Banking

Today’s Banking

Now and Then

Table of Contents

History2

Advantages 3-4

Rapid Growth – chart 4

Disadvantages5-6

Availability 6

Conclusion 7

References 8

Today’s Banking

What are banks? Banks are financial institutions that invest money deposited by its customers. They make loans out to consumers with interest for repayment. People also use banking institutions to keep their money safe as well as draw interest on the funds that were deposited.

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History

During recent years technology has become one of the key aspects for several organizations to attract new customers and to deliver their services. The term technology for banks in previous years did not necessarily mean internet banking and smart phone applications as in today’s terms. Technology years ago meant enhancing quality, reducing overhead cost, having a better connection with customers. New enhancements to banking dating back to the 1960’s through 1990’s included, introducing Automated Teller Machines (ATM), electronic banking (e-banking), phone and internet banking.

Brief history of banking technology has changed drastically since the 1960’s. Banks relied on handwritten documents, which was manual entered into the banks database by operators. Gradually new products were introduced to customers such as; debit cards, ATM cards, and credit cards through the banking institutions. The internet opened new channels for banks, increasing competition with other institutions. Financial institutions were looking for ways to make banking more convenient for all their customers.

“In 2000s the spread of wireless technology and the use of wireless devices became field of which banks can use to offer online banking services.

Mobile banking became a new opportunity, and customers started to use their cell phones. Accordingly, the new intermediaries such as electronic payment systems emerged to satisfy more customers.” (Eltengari, 2011)...