46. OCR GCSE (J277) 1.6 Impacts of technology on society

Summary

This video explores the impact of digital technology, specifically online banking, on society. It highlights how the shift from high street banking to online services affects different groups, including customers, staff, bank directors, and local communities. Customers benefit from 24/7 access but lose personal service and face security risks. Staff may lose jobs, while shareholders enjoy reduced costs. Local communities suffer economic decline, especially small businesses and vulnerable individuals. The video stresses using a framework to analyze such scenarios and discusses the debate over whether banks are businesses or public utilities, providing insights for exam preparation.

Takeaways

• 😀 Digital technology impacts various groups in society, including students, teachers, parents, and the wider community.
• 😀 Online banking is an example of how technology has changed the landscape of traditional industries like high street banking.
• 😀 The decline of high street banks is a concern, especially for people who rely on in-person banking services.
• 😀 Political opinions on the closure of high street bank branches differ, with Labour advocating for legislation to prevent closures and protect communities.
• 😀 Between December 2015 and January 2017, over 1,000 bank branches closed in the UK, affecting local access to financial services.
• 😀 The Labour Party proposed laws to prevent bank closures, emphasizing the importance of these branches to local businesses and vulnerable communities.
• 😀 For customers, online banking offers 24/7 access and convenience, but it may lack the personal service some value.
• 😀 Bank staff may lose their jobs due to branch closures, though new job opportunities or retraining may arise.
• 😀 Bank shareholders benefit from reduced overhead costs, such as lower staff numbers and fewer commercial premises, but face increased responsibility for data protection.
• 😀 Local communities may suffer economically from the closure of bank branches, as nearby businesses lose foot traffic and small businesses lose access to essential services.
• 😀 In answering exam questions, it's important to consider the impacts of technology on different groups and at various levels—local, national, and international.

Q & A

What are the main issues to consider when introducing new computer technologies?

When introducing new computer technologies, it's essential to consider not only the technical feasibility but also ethical, privacy, legal, environmental, and cultural issues.

How does the rise of online banking impact high street banking?

The rise of online banking has led to a decrease in the need for high street banks as people can manage their banking needs online, causing a decline in high street banking services and the closure of local branches.

What political stance did the Labour Party take regarding bank closures?

The Labour Party proposed laws to prevent the closure of high street bank branches, aiming to protect local communities and rejuvenate high streets, citing the impact of closures on small businesses and vulnerable individuals.

How did the Conservative Party respond to the Labour Party's proposal about bank closures?

The Conservative Party criticized Labour's proposal, arguing that it would lead to higher corporation taxes and a significant increase in national debt, suggesting that banks should be allowed to manage their operations freely.

What was the decline in the number of local bank branches in the UK between December 2015 and January 2017?

Between December 2015 and January 2017, 1,046 local bank branches closed in the UK, according to the Consumers' Association.

What impact did the closure of local branches have on small businesses and communities?

The closure of local branches negatively impacted small businesses, particularly by reducing access to essential banking services like cheque deposits. It also hurt the elderly and vulnerable, who rely on personal, face-to-face banking services.

What are the potential benefits of online banking from a customer’s perspective?

Online banking offers customers the convenience of 24/7 access, the ability to manage finances from anywhere, and the automation of processes like loan decisions, making banking easier and more efficient.

What are the downsides of online banking for customers?

The downsides of online banking for customers include a lack of personal service and the potential risks of hacking and data breaches, making some individuals hesitant to fully embrace digital banking.

How does the shift to online banking affect bank staff?

The shift to online banking can lead to job losses due to branch closures. However, it may also create new opportunities, requiring workers to adapt to new roles or retrain for different skill sets.

Why do bank shareholders benefit from the closure of high street branches?

Bank shareholders benefit from branch closures due to reduced overhead costs, such as rent and utility bills. Additionally, the shift to digital banking allows for more targeted marketing and better customer engagement, potentially increasing profits.