Premium Essay

Banking Technology

In: Business and Management

Submitted By punithaf
Words 3137
Pages 13
Impact of Information Technology on Service Competence
In Indian Banking Industry
Mrs. Punitha Sahaya Mary Francis
Assistant Professor, MBA Dept., St. Xavier’s Catholic College of Engineering, Chunkaankadai, Nagercoil. punithaf2007@rediffmail.com, Mobile: 9942432809

INTRODUCTION
The 21st century will bring about an all-embracing convergence of computing, communications, information and knowledge. This will radically change the way we live, work, and think. The growth of high speed networks, coupled with the falling cost of computing power, is making possible applications undreamed of in the past. Voice, data, images, and video may now be transferred around the world in micro-seconds. This explosion of technology is changing the banking industry from paper and branch banks to' digitized and networked banking services. It has already changed the internal accounting and management systems of banks. It is now fundamentally changing the delivery systems banks use to interact with their customers. All over the world, banks are still struggling to find a technological solution to meet the challenges of a rapidly-changing environment. It is clear that this new technology is changing the banking industry forever. Banks with the ability to invest and integrate information technology will become dominate in the highly competitive global market. Bankers are convinced that investing in IT is critical. Its potential and consequences on the banking industry future is enormous.
It is expected that the Indian banking and finance system will be globally competitive.
Technology would be the key to the competitiveness of banking and finance system. Indian players will keep pace with global leaders in the use of banking technology. In such a scenario, on-line accessibility will be available to the customers from any part of the globe, ‘Anywhere’ and ‘Anytime’...

Similar Documents

Premium Essay

Essay On Technology In Banking

...Technology and Banking Services The introduction of Information Technology services by the banks has positively impacted on the customers and has brought revolution in the operation of the banks. Technological facilities like ATMs, Mobile Money, Branch Network, Telephone Banking, Internet Banking etc have introduced by banks for the customers. The explosion of technology is changing the banking industry from paper to Internet and branch banks to digitized and networked banking services. It has already changed the internal accounting and management systems of banks. It is now fundamentally changing the delivery systems banks use to interact with their customers. All over the world, banks are still struggling to find a technological solution to meet the challenges of a rapidly-changing environment. It is clear that this new technology is changing the banking industry forever. Banks with the ability to invest and integrate information technology will become dominate in the highly competitive global market. Bankers are convinced that investing in IT is critical. Its potential and consequences on the banking industry future is enormous. Computers are getting more sophisticated. So Computers have given banks a potential they could only dream about and have given bank customers high expectations. The changes that new...

Words: 1584 - Pages: 7

Free Essay

Technology Report on Online Banking

...300 Almost half of Americans use online banking and the statistic is growing. Banking is even going mobile. There are multiple banking applications available for smartphone users. If there’s not an “app” for your banking needs then there’s a strong possibility that your bank has a mobile version of their site making mobile banking easier than ever. How is internet/smart phone banking possible? The answer lies within the application and implementation of management information systems. These information systems contain components that work together to provide information. With the technology available today, banks have basically taken their information systems and expanded them to management information systems. Essentially using the data they already have but using it in a way to achieve business goals, such as the convenience of online banking. Before internet banking customers were forced to bank during the bank’s limited business hours, often time, banks opened after you were at work and would be closed by the time you got off work. Additionally, customers were forced to wait in excruciatingly long lines during peak business hours in order to handle their financial needs. Customers would have to endure all of that just to check the balances of their accounts. In order to better serve customers and their needs, internet banking was implemented. In the beginning, internet banking was extremely limited. Customers could check their balances......

Words: 1517 - Pages: 7

Premium Essay

Impact of Information Technology on Banking Sector

...This project examines the general impact of Information Technology(IT) on the banking industry. The banking industry has introduced various new customer services and products using IT. The banking industry has gone through many changes as a result of the introduction of IT. In fact, the structure of the industry is continuously changing because of rapid development of IT. The continued success of IT applications mean that the limitations of current IT computer systems in banks have to be re-developed to meet future requirements. The aim of this project is to evaluate how the banking industry has applied IT; the effects of IT on competition; current IT applications and systems problems; the security of IT systems; IT risk and IT fraud and the future application of IT in the banking industry. The focus of the report has mainly been in the UK and US. In the research, the banking industry has demonstrated a fair amount of competence in the application of IT. Some banks were at the cutting edge of IT and have a clear vision of how IT could be furthered applied successfully. Banks have spent millions of pounds on IT every year in a bid to fully automate its operations and services to customers. The industry recognises that IT was a major key to its development. The research brought to light the fact that IT has increased competition within the industry. The realisation that the market size is not really increasing has made banks more competitive. Also, the expectation......

