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3 Ways Technology Has Revolutionized The Banking Industry

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Banking was first brought to life in 1472 when the Italians built the Monte dei Paschi di Siena. Since then, there have been major advancements in the field that have redefined and shaped modern day banking, the most disruptive of them all being the incorporation of mobile technology. However, before mobile banking, the very first use of technology in banking came in 1967 when Barclays launched an ATM machine in Enfield, London. The second major revolution accredited to technology came in 1983 when the Bank of Scotland launched online banking. It was not until 1999 that mobile banking was invented. Back then it was called SMS banking as it used just the web and SMS. After 2010, mobile banking as we know it came to be thanks to advancements in web technologies and the creation of applications. Unlike back in the day when one had to physically visit a bank for any financial needs, thanks to technology, one can now withdraw or deposit money, pay bills, transfer money, order cheque books and manage their money from anywhere. Smartphones have completely changed banking for the better provided you keep your data safe from hackers.

Better Money Management

For starters, through the use of smartphones, you can now better manage your finances. How so? Budgeting software. There are hundreds of proven budgeting software and applications you can download on your smartphone to help you manage your money better through budgeting. These include MINT, YNAB, and Quicken to mention but a few. If you use credit or debit cards for transactions, all you need to do is link the app with the card. The software will then download all transactions made through the card, categorize them and create a budget. It will then run calculations and tell you your bank balance, your savings, and your expenditure. If you use cash, you will be required to load the data manually after which the application will take over. By analyzing this information, you will be able to keep track of your money and find ways to manage it more efficiently.

Fewer Fraud Cases

Technology has come to save you from being conned out of your hard earned money. Unlike traditional banking where fraud detection was the job of bank staff, mobile banking uses technology to study one’s banking patterns and then uses this knowledge to flag suspected fraud incidences. Furthermore, an email or text is sent to your phone whenever any transaction is made. Should you see a transaction you have not made, you can immediately call the bank to stop it. Any time you try to log in to your account, most banks send a passcode to your smartphone which is viable for but a few minutes. This ensures nobody can access your bank account but you. Even if someone does steal the passcode from your phone, by the time they use it, the bank will have already changed it.

Improved Convenience

Mobile banking does not come with all the paperwork and queuing traditional banking did which makes it very convenient. You can access and manage your money even when you are miles away from your bank of choice. Paying for food, clothes, shoes and any service can be done by tapping a few buttons thanks to the digital wallet. There are times when you forget to pay amenity bills and end up with no electricity or water right? Mobile banking offers automatic bill payment to help you with this. Simply go to the company’s website, set up a payment date and let the mobile banking app do the rest. Add all these to the fact that by using mobile banking, you can access your money 24 hours a day all week long unlike banks which are closed on certain days or by a certain time, mostly 4:00 p.m or 5:00 p.m.

While traditional banks seem to suffer from the fusion of technology and finance industries, modern adaptive banks like the State Bank of India have used it to drive growth and profits. It is high time all banks embraced technology as it provides better customer service to their customers which will consequently bring in more clients and profits. In the words of Dr. W.A. Wijewardena, the former chairman of IBSL, “Banks should subsume technology before technology subsumes them.”

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