The banking sector is one of the oldest and most important industries in the world. The long-standing existence and success of this industry spans more than two centuries. However, it has come so far over that duration and a lot of developments and advancements in technologies have contributed towards getting the banking industry to where it is today.
Factors pushing growth in the industry
In the past few decades, the industry has revolved around expanding its reach to more people and also making it easier for people to access banking services. This has led to the creation of ATM systems and also the plastic money economy through debit and credit cards. However, the industry in general has been rather boring compared to other tech industries until now.
The banking industry seems to be getting out of its traditional operating methods so that they can keep up with emerging trends and technologies. For example, the mobile industry has had a big impact on the banking industry and the e-commerce sector among other industries. Fintech (financial technology) has spurred the development of online and mobile banking technologies allowing users to access their bank accounts at any time of the day through their mobile phones or PCs.
The mobile industry at the forefront of banking technology
The developments have particularly been leaning heavily on the mobile industry because of its massive global penetration especially since billions of people all over the world own smartphones. This makes mobile phones the easiest way for the banking industry to reach a wider market.
It is also important to note that there have been other factors that have contributed to the banking’s sector’s growth and current position. Some of these factors include government involvement which usually plays a key part in ensuring order and enforcing regulations. Banks in every country usually operate under regulatory oversight from the government through central banks which govern various aspects such as interest rates, borrowing limits and the amount of money circulating in an economy.
The future of the banking industry
As seen above, emerging technologies have a huge impact on the direction of the banking industry. It is also worth noting that the banking industry has faced huge challenges along the way and it continues to face more challenges. The sector tends to focus on solving those problems through the creation of solutions or the adoption of tech that can help move past the challenges. Blockchain, which is the same technology that has facilitated the existence of cryptocurrencies seems to be attracting a lot of attention from different industries and particularly the banking sector.
Blockchain technology which is otherwise described as a decentralized ledger technology shows a lot of promise because it promises a higher level of security, efficiency, and speed. This makes it appealing to the banking industry although it is relatively new and is still being developed. Although cryptocurrencies and blockchain, in general, have received a lot of criticism from governments and regulatory authorities, this technology gives a glimpse into the potential future of the banking sector.