Technology In Banking Sector

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Money has always been the joyful word for society but it has never been so easy to share this joy with your loved ones. Thanks to technology which has modernised the banking sector. Gone are the days when for every transaction one had to visit the branch. Gone are the days when one had to take in hefty cash when going out to some places. Technology has brought a complete paradigm shift in the functioning of banks and delivery of banking services. Today most of the transactions can be done from home and customers need not visit branch for anything. Technology is no longer an enabler but a business driver. The growth of internet, mobiles and communication technology has added a different dimension to the banking sector. IT started…show more content…
Banks are transforming from transaction service providers to relationship management hubs. This change has been very productive for banks bringing in an increase in productivity and operational efficiency. 200,000,000 100,000,000 0 2008-09 2009-10 2010-11 2011-12 Over the last decade, the size of banking industry has gone by 7.5 times. Business per employee has increased from 27.6 million in 2005-06 to 127.6 million in 2012-13 while the profit per employee has increased from 0.12 million in 2005-06 to 0.63 million in 2012- 13.Indian banks are no longer limited by geographies as they operate at global level. IT has been driver for global expansion of banks. Now it is a challenge for banks to maintain and keep the vast network operational. IT has helped bank to put in place delivery channels like internet and mobiles. Mobile banking and ATMs are becoming the prime delivery channels. The centralization of information is also accelerating the decision making and risk management operations. Electronic payments through ATM and Debit card has removed the hassle for customer of carrying the hefty cash with them and so it is growing as a fast growing segment. So, the banking sector has been growing at a fast pace and will…show more content…
So, we can see Technology has moulded Indian banking sector into a more convenient and fast service provider. But still there is a long way ahead. There is a need to put proper security in place for online data privacy. Threat –Money has become virtual and as most of the transactions are done online it is necessary to keep a check on the information regarding account and password of the customer. Breaches of security and disruptions to the system’s availability can damage a bank’s reputation. The more a bank relies on e- channels, more is the risk associated with it. So, Banks need to put a technical team in place in order to cater to all technical issues. While electronic banking can provide a number of benefits for customers and new business opportunities for banks, it exacerbates traditional banking risks. Even though considerable work has been done in some countries in adapting banking regulations, continuous caution is essential as the scope of e-banking increases. In particular, there is still a need to establish greater coordination at the international level. Moreover, the ease with which capital can potentially be moved between banks

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