Hello and welcome to exampundit . We rolled out the SBI PO Descriptive Contest 2 days back and we got a lot of responses. We will be publishing the BEST of the Lot. But that does not mean, your one was Bad. The topic "Technology & Unemployment in Banking Sector" is aced by Abhinav.
Technology & Unemployment in Banking Sector
The Indian banking system after independence has passed through distinct phases of development. During the first phase stretching up to the nationalization of 14 banks in 1969, Indian banks followed almost traditional banking tactics with small time innovations but the current phase of development which has started few years ago consists of technological advancements in the banking industry.
These technological advancements includes mobile banking, tab banking, electronic payments etc. Technological movements have benefitted individuals and economies across the globe but simultaneously these technological advancements are presenting some challenges also, one is of unemployment. There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with fewer workers and banking industry is not an exception here. You see it when you go to a bank to withdraw money from your account or to update your passbook and you use an ATM or passbook printing kiosk instead of going to a cashier.
Indian banking industry is in the midst of an technology revolution and this technology revolution has brought a complete paradigm shift in the functioning of banks and delivery of banking services. Gone are the days when every banking transaction required a visit to the bank branch. Today, most of the transactions can be done from home and customers need not visit the bank branch for anything. Technology is no longer an enabler, but a business driver. The growth of internet, mobile and communication technology has added a different dimension to banking, but on the other hand this technology revolution is fast replacing human beings with machines. Some of the examples are ATM machine in place of a cashier, cash deposit machine and passbook printing kiosk in place of a clerk etc. Already millions of jobs have been eliminated from the economic process and the whole work categories and job assignments have shrunk.
Technology has changed the face of Indian banking industry through computation.It is becoming increasingly imperative for banks to assess and ascertain the benefits of technology implementation. The fruits of technology implementation will certainly taste a lot sweeter when the returns can be measured in absolute terms, but we have to look at the other side as well so that this technology revolution will not eat millions of job. Reflecting on the significance of the transition taking place, the distinguished Nobel laureate economist Wasilly Leontief warned that with the introduction of increasingly sophisticated computers, "The role of humans as the most important factor of production is bound to diminish in the same way that the role of horses in agricultural production was first diminished and then eliminated by the introduction of tractors."
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Before the exam, a PDF will be given.