Introduction

In the earlier stages of Economic Civilization the trading in the

economy faced many phrases:
Barter Trade
Commodity Money
Metal Money
Paper Money
Cashless Trade

 Barter Trade- Involves two people, each has something other wants.
Commodity Money- Some useful commodity in demand which can
be used for trading in the market.
Metal Money- People started using some metals as money wherein
the people used to get the products as per the weight of the metal.
Paper Money- Issued by government, made from paper and used as
a common currency for trade.
Cashless Trade- No use of Physical money, all the transactions
through internet banking or by using credit & debit cards at the POS
point.

Bank
Financial institution which accepts deposits, gives money,
grants loan, provides financial assistance.
An institution which inculcated the habit of savings among
the public.
Give interest on the savings of the public.

Banks in Early Stage (Pre-Technology)

In earlier time, there were no computers so the staff used to enter the transaction manually in the
concerned registers.
This also took a lot of time to enter a transaction in the concerned registers.
The customers need to stand in queues for all the transaction they need to do.
They would need to stand in queue to deposit & withdraw the money in the bank as per the token
numbers and waiting for their turn.
There was no option for withdrawing the money at any time as the banks were only open for limited
period of time.
But all these took a lot of time & energy to complete the transaction.
Because of manual entry the staff would need more time to finish each transaction.

The customers did not had the flexibility to withdraw money any time when they needed.
The bank had a limited scope of service.
The banks had to do a lot of paper work even for a small transaction.
But after sometime, the banks introduced computers for working.

Banks in Post Computer Stage

In the 21st century, when the banks introduced Computers and Network changed
the whole working system and pattern of the banks.
Entry of computers and internet in the banking operations wholly changed the
banking scenario of the whole banking system in India.
Entry of computers and different technology in the banks revolutionarised the
working in banking.
Even after the entry of computers was not the only change, even after that there
were many changes with respect to software & different things.

 The different technological changes brought in the Banking Sector were as

follows:

Computers, Software's & Internet

Networking & connection between the branches of the bank.
ATM at different places.
Debit Cards
Credit Cards
Website- Internet Banking, Online Banking
Telephone Banking
Demat Account
Applications on Mobile Phones (Smart Phones)

 Introduction of the above technologies brought a lot of

convenience to the customers as well as the staff.
ATMs brought a big convenience for the customers in respect of
withdrawal of cash at any time and anywhere.
Just swipe your Debit & Credit Card at any POS for simplified &
cashless shopping.
Pay any bill online through net banking just from home no need to
go anywhere.
Online shopping through net banking no need to visit the malls.
Get account details at one click- mini statement or quarterly
statement through emails.

Immediate SMS service on swiping of card at any POS/ ATM.

Shares trading online by using Demat service of the banks.
Apply for loan and other services by sitting at home.
Transfer money from one state to other state using money
transfer service.
NRIs also can operate their accounts even being outside India.

Impact
For Banks.
Revolutionary change
A change which changed the working perspective of the banks.
Technology has given potential to bank to dream and give the best service to their customers.
Enormous impact on officers, employees & customers.
Advanced technology are allowing effective and convenient delivery of services.
Rapid access to critical information which help to take rapid decision and also forecaster the
future growth aspects.
Availability of a wide range of inquiry facilities, assisting the bank in business development &
follow-up.
Immediate response to customers queries.
Automatic & prompt carrying out of standing instructions on due date & generations of reports.
Generation of various MIS reports and periodical returns on due dates.
Fast and up-to-date information transfer enabling speedier decisions, by interconnecting
computerized branches and controlling offices.

For Employees.

Accurate computing of cumbersome and time-consuming jobs such as balancing and

interest calculations on due dates.
Automatic printing of covering schedules, deposit receipts, pass book / pass sheet,
freeing the staff from performing these time-consuming jobs, and enabling them to
give more attention to the needs of the customer.
Signature retrieval facility, assisting in verification of transactions, sitting at their
own terminal.
Avoidance of duplication of entries due to existence of single-point data entry.

For the Customers.

Facility for logging into specified self-inquiry terminals at the branch to inquire and view the
transactions in the account.
Remote terminals at the customer site connected to the respective branch through a modem,
enabling the customer to make inquiries regarding his accounts, on-line, without having to move
from his office.
ATMs offers non-stop cash withdrawal, remittances and inquiry facilities.
Networking of computerized branches inter-city and intra-city, permits customers to transact from
any of these branches.
A 24-hour service through which inquiries regarding balances and transactions in the account can
be made over the phone.
Information is centralized and updates are available simultaneously at all places, single-window
service becomes possible, leading to effective reduction in waiting time.

Example: State Bank of India & its Subsidiaries

Best example.
Initially the people had to stand in long queues for doing all the transaction in
the bank.
The work efficiency was very poor and there used to be a lot of mistakes.
Lot of work load.
Waiting in the line to do all the transaction and to be cautious to do all the
work in a limited time.
For small things also they needed to come to the bank.
But when TECHNOLOGY entered the banking system the whole working
system and pattern changed.
After the entry of TECHNOLOGY through computers, internet, servers, etc.
the work of the customers, bank officials employees totally changed.
As mentioned above the different good impacts of technology the same was
seen in the SBI & its subsidiaries.

 In the normal course a customer had to wait for issue of a fresh new cheque
book for 1 month but now due to interconnectivity the work has become fast.
Opening an account also took a lot of time but now anyone can open account
just by sitting at home.
Withdrawal, enquiry, checking account for transaction, clearing of cheques,
etc. has become very easy.
The customers can do any transaction just sitting at home through computer.
All these has increased the expectations of the customers as well as the
efficiency of the employees & management to work for the people and to raise
their standards.
Customers can even download the bank application in their smart phones and
can check their account status anywhere in India.
This is not the only limit, it will go more ahead..

Thank You