Modern technology in banking

Admin post on October 22nd, 2012
Posted in Banking

The requirement, noted previously  for organisations to maintain greater flexibility in carrying out their business activities in the contemporary commercial environment, has undoubtedly influenced the banking sector in the field of financial services. Banks are also increasingly implementing new technology.

T. Obala says that banks are making increasing use of electronic media in the provision of banking services. The new opportunities that this has brought to banking has allowed for the expansion and modernisation of existing deposit and credit activities, and has seen the introduction of new financial products and services. The author notes that many projections indicate that electronic banking will become the primary basis for the future development of banking systems, as well as the main instrument of competition for banks. This is because the introduction of advanced electronic technology solutions into banking will increase the operating efficiency of banks, while, simultaneously reducing the cost of retail operations, and increasing the speed and certainty of banking transactions. As a result, there is likely to be a significant expansion in the circle of potential customers for banking services since increasingly sophisticated forms of banking are likely to be become more readily available to customers who have access to the latest computer and electronic technology. The introduction of new technologies is therefore likely to expand the business of banking as new customers are attracted to new services and easier access to banking services. Such changes should result in improvements to the scope and quality of lending services offered by banks and to their liquidity. Further, the use of electronic banking and automated credit lines by customers has the potential to accelerate changes to both the structure of banking deposits as well as to the business of lending by banks.

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