INNOVATIVE BANKING

DR MEENAKSHI SHARMA
 Innovative Banking
Innovative means new methods or systems
In relation to banking : -
Any changes which are brought in the banking field
for the implementation of new ideas and methods is
known as innovative Banking.
It includes, E-mail interchange, electronic data
system, electronic bulletin, use of computers.
It has substantially transformed the entire working
system of the banks.
 BANKING IN
INDIA
1786 THE GENERAL BANK OF INDIA
1806 BANK OF BENGAL
1935 RESEARVE BANK OF INDIA
1949 BANKING COMPANIES ACT PASSED
1955 FORMTION OF STATE BANK OF INDIA
1969 14 BANKS NATIONALIZED
1980 7 MORE BANKS NATIONALIZED
1991 OPENING UP OF ECONOMY FOR NEW
PRIVATE BANS AND FOREIGN BANKS
 • COMPUTERISATION
• ATM FACILITY
• INTERNET or ONLINE
BANKING
• CREDIT
INNOVATIONS IN • WAP BASED MOBILE CARDS/DEBIT CARDS
BANKING SECTOR NETWORK
• ALL DAY BANKING
• MULTIPURPOSE
INFORMATION KIOSKS • ANYWHERE
• POS BANKING
 BIOMETRIC
MOBILE
IMPS BANKING
RTGS\NEFT CHEQUE
ONLINE TRANSACTIO
ATMs BANKING N
Electronic
funds transfer
TELE BANKING 2011
Branch 2000- ONWARDS
MICR
connectivity
2010
Computerisatio
Standard
n
Cheques
Encoders 1990s
1980s

MECHANISATION AUTOMATION INTERNET MOBILE

E BANKING
Electronic banking is a form of banking in which
funds are transferred through an exchange of
electronic signals rather than through an exchange of
cash, cheque or other types of paper documents.
E banking in India
1991 – marked the entry of new private and foreign
banks
Foreign banks – bought new technology with them
Few Advantages of E Banking :-
Faster & more convenient transaction
Fund transfer become faster & convenient
Stock trading & investments
Opening of accounts
Cost effective
COMPUTERISATION
Now a days, the working of all private and public
banks is being accomplished, with the help of
computers.
All banks have been interconnected, through satellite
facility. As a result, general or specific massages,
regarding changes in foreign exchange rates, transfer
of money, opening or seizure of letter of credit, etc.
may be sent, promptly.
DEBIT CARD & CREDIT CARD
Debit card is a plastic card which provides a
alternative payment method to pay for purchases
It allows for withdrawal of cash from ATM.
Debit card consist of : -
CREDIT CARD
Credit Card is a plastic card with a credit facility, which allows you
to pay for goods and services or to withdraw cash.
It is issued by a financial company, that lets cardholders borrow
funds with which to pay for goods and services.
It is an instrument to help to make instant credit based
transactions.
Unlike debit cards which are linked to your bank accounts and
debit the corresponding amount for every transaction, credit card
offers you the flexibility to make transaction on credit
independent of your account balance.
These amounts however are repayable at the end of a pre-
specified credit period, and each credit card involves a credit limit
beyond which transactions cannot be made.
The Card Verification Code, or CVC*, is an extra code printed on your debit or credit card. With most
cards (Visa, MasterCard, bank cards, etc.) it is the final three digits of the number printed on the signature strip on the
reverse of your card.
 A chip card is a standard-size plastic debit or credit card which contains an embedded microchip as well as a
traditional magnetic stripe. The chip encrypts information to increase data security when making transactions at
stores, terminals, or automated teller machines (ATMs)
The point of the holograms is to stop theft of credit cards and deter counterfeiters. The reasoning behind them is
that they are 3-D images and the equipment used to create them is very expensive, so your average counterfeiter can't afford to
create them.
NET BANKING or ONLINE BANKING
 ICICI Bank was the first bank in India to start the work of net
banking. Thereafter, various institutions- Global Trust Bank,
HDFC Bank, SBI, etc have also started net banking.
 The facility operated by net banking is fast and less costly.
 It helps the customers to operate accounts, transfer money in any
part of the world.

 Funds transfer between a customer’s own checking and saving

accounts, or to another customer’s accounts
 Handling or aggregation of various accounts allow the customers
to monitor all their accounts in one place.
MOBILE BANKING
Mobile banking is such a system of banks, through
which the person can check his saving accounts and
may undertake the transactions also, even being
anywhere.
Wireless Application Protocol
Wireless Application Protocol (WAP) is an important step
to convert information based services into transactions
based services. WAP makes banking transaction easy, it
make access to internet possible.
Wireless application protocol (WAP) is a
communications protocol that is used for wireless data
access through most mobile wireless networks.
Mobile Payments are becoming more and more important
with the increase of wireless services. Improved data
transfer and the easier use of such services will also
increase demand among end users.
AUTOMATED TELLER MACHINE

ATM is an electronic banking outlet that allows customers

to complete basic transactions without the aid of a branch
representative or teller. Anyone with a debit card can access
cash from ATM’s.
Some are simple cash dispensers while others allow a variety
of transactions such as check deposits, balance transfers,
and bill payments.
Anywhere Banking

Anywhere Banking is a convenient

banking system which allows you to
access customer facilities of your bank
from anywhere across the nation. It is a
secure and speedy way of making
transfers away from home. This makes
the feature especially important for
users who move frequently.
Anytime Banking
Anytime Banking : With introduction of ATMs, Tele-
Banking and internet banking, customers can
conduct their business anytime of the day and night.
The 'Banking Hours' is not a constraint for
transacting banking business.
 POS
A point of sale terminal (POS terminal) is an electronic device
used to process card payments at retail locations.

A POS terminal in general does the

following:
Reads the information off a
customer’s credit or debit card
Checks whether the funds in a
customer’s bank account are
sufficient
Transfers the funds from the
customer’s account to the seller’s
account
Records the transaction and prints
a receipt
 Multi Function Kiosk
 To provide hassle free and convenient
banking services through alternate
delivery channels to customer by
leveraging Technology, Bank of
Baroda has launched an innovative
Self Service kiosk called Multi
Function Kiosk (MFK). As the name
suggests it offers a number of
customer centric services from a
single hybrid services box.
Key Features

Cheque Deposit facility with CTS interface

Bill payment facility using our Debit card and Net banking

Browser based Internet Banking

Non cash / Enquiry services including Balance enquiry and Mini Statement
It’ll only be a matter of time when a digital bank would not just restrict itself to
payments, but also provide services like cross-country stock trading, forex
trading etc. as well as a range of cross-platform services to every customer.
Unlike traditional banks, digital banks have the freedom from the legacies of
the past. They can design their operations, processes and strategies, all the
while keeping the customer in the centre.

FinTech financial services is transforming the entire banking system from a

branch-specific process to various digital channels such as online, social, and
mobile.

Innovation is a
continuous process.
There is no ending to it
as we have just started
our innovations. There
is much more in it.
THANK YOU