Digital technology’s influence on banking has become a frequent topic in IELTS Writing Task 2. Based on recent exam trends, this subject is likely to appear in future tests, given its relevance to global financial systems. Let’s explore a sample question and provide model essays for different band scores.
Some people say that digital technology has had a negative impact on the banking industry, while others believe it has brought many benefits. Discuss both views and give your own opinion.
Analysis of the Question
This question requires candidates to:
- Discuss negative impacts of digital technology on banking
- Explore positive effects of digital technology in the banking sector
- Provide a personal opinion on the overall impact
It’s crucial to address all parts of the question and maintain a balanced approach while presenting your viewpoint.
Sample Essay for Band 8-9
Digital technology has revolutionized the banking sector, prompting debates about its impacts. While some argue that it has adversely affected the industry, others highlight its numerous advantages. This essay will examine both perspectives before presenting my opinion.
Critics of digital banking technology often point to increased cybersecurity risks and job losses. As banks shift towards online platforms, they become more vulnerable to sophisticated cyberattacks, potentially compromising customers’ sensitive financial data. Moreover, the automation of many banking processes has led to significant job cuts, particularly in traditional roles such as bank tellers and loan officers. This shift has raised concerns about unemployment in the sector and the loss of personal customer service.
On the other hand, proponents argue that digital technology has greatly enhanced banking efficiency and accessibility. Online and mobile banking applications have made financial transactions more convenient, allowing customers to manage their accounts 24/7 from anywhere in the world. This increased accessibility has also promoted financial inclusion, enabling people in remote areas to access banking services. Furthermore, digital technologies have streamlined internal banking processes, reducing operational costs and potentially leading to more competitive rates for customers.
In my opinion, while the concerns about digital banking are valid, the benefits far outweigh the drawbacks. The enhanced convenience and efficiency brought by digital technology have transformed the banking experience for millions of people. Moreover, the impact of digital wallets on consumers has been largely positive, offering new ways to manage finances. To address the negative aspects, banks and regulators must prioritize cybersecurity measures and invest in reskilling programs for employees affected by automation.
In conclusion, digital technology has undoubtedly changed the face of banking. While it poses certain challenges, its overall impact has been predominantly positive, driving innovation and improving financial services for consumers worldwide.
Digital banking technology impact illustration
Sample Essay for Band 6-7
Digital technology has changed banking a lot. Some people think it’s bad for banks, but others say it’s good. I will talk about both sides and give my opinion.
Some people worry about digital banking. They say it’s not safe because hackers can steal money and information online. Also, many bank workers lose their jobs because computers do their work now. This is bad for people who need jobs.
But digital banking also has good points. It’s very easy to use. People can check their money and pay bills on their phones anytime. This helps people who live far from banks. Banks also save money because they don’t need as many buildings or workers.
I think digital banking is mostly good. It makes life easier for most people. We can do banking quickly without going to a bank. But banks need to make sure online banking is safe. They should also help workers learn new skills for different jobs.
In conclusion, digital technology in banking has both good and bad effects. But I believe the good things are more important. Banks should keep improving technology while taking care of problems like safety and job losses.
Explanation of Band Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with a well-developed response
- Presents a clear position throughout the essay
- Uses a wide range of vocabulary with very natural and sophisticated control of lexical features
- Uses a wide range of structures with full flexibility and accuracy
- Cohesive devices are used effectively throughout
- Develops ideas logically with clear progression
Band 6-7 Essay:
- Addresses all parts of the task, though some parts may be more fully covered than others
- Presents a relevant position, though conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary for the task with some inaccuracies
- Uses a mix of simple and complex sentence forms
- Arranges information coherently and there is a clear overall progression
- Uses cohesive devices effectively, but cohesion within and/or between sentences may be faulty or mechanical
Key Vocabulary
- Revolutionized (verb) /ˌrevəˈluːʃənaɪzd/ – caused a complete change in something
- Cybersecurity (noun) /ˌsaɪbəsɪˈkjʊərəti/ – the state of being protected against criminal or unauthorized use of electronic data
- Automation (noun) /ˌɔːtəˈmeɪʃn/ – the use of machines and computers to do work that was previously done by people
- Financial inclusion (noun phrase) /faɪˈnænʃl ɪnˈkluːʒn/ – the availability and equality of opportunities to access financial services
- Streamlined (adjective) /ˈstriːmlaɪnd/ – made more efficient and effective by simplifying or improving
- Reskilling (noun) /riːˈskɪlɪŋ/ – the process of learning new skills so you can do a different job
- Innovation (noun) /ˌɪnəˈveɪʃn/ – a new idea, device, or method
How digital currencies affect global transactions is another important aspect of the changing financial landscape. As you practice writing essays on this topic, consider exploring related themes such as fintech and e-commerce to broaden your understanding of digital banking’s impact.
In conclusion, the Impact Of Digital Technology On Banking remains a relevant and complex topic for IELTS Writing Task 2. To improve your skills, try writing your own essay on this topic and share it in the comments section for feedback. Additionally, you might want to explore potential future questions such as:
- How has mobile banking changed the way people manage their finances?
- Discuss the pros and cons of cashless societies.
- Should governments regulate cryptocurrency to protect traditional banking systems?
IELTS Writing practice on digital banking
Practicing these topics will help you develop a deeper understanding of digital banking and prepare you for potential IELTS Writing Task 2 questions on this subject.
