The invention of computers and their application in the banking sector have brought a revolution in the world of finance and development. In the contemporary era, one cannot imagine banks without computers. Their versatile use has made it an integral part of banking. Banks have made remarkable progress after the launch of computers. The judicious use of surplus money, the ideal mobilization of idle savings, and the appropriate use of time and money are the gifts of applications of computers in the banking sector.
Let’s have a glance at some of these.
1. Quick, Simple, and Trustworthy
Computers assist in quick calculation. Their diligence, authenticity, accuracy, and reliability have developed trust between the banks and customers which is the need of the hour. The functionality of computers is so simple that today it is at the fingertips of even ordinary people. Cyber Crime Laws have also offered complete support to banks which has led to online payments and receipts.
2. Efficient and Effective
Banks are working effectively and efficiently in the field of finance, administration, customer support, budgeting, financial forecasting, and management of different databases, stocks, and electronic storage of statements of accounts of customers. These all became possible only after applying computers in banks.
3. Advancement in Technology
The banking sector flourished by leaps and bounds with the advent of different computer-based technologies. Payroll calculations for employees, ATMs for withdrawing and depositing money without visiting the bank, Robotic Process Automation (RPO) for eliminating error-prone work, Hyperautomation for scaling automation in banks, and Artificial Intelligence and Machine Learning to offer immediate and personalized services to customers.
4. Data Warehousing
Data Warehousing is also known as the electronic storage of data. Gone are the days of keeping the books of accounts in stores which was a tedious job for banks. Now, data warehousing has offered remarkable advantages like an increase in data security, reduction in time and cost, and centralized storing of data. It collects and stores data from various sources and manages it to provide financial insights to the banks which is not possible without the use of computers.
5. Data Mining
Computer application is also used for data mining. It turns raw data into useful information by using different software. There are several areas where data mining is used in the banking industry such as detecting fraudulent transactions, default payments, customer segmentation, credit scores, and marketing. Data mining is mostly used for credit card transactions, customer segmentation, and overall profitability.
6. Easy Communication and Improved Relationship
Computers have made much easier the overall process of communication by providing a Superior Customer Experience(CX). The automated processes provided by computer applications like Alerts, Notices, Consent Letters, and Product and Service offers are some different types of services given by banks to their customers. Computers, ultimately, have strengthened the relationship between customers, suppliers, clients, and employees.
7. Improved Customer Experience
The invention of computers and their application in banks have given amazing experience to the customers. On-time services with excellent quality and readiness of transactions have built a strong trust among the bank’s customers. Service quality that includes tangibility, responsiveness, empathy, and assurance has led to customer satisfaction which in turn leads to loyal customers of the banks and finally gives huge profits to the banking sector.
8. Economic Development
The application of computers has paved the way for a nation’s economic development. It has thrown back all the hurdles of manual work that slowed the pace of the economy. The diverse technologies with the use of the internet have brought overall development in the economic and financial sectors. It has brought surplus money to those who need it by offering different types of cheap loans to a large number of people. Hence, computers have removed the deficiency of capital formation from the economy.
We have seen banks rely heavily on computers. It has offered enormous advantages to the financial world. Applications of computers have proved to be a boon in the banking sector. It would work wonders if saved from viruses, malware, phishing, hackers, and third-party services.