Words: 562 - Pages: 3

Premium Essay

The Impact of Information Technology in Nigeria’s Banking Industry

...Information Technology in Nigeria’s Banking Industry 1 Oluwagbemi Oluwatolani 2Abah Joshua and 3Achimugu Philip Abstract-Today, information technology (IT) has become a key element in economic development and a backbone of knowledgebased economies in terms of operations, quality delivery of services and productivity of services. Therefore, taking advantage of information technologies (IT) is an increasing challenge for developing countries. There is now growing evidence that Knowledgedriven innovation is a decisive factor in the competitiveness of nations, industries, organizations and firms. Organizations like the banking sector have benefited substantially from e-banking, which is one among the IT applications for strengthening the competitiveness. This paper presents the current trend in the application of IT in the banking industries in Nigeria and gives an insight into how quality banking has been enhanced via IT. The paper further reveals that the deployment of IT facilities in the Nigerian Banking industry has brought about fundamental changes in the content and quality of banking business in the country. This analysis and clarification of how Nigerian Banks have used IT to reengineer their operations is detailed through literature review and observation. Three categories of variables that relate to the use and implementation of information technology devices were considered in this paper. These include the nature and degree of adoption of innovative......

Words: 2996 - Pages: 12

Premium Essay

Technology and Banking

...The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerizing the branches in a limited manner. The early 90s sawthe plummeting hardware prices and advent of cheap and inexpensive but high-powered PCs andservers and banks went in for what was called Total Branch Automation (TBA) Packages. Themiddle and late 90s witnessed the tornado of financial reforms, deregulation, globalization etccoupled with rapid revolution in communication technologies and evolution of novel concept of 'convergence' of computer and communication technologies, like Internet, mobile / cell phonesetc. Different constituents of banking technology Evolution of Technology in Banking Despite the enormous changes the banking industry has undergone through during the past 20years let alone since 1943 one factor has remained the same: the fundamental nature of the needcustomers have for banking services. However, the framework and paradigm within which theseservices are delivered has changed out of recognition. It is clear that people’s needs have notchanged, and neither has the basic nature of banking services people require. But the way banksmeet those needs is completely different today. They are simply striving to provide a service at a profit. Banking had to adjust to the changing needs of societies, where people not only regard a bank account as a right rather than a privilege, but also are aware that their business is......

Words: 1253 - Pages: 6

Premium Essay

E-Cah

...A Survey of Electronic Cash, Electronic Banking and Internet Gaming 1 2 TABLE OF CONTENTS PREFACE ..........................................................................................................................5 FOREWORD ..........................................................................................................................7 INTRODUCTION ............................................................................................................... 11 ELECTRONIC CASH .......................................................................................................... 15 INTRODUCTION ................................................................................................... SMART CARDS/STORED VALUE CARDS........................................................ The Basics ..................................................................................................... Stored-Value Card Issuers ............................................................................ COMPUTER E-CASH ............................................................................................ The Basics ..................................................................................................... E-Cash Issuers ............................................................................................... REGULATORY POLICY ......................................................................................... SUMMARY OF ELECTRONIC......

Words: 39311 - Pages: 158

Premium Essay

Banking Technology In Mobile Banking

...Technology is now moving to a notch higher per day. To take full advantage of such technological advancements, it is important to be in-sync with this change all the times. E-Wallets, e-commerce, and even all the Indian banks are now offering various services through mobile now. What is Mobile Banking? Mobile banking term refers to the use of mobile phone or any other cellular device for financial transactions. With mobile banking, you can pay your credit card bills and transfer money from your account to others. In present scenario, mobile banking is a need. How is Mobile Banking Different from Internet Banking? Banking technology is emerging rapidly. Every bank is making efforts to offer its customers what is essential and required for...

