The Impact of Innovation and Technology in the Banking Industry

This report provides an overview of technological innovation in the banking sector, highlighting current trends and the impact of these advancements. It explores the implementation of blockchain technology, using Barclays Bank as a case study, and discusses the success areas and challenges associated with blockchain adoption. The report examines how technology is reshaping the banking landscape, including the rise of fintech and the importance of customer-centric experiences. It also covers the potential of blockchain in areas such as KYC, clearing and settlements, payments, and fraud reduction, while acknowledging challenges like interoperability and regulatory compliance. Finally, the report concludes with insights into the future of blockchain technology in banking and financial services, emphasizing its potential to increase transparency and reliability. The report suggests that blockchain is transforming the traditional banking at the global level and is a key tool to address the new woes that the banking sector is currently facing and can completely transform the banking industry.

INNOVATION AND
TECHNOLOGY

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Technological innovation in banking sector................................................................................3
Current technological trends in banks.........................................................................................4
Block chain technology implementing in Barclay banks............................................................5
Success areas of Block chain technology....................................................................................6
Challenges faced by Block chain technology..............................................................................7
Future of blockchains technology................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Growing interest over the worldwide have boost innovation in different business sector activities
which is intended to have maintenance of increase international level of economic
competitiveness. Technological innovation has been considered as the extended concept of
innovation. In addition to that innovation have the referring to add extra step in more developing
level of services along product in market places. This is considered as helpful in solving the
issues that were not resolved in past. Barclays is the British multinational investment banks
along with financial services along with being is a global universal bank, offering retail, private,
corporate and investment banking products and services worldwide. Technological innovation
has the major focus on technological aspects rather than by covering level entire organization as
descriptive business model. So, it is important to have the clarification that innovation in not
driven by technology.
MAIN BODY
Technological innovation in banking sector
Technological innovation is the effective process which have the embarking to boost the
innovative creativity which have intended in maintenance of different enhancing of
competitiveness of their national economies. This have resulted in their awareness of
international economies with effects of consumption and environment resulted on the economic
activity. On the other hand, contradiction that innovation activity has major increase in level of
production with significant improved goods and services with occurrence of different innovative
and innovation of products. In addition to that. the implementors of invention is needed to have
successful level of business successful criteria.
On the other hand, disruptive innovation has helpful in creating the new market and value
network which have eventually disrupting the existing market displacing their established market
leading firms’ product along with alliances. In addition to that there is increase level of
importance of the technological innovation in banking and financial services. As there is increase
level of competition form the fintech firms along with big tech giants with increased level of
expectation from the consumers. In addition to that Banking sectors is been reshaped with more
digital transformation with keeping up fintech services and provide customer centric experiences
to customer.
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On the other hand, new innovation is helpful in connecting more of data into digital delivery
which is requiring the banks and credit unions to have embracing the new technologies in order
to have building up of business winning strategies.
Current technological trends in banks.
 As per the recent trends which are prevailing in financial market are such as ye using the
data and artificial intelligence for the different personalization scale. As the trends
artificial intelligences have the potentiality to have transformation of customer
experiences by establishing there entirely new level of business model in banking. This is
helpful in achieving the highest business results as per the needs and collaboration
between differentia humans along with machines which will be helpful in providing
humanized experience which is different within each customer.
 The next most famous technological trends which is prevailing in market is moving to the
mobile banking to conversational banking as Most financial organizations will move
from basic dialogue and account inquiries to doing transactions using voice commands.
This can include being able to execute payments using voice commands, as well as doing
account transfers and establishing account alerts using voice commands.
 In addition, largest technical firms such as google, apple, Facebook and amazon are the
leading in charges with implementing open level of API platform as theses model are
providing their support to vast developer community. In addition to that there is the
ability to have acquiring new level of customers in order to have replicates their equal
success.
