly so loans can be approved in minutes, rather than days or weeks, and making lending more efficient. The financial crisis that happened few years ago also accelerated the application of technology in the banking industry as many banks are using special software to detect frauds, bad loans, and bad credits and diversify their business to avoid loss and become more efficient.
It is predicted that in few years most banks will be “virtual” as automation will take over most of the activities with fewer people involved. That also means banking industry will need less business workers but more technology workers because everything will be automated and bank leaders must find enough technical workers to work for them, else they will not be able to compete. As more people will access their bank accounts using mobile devices, mobile application developers will be needed. As more banks will move their information system to the cloud, more cloud computing specialists will be needed. As more banks will be operate online, more network security specialist will be needed, and as more banks will need special software to process transactions, detect frauds and bad credits, more business intelligence specialist and Big data analysts will be needed. To improve customer service, most banks will have phone centers to answering phone calls from customers, more customer service representatives will be needed.
Today the banking industry is changing into more automation and globalization has allowed global banks to move into local markets and compete with local banks. These factors will change the banking industry dramatically in the next few years. Banks compete strongly to attract customers and this will lead to a lot of changes too. As the banking industry is changing, so are the jobs, the prevalence of technology in the banking industry will create high demand for many information technology specialists who are employed to ensure technology systems run smoothly. Job opportunities in banking industry favor business administrators but the need for IT skilled workers will create good job opportunities for individuals with both business and technical backgrounds.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