Words: 1882 - Pages: 8

Free Essay

Marketing on the Web

... A system that allows a person to pay for goods or services by transmitting a number from one computer to another. Like the serial numbers on real dollar bills, the digital cash numbers are unique. Each one is issued by a bank and represents a specified sum of real money. One of the key features of digital cash is that, like real cash, it is anonymous and reusable. That is, when a digital cash amount is sent from a buyer to a vendor, there is no way to obtain information about the buyer. This is one of the key differences between digital cash and credit card systems. Another key difference is that a digital cash certificate can be reused. 2- Briefly explain ActiveX Control ActiveX control is a control using Microsoft ActiveX technologies. An ActiveX control can be automatically downloaded and executed by a Web browser. ActiveX is not a programming language, but rather a set of rules for how applications should share information. Programmers can develop ActiveX controls in a variety of languages, including C, C++, Visual Basic, and Java. An ActiveX control is similar to a Java applet. Unlike Java applets, however, ActiveX controls have full access to the Windows operating system. This gives them much more power than Java applets, but with this power comes a certain risk that the applet may damage software or data on your machine. To control this risk, Microsoft developed a registration system so that browsers can identify and authenticate an ActiveX......

Words: 3674 - Pages: 15

Free Essay

“Evaluating Customer Perceived Value in Mobile Banking Apps Using Technology Acceptance Model (Tam)”

...Customer Perceived Value in Mobile Banking Apps using Technology Acceptance Model (TAM)” Date: 15th May’15 Introduction Mobile banking is a result of the development of mobile technology used in the commercial domain. Mobile banking combines information technology and business applications together. Thanks to the mobile banking, customers can use it to get banking services 24 hours a day without having to visit a bank branch for personal transactions. Suoranta, M. (2003) conclude that Mobile banking is a relatively new service offered by banks to customers, and because of the convenience and features that save time and customers appreciate the services. Compared to other e-banking services, the development of mobile banking (m-banking) regarded the fastest. This development is due to the presence of m-banking services to answer the needs of a modern society that is promoting mobility. With one touch, creates convenience m-banking banking services in one hand. Benefit of mobile banking services will increase customer satisfaction. Furthermore, mobile banking creates "value" for the bank as a customer transaction service delivery channel access (wireless). Birch D and Young, M. A, (1997) conclude that the rapid advanced of technology in banking technologies, Customers want the convenience and flexibility on products and services that suit their needs and easy to use which cannot be offered by traditional banks. In the future of e-banking will be an important strategic......

Words: 2961 - Pages: 12

Premium Essay

Technology and Indian Banking Sector

...ISSN No-2230-7850 Vol.1,Issue.IX/Sept;11pp.1-4 Research Paper Technological Developments in Indian Banking Sector Dr. B.S. Sawant, Director, K.B.P. Institute of Management Studies and Research, Satara, Research Guide Abstract: Banking sector plays a significant role in development of Indian economy. So banks need to optionally leverage technology to increase penetration, improve their productivity and efficiency, deliver cost-effective products and services, provide faster, efficient and convenient customer service and thereby, contribute to the overall growth and development of the country. Technology enables increased penetration of the banking system, increases cost effectiveness and makes small value transactions viable. Besides making banking products and services affordable and accessible, its simultaneously ensures viability and profitability of providers. Technology allows transactions to take place faster and offers unparallel convenience through various delivery channels. Technology enhances choices, creates new markets, and improves productivity and efficiency. Effective use of technology has a multiplier effect on growth and development. In the area of payment systems, there have been significant advancements of technology on the customer transactions. India is one of the country that has effectively tackled huge volumes of paper instruments in cost effective manner. The Magnetic Ink Character Recognition (MICR) cheque clearing System, cheque......

Words: 3234 - Pages: 13

Premium Essay

Technology Perspectives in Banking Industry

...monitor these IT projects very judiciously. Priority of Strategic Initiatives in IT Most Banks are planning for IT initiatives that contribute significantly to strategic positioning of services and cost reduction. Common trends were noticed across segments with respect to prioritization of IT initiatives and implementation timelines. It had been estimated that globally, emergence of new technologies such as back office virtualization, cloud computing and Service Oriented Architecture (SOA) will reduce absolute spending on IT. Key IT Solutions As part of implementation of strategic IT initiatives, Banks are deploying IT solutions to facilitate automation in transaction management, reporting and risk management. Business Intelligence and analytics initiatives are planned in the near term by Public Banks and in a two to three year window by Private Banks. The deployment of new technologies is gaining momentum, which has the potential to bring far reaching impact in the Banking industry as a whole. Process Improvement Models ISO 27001 seems to be the most actively adopted standard across the banking sector. A large fraction of the private sector banks, are actively adopting process improvement initiatives in line with Six Sigma, which indicates a growing focus on enhancing operational efficiencies. Risk Management Focus on reporting of risk and compliance has increased significantly in line with global as well as regional trends. Automated systems can help a proactive......

