By Dr AbdelGadir Warsama Ghalib, Legal Counsel
Banking business is an old business of volatile & vivid nature. What is peculiar to this business is, it is global international nature all over. The history of banking began with the first prototype banks, that is, the merchants of that world, who gave grain loans to farmers and to traders who carried goods between cities. Later, during the Roman Empire, lenders based in temples gave loans, accepting deposits and performing the change of money.
Many trace the historical roots of the modern banking system to medieval and Renaissance Italy. The Bardi and Peruzzi families dominated banking, establishing branches in many other parts of Europe. Later on, during the 20th century, developments in telecommunications and computing caused major changes to banks’ operations and let banks dramatically increase in size and geographic spread. However, 2008 financial crisis led to many bank failures, including some of the world’s largest banks, and provoked much debate about banking current regulation.
Banking nowadays, is a mixture of classical & modern activities. You can go to the counter of the bank & deposit money or, at the same time, you may use an ITM or your internet to do the same. The hybrid banking system is almost everywhere and the customer is free to choose what he likes. However, some may like to give some time to enter the bank and deal with the staff directly face-t0-face, due to mistrust or misunderstanding the machine located Infront of the entrance of the bank.
Irrespective of this, many of the new e-generation, are happily dealing with the machines and ready to take all risks that could emerge. As we noticed, the hybrid banking business, is due to the spread of electronic technology and the deep involvement of the baking industry in such new technologies. In fact, this new involvement shows the ability of the banking industry to accommodate all new ventures, new face & new look which by turn enables the industry to survive irrespective of many vital risky consequences.
No doubt, banking now becomes easier and handier to customers who can do banking within minutes from everywhere & whenever they are in need. A sailor in the middle of the sea or a farmer cultivating in the middle of a far farm, or a commuter in the bus, can do banking with full confidence and utmost trust. No need to go and quo for long time while you can do what you need by a message or email to your banker.
All banks followed suit and prepared new terms for such new technological activities otherwise they will be out of the new business ventures & completely out of the exciting professional competition.
The regulations of e-banking including remote e-payments gave a big boost to the banking industry to grow and prosper. There are new terms to apply in the industry and this is undoubtedly to benefit of the customers and depends on their choice and option.
However, this hybrid banking venture, is not free from many difficulties, challenges and great risk uncounted risks. At the top of this, comes, the danger of cybercrimes, e-frauds, e-malicious transactions and so forth. This threat, no doubt, causes many deficiencies and set-backs to the hybrid banking venture and requires very tough actions and clear policies to dismantle the fraudsters and their frauds.
Moreover, the wide spread of Artificial Intelligence (AI) in all business activities, including banking, invents multiple awkward risks. We say this, due to the lack at present, of clear regulations and ethical boundaries for the usage of AI. Hybrid banking, by its nature and from within, is in great need of all technological steps. However, such e-steps shall fall within the normal rules, equity & ethical practices,
Also, I believe, there is great duty on the banks to educate their customers and to keep them abreast & well informed about the advantages, pros & cons and challenges of the new culture stemming from the hybrid e-banking. We need a completely new cultural background and clear understanding among all who are looking for e-banking as the new route for the new face in our banking business which started and will never stop or retreat back. The future is for hybrid banking in this era of e-technology.