Role of Information Technology (IT) in the Banking Sector
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.
The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerising the branches in a limited manner. The early 90s
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All these banks are using home banking as a key “pull’ factor to remove customers away from the well entered public sector banks.
Many banks have modernized their services with the facilities of computer and electronic equipments. The electronics revolution has made it possible to provide ease and flexibility in banking operations to the benefit of the customer. The e-banking has made the customer say good-bye to huge account registers and large paper bank accounts. The e-banks, which may call as easy bank offers the following services to its customers: * Credit Cards/Debit Cards * ATM * E-Cheques * EFT (Electronic Funds Transfer) * DeMAT Accounts * Mobile Banking * Telephone Banking * Internet Banking * EDI (Electronic Data Interchange)
Benefits of E-banking:
To the Customer: * Anywhere Banking no matter wherever the customer is in the world. Balance enquiry, request for services, issuing instructions etc., from anywhere in the world is possible. * Anytime Banking – Managing funds in real time and most importantly, 24 hours a day, 7days a week. * Convenience acts as a tremendous psychological benefit all the time. * Brings down “Cost of Banking” to the customer over a period a period of time. * Cash withdrawal from any branch / ATM * On-line purchase of goods and services including online payment for the same.
To the Bank: * Innovative, scheme, addresses
Banking-related transactions that typically take long span of processing can now be done in just a few minutes, or even seconds. Aside from this, there are still other brilliant benefits that the IT has contributed to the finance sector, which may bring not only advantages but also possible drawbacks.
In recent years, banks all-around the world have buckled down to develop digital banking platforms to keep up to date with
The banking industry of the 21st century operates in a complex and competitive environment characterized by these changing
Bank increasingly switch to website system or e-banking side to catch the customers not only to inquire about the account balance, interest and exchange rates but also to made several online transaction activities. This up gradation of every bank systems come up in a race of to be ahead from other bank by which the bank look for new challenges in bank management, rules and supervision authorities to check the e-banking service is working smoothly and properly and customer can’t be affect by this new rules and catch more and more customers to promote the Bank.
Nowadays, most people are familiar with new technology development of electronic banking systems. Its not only provide the basic services like fund transfer and bill payments, but also doing the advance including provide the loan and card application. Electronic banking can define as the use of electronic delivery channels for banking products and services. Electronic banking services generally offered in two ways either traditional bank that is combine traditional and electronic delivery channels or virtual bank that operate entirely through electronic banking channel without having a branch network. It makes the business operational more efficient, faster and easier
share. Banks have to deal with many customers and render various types of services to its customers and if the customers
E-banking is the term used for new age banking system. E-banking is also called online banking and it is an outgrowth of PC banking. E-banking uses the internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages and purchasing financial instruments and certificates of deposits (Mohammed, et. a.l, 2009). It is difficult to infer whether the internet tool has been applied for convenience of bankers or for the customers’ convenience. But ultimately it contributes in increasing the efficiency of the banking operation as well providing more convenience to customers. Without even interacting with the bankers, customers transact from one corner of the country to another corner. Electronic banking has experienced explosive growth and has transformed traditional practices in banking (Gonzalez, 2008). As per prediction of Maholtra and Singh, (2007) the e- banking is leading to a paradigm shift in marketing practices resulting in high performance in the banking industry. Delivery of service in banking can be provided efficiently only when the background operations are efficient. An efficient background operation can be conducted only when it is integrated by an electronic system. The components like
electronically. Although clients have enjoyed great convenience of ebanking and bankers have improved cost efficiency of banks (Lin and Lin,
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
Research Scholar, School of Management Studies, Vels University, Pallavaram Chennai, India1 Research Scholar, School of Management Studies, Vels
To improve major areas of banking sector Govt. of India. RBI, Ministry of finance have made several notable efforts. Many of leading banks operating in market have made use of the changed rules and regulations such as CRR, Interest Rates Special offers to the customers such as to open account in zero balance. Now days almost all banks entered into all areas of banking services. As a result of innovation banking products are a reality now. Even saving accounts have become subject of innovation. Due to liberalization, Privatization and Globalization, Indian banks going global and many global banks setting up shops in India. The Indian banking system is set to involve into a totally new level. It will help the banking system to grow in strength going
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.
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
In the days of virtualisation where working mothers and travelling sales-team prefer to use flexi-time and remote jobs profile; Internet is being adopted as a parallel medium of communication, transaction, and social networking. Internet banking is fast gaining momentum across the globe for its convenience and ease of conducting transactions at a speed and service levels never dreamt of, a decade ago.
Electronic banking technologies greatly expanded in recent years. E- Banking service is based on the use of new technologies to provide various banking services directly to customers around the clock. Banks offer a wide range of these services