Forex Icici
IT IN BANKING
IT IN BANKING
By
Dr. R. Rajeswari, Professor of Commerce and foremost,
Sri Sarada College for Women (Autonomous), Salem-16.
INTRODUCTION
Indian banking sector has made great strides in reforming and adapting itself to new competitive environment. Indian banking is in the midst of a revolution. technology infrastructure has become an indispensable part of the reform process in the banking system, with the gradual development sophisticated instruments and innovations in market practices.
OVERVIEW OF IT IN BANKING
Indian banking sector today is in the midst of a revolution. A combination of regulatory and competitive reasons have led to increasing importance of automation total banking in the Indian Banking. Information Technology has been used primarily in two different ways in Banking. One of them is communication and connectivity and the other is the business process reengineering. Information technology enables sophisticated product development, better market infrastructure, implementation of techniques reliable control of the risks and helps the financial intermediaries to reach geographically distant and diverse markets.
The entry of new banks resulted in a paradigm shift in the ways of banking in India. Growing competition, growth expectations led to increased awareness between banks on the role and importance of technology in banking. The arrival of foreign and private banks with their superior state of the art services based technology in India has also pushed the banks to do the same for going in the latest technologies in order to cope with the threat of competition and retain customers base.
With fierce competition and liberalization policies, banks have diversified into non-traditional areas such as:
- Merchant Banking.
- Financial leasing.
- Project Finance.
- Trust and Pension Management.
- Executor / Administration Business Trust.
- Free-based services.
- Investment Banking.
- Cash management products.
- Financing Real Estate, Housing Finance in particular.
- Negotiation and syndication loans to corporate customers in international markets.
- Forex loans.
- Securities Operations.
- Gold and related products.
- Management Consulting Corporate Clients.
- Mergers, Acquisitions and Divestitures.
- Factoring desist.
Today, technology has changed the contours of three main functions performed by banks, ie, access to liquidity, asset transformation and control of risks. In addition, technology information and communication network systems have a crucial bearing on the efficiency of money, capital and currency markets.
TECHNOLOGY In the banking
Many of the world's largest and most successful banks have emerged from the technological changes that are capable of early identification. The sector Indian banking has a long way to go before it can compete globally. The state of affairs is perpetuated mainly due to the late introduction of technologies communication in Indian banks. Our information technology must be geared to compete with information technology in other parts of the world and unless they are very fast in the area, may be difficult for us to take advantage of the liberalization process.
The bank using the right technology provide timely information will increase productivity and gain competitive advantage. To compete in an economy that is opening, it is imperative that Indian banks to observe the latest technology and to adjust to their environment. Not only banks need much greater use of technology friendly and efficient customer and competitive services and existing businesses, also need the technology to offer new products and new forms of services in an increasingly dynamic environment and globalized. Information technology offers an opportunity for banks to build new systems that address a wide range of customer needs, including many that can not be imaginable today.
Online banking, for example, undertakes to inform customers to make transactions via a direct connection with the functions basic bank client's account. Customers to review all your data, all of its date, all checks, all credit card details.
In future, banks will be freed from the limitations of a single delivery channel. They will be able to create, package, market and distribute products market segments, and because the price of technology in fall, may do so profitably.
Technology will allow banks to be more close to customers, to offer a wider range of services to lower costs, streamline the land of the systems of interest for all the data together in one place where it can be used to detect trends that can quickly lead to new products. electronic delivery of banking services allow data to be collected and analyzed. interactivity will give consumers an opportunity to record their preferences, in fact direction for development of new products.
DEVELOPMENT RECENT in banking services
The following services provided by banks are:
- Automated Teller Machine (ATM)
An ATM is a computerized telecommunications device that offers customers a financial institution a safe method to perform financial transactions in a public space without the need for a human clerk or bank teller. ATMs machines are linked to the bank's central computer to identify the customer through the magnetic encoding on the card provided to customers and number Personal Identification Number (PIN) entered by the customer updates. It is the customer's account after the completion of the transaction. The transaction using ATM transactions can range from simple cash withdrawals and deposits to make hotel reservations, etc.
2. Electronic Funds Transfer – Point-of-sale (EFTPOS)
EFTPOS can be installed on airlines, hotels, railways, Bazaars Super and other shopping centers. Client rid of the hassle of carrying cash, and payments can be made through cards supported by the characteristics of security of personal identification numbers (PIN) or password, etc. in selected facilities that are installed in POS terminals. Point of Sale Terminals can be linked to the bank machine.
3. Electronic Funds Transfer System
To transfer funds instantly between different sectors in different parts of the country by connecting these branches through a network that uses the latest communication technology including satellite, leased lines, dial-up lines, etc.
4. Electronic Clearing Services (ECS)
In April 1995, the RBI introduced the electronic clearance service between the centers selected metro in the country under which the transfer of funds from one school to another can be done quickly. ECS is essentially a more efficient management payment transactions and remittances in bulk to the inside, such as pensions, interest, dividends, salary or commission checks. Add 3 benefits remittance customers to Inside: Speed, security and convenience. As a subscriber to ECS, the bank customer's account is credited directly to each due date.
5. Credit / Debit
These cards are used to store information relating to customer account and can be used to perform many functions that involve the purchase of goods and services. These reduce cash management costs and the risks involved in handling cash. Therefore, improving customer safety and convenience. debit card is similar to the credit card with some notable exceptions. While the process is fast and easy, debit card purchases to the account of transfers of money from the store. Therefore, it is important that you have funds in your account to cover the purchase.
