Aids To Trade That Support Commerce: Banking: Digital Technology In Banking (Copy)
Cheat Sheet: 5.2.2 Digital Technology in Banking
Types of Digital Banking
| Type | Features | Example |
|---|---|---|
| Internet Banking | Access through computer/web browser, 24/7 services | Paying bills online |
| Mobile Banking | Banking via apps on smartphones | Transferring funds with mobile app |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Advantages of Digital Banking
| Advantage | Explanation | Example |
|---|---|---|
| Convenience | Available 24/7 anywhere | Checking account balance at night |
| Faster Transactions | Instant transfers and payments | Mobile wallet transfer |
| Lower Costs | Fewer staff and branches needed | Digital-only banks |
| Eco-Friendly | Less paper used | e-Statements instead of print |
| Access to Wider Market | Banks reach more rural/remote customers | Mobile banking in villages |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Disadvantages of Digital Banking
| Disadvantage | Explanation | Example |
|---|---|---|
| Cybersecurity Risks | Fraud, hacking, phishing | Online banking scams |
| Tech Dependence | Needs internet/smartphone | Rural areas with poor internet |
| Lack of Personal Contact | No face-to-face advice | Elderly struggling with apps |
| System Failures | Downtime can stop transactions | Bank app crashing |
| Exclusion | Not all people can afford smartphones | Low-income groups excluded |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Impact of Digital Banking
| Impact | Explanation | Example |
|---|---|---|
| Closure of Bank Branches | Less need for physical locations | HSBC closing rural branches |
| Rise of Digital-Only Banks | Neo-banks operate entirely online | Revolut, Monzo |
| Less Use of Cash (Cashless Society) | More electronic payments | Sweden moving towards cashless economy |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course