Future of Banking From IT Decentralization and Deglobalisation: An Analysis of Its Possibilities

Introduction

The banking sector is currently experiencing a significant transformation characterized by a dynamic interaction between conventional and digital methods. Both traditional banking, which prioritizes personalization, and digital banking, which prioritizes product simplicity, has a shared reliance on technology. The authors would like to state the coverage (scope) and the methodology used in framing this study. While this chapter will emphasize on the fundamental differences between traditional and digital banking, it will also highlight the emphasis on personal relationships in banking and of the product centric approach used in digital banking. In spite of these disparities, research indicates that technology serves as an indispensable conduit, facilitating the survival, competitiveness, and market penetration of conventional banks. In this article, we explore the ways in which technology has enabled banks to improve customer service, and thus the overall experience of their clients. Technology adoption promotes confidence and yields a significant return on investment. The discourse further encompasses the pivotal significance of information management, risk assessment, and the efficiency and convenience of service provision in influencing consumer contentment. This study would also cover the future of the banking business and how IT decentralization and deglobalization will play a big part in that. This chapter talks about the chances that financial institutions have ahead of them and stresses the importance of finding a balance between old-fashioned values and new technologies. A conceptual information on Indian banking sector’s IT infrastructure is also highlighted here and there to look into the problems and chances banks face when they try to use autonomous IT systems. The authors conducted a thorough examination of the literature on globalization, deglobalization, and decentralization, as well as their meanings and benefits and drawbacks, trends, and recent events in the financial industry with regard to technology-driven operations. The ultimate objective of the study is to explore the transformation of banking industry from age old traditional banking to a highly decentralized digitized banking, highlighting opportunities and challenges, and the role of banks in embracing this shift. The chapter explores IT decentralization's role in fostering innovation and transformation in the financial sector, focusing on the Indian banking industry and its historical context. It also discusses the impact of emerging technologies like AI and block chain on automation and growth in the global financial sector. The chapter is meticulously crafted in terms of its intellectual and thematic elements. The writers have endeavored to sustain the readers' interest by avoiding an excessive focus on data and instead emphasizing the pertinent findings derived from the literature review and data analysis.