Banks Embracing Technologies: Investment & Benefits - Essay Sample

Introduction

Banks are operating in an environment where different sectors of the economy are embracing technologies in their operations. Banks too need to embrace technologies to fit in a world that has embraced technologies to make the world better. Technologies facilitate the sharing of information which is important in facilitating business and making decisions. Using technologies in banking, the banks have to spend resources to invest in the technologies and hiring the right people to run the technologies. The technologies will bring benefits to the bank; hence, the managers need to engage technologies in their operations by automating its processes that the banks engage in.

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Cost is one of the factors that the bank manager has to have to implement the technology infrastructure. The amount of money required depends on the size of the bank, which includes the number of employees that the bank has (Ling, Fern, Boon, & Huat, 2016). The cost will be spent on purchasing technological equipment such as computers that will be used by the employees. Other equipment's include servers that will facilitate the access of the information that the bank has. The managers need to discuss the technologies that will require minimum repairs to reduce the cost that will be required to run the technology. The managers also need to budget for the costs that will be required to hire employees that will manage the technology.

The banking technology will automate processes; hence, the banks will save some money by laying off employees whose work will have been taken by the automation. The automation will increase the profit margins for the bank because customers will have reliable access to the services provided by the bank (Ling, Fern, Boon, & Huat, 2016). More transactions will be done hence the rise in revenue generated. The modern-day bank that is automated allows customers to access their bank accounts using the internet hence the convenience. However, the managers need to know the dangers that come with the automation where fraud increases; the bank has to put up strategies to counter the dangers that will come with automation.

Cloud computing is a technology where banks can store its information on a remote data servers and can access the information from anywhere in the world (Nor & Pearson, 2015). Cloud computing increases the security of the information of the bank because the bank is safe from losing information when cybercriminals attack the bank. Cloud computing is a technology that the bank managers have to consider cloud computing to streamline the operations of the bank. There is also the technology of big data analytics, where huge amounts of data are analyzed to identify patterns such as consumer behaviour. Big data analytics is important for the managers to know trends of consumer behaviour required to make knowledge-based decisions.

Social media is another technology that the bank managers need to consider when coming up with technologies that the bank will embrace (Nor & Pearson, 2015). Social media are platforms that allow people to interact and share information; hence, the bans can use such platforms for marketing the services provided by the bank. The bank needs to embrace social media marketing to cut down expenses used in marketing using other traditional media channels. Social media also enables businesses to get in touch with the customers for feedback and other information that they need to get from the customers.

Reference

Nor, K. M., & Pearson, J. M. (2015). The influence of trust on internet banking acceptance. The Journal of Internet Banking and Commerce, 2007.

Ling, G. M., Fern, Y. S., Boon, L. K., & Huat, T. S. (2016). Understanding customer satisfaction of internet banking: A case study in Malacca. Procedia Economics and Finance, 37, 80-85.