 The financial firm are trying to have the creating digital on banking proposition which
have the involvement by aligning new level of technologies and solution to bank legacy
with existing design, brand values along with model of business.
 As the consideration of the current technological trends in banking sector, financial
institution has increased use of technology along with digital channels in order to make
the industry more suspectable with cyber-attacks. As per the new banking regulation, the
banks have requirements to share information of customer with third party providers
makes the situation more vulnerable.
 Blockchain tipping point is the next current trends which is used by more financial
institution which is helpful in cost reduction and the respective process simplification.
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The adoption of block chain helpful in payments, remittances, provenance, and
traceability are where blockchain technology seems to be used the most extensively
currently.
 In next to that’s the cloud-based solution which is core banking as the financial institution
is basically rely on legacy infrastructure in order to compete with digital competitors.
With the implementation of the cloud technology have the automation of operations
along with workflows which have resulted in creases level of efficiency with cost saving
and security. As per the recent trend which are prevailing in differentiated banking
business service sector
Block chain technology implementing in Barclay banks
Block chain technology have the major leverage cryptocurrencies which is helpful in
developing the network of the distributes ledger which is making well suited to have the
processing of different business operations. This is having the participants in decentralized
network which can be such as capital market, securities along with retail payments and
transaction banking.
As the banks is using of more exchange of ‘smart contacts’ which have inclusion of the
surety bonds, international guarantees with real credits estate contracts or related documents
which is been recorded and verified with help of digital ledger. In addition to that’s is the
most promising area for the implementing of blockchain technology in the banking sector.
On the other hand, blockchain technology is the have the set which is fundamentally
having the transformation banking and financial services in addition to that’s it has
decentralized financial managements from the respective central authority to the widespread
computer networks. In more understanding of the system as the part of disruptive innovation,
the existing level of financial transaction is broken into encrypted packets or ‘blocks’ which
is more to be added in chain of code in computer and encrypted for the enhanced
cybersecurity.
On the other this has been compared to the email for money by the block chains start-up
CEO Blythe Masters as the technology have the level of potentiality in more manner of
improving their numerous facets for banking which have there be such as technology like
bitcoin. In addition to that’s after there several level of experimentation, it has been confident
that’s distribution technology would have transformation of internal and external process. In
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addition to that’s there is existence of scepticism about more to near term level of application
of the blockchain technology in transaction banking.
As the blockchain technology can have potentiality to have disruption in financial
industry as it will help in transforming the traditional banking at the global level. Hence,
there are several chains which is considered to be more helpful in addressing the new woes
that the banking sector is currently facing as it can complete transform the banking industry
by protective leaps and bounds. This is successful for banking as helping hand by key areas
of the blockchain technology. The key areas are such as –
Success areas of Block chain technology
To have the better understanding of customers as banks institutes used to have spending a
considerable level of amount of money for the KYC implementation. This is helpful to have
avoidance of terrorist activities and money laundering activities done by identifications and
verification of their respective clients. With implementation of blockchain technology have
KYC details which is being obtained by one bank which is needed to be accessed by another
banks. Once the KYC is been obtained by one Barclays will be helpful another bank which
will reduce the cost of the different administrative departments.
The next is regarding the clearing and settlements where a good amount of expenditure
in done by banks.it cost to be billions in order to have the keeping of differentiae records and
other securities. As implementation of blockchain is helpful in reducing the delays and
discrepancies by having the improvements in the efficiency and clearing settlement areas.
This been managed by using sending series of messages along with manual updates which is
increasing the efficiency of system.
Payments is an area which need high degree of transformations with implementation of
blockchains technology which have reduction in operational cost. There is more level of
faster performances in making the banking payments functionally with introduction of high
security in between clients and banks. As compared to the blockchain technology as per the
current systems have the involvement of the numbers of intermediates by making transaction
more secure.
