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4 Ways the Internet Has Changed Banking

How Online Technology Has Changed Banking

The development of new online technologies has most certainly had a great effect on business and these new technologies have drastically changed enterprise operations and the structures of many industries. One such industry is the financial services or banking sector which has been largely affected by the digital age. While new technologies and the shift towards the cloud have made things easier and allowed these companies to operate on a scale that was previously unimaginable, the shift to truly digital does come with its own set of issues and concerns.

Here are the 4 major ways in which online technologies have altered the banking and financial sectors.

Move from Physical to Virtual Data

Before the rise of the digital age, banks were concerned with the security of their physical data and guarding their servers and tangible files filled to the brim with personal and sensitive data. Today, this worry has shifted as data is mostly stored virtually and enterprises are more concerned about large scale attacks, as the financial implications of a cyberattack could be potentially devastating.

Automation has also altered almost every aspect of the financial services as banks now have computerised tellers, digital records, and electronic payments, all of which can be accessed and completed in a matter of seconds at the touch of a button.

Greater Global Reach

Not only has new online technology altered the banking industry completely, but it has also introduced some new key players. Banks can now operate across the world by accessing information in the cloud, making it possible to share information anywhere, everywhere, and with anyone at any time. Online pokies NZ has certainly benefitted from this digitization as players can access their account from any internet-enabled device. New financial hubs have emerged in recent years as business can be conducted globally thanks to a far greater ease of access.

As more new businesses and industries emerge, there has also been an increase in the size of infrastructures and IT specialists, and an increase in the amount of data that is shared, but unfortunately also an increase in the areas that are vulnerable to attack.

Increased Security Threats

Once upon a time banks only had to worry about the security of their server rooms, but now security has shifted to become an enterprise-wide concern. A vast amount of the data that financial industries store is highly sensitive and can easily be shared internally and accessed by hackers, so security is absolutely imperative in every aspect of the business. As such, the financial services sector is now concerned with both inside and outside threats. As hackers become stealthier and more resourceful, businesses have to ensure that their security is tight enough to circumvent any such efforts.

Internal Hierarchies Have Shifted

In today’s digital world, the IT team has become as important as the financial experts in the banking sector – which is especially true as more companies make the transition to the cloud. Businesses need larger IT teams to manage data and keep up with current technological trends and developments. Business are able to move fast, innovate, and create new and exciting features thanks to the digitization of the industry and having large, scalable IT teams is crucial to a financial institutions success in this ever-changing, highly-competitive market.