Impact and Significance of Digital Technology in the Banking Sector

Banking sector/ HSBC

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Impact and significance of digital technology.............................................................................3
Challenges of digital technology.................................................................................................8
Recommendation.......................................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

Introduction
Digital technology are those technology which runs with electricity and which process and store
data. Example of digital technology is online games, social media, multimedia and many others.
In today’s world digital technology is much important in business. Using digital technology in
business provides two benefits, first is it saves time of employees while performing any task and
secondly it attracts customers (Spiteri and Rundgren, 2020). Customers are attracted with high
speed technology. A perfect example of digital technology is that when supermarkets are facing
with digital technology at their billing counters then customers has to wait a lot for their chance
because a long queue is paying cash with traditional method. On the other hand another
supermarket has digital payment structure then their customers do not have to wait a lot while
standing in the queue. They just pay their bill in few seconds with the help of digital technology.
Hence, this example shows that how digital technology reduces employees burden and attract
customers. Hongkong and Shanghai Banking Corporation (HSBC) is a bank which is
headquartered in London, England, UK. It is founded by Sir Tomas Sutherland in the year 1865.
It is British multinational investment bank and financial service holding company. Digital
technology plays an important role in banking sector. From entering the bank, opening an
account, sending money to other, receiving money, getting solutions from banker about any issue
and many things are done through digitally. All information of bank customers is filled by
digitally (Moşteanu and et. al., 2020). When a transaction takes place then customer whose
number is registered with bank get a text message about the transaction and money which is
transferred. This is the example of digital technology in banking sector. Hence, banks are almost
fully depends upon digital technology.
Main Body
Impact and significance of digital technology
Digital technology is the small sized devices which can store huge data and which can
be transported from one place to another easily. The laptop, mobiles, TVs, computers and etc are
digital technology. It has changed almost every aspect of human life. Today, all almost every
sector is depend upon digital technology. There are both some benefits as well as some

disadvantages of using digital technology. Advantages of using technology is that it save human
life and efforts which can be utilized some another productive activity and its drawback is that
humans are totally depends upon technology. They use it in excess. The things which can be
done manually easily for that also people uses technology. It makes humans lazy (Dimitrova and
Öhman, 2021). Digital technology is becoming habit of human life in day to day life. New
technology plays an important role in developing business world. In context of banking sector,
the famous banks like HSBC have developed their reputation by their effective working through
digital technology. Benefits of using digital technology in context if HSBC bank is explained
below-
 It makes it easy to transfer money from one account to another within few minutes
(Vaganova and et. al., 2019).
 With digital banking no one is required to wait for banking hours to get the payment
done. Digital banking allows the use of service 24*7. Customers can transfer their money
at any time.
 It enhances paperless work in quick way. In case customer have to visit bank for opening
account then it will take only few minutes for filling some formalities of personal detail
then account of client will be opened.
 It acts as a reminder for banks and clients. Digital technology reminds banks about their
working hours by alarming device. For customers, a reminder from bank is received by
them about their credit card bills, due payment and many others.
 In case of misplace of credit cards or stolen of any banking card, an individual is not
supposed to go to bank and report about the situation. Report can be done at any time
while sitting at any place with the help of digital technology (Sibanda and et. al., 2020).
 For rural people digital technology plays an important role. They are not supposed to
travel a long distance and reach at the branch of a bank. The mobile applications help
them to take facilities and services of banks while sitting at their homes. It also enhances
the involvement of rural people in having bank accounts.
 The biggest benefit of technology for people from banking sector is the use of plastic
money which is called credit cards. With the help of credit card facilities customers did
not supposed to carry cash with them. They use a single card for many bill payments.