SBI PO Descriptive – Essay – Technology & Unemployment in Banking Sector



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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More will be published!! Keep checking!! 
Before the exam, a PDF will be given.

Regards

Team ExamPundit

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