Role of technology in banking
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The document discusses the pivotal role of technology in modern banking, emphasizing its impact on efficiency, customer service, and regulatory functions within central banks. It outlines various technological advancements, such as mobile banking and core banking solutions, which aid in handling transactions and enhancing customer experience. Furthermore, it addresses challenges related to implementation, security, and the evolving nature of risks in a technology-driven financial landscape.
Role of technology in banking
- 1. Role of Technology in Banking Submitted by: Khushbu MBA 1st year Ch.Bansilal University, Bhiwani
- 2. The Technology Revolution The impact of technology on the real & financial world around the central banks E-governance Choice of channels , confidence and convenience to the end-user Efficiency Facilitating growth of products & services
- 3. Technology & Banks So why are banks interested? The widespread adoption of technology. The impact of technology on every single core central banking function ->Supervision and Regulation ->Currency Management ->Monetary & Financial Stability The potential technology offers to central banks for more effective processes and functions.
- 4. IT in Banking Technology that holds the key to the future success of Indian Banking. The significance of technology is greatly felt in the financial sector in view of the competitive advantage for banks resulting in efficient customer service.
- 5. Why there is need for IT in Banking? To handle huge volume of transaction with ease. To introduce innovative new services To bring cost effectiveness in handling payments To complete operation with great speed To provide better customer services by obtaining multi services from one counter itself. To make ease of inter-branch reconciliation. To ensure data accuracy and reduce frauds.
- 6. Increasing Inter-connectivity Stand alone computer system Multi-user system Branch level computerization Total branch automation
- 7. Ease of Payments Automatic Teller Machines (ATM) Core Banking Solution (CBS) Electronic Cheque (E-Cheque) Debit card Credit card Mobile banking Tele banking Internet banking EFT,NEFT Real Time Gross Settlement(RTGS) Electronic Clearance Service(ECS)
- 8. Implication of IT in Banking Anywhere, anyplace and anytime banking Timeless and placeless banking Convenience banking Dismantling of physical structure Goodbye to traditional instruments and invitation to new instruments Disappearance of conventional risk and arrival of new risks Leading of currency-less monetary system
- 9. Challenges in Implementation Choice of right channel Upgrading the skill of workforce spread across the country Penetration of IT in rural areas Technological obsolescence Security concerns
- 10. Level of security Internal security Network security Well documented security With the help of Firewall & IPS By honest employee and camera in branches
- 11. Information Technology Act 2000 Legal recognition of electronic documents Legal recognition of digital signatures Offences and contravention s Justice dispensation systems for cyber crime including cyber terrorism and data protection Whoops…what a relief. Thanks to INFORMATION TECHNOLOGY ACT 2000
- 12. Role of IT as a Business Transformer Defining fundamental infrastructure goals Chief information officers(CIOs) IT fits into one of three broad categories:- 1. Utility: where its main purpose is to keep the business running 2. Protector: where it is primarily concerned with managing the IT estate. 3. Performer: where it is expected to deliver tangible value to the business.
- 13. Conclusion “Technology allows people to bank without bankers.” Future for banking sector is going to make rapid straights in near future…