The Impact of Technological Change (Digital Currency) on Traditional Banking

Abstract

The banking industry is vibrant and provides many resources to both public and private entities. Its existence primarily facilitates the movement of funds from companies and individuals who patronise its activities. With the aim of meeting this primary requirement, the banking institution makes money from the charges levied on clients who demand its services. Notwithstanding the importance of banking activities, the change in technology has brought more competition to the industry. The challenges faced by the industry have resulted in many banking institutions folding up as a result of non-compliance with rules set up by regulators. For this reason, the research investigates the causes of the inability of banks to meet the requirements laid down by regulators. The study indicates that the banking industry is often slow in the adaptation of new processes due to its peculiar culture. However, the inability to quickly adapt to changes in the fast-paced world of changing technology is impacting negatively on the operations of the traditional banking industry. The study identifies some of the current changes such as cryptocurrency, mobile money and the impact they have had on the banking industry. The study recommends the need for the banking industry to quickly adapt to the current changes so as to be competitive in the industry.