The topic of globalization’s effects on banking and financial services has become increasingly prevalent in IELTS Writing Task 2. Based on analysis of past exam questions, this theme appears approximately once every 3-4 months, particularly in countries with emerging economies. Let’s examine a frequently tested question format and explore sample responses across different band scores.
Some people believe that globalization has made banking services more efficient and accessible worldwide. Others argue it has created more financial instability and inequality. Discuss both views and give your opinion.
Analysis of the Question
This question follows a classic discussion + opinion format requiring candidates to:
- Examine positive impacts of globalization on banking
- Consider negative consequences
- Present and justify their own perspective
- Support arguments with relevant examples
Global banking transformation through digital technologies
Band 8 Sample Essay (295 words)
The integration of global financial markets has fundamentally transformed banking services, generating both opportunities and challenges that merit careful consideration.
Proponents of financial globalization highlight several compelling benefits. The interconnectedness of banking systems has dramatically improved service efficiency through technological innovation. For instance, international money transfers that once took days can now be completed within minutes through digital platforms. Additionally, global banking networks have enhanced accessibility, enabling residents of developing nations to access sophisticated financial products previously available only in advanced economies.
However, critics raise valid concerns about the drawbacks of integrated financial systems. The 2008 global financial crisis demonstrated how problems in one country’s banking sector could trigger worldwide economic instability. Furthermore, as traditional local banks face competition from international financial institutions, smaller domestic banks may struggle to survive, potentially reducing banking options for rural communities and low-income individuals.
In my view, while globalization’s impact on banking presents certain risks, its advantages outweigh the potential drawbacks when properly regulated. The key lies in implementing robust international banking standards while maintaining protections for local financial institutions. For example, countries like Singapore have successfully balanced international banking integration with strong domestic financial oversight, creating a stable and inclusive banking environment.
Global financial markets showing international connections
Band 6.5 Sample Essay (273 words)
Globalization has changed banking services in many ways. Some people think these changes are good, while others see problems. This essay will discuss both sides.
On the positive side, global banking has made many things easier. People can now send money to other countries very quickly. Also, banks offer more services than before. For example, in my country, we can now use international credit cards and mobile banking apps, which was not possible 20 years ago.
However, there are some negative effects too. When big international banks have problems, it can affect many countries. The financial crisis in 2008 showed this clearly. Also, some people think local banks are disappearing because they cannot compete with big global banks.
In my opinion, globalization in banking has more good points than bad points. While there are some risks, we cannot ignore how it has made banking more modern and convenient. But governments should make sure they have good rules to control international banks.
Key Vocabulary
- financial integration (n) /faɪˈnænʃəl ˌɪntɪˈɡreɪʃən/ – the process of financial markets becoming increasingly connected
- monetary transaction (n) /ˈmʌnɪtəri trænˈzækʃən/ – exchange or transfer of money
- robust (adj) /rəˈbʌst/ – strong and effective in all conditions
- oversight (n) /ˈəʊvəsaɪt/ – supervision and monitoring
- sophisticated (adj) /səˈfɪstɪkeɪtɪd/ – advanced and complex
Future practice questions might explore:
- The role of digital currencies in global banking
- Impact of online banking on traditional branch services
- Cross-border banking regulations and security
Feel free to practice writing your own response to the question above and share it in the comments section for feedback and discussion.
