Banking Technology: Trends, Challenges, and Benefits

Running head: BANKING TECHNOLOGY
Banking Technology
Name of the Student
Name of the University
Author Note

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BANKING TECHNOLOGY
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
USA financial institutions............................................................................................................2
Australian financial institution....................................................................................................3
Interest income involved..............................................................................................................3
Interest expense involved............................................................................................................4
Noninterest income involved.......................................................................................................4
Noninterest expense involved......................................................................................................4
Benefits of the technology...........................................................................................................4
Ethical issues involved................................................................................................................5
Rapid Technological improvements............................................................................................5
Impact on crime and fraud risk....................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................7

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BANKING TECHNOLOGY
Introduction
Corporate needs are ever demanding, poor technology infrastructure, inefficient
processes, unrelated systems with fewer business characteristics and functionalities, absence of
flawless incorporation, need for services digitization, and ever-evolving regulatory compliance
pressure are some of the key challenges faced by Commercial Banks. With a sound perceptive of
the challenges and concerns mentioned above (Buchak et al. 2017). The new technologies in
commercial banking has involved knowing about the latest trends in the market and insights.
The commercial banking technology offers disruptive and new services and solutions across the
entire range of Commercial Banking that includes lending and structured finance, trade Finance
& Supply Chain Finance, Payments & Cash Management in-turn helping banks to meet their
strategic business and IT objectives. This also helps in better management of risk and thereby
minimizes the volatility in the level of income. The commercial banking technology also
enhances Customer experience & loyalty through effective operational services.
Discussion
USA financial institutions
So far, the banks are not making much money from their efforts, especially compared to
what they have had to spend on technology in recent years. Between upgrades of hardware and
software, creating new apps and bolstering cyber security defenses, tech is fast becoming one of
the industry’s largest expenses (Gelis 2016).
The U.S. banks collectively spent $62.2 billion on technology last year, according to
research firm Celent. Selling technology externally recoups only a tiny fraction of that amount.