Title: Impact ofInnovation and Digital Transformation Banking Sector
Research Problem
For customer service to be improved in terms of book keeping and management information system reporting, the quest for computerization was felt in the banking sector in various states across the globe in previous decade. Data conversion into digital form with technology adoption is known as digitization. Through digitalization implantation, the banking sector can provide the customers with enriched services. This enables convenience for the customers and known for saving time (Cheng, 2016).
Digitalization is defined as the transformation process of information into digital form and whereby the information is then organized in term of bits. Digitizing means transformation of the data and information from the analog form to digital format.
Digitalization reduces human errors and therefore, there is building of customer loyalty and reliability. A new wave in the edge of technology is change the way customers interact with their customers. From social to mobile capabilities, it important for banks to rethink the way they will do business towards delivering a good customer experience and concurrently to remain competitive. Through introduction of open banking and the Payments Service Directives regulations has hastened the process of transformation through have the power handed to the customers. Banks need to allow the customers to share the data for finances which is inclusive of regular payments and habits in terms of spending, with third-party who have been authorized if the customer is interested to do so (Woodhouse, 2016).
Additionally, until in past few years, banks had not visualized the tremendous shifting in the behavior of customers which occurred as result of the millennial generation which has become the highest consumers for the financial products. Due to increased usage of mobile phones, innovation and digital transformation of the banking sector has been predicted to catch up with the increased expectations from the customers globally. It indeed has reduced the occurrence of human errors while increasing customer convenience (Woodhouse, 2016).
Digitization is quite vital and significant for processing of data, storage and data transmission since it allows it allows information in different formats to be transmitted, intermingled and in same efficiency. As compared to analog data, which can suffer loss in terms of quality every time is copied or transferred, digital data can be transmitted without any deprivation. However, cyber threats are on the rise , therefore, it is important for banks to be very vigilant and need to be prepared in handling and controlling cyber-attacks through use of fintechs and Internet of Things (IoTs) (Mittal & Lloyd, 2016).
The problem of this study concentrates on the effect of innovation and digital transformation in the banking sector coupled with cyber threats. The cases of theft of passwords, hacking of accounts and many other activities have raised alarm to the banks themselves and customers. There is the need for safety and security for online transactions. Therefore, this research will concentrate on the impact of innovation and digital transformation and IoTs and fintechs which can be applied in controlling cyber-attacks in the bank sector.
Research objectives
The research work will be guided by the following objectives:
- To determine how innovation and digital transformation has changed positively the banking sector
- To determine cyber-security threats to banking systems due to digital transformation
- To determine fin techs technology and IoTs applicable in prevention of cyber threats tot eh banking sector
Research questions
The research work will try to answer the following questions:
- How has the banking sector applied fin techs and IoTs in curbing cyber threats?
- What the possible cyber threats to the banking sector due to digital transformation?
- What are the positive effects of innovation and digital transformation in the banking sector?
Research Hypothesis
H01: There is no relationship between cyber threats and digital transformation of banking sector.
H02: There is no relationship between efficiency and convenience and digital transformation of the banking sector.
H03.There is no relationship between use of IoTs and Fin techs and digital transformation of banking sector.
Research methods
The research paper will be based on secondary data which will be sourced from different sources such as:
- Earlier published papers
- Academic articles
- Websites
- Articles published in magazines of research
- Articles which have appeared in news papers
To test where the resources are reliable the following will be applied: CRAAP TEST
Research outcomes
To understand positive changes in the banking sector by innovation and digital transformation in the banking sector
To understand the possible cyber threats to the banking sector due to innovation and digital transformation
To understand the possible fin techs and IoTs which can be installed and used in banking sector to curb cyber threats.
References
Cheng, Leng (2016), China opens bank card clearing market, Shanghaidaily.com, June 8, 2016; BI Intelligence, China Prepares for Open Card Payments Ecosystem, Businessinsider.com.
Mittal, Sachin – Lloyd, James (2016), The Rise of FinTech in China – Redefining Financial Services, EY and DBS.
Woodhouse, Alice (2016), Chinese Fintechs Overtake Western Rivals in Innovation, SCMP.com (South China Morning Post).
The above resources will be changed and will updated references from will range from 2018 and above
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