6. Pass E-Book
For the issuer, the system provided low cost, security and easy adaptation to the existing system through two real-life systems that operate in the country.
7. Bank home
The first domestic commercial banking system in the United Kingdom launched a real estate company in 1983. Provide a system of two-way communication to any subscriber. Two thirds of European banks now offer Home Banking systems that provide the interrogations into account, the payment of accounts, transactions between accounts, the generation credit and other banking services.
8. Corporate Electronic Banking
The banks have created an electronic-based products to its corporate clients. The system provides customers with control over funding the clock and various clients range of market information and reports. Corporate can dial into local access points in the data network through personal computers and modems. Therefore, they are instantly connected to the core system group
9. Anywhere Banking
"Anywhere Banking" is performed by Linking metro branches through VSAT satellite networks linked to communication and computer network online. Inter-connectivity through communication satellite channels are much more reliable and efficient land leased lines.
complete network of all branches in all the foundations of India has introduced first in the country for Centurion Bank Ltd. By offering these services, the client becomes a client of any bank, rather than a branch, since all branches are connected via satellite. The marriage between computers and modern communications. Systems has opened the door of the technological superhighway.
10. Telebanco
Telebanking is around the clock, "Banking services-in-phone to enable customer for the interface over the phone. The result is customer satisfaction within the available infrastructure facilities. Customer call your bank, give your password and make the transfer. NRIs can also ask questions and give instructions at the appropriate time in their respective countries, ie, 24 hours banking.
Facilities offered are home banking balance sheet information to obtain the statement of account at any fax machine of your choice directly from the bank's computer may also feature the last three transactions on their accounts, checkbook requisition, branch to transfer money, request projects, stop payment instructions, consult on new systems, rates, general details of interest rates, maturities customer information deposits, etc.
11. Extension of the counter (for example, Personal Banking Services NRI)
This was basically done to attract foreign currency deposits through NRI income specialist, as portfolio management and custody. Technology adopted includes additional terminals. If banks are to provide quality service to its customers are increasingly demanding, they have to know them better. Information system Customers can provide this capability and help banks focus their marketing campaigns. The technology to do so is now available.
12. Banking SMS
It is a service offering technology enabled the banks to their customers, allowing them to operate certain banking services through their mobile phones using SMS messaging. SMS Banking services are operated using Push and Pull messages:
Messages Push is where the bank decides to send a mobile phone client without the client initiates a request for information, these are messages from mobile marketing messages warning to an event that happens in the customer's bank account, such as large credit card payments from customers, etc.
Claims are messages those that are initiated by the client, using a mobile phone to get information or conduct a transaction in the bank account. Pull messages include a query account balance or current requests for information such as deposit interest rates, which is published and updated by the bank.
13. Banking Internet
Banks and financial services companies are now beginning to realize the tremendous potential of the Internet. Internet banking can be done through a bank site bank also has a physical structure or the user can choose a "virtual" bank or institution has no financial public building and there is only online. Internet banking is usually done through a personal computer (PC) that connects to a website through Internet banking. Internet Banking can also be done through wireless technology through two personal digital assistants (PDAs) and Cell Phones. Internet banking, as well as providing general banking services to customers, offers the following services:
a) eTAX
Banks like IDBI have facilitated the payment of taxes by eTAX project implementation. Payment of taxes special duties over the Internet is also possible. SBI e-tax an online payment mechanism. This facility saves time, is convenient, uncomplicated and paperless. Available in a 24 x 7 basis and allows the user to pay taxes online with ease and simplicity.
b) Remittances on-line
Another example of how well it is aligned with the bank, and is providing value to customers, it is best online remittances worldwide. The beneficiaries of India is credited with sending money within hours.
c) Bancassurance Online
Is a set of financial services related to distribution of insurance products through bank branch network online. Bancassurance provides the customer to pay insurance premiums at a low cost, by visiting the website of the bank. This has led to the migration of customers large branch transaction cost for line interfaces, low-cost, reducing the total cost per transaction.
d) Bill Electronic Payment
Electronic bill payment is a feature of online banking, allowing a depositor to send money from your account the demand of a creditor or supplier as a public utility or a department store to be credited to a specific account. Payment is optimally executed electronically in real time, although some financial institutions or payment services will wait until the next business day to send payment.
e) Online Store
Now the user can choose the product and pay with Internet Banking Facility. banks like ICICI Bank to facilitate the customer to buy variety of products online shopping Web sites associated. Payment can be made conveniently using the ICICI customer bank account.
f) Value Added Other Services
Some banks also offer value added services in the areas of railway reservation. The installation of the World Economic Forum launched September 1, 2003 in association with IRCTC. The system of reserve facilities Railways Ticket Online. Therefore, the client does not have to wait in queues. Now the user can recharge prepaid mobile anytime, anywhere in just minutes log in to Internet Banking.
CONCLUSION
We can say that has been moved to the base of the banking functions. No doubt Indian banks are not as technologically advanced as their counterparts in the developed world, but the following are most international trends regarding IT face up to the expectations of all parties. The new generation banks led the way and others had no choice but to follow the infusion of technology to retain and attract profitable customers.
However, Joseph D. Giarraputo, publisher of Global Finance, said, "The continuing improvements in Internet offerings represented by entries in this year show that more significant Internet banking developments are still ahead of us. "
About the Author
Dr. R. Rajeswari, Reader in Commerce & Principal,
Sri Sarada College for Women (Autonomous), Salem-16.