The relation between technology and the productivity has been analyzed by some studies in the recent past. The role of information technology in enhancing productivity has been debated. A review of some of the studies on the banking industry will give a clear idea about the role of the modern technology in enhancing the profits of banks. Bankers like rod aycox are pioneers in this respect. Consider the study that emphasized on the importance of technology issues emerging from newer technologies. According to this researcher, technology is emerging as a key-driver of business in the financial services industry. The advancements in computing and telecommunications have revolutionized the financial industry and banking on the net is fast catching on. As e-commerce gets transformed into m-commerce with the increasing use of technologies like WAP, banking business is in for a major overhaul. Let us analyze the effect of technology on labor productivity. There is no doubt that the banking sector needs to upgrade and update its technology to improve its operating efficiency and customer services. The study concludes that harnessing employee technology synergy is crucial for unleashing productivity and reaching out to the huge base of the retail customers, who are also dispersed in rural and semi-urban areas. Banks can use technology to address customer needs and also to improve their interaction with the customers, by keeping in touch through telephone and the internet. In m-commerce or Mobile commerce, several factors assume much significance. They need to be addressed to attract more users to this facility. The major distressing factor that is plaguing this fast emerging sector is the mobile virus problem. If it is not controlled, then the mobile virus problem is likely to affect the entire communication system itself, often resulting in losses worth billions of dollars. Even then the m-commerce option is a revolution in itself since it is likely to alter the way people buy and sell things. Monetary transfers will now take place even when on a visit to a far off country.