Reduction in fraud is another important aspect which should be use in blockchain
technology in the accepted banking sector as the current system is more basis centralized
database system which have only one access point as the hacker can get access to the whole
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data with accessible to one point. On the other hand, as per the distributed model of block
chain where there are different blocks which is a long way eliminating majority of crimes
reported in financial sector.
Block chain technology is also useful in the trading aspects as it is previously more
dependent on the paper. There is more demand of digitalization and modernization which can
be indeed be helpful in that’s direction. Trade financing is an important arena that can benefit
with the Blockchain technology to a greater extent. This technology is having a lot of
potentiality in order to have the achieving the level of digitalization by enhancing their
efficiency of system.
Challenges faced by Block chain technology
On the other hand, the company is facing major level of the issues in implementation in banking
sectors as it is the newer technology which comes with a lot of possibilities in streaming sector.
There are several laws which have the governing of banking policies as the technology have the
need to complete compliance with the proper regulatory guidelines. Next to that’s it has been
contradicted that banking sector have huge ecosystem which is resent globally. So, this system
should be applicable in handling this huge amount of data around the worst along with scalability
which have the huge issues needed to be addressed.
On the hand, the challenges which are faced by the banks are such as interoperability as the by
implementation of the blockchains with current banking system have the complete level of
processing at smooth level is considered to be actually a great level of challenge. In addition to
that’s their privacy and security as the using of blockchains have the providence of the
decentralised public sectors which will provide their access and permission for the each and
every individual which must be handle with greater level of care.
There is need for more energy consumption in blockchain technology along with high computing
power will have large amount of carbons footprints. This will have the effects on the
environments along with adopting the blockchain have becomes the task in banking.
Future of blockchains technology
Future of the banking with blockchains technology is helpful in resolving various level of
problems and issues in the banking sectors along with masking systems more level of
transparent and realisable. There is major level of research and developments process of
blockchain based solution in solving their issue.
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CONCLUSION
From the above it can be concluded that Barclays is the British multinational investment banks
along with financial services. This is increase level of competition form the fintech firms along
with big tech giants with increased level of expectation from the consumers. Blockchain tipping
point is the next current trends which is used by more financial institution which is helpful in
cost reduction and the respective process simplification. In more understanding of the system as
the part of disruptive innovation, the existing level of financial transaction is broken into
encrypted packets or ‘blocks’ which is more to be added in chain of code in computer and
encrypted for the enhanced cybersecurity. In addition to that’s their privacy and security as the
using of blockchains have the providence of the decentralised public sectors which will provide
their access and permission.
REFERENCES
Books and Journals
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Online
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Parameswar, N., Dhir, S. and Dhir, S., 2017. Banking on innovation, innovation in banking at
ICICI bank. Global Business and Organizational Excellence, 36(2), pp.6-16.
Abdul-Wahab, A.H. and Haron, R., 2017. Efficiency of Qatari banking industry: an empirical
investigation. International Journal of Bank Marketing.
Sarkar, A. and Kumar, R., 2017. Impact of Financial Innovation on Banking Reserve Ratios-
Evidence from Indian Banking Sector. Wealth: International Journal of Money, Banking &
Finance, 6(2).
Sharma, D.J., 2017. A study on innovation in banking and its impact on customer satisfaction.
IOSR Journal of Economics and Finance, 1(1), pp.70-74.
Karltorp, K., Guo, S. and Sandén, B.A., 2017. Handling financial resource mobilisation in
technological innovation systems-The case of chinese wind power. Journal of cleaner
production, 142, pp.3872-3882.
Kaur, S., 2018. Technological Innovations in Indian Banking Industry-A Study of Public Sector
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pp.51-57.
Khanna, N., 2019. Information technology and payment settlement sysytem in Indian banking
industry. International Journal of Management, IT and Engineering, 9(1), pp.53-62.
Gupta, A. and Gupta, S., 2018. Blockchain technology application in Indian Banking Sector.
Delhi Business Review, 19(2), pp.75-84.
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