Like any other sector; banking, trade, and commerce have evolved to embrace the use of technology in different ways. Unlike the traditional settings, where cash was the only accepted means of payments, these sectors have simplified money into different forms. However, while technology has been significant in the expansion of the scopes of markets through different payment methods, mostly electronic forms, the technological developments in the banking industry have equally added risks and created problems in transactions including fraud, cybercrime, and money laundering among other crimes. Nevertheless, the impacts of technology on the efficiency transactions have been significantly noted with the emergence of mobile and e-banking among several other developments. Consequently, different new sets of skills are required in the labor markets to handle the technological advancements, which have increased the job opportunities and career choices for scholars. Similarly, corporation, banks, and governments have risen to this challenge and are working towards embracing technology of the cash-less society.
In the banking sector, the financial institutions have embraced technology to do more with less, and serve the clients faster. The branch based paper banking systems have been networked through digitization of banking services. Today, broadband internet is affordable and allows for easier and faster transfer of data (Benamati & Mark, p. 163). Despite the challenges that these financial institutions are facing such as the expensive costs of implementation, the benefits of technology to the institutions and their clients far outweigh the costs.
Some of the roles of technology in the banking industry include e-banking, NRI, banking systems, Rural banking, Plastic banking, Remote Banking, centralized Information systems, mobile banking, and Signature Retrieval facilities. E-banking (electronic banking) allows banks to deliver their services to clients through Graphical User Interface (GUI) and Electronic Data Interchange (EDI), which allows the clients to access their bank details through their personal computers (Benamati & Mark, p. 168). Other capabilities of the e-banking, which is done online include making money transfers between accounts, inquiring about financial transactions, and printing bank statements without having to go to the bank physically. This has significantly reduced the congestion in bank queues. These improvements in the banking industry have ensured that people can access their bank accounts from any destination and deposit or withdraw money without having to go to the banks (Benamati & Mark, p. 169). As a form of payment, markets have been expanded and redesigned to accept different forms of payment including the mobile transfers, and money transfer between accounts of the buyer and the seller without having to go through the paper based banking or going to the branches for credit facilities.
The best example of technological advancements and their impact on the banking industry as well as market expansion is mobile banking in Africa, especially Kenya, where the idea was generated. In Kenya, mobile phone owners can access banking services from their phones. By opening an account with your mobile company, which is opened for free, the customers can deposit or withdraw money to and from their bank accounts; send or receive money from other accounts holders; and make payments. Safaricom, which is the largest mobile operator in Kenya, allows its subscribers to access banking facilities through M-Pesa. In 2013, the mobile company partnered with the Kenya Commercial Bank, through an initiative called KCB M-Benki, which allows Safaricom subscribes to open and access KCB accounts through their phones. Additionally, these subscribers also have access to loaning services through M-Shwari, which is a partnership between Safaricom and the Commercial Bank of Africa (Were, 2012).
Technology has also helped in solving the unemployment problem facing different economies. While it has opened avenues and business opportunities for investors, technology has also expanded the career options for scholars, which has increased job opportunities. As opposed to the paper banking era, the technological era has introduced new banking skill sets including programmers, information security personnel, and system development and maintenance staffs (Schneps, Jack A., et al). On the other hand, technology has brought about several challenges to the banking industry and trade. Due to the growing technological knowhow, hackers have managed to access bank accounts through their computers and defrauded several people of their money. Additionally, despite the great success of the mobile banking in Kenya, the wrongly sent moneys are sometimes lost, especially when the wrong recipients withdraw the money before a reversal transaction has been initiated and successfully executed.
The signature retrieval facilities are some of the efforts that banks have introduced to reduce the problems associated with the cash-less society. This technology reduces fraud by verifying signatures before withdrawals and other transactions. Additionally, government departments have intensified their security and penal systems to ensure that the reported fraudulent cases are addressed and the victims receive justice and punishment for the offenders (Benamati & Mark, p. 173). Simultaneously, corporations have embraced technology and have accepted different forms of payments including mobile banking, remote banking, and e-banking as forms of payment. People can today purchase products online and make payments through different online platforms including Payoneer, Epay, and Skrill among several other payment platforms. Today, people working overseas can remit money back home through the different platforms.
Works Cited:
Benamati, John "Skip"Serva, Mark A. "Trust And Distrust In Online Banking: Their Role In Developing Countries." Information Technology For Development 13.2 (2007): 161-175. Professional Development Collection. Web. 5 June 2014.
Schneps, Jack A., et al. "College And Industry: Partners In The Handicapped Employment Role (CIPHER)." (1976): ERIC. Web. 5 June 2014.
Were, Emmanuel. “CBA customers to borrow more through M-Shwari platform.” Standard Digital Media. Web February 7th 2014 http://www.standardmedia.co.ke/mobile/?articleID=2000104144&story_title=cba-customers-to-borrow-more-through-m-shwari-platform
