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

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…