Technologies in banking sector

Created by:- dhaivat modi

Index:

Importance of technology in Banking sector. Benefits of technology in Banking sector. How technology make benefit to the C stomer. !ist of basic technologies sed by Banking sector. "xplanation of technologies. Concl sion Bibliography

Importance of technology in Banking sector

Technology has been a boon to many ind stries and especially to the banking ind stry. #ith the help of technology banks are able to reach o t to more c stomers and provide batter services to them. It helps them f nction in an organi$ed and sec re way. %or c stomers we have &T's( cash deposit machine( online banking etc. which are fr its of technological advances which have made o r banking experience m ch easier.

Benefits of technology in Banking sector

Increased operational efficiency( profitability ) prod ctivity * perior C stomer *ervice ' lti-channel( real-time transaction processing Better Cross-*elling ability Improved management + acco ntability "fficient ,-& and .isk 'anagement 'inimal transaction costs Improved financial analyses capabilities

How technology make benefit to the C stomer

'ore convenience ) flexi timings Better awareness of prod cts ) services /p-to-date information on acco nts !ow cost of accessing the acco nts

!ist of basic technologies sed by Banking sector

"C* 0"lectronic clearing services1 "%T 0"lectronic f nd transfer1 2ebit card -hone banking ,et banking 'obile banking &T' 0& tomated teller machine1 'IC. clearing .T3*0.eal time gross settlement1 ,"%T0,ational electric f nd transfer1 CB*0Core banking sol tions1

"xplanation of technologies
"C* 0"lectronic clearing services1

"lectronic Clearing *cheme 0"C*1 operated by the .BI since 4556-57 /tili$es B&,8,"T and I,%I,"T %acilitates payment from a single acco nt at a bank branch to any n mber of acco nts maintained with the branches of the same or other banks 9 ".g..( -ayment of dividends .BI has also la nched "C* 9 2ebit for payment to tility companies like Telephones( "lectricity etc.

"%T 0"lectronic f nd transfer1

Hosted and operated by the .BI -ermits f nd transfer p to .s : lacs from any acco nt at any branch of any member bank in any city to any other acco nt at any branch of any member bank in any other city .BI acts as the service provider as well as reg lator

2ebit card

2ebit Card is a prepaid card and it allows c stomers anytime anywhere access to his saving or c rrent acco nt. %or sing debit card a -I, 0-ersonal Identification , mber1 is iss ed to c stomers. &ny transaction taking place is directly debited to the c stomers bank acco nt.

'obile banking

"verybody with a mobile phone can access banking services( irrespective of their location. It is an extension of Internet banking. It provides services like acco nt balance( mobile alerts abo t credit card or debit card transactions( mini acco nt statement etc.

-hone banking

In phone banking a c stomer can do entire non-cash related banking services on telephone( anywhere at any time. He can talk to a phone banking officer for transacting a banking b siness.

,et banking

,et banking allows c stomers of a financial instit tion to cond ct financial transactions on a sec red website operated by the instit tion( which can be a retail bank( virt al bank( credit nion or b ilding society.

&T' 0& tomated teller machine1

&T's or ;< ho r Tellers 9 "lectronic Terminals - allow to bank at any time... =n-site 0near branch1 and =ff-site &T' &T's facilitate withdrawal+deposit.... C stomer provided with a -I, + Card Introd ced in India by %oreign Banks *#&2H&, + *-,* w.e.f %eb 4( 4557 Introd ced in ' mbai by IB& initiative

'IC. clearing

'agnetic Ink Character .ecognition Introd ced in 45>7 in the fo r metros 4(?<7 Clearing Ho ses@ <; with 'IC. *B+C& CheA e leaves standardi$ed si$e 0> B C ;+CD1 are pre-printed with the bank-branch code and acco nt type in 'IC. strip( while the amo nt is read man ally and fed into the system sing the encoders for f nds settlements *peeds p clearing work

.T3*0.eal time gross settlement1

.eal time gross settlement systems 0.T3*1 are f nds transfer systems where transfer of money or sec rities. It takes place from one bank to another on a Ereal timeE and on EgrossE basis. *ettlement in Ereal timeE means payment transaction is not s bFected to any waiting period. #e can do .T3* on above ; lac.

,"%T0,ational electric f nd transfer1

The national electronic f nd transfer 0,"%T1 system is a nation-wide system that facilitates individ als( firms and corporates to electronically transfer f nds from any bank branch to any individ al( firm or corporate having an acco nt with any other bank branch in the co ntry. #e can do ,"%T on amo nt below ; lac.

CB*0Core banking sol tions1

-==!I,3 2&T& &T C",T.&! *".G". T.&,*&CTI=,* =% 2"!IG".H CH&,,"!* %.=' 2"!IG".H -=I,T* 0B.&,CH+&T'1 %""2 =,!I," T= H=*T 9 ,= B&C8 =%%IC" H=*T 2&T&B&*" I* /- T= TH" 'I,/T" ",2 =% 2&H 0"=21 &,2 *T&.T =% 2&H 0*=21 T&*8* -".%=.'"2 &T B.&,CH"* #I!! B" 2=," BH IH=*TJ *".G". "!I'I,&T"* B. ."C=,CI!I&TI=, #=.8 *T&%% -.=2/CTIGITH.

concl sion

2 e to technology many improvements happen into banking sector like after implement of CB* and 'IC. clearing we can clear o r cheA e same day instead of C-< days. &nd with the help of net banking c stomer have no need of bank for f nd transfer.so( the r sh of bank is decreased . *o after implementation of technology banking done so smooth and faster.

bibliography

www.wikianswers.com www.google.co.in www.slideshare.com www.scribed.com www.rbi.org.in & paper of Banking on Technology(by Indian 'anagement 9 &I'& - blication( & g st ;??<