Technology and International Banking Essay - Essay Prowess

Technology and International Banking Essay


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Technology and International Banking

The beginning of this millennium heralded the information era. It is estimated that about 65% of global trade volumes was conducted through on-line platforms in 2000 to 2002 signifying importance of technological development towards human development and progress (Al-Smadi, 2012). The invention, innovation, adaptation and more so modifications on preexisting technologies as well as the diffusion of these technologies among individuals, firms and the public sector have played an important role in the growth of international banking. This essay seeks to discuss how technological developments have impacted on international banking.

In the last three decades, international banking has experienced phenomenal growth buoyed by similar growth in international trade. Indeed, international banking has played and continues to play a significant role in the broad process of financial integration and globalization (Nenovski, Jolevska &   Andovski, 2011). As multinational corporations continue to expand in emerging markets and as these emerging markets realize rapid growth, international banking arises as a major player in contributing towards future economic development and progress through efficient financial services delivery.

Technological evaluations have served to significantly impact on international banking as new financial institutions emerge and competition among market players intensifies. Emerging financial services institutions, affiliates of technology powerhouses such as Google and Apple have served to revolutionize the international banking industry (Al-Smadi, 2012). Traditional banking systems have adopted innovative and technologically adept practices in an effort to stay competitive in a dynamic operating environment (Nenovski, Jolevska &   Andovski, 2011).

Local and international banks now favor the utilization of novel electronic banking services and products in an effort to remain competitive by enhancing the effectiveness of financial services distribution channels (Al-Smadi, 2012). These improvements are aimed at minimizing transaction costs as well as increasing service delivery speeds. The role of technology in banking has been to agitate for the development on international banking systems, a trend which has been positively embraced by many countries. Technology has served to offer banks new opportunities to formulate new, innovative and better service processes which call for fewer internal resources at significantly lower costs.

The application of technology in international banking has also enabled broader availability and the ability to reach out to more customers in the expansive global financial services markets. From the customer’s perspective, technologically adept international banking offers customers easier access to available financial services using less time appraising their ability to better manage their financial position (Nenovski, Jolevska &   Andovski, 2011).

Indeed, electronic banking has enabled banking institutions to develop innovative marketing and information technology based strategies in an effort to remain competitive. It is however important to point out that the successful implementation of these technologies and innovations is largely dependent on the degree with which such systems are applied and embraced by targeted users (Al-Smadi, 2012). This implies that technology application in international banking requires market players to formulate innovative products with the customers concerns at heart.

International banking customers however have grave concerns with regard to the risk of losing their monies while using available financial services. This is dependent on a number of factors ranging from customer tolerance to risk to cultural factors such as the power distance dimension as postulated by Holfstede (Al-Smadi, 2012). It is however important to note that this is largely the case in developing countries with developed countries embracing technology use in international banking positively.

In conclusion, the application of new and innovative technologies in the international banking systems has realized positive growth in emerging economies as well as in developed countries. Both the customers and banking institutions have benefited greatly from technology applications. However, the risks associated with international banking as perceived by some quotas of customers need to be addressed. This calls for institutions offering international banking services to works towards allaying such fears as postulated by customers.



Al-Smadi, M. O. (2012). Factors Affecting Adoption of Electronic Banking: An Analysis of the Perspectives of Banks’ Customers. International Journal of Business and Social Science

Vol. 3., Pp. 294-320.

Nenovski, T., Jolevska, E. D. &   Andovski, I. (2011). Banking services in terms of changing environment: the case of Macedonia. Munich Personal RePEc Archive. Retrieved from

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