How Technological Evolution Is Making Banking Easier For Consumers

How Technological Evolution Is Making Banking Easier For Consumers

electronic money

When is the last time you went to your bank physically and talked to the teller? Technology has had a significant effect on almost every aspect of human life, including the way people work and relate to each other, and the banking industry has not been left out either. Ever since the introduction of the first bank card in 1946, technology has continued to evolve, and nowadays plastic and electronic money are no longer a novelty as they play a significant role in many people’s lives. This piece explores how technology has made banking easier for consumers.

Smooth transactions and money management

“Technology has revolutionized banking by making transactions seamless. Usage of cash is almost obsolete, and most people prefer to pay with their debit or credit cards for transactions at retail stores or online,” said Kirk Chisholm, the wealth manager for Innovative Advisory Group. Though carrying cash makes it easier to tell when you are running out of money, cards make it simpler to track your records. Today, most banks offer online self-service portals where you can log in and view past transactions, allowing you to track your income and expenditure.

Increased accessibility and affordability

With mobile banking, you can access your money even when you are away from your computer. Having access to all your accounts from your phone means that you do not necessarily need local banks to manage your money. This allows online banks to flourish while providing better rates, thereby increasing affordability. ”Technology has made banking more affordable and accessible to the society,” said Aja McClanahan, a finance blogger, and expert. He also added that mobile banking makes it easier for people to bank beyond their immediate geographic locations, which creates the avenue for smaller banks to compete with industry giants by offering lower fees and better interest rates. Additionally, McClanahan noted that simplified accessibility helps people who are too busy and those who might feel intimidated to visit a banking hall physically.

Customers can switch banks easier

“With increasingly fast digital capabilities for opening accounts, consumers have more choices and are exploring their options,” said Laura Crozier, the global director of banking at Software AG. Banks know that they cannot take consumers’ loyalty for granted and hence have to deliver excellent value all the time. She also cited Accenture saying that over half of consumers consider themselves open to changing banks whose services they dislike. Millennials are the most open-minded lot with about 71% ready to switch to a financial provider which is not even traditionally recognized part of the banking industry, such as Amazon, Google, and Paypal.

Even though technology has largely influenced banking, the most significant revolution is still to come, since some financial experts feel that the sector has not yet hit its peak. If this is true, the near future could be more exciting than the last decade. It will also be interesting to see which financial institutions will be flexible and vigilant enough to keep up with the rate at which technology evolves.