Technology’s Impact on the Banking World
By David Malone
The last few decades have brought a surge of technological advances, and no industry has been immune – including the banking industry. Technology and innovation has become a marriage with banking products and services that support our clients and their business everyday, though they may not get the hype and coverage of the latest smartphone application.
Every technological stride the banking industry has made over the last few decades is
part of a general effort to make banking more convenient, manageable and secure. You can bank at the office, at home and, yes, even on
a smartphone.
Yet many of these improvements are simply integrated, not celebrated with articles or
Tweets or even buzz about their release. When asked about innovative technology in
banking, most people would probably point to the ATM. Significant, yes, and meets the
three aforementioned goals of all banking advancements, but there is so much more
happening in the industry. Here’s a look at the eight most significant and recent products that have changed banking as we know it:
On-Line Banking
The most widely used product is also one of the most comprehensive. Businesses and
individuals have real-time access to their account information 24 hours a day, seven
days a week, and all they need is an Internet connection and a computer or mobile phone. Check your balance and transaction history, transfer funds between accounts, pay bills, and more all within the comfort of your
home, with the same security as being at a bank.
Remote Deposit Capture
One notoriously unfortunate aspect of banks is the part where you have to wait in
line. This product works to eliminate that need by allowing you to deposit your checks from your office, 24 hours a day, seven days a week. All that is required is a desktop scanner connected to a PC computer with Internet connection, and you have saved yourself from a line.
Positive Pay
As technology advances, so does fraud. Businesses across all industries have struggled
with check fraud, and it has only seemed to get worse. Positive Pay Service provides customers with the latest fraud detection technology to warn of possible counterfeit checks before payment, giving you the chance to take action before it’s too late.
Business Debit Cards
This product grants freedom to both a company and its employees. Business debit cards
allow employees to make business-related purchases without the inconvenience of having
to carry cash or request reimbursements, and companies can easily track their employees’ purchases through on-line banking or their monthly statement.
CD ROMs
CD ROMs are designed for business customers who have a larger amount of “Paid
Checks” volume monthly – typically over 250 checks per month, though this technology
requires no minimum number. Each CD holds approximately 10,000 check images, making for easier check filing and verification.
Payroll Debit Cards
In order to eliminate the cost of producing payroll checks and check fraud, as well as distribute funds and travel expenses to employees in geographically diverse locations, this product enables employers to pay their employees using the ACH Direct Deposit
method. An ATM/Debit Card is issued to employees to facilitate the payroll deposit,
and can be used to withdraw cash from any ATM, or make point-of-sale purchases at business, such as grocery stores and gas stations.
Credit Sweep
This product is especially useful for companies. It automatically links a commercial
depository account with a commercial loan account and transfers funds to or from the
customer’s commercial credit line, as needed. Therefore, your cash position is automatically computed every day, reducing management time to review and manage cash. The Credit Sweep also ensures that all excess collected funds are immediately used to pay back loan balances.
Investment Sweep
Similar to the Credit Sweep, this product automatically links a commercial depository
account with a non-FDIC insured investment account and adjusts depository account balances to a pre-determined target level by transferring funds to or from the customer’s pre-selected investment choice whenever necessary.
These products alone do not represent all the changes the banking industry has implemented
over the last few years, but does demonstrate that banks have been keeping up with technology to ensure that anyone and everyone who uses a bank can do so with more ease and peace of mind than they could five years ago. And that is something worth talking about.
David Malone is President and CEO of Community Bank. For more information, contact Community Bank at (877) 922-2653, or visit the website at www.cbank.com.