The banking industry has always been a front runner in adopting new technologies and also, in many cases, the guiding power behind them. So many technological developments in the last century from computers to smartphones have been adopted and tweaked by banks according to their needs.
Innovations in Career Banking
This has led to widespread welfare of the common people who rely on banks for their money and savings. We discuss here some of the most important banking innovations.
Innovations in information technology have now become the most important facilitators of the transformation of the banking industry in terms of transaction processing and other internal processes. Banking innovations are now being heavily based upon these information technology innovations.
1. Electronic funds transfer
Electronic funds transfer, or the electronic transfer of money from one bank account to another, has revolutionized the banking industry and made life convenient for millions of customers.
The transfer, either within a single financial institution or across multiple institutions, is done through computer based systems without the direct involvement of bank employees. The term covers many payment systems, such as cardholder-initiated transactions, direct deposit, direct debit, wire transfer, electronic bill payment etc.
The advancement of mobile technology has also been extensively made use of by the banking industry. Mobile banking through SMS was already prevalent before smartphones came into the picture. Nowadays, apps on our mobile phones or tablets can perform a range of functions. Click To Tweet
The types of financial transactions a customer can transact with the help of mobile banking include obtaining account balances and list of latest transactions, electronic bill payment and funds transfers between the customer’s account or another’s account.
Mobile banking has also been very helpful from the bank’s point of view as it reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions.
3. Cloud-based POS
Point of sale (POS) or point of purchase (POP) is the time and place where a retail transaction is completed. With the advent of cloud computing it has become possible to deploy POS systems as software as a service, allowing the banks to access the transactions directly from the internet with the help of any internet browser, making the transactions faster and easier to rectify.
They can also be made to be compatible with various mobile devices such as tablet computers and smartphones. A number of banks have started building their POS software specifically to be cloud based.
4. Currency exchange software
The foreign exchange process has always been tedious and involving a lot of risk. There are new foreign exchange software applications available which help in increasing productivity and reducing career risks to a great extent.
They do not simply provide you with exchange range but also guide you through each step of foreign exchange and keep extensive records of every procedure.
The new and improved methods in the banking industry are ultimately useful for all. People can now travel overseas and spread their businesses all over the world without worrying too much about ways of moving money around. But the innovations do not stop here, we will see more innovations in the career banking industry in the coming years which would make our lifestyles even better.
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