Importance of Technology of Banking : (All you need to know about)

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Importance of Technology of Banking: Many of the IT initiatives of banks started in the late 1990s, or early 2000, with an emphasis on the adoption of core banking solutions (CBS), automation of branches and centralisation of operations in the CBS. Over the last decade, most of the banks completed the transformation to technology-driven organisations. Moving from a manual, scale-constrained environment to a global presence with automated systems and processes, it is difficult to envisage the adverse scenario where the sector was in the era before the reforms, when a simple deposit or withdrawal of cash would require a day. ATMs, mobile banking and online bill payments facilities to vendors and utility service providers have almost obviated the need for customers to visit a branch. Branches are also transforming from operating as transaction processing points into relationship management hubs…

Importance of Technology of Banking

Introduction of computer and other electronic technologies in banks has the following advantages which state the importance of such new technology in banking :

1) Increase in Efficiency : Efficient and quick service to customer can be provided with the help of modern technologies.

2) Handling of Information : Creation of up-to-date monitoring and information system and strengthening internal control and housekeeping and reporting functions are provided. Sorting of information becomes easy.

3) Cost Reduction : There is reduction in cost including floor space because of the use of modern techonology.

4) Accuracy : The clearing of cheques, pass book entries, inter-branch and inter-bank reconciliation and such other functions can now be carried out quickly, correctly and legibly with modern technology.

5) Customer Service : With internet facility, the customers need not go to the bank office. All banking transactions and updating of accounts can be done while at home or in transit. Networking means sharing of information, giving messages and being in face to face contact even when apart. It is the meeting without moving.

6) Easy Communication : Internet connects thousands of computers which can work 24 hours a day throughout the year. There is no more the tyranny of working hours. The business of banks with customers, head office, other banks, branches is being fully computerised in western countries and India has also to move in that direction to service in international competition.

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