As it is known, there are four main factors of production. Some of them are material (land and capital) while others are human (labor and entrepreneurial talent). It is believed that the absence of some factors can paralyze the process of production so that product’s manufacture will be impossible. Therefore, it is necessary to combine the entire range of required factors of production. For modern businesspersons, who want the effective and productive business, success can be achieved only by using new technologies.
Employees in any bank need to be capable of using proper techniques and computer software. Obviously, employees cannot demonstrate their skills and qualifications without some special sacrament. Banking automation is one of the possible ways of increasing employee productivity. Automation is defined as “the technique, method, or system of operating or controlling a process by highly automatic means, as by electronic devices, reducing human intervention to a minimum” (Automation, n.d.). In fact, there are advantages and disadvantages of banking automation. Firstly, the labor productivity will increase, and the general effectiveness of the bank’s activity too since employees will perform their tasks faster. Also, the process of management will become easier since managers’ decisions will be transferred to employees sooner. Yet, there is one crucial disadvantage of banking automation: its rooting requires considerable financial resources. Despite this fact, it is widely believed that banks should implement the banking automation systems in order to increase labor productivity and effectiveness in general. Additionally, banking automation is more productive in comparison with investment cost since these costs can be spent in many areas which require renovation.
In summary, banking automation is one of the most important factors in bank operations. Hence, it should be adopted by all banks.