Creativity and Innovation in Indian Banks

Simply, the banks perform financial intermediation with the deposits of the customers/ business and then lending out that money to earn profits. The banking system concern, it plays a vital role in any country economy by encouraging investment activities as well as money savings. Moreover, online baking, providing debit and credit cards, ATM facilities, providing safe custody of valuable items and lockers are some of the facilities provided by banks to make their relationship with the customers more effective and efficient.

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

Internet banking renders location and time irrelevant, and empowers customers with greater control of their accounts. Banks achieve cost and efficiency gains in a large number of operational areas. This paper addresses the aspects of reliability and accessibility from a banking enterprise point of view and puts forth present day solutions to problems involving these issues. An Indian perspective of Internet banking is also looked at in order to gaining a better perspective regarding the situation.

Banks provide three types of services through online banking. (a) Information on different services and products offered by bank to their customers and for general public. (b) In this service, customers can apply for new services and products provided by bank, account balance queries, but no fund transections. (c) In this service of banking, customer can transfer funds, make bill payments, purchase or sale securities by bank, can subscribe to other products by bank.

ICICI bank has a strong presence in India due to a huge network of 3880 Branches and 12269 ATM's across PAN India

With the advance technology, banking has become a 24 hours a day and seven days a week ability. Not too long ago banks were only open from 9:00am to 3:00pm, workers and businesses rushing to get to the bank before they close. Paychecks were handed out personally not direct deposit, cashing or depositing a paycheck entailed a trip to the bank. Now most companies have direct deposit and the printed paycheck is becoming a thing of the past, this is only one example of how technology in banking has changed in society. The electronic banking (e-banking) can be described as the automated method of new and traditional banking services which reduce cost, and simplify front and backend process satisfying customers.

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

Internet banking has made bank transaction easy and convenient in the sense that people can do the transactions from anywhere they, desire to i.e in the home, offices, and schools. It has helped to avoid unnecessary trips to the bank.

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India 's independence, became the State Bank of India.

The process of globalization and liberalization has virtually transformed the way of running business across the globe. Technology has entered into every sphere of the human life and the financial sector is no exception to it. E-banking, a product of the research conducted in the field of banking and financial services over the last century, is being used in India for some time now in the form of digital data in computers, Automated Teller Machines, credit and debit cards, mobile banking and net banking. Internet or e-banking means that any user with a personal computer and a browser can get connected to his bank’s website to perform any of the virtual banking functions. E-banking services can be availed for payment of bill, fund transfer,

Banks have become major distribution channels for insurance companies. The insurance companies take the advantage of banks as distributors at a low cost. There are more than 80,000 banks out of which 65% of the branches are located in rural and semi urban areas and the rest 35% in urban and metropolitan areas. Apart from commercial banks, India also has a large network of rural cooperative and urban cooperative banks which acts as an impetus for bancassurance.

Once technology was introduced to the banking world many things changed. Banking and any transactions related to banking had to be done in person. Along came the telephone, in which allowed banking to be conducted at home or work. A phone call is what it took to have transaction implemented. The age of ATM’s (Automatic Teller Machines) allowed banking 24 hours a day. Debit cards and Credit cards allowed us to transfer monies or put things on credit instantly. Next came the era of online banking and electronic transfers of money, which allows us to take care of many other transactions instantly. From the 1st day until today the every changing world of banking changes the way we live and we do business.

The first banks were THE GENERAL BANK OF INDIA which got going in 1786 and bank of hindustaan,both defunct now

The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in these big Asian economies. The explosion as most analysts say, is yet to come as India has about one of the biggest untapped markets, China and South Korea all three of these countries have seen gradual roll-out of mobile banking services, the most aggressive being Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and restaurants.

In India, Merchant Banking activities followed the footsteps of similar activities in UK and USA starting from the year of 1967. Currently Merchant Banking activity have blossomed in the Indian market. Merchant banks have both public and private sector that set up their respective merchant banking divisions. Currently in india the total numbers of merchant bankers are approximately one thousand four hundred and fifty with more than nine hundred and thirty registered with SEBI. The SEBI authorized Merchant Bankers that include merchant banking divisions in all of India. Both nationalized and foreign banks financial institutions subsidies in commercial banks. While private merchant banks engaged in stock broking, underwriting activities and financial consultancy and investment service firms.