Words: 445 - Pages: 2

Premium Essay

Technology Change in Banking Sector

...0  0  1   In this article I want to first give an overview of how managers have been functioning in classical organizations, then look at how their environments have changed and the impact that this has had on them and their ability to respond to their environment.  Lastly I want to look at the new, developing role which requires managers to be responsive to this changing environment and to develop adaptive changes. 1.            Failure of Traditional Management In many organizations, managers have been taught to carry out the classical functions of management – planning, organizing, leading and evaluation.  Yet any observer of human behavior would have to conclude that by and large this has not happened.  Many managers have not understood their roles nor carried out their management functions at all well – particularly planning and evaluating.  Probably leadership in many cases has been entirely lacking. One of the major issues that I have with classical management theory and practice is that it is based on outmoded views of human behavior.  It assumes also that we live in a stable unchanging environment which can be predicted with accuracy so that the organization can appropriately respond. This model of management also assumes that the most competent, the very best performers and the most creative thinkers become managers.  And we know that is not true!  Many people achieve management positions for a diverse range reasons including those of talent, politics, age,......

Words: 1384 - Pages: 6

Premium Essay

Chanhging Technology in Changing Banking Operations

...Impact of IT in Changing banking operation Introduction of Indian banking industry History of Indian Banking 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 in 1955. Key points in history of Indian banking industry * Establishment of Reserve bank of India in April 1935 and its nationalization in January 1, 1949. * Nationalisation of 14th largest commercial bank in India on July !9, 1969. At present there are 26 nationalised bank in India wth this the government controls around 91% of banking service in India * Liberalisation In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks. includes Oriental bank of commerce, Axis bank, ICICI bank and HDFC bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with......

Words: 4539 - Pages: 19

Premium Essay

Hybrid Product for Zenith Bank

...14 1.0 : Introduction Zenith Bank Nigeria Plc was founded in May 1990 with the headquarters in Victoria Island, Lagos State Nigeria under the management of Macaulay Pepple, who was the pioneer chairman and Jim Ovia, who was the chief executive officer (ZenithBank.com). However, they are rated the second biggest Finance Industry in Nigeria and the best bank for a consistent 2 year period from 2008-2010 as well as the most respected bank in Nigeria (ZenithBank.com). Since 1990, Zenith Bank has operated in Nigeria and now operates in five other African countries in addition to the United Kingdom. It offers varied financial services such as current account, savings, commercial letter of credit, credit cards, mortgage, loan,investment banking and other financial products and services (ZenithBank.com). For several years, Zenith Bank has consistently announced profits from its wide ranging operations as a result of the growing opportunity offered by the Nigerian market. Nigeria is a nation of 150 million people with less than 50% bankable population as of 2000 (CBN, 2010). In 2010, over 65% of the population have become customers to one bank or another, thus presenting a growth opportunity for financial institutions such as Zenith (naijalowa.com). While the Nigerian market holds tremendous opportunity for existing operators like Zenith, the financial industry in the country is driven by a range of macro-economic factors which holds both positive and negative implications......

Words: 3489 - Pages: 14

Premium Essay

Busines Context

...their customers to do online banking as it is very easy and very convenient for the customers. It also reduces the congestion at a branch and saves more time of the customer. Also it requires less bank staff. There are many facilities and functionalities provided in the online banking system. They are as follows , * View balances of account * Statements of accounts(view or display) * Funds transfers * Between accounts * To other bank accounts or credit cards * Schedule payments (standing orders) * Status of issued and deposited cheques * Facility to stop payments of issued cheques * Request cheque books * View credit card statements * Settlement of credit card payments * Utility bill payments In Sri Lanka most of the customers fear and hesitate to do online banking as ICT and Computer literacy of customers are very poor. Also most of the customers do not trust the system and they insist on doing it the old fashion banking. However with the current technology and protected websites it is more secure doing online transactions. Banks has to be carefully when providing online banking facilities as the customer would move their funds into another banking institution if the system is not user friendly and if it cannot be accessed easily. With the high rate of development in the county most of the company’s request banks to promote online banking. In order to promote online banking bank should educate the......

Words: 433 - Pages: 2