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The Role of Technology in the Banking Finance Industry: A Focus on MBA Programmes

08 Jan 2024

The Global Fintech Report by CB Insights highlights the increasing investment in fintech. In 2021, global fintech funding reached $157 billion, reflecting the industry's commitment to incorporating innovative technologies. Based on these data, it is safe to say that banking and financial services are among the most tech-influenced sectors. The banking and financial industry, both historically and in the foreseeable future, seeks innovations aimed at enhancing efficiency and aligning services with people's needs. Technology serves as a catalyst, enabling cost reduction and the automation of numerous processes, thereby increasing efficiency and minimising errors. In the subsequent sections, we will understand the role of technology in transforming financial services and how an MBA degree integrates these concepts into its curriculum and makes the students industry-ready.

Transforming Banking Services

The banking industry is witnessing a profound transformation due to the technology revolution. Traditional banking has seen a decline, with online platforms becoming the primary means for financial transactions. Many young individuals are unfamiliar with traditional brick-and-mortar banks, as the convenience of online banking has become the norm. Recognising the shift, banks are leveraging online interactions to offer additional services, such as insurance and investment portfolios. MBA programmes are addressing the declining trend in traditional banking by incorporating modules on digital banking. The curriculum aims to keep the students updated about the shift towards online transactions, the impact on customer behaviour, and the role of technology in reshaping banking services.

Enhancing Security Measures

As financial transactions involve personal assets, ensuring their security has become paramount. Advanced technology has significantly enhanced the safety of financial assets, with biometric data replacing less secure methods like passwords and PINs. Financial institutions now employ sophisticated measures to protect against fraud and provide warnings about potential threats, including identity theft. Data encryption has bolstered access security, making it more challenging to tamper with financial information. MBA students study the advancements in transaction security, focusing on the adoption of biometric data for protection and the role of data encryption. The curriculum addresses the evolving landscape of fraud prevention and identity theft, emphasising the importance of robust security measures.

Revolutionising Payment Methods

The Fintech revolution has ushered in innovative payment methods beyond traditional credit cards. Online shopping and payment services like Google Pay, PayPal, Stripe, and PayU, along with e-banking plugins, have replaced the need for physical cards. Mobile phones and watches are now commonly used for on-site transactions. This continuous evolution has rendered once-innovative solutions, like plastic cards, nearly obsolete. The MBA curriculum reflects the Fintech revolution by covering new payment methods and emphasising the importance of platforms like PayPal, Stripe, PayU, and e-banking plugins. Students learn how non-banking entities like ApplePay and GoogleWallet have introduced safer and more transparent payment processes.

Optimising Analytics and Reporting

Unthinkable a few years ago, analytics and reporting have become integral aspects of the Fintech revolution. Users now have access to detailed analyses of their budgets, while banks leverage extensive data to offer tailored solutions. This data-driven approach has transformed how banks provide loans and how insurance companies assess risk, resulting in personalised terms for users based on their unique financial situations. MBA programmes recognise the growing significance of data analytics in finance. Therefore, the curriculum allows students to develop skills to analyse and interpret financial data for strategic decision-making. Additionally, the programme also covers detailed budget analysis, allowing students to understand how banks leverage extensive data to offer personalised financial solutions.

Aiding in Investment Strategies

Digital payments, online banking, analytics, and reporting enable banks to create more tailored investment opportunities for end-users. With a comprehensive understanding of users' financial situations, spending habits, and risk tolerance, institutions can suggest investment portfolios that align precisely with each person's needs. MBA programmes emphasise the integration of digital tools, analytics, and reporting in the context of investment. Students learn how banks use comprehensive financial data to tailor investment portfolios to individual preferences, risk tolerance, and financial situations.

Summing Up

The robust investment in fintech signifies the finance industry's deep-rooted commitment to technological evolution. This financial revolution is reshaping traditional banking, paving the way for online platforms, and prompting a fundamental re-evaluation of security measures. As technology becomes intrinsic to every facet of financial services, MBA programmes play a pivotal role in preparing students to navigate this dynamic landscape. These programmes, by integrating digital tools and analytics, empower students to embrace and contribute to the ongoing transformation of banking. The curriculum is designed to ensure that students are well-equipped to lead in a future where innovation is the key to success.

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