Business Sector : Problems And Prospects Of Modern Banking Essay

The financial crisis in 2008 brought about drastic changes in customer behavior all over the world and encouraged customers to take a shifted action towards their needs and wants (Mansoor and Jalal 2011). In the age of globalisation, as no nation can keep itself aloof from the world economic volatility, India too, was affected significantly in economical as well as social dimensions. The economic turmoil had a profound impact on consumers (Flatters and Willmott 2009) and most of the firms including ones in financial sector faced serious challenges in satisfying the customers as they have became more skeptic and cautious. Even though, the Indian banking sector has performed extremely well over the last few years and has shown substantial resilience during the global financial crisis (Das et al 2011), new challenges are seen emerging from customers. The challenges posed are mainly due to changes in customer demands and diffusion in loyalty intentions due to low switching costs. The parameters critical in the imparting customer satisfaction in the banking context, thus demands re-definition and analysis for formulating strategies aimed at competitive advantage. Empirical evidences from studies conducted in various contexts underlines the causal linkage among variables such as perceived service quality and customer satisfaction on loyalty intentions of the customer. However, consumer behavior being complex in nature influenced by environmental changes,

According to (Agboola 2001) literature which I reviewed shows that it studied the impact of computer automation on the banking services in Lagos and discovered that Electronic Banking has been extremely enhanced over the year and this was ascertained through the services of some banks to their customers in Lagos and how technological advancement has made their banking experience much easy and faster. The study was however limited to the commercial banks centered in Nigeria and only focused on only six banks. He also made a comparative analysis which was between the old and new generation banks and he also discovered some variation in the rate of adoption of information technology in the banking sector.

imperative in the industry. This study evaluates the response of Nigerian banks to this new trend and examines the extent to which they have adopted innovative technologies in their operations and the resultant effects. Information and Communication Technology Information Technology (IT) is the automation of processes, controls, and information production using computers, telecommunications, software and ancillary equipment such as automated teller machine and debit cards. It is a term that generally covers the harnessing of electronic technology for the information needs of a business at all levels. Communication is the conveyance or transmission of information from one point to another through a medium. An example of how ICT has had an impact on the Banking Industry is that its emergence allows banks to apply credit-scoring techniques to consumer credits, mortgages or credit cards. Hence, products that used to be highly dependent on the banks´ evaluation of its customers have now become more standardized. Other examples of ICT impact on the Banking Industry include the increased process efficiency, which can reduce costs in banks, and the branch renewal, where focus is gradually shifting away from traditional brick and mortar banks towards the dual-bank concept

While banks have succeeded in leveraging available technology and provide alternate avenues to customers for banking services, the challenge it faces today is optimizing the usage of these channels.

Our analysis explores the current banking industry environment. This industry contains banks that provide loans and other financial services to their clients that include commercial and business clients and individual consumers. We looked at strengths and weaknesses to assess the strongest US banks and what makes them successful. We focused on opportunities in the banking industry, the rise in mobile banking technology, better customer service, and capitalizing on the rising need for home loans to underserved consumers. Additionally, the banking industry faces threats including regulatory issues, cyber risks, and future devaluation of the dollar. Expansion to new markets and innovations were also analyzed. We included strengths and weaknesses of the top four banks, though we ignored the internal analysis on the US banking industry as it is not possible to adequately analyze an aggregated industry of banks and this is a firm level analysis.

Banking in today’s era is in process of upgrading itself by joining the wave of latest technologies and trends. Currently, it is in the midst of chaos and disruptions and is in process of reshaping its business models to alienate the traditional processes. The driving force for Banks to adopt such changes can be a. Changing customer needs, b. Optimization of cost and Banking Operations, c. Digitization and Automation, d. Streamlining of complex and lengthy processes and e. New competitors in the industry.

Globally information Technology is recognized as a key element in financial development in many countries around the world over past decade. Various advancements have taken place in the banking sector in the point of information technology in a most striking approach. Thus banks have come up with most rapidly changing strategies with high merger rate. Under these circumstances banks considered traditional management approaches is not sufficient. With introduction of information technology in banking sector rapid changes shown up includes opening account, mandate customer account and recording transaction process.

Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions associated with the banking business.

India’s banking sector has grown very fast over these years. India has a large web of banking it has 26 public sector banks, private sector consists of 20, and there are 43 foreign banks which is a good sign for banking sector. Also it consists of 61 regional banks. There has been a noticeable expansion in dealings through ATMs, and also with internet and mobile banking banks has shown tremendous growth.

Over the years, the banking sector in India has seen a no. of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers and consequently, the banks. Some of the significant changes in the banking sector are discussed below.

The key to efficient banking lies in maximizing the use of information technology. The brave new path of tomorrow’s banking will be on the

Today banking is known as innovative banking. Information technology has given rise to new innovations in the product designing and their delivery in the banking and finance

impact of ict on the performance of banks. A case study of Barclays Bank Ghana

Financial System is the most important institutional and functional vehicle for economic transformation of any country. Banking sector is reckoned as a hub and barometer of the financial system. As a pillar of the economy, this sector plays a predominant role in the economic development of the country. The geographical pervasiveness of the bank coupled with the range and depth of their services make the system an indispensable

The management of the private commercial banks and nationalized commercial banks might allocate a part of their yearly profit for ICT penetration in banking activities and human resources development. They may also extend those services to the rural people of Bangladesh so that the rural people can also get the benefit of technology driven banking.