Impact Of Globalization In The Banking Industry

First of all we have to know what's meant by globalization in general and specially in banking industry, Globalization is an approach of interaction and combination amongst people, firms and governments in different nations. Globalization is driven by investment, international trade and helped by information technology. It also affects in environment, culture, political systems and economic development. . (2015 The Levin Institute)

There are several forms of globalization such as financial, economical, political, cultural, ecological and sociological. This paper will discuss briefly each one of them; while financial globalization is interconnection of the world's financial systems for instants stock markets. More of a connection between large

Political risk for example investing in Somalia, which it has not have any kind of protection or safety, there is no political rules that protect anybody's money, so as an investors they have to search on a nation that have political system that will protect their investments or unstable political environment. Environmental, they have to search also about stable environment and help reaching the bank's goals environment should have policies, goals and practices that help guide the bank's activities inside and out. The bank also can affect on the environment in a good or bad way, For example: Nigeria, the internet banking there changed the environment and people lived in the country positively which before the e-banking innovation, the banking sector was very basic and could not offer specialized services to customers. E-banking has rebel the way Nigerians transact business and make payments for various goods and services. Economical, the bank should open his business in a country that has too much money to invest or save their money in it; also the domestic products encourage banks to expand in the country in giving loans to the institutions. Technology and its impact on consumers have helped make "global brands matter more now than in the past" (Quelch 1999, p. 1). Technology helps the bank to satisfy their customers always, by comfort them by inventing services which they can done their needs through, such as internet banking, ATM, mobile banking and so on. It also helps in make a global brand. Social culture: The globalization of the production and distribution of goods and services is a welcome development for many people in that it offers them access to products that they would not otherwise have. However, some are concerned that the changes brought about by globalization threaten the viability of locally made products and the people who produce them. For example on