It’s no secret that technology rules the modern world. It’s present in our homes, our hospitals, our transportation and even our kitchen appliances. So it should come as no surprise that technology also plays an integral role in how we do our banking. In the past 30 years alone we’ve seen almost every financial function go digital or advance in some way. While that may come as a relief to some, others remain doubtful about the need for technology in their financial practices in the first place. One thing’s for sure – without technology the financial world would look extremely different than the one we know today. For better or worse, technology is here to stay, and you may be surprised to learn what processes financial institutions rely on it to complete.
Online & Mobile Banking
The practice of interacting with your accounts online has quickly become a staple in modern banking. This is usually done through your financial institution’s official website or mobile app. Online banking is insanely convenient as it allows you to accomplish tasks at home that were previously only performed in person. Instead of walking into an office to apply for a loan or deposit a check, users can accomplish those things from the comfort of their own home. Mobile banking through your institution’s official app is even more convenient as it removes the need to be at home with a computer. The only thing you need for mobile banking? A smartphone. This allows users to bank from virtually anywhere as long as they have a phone, making their funds and the ability to interact with them always available to them. Without the internet, almost all a person’s banking would still need to be done in person.
ACH
ACH (also known as Automatic Clearing House) allows for credit unions and banks to process electronic money transfers. This technology is responsible for processing things like direct deposit, bill pay, and even smaller electronic transactions like shopping online. Before the development of ACH, employees received physical checks on payday and had to take it to their bank to deposit it. Nowadays direct deposit sends money directly to an account digitally. Much like using online banking, this process cuts out the need for going in person to a credit union or bank. It’s the same for bill pay. Users rely on ACH to automatically pull the funds they need to successfully pay their bills from their accounts. If you’ve ever paid a bill online, you know just how much this feature comes in handy!
Credit & Debit Cards
Once upon a time there was a world without either debit or credit cards, so they both are pieces of technology within themselves. But did you know they didn’t always work the way that they do today? Magnetic strips on debit and credit cards didn’t come around until the early 1970’s, and it wasn’t until 2012 that they introduced the idea of the chip feature. In more recent years the tap feature has become the new norm, ceasing the need to insert your card anywhere and replacing it with a simple tap to purchase items. These cards play integral roles in modern day banking as they are the most commonly used forms of payment. Without them, cash would still be in the spotlight, and the convenience of an ATM (or making late night online purchases) would be obsolete.
Artificial Intelligence
A common topic in technology is that of Artificial Intelligence and the benefits it may or may not bring to the table. What most people don’t know is that AI is already a fairly common part of our world, especially banking. If you’ve ever called your credit union or bank and gotten an automatic message, then congratulations! You’ve interacted with AI. Many financial institutions also have what’s called a virtual assistant feature on their website, allowing users to chat with AI to answer commonly asked questions. While Artificial Intelligence gets a bad rep, there are many ways companies use them to garner better user experiences for their members and make their transactions more efficient.
Looking Towards the Future
Technology is ever adapting – what we see in banking today may be out of use in the next few years. Even now we’re seeing advancements in electronic payments through apps like Cashapp, Zelle, and Apple Pay. The need for physical debit cards has started to dwindle with digital wallets through Apple or Google becoming more common. Cryptocurrency like Bitcoin has become a notable addition to the financial world as it continues to go more and more digital. There’s a lot to look forward to when it comes to the technology used in modern banking. But just as it’s important to make these advancements, it’s equally important to appreciate the practices that have stood the test of time. At the end of the day, everyone has the right to choose exactly how they complete their finances. Thankfully technology provides us with multiple options to pick from!
