What is so special about technology in banking sector?

Posted by Lisa Williams on February 23rd, 2021

Digitization has enhanced the operations of the banking industry to a great extent. Since the beginning of the last decade, large banking corporations have pioneered the digital transformation of their business processes and customer-centric operations. Small and medium banks followed suit, and today, the banking industry is one of the few industries with a robust digital infrastructure. 

Indeed, the digital transformation did not come for free for the banks. They had to invest a lot of money, time, and resources to achieve digital transformation at a satisfactory level. However, once they started their operations using the digital infrastructure, their profitability increased manifold, and their relationship with customers witnessed unprecedented improvement. Today, technology in banking has reached a stage of no return. Banking customers cannot imagine a world of banking services without digital technology. 

To fathom how deep-rooted digital technology in the modern banking industry is, you should read on to know about banking domains that are dominated by technology.

1.High-value transactions

Transactions of huge volumes through cash is an imagery of the past. Today, the general population uses technology in banking sector to make payments of high amounts. Digitization of banking transactions has eliminated the need to carry fat bundles of notes in one’s wallet. Transferring millions or billions is just a matter of seconds if one has a digital account in any banking website or mobile application.

2.Grievance redressal

Earlier, if bank customers had any query regarding their accounts, they would visit the nearest branch. It would require the customers to take a day off from their work. They had to devote a considerable amount of time standing in the queue at the bank counter. Today, all they have to do is log into their mobile applications to see their bank details. If they want to speak to a bank employee for personal grievance redressal, they can call the banks helpline number. Due to core banking, customer care personnel can easily pull out relevant information about the customer’s bank account and effectively address their issue. Modern banking technology has also made it possible for banks to employ robots to look into bank customers' issues and solve them in seconds.

3.Easy loan mechanism

Modern banking technology has also made the processing of loans easy. Earlier, people who wanted loans had to wait for days as banks used to verify the loan's risk. Today, it can be done in a jiffy using risk calculators. It saves the time of the bank and the borrower.