This document discusses various technologies used in banking. It describes Inter Bank Mobile Payment System (IMPS) and how it allows customers to transfer funds between banks via mobile devices. It also discusses online banking, use of analytics for segmentation and understanding customer preferences, convergence of storage and computing infrastructure, mobile banking, electronic bill payment, electronic fund transfer, electronic cheques, Real Time Gross Settlement (RTGS) system, and Automatic Teller Machines (ATMs). The benefits of these technologies for customers, banks and employees are reduced costs, immediate access to accounts and transactions, increased productivity and efficiency. The challenges are costs of implementation, risk of technology failures, penetrating rural areas and upgrading workforce skills.

1. TECHNOLOGY
IN
BANKING
Prepared By:
Akshay Nayyar
Vinay Chaithanya
Ashay Shah
Ronak Maheshwari

2. Inter Bank Mobile Payment
System
 Inter Bank Mobile Payment System (IMPS), an instant 24X7 mobile payment system
launched in 2010 by NPCI, is an interbank electronic fund transfer service through
mobile phones.
 IMPS facilitates customers to use mobile instruments as a channel for accessing their
bank accounts and carry out interbank fund transfers in a secured manner with immediate
confirmation features.
 At present there are 58 banks which are providing IMPS services.

3. online Banking
 Online banking is an electronic payment system that enables customers
of a financial institution to conduct financial transactions on a website
operated by the institution.
 Online banking is also referred as Internet banking, e-banking, virtual
banking and by other terms.

4. Use of Advanced Analytics to drive customer
experience and business
 With Big Data, banks have an opportunity to impact the success of their
marketing efforts to both new and existing customers. The best way to
successfully utilize this data involves transforming it into truly actionable
insights by layering in analytics and combining it with other sources of data.
 Some of the additional capabilities that companies in the Financial Services
are using advanced analytics for are:
(i) Segmentation.
(ii) Understanding Customer Preferences and with the help of analytics can
also be used to find out customer preferences.

5. Convergence
 Banking and Financial institutions are looking towards converged
infrastructure, which combines storage, networking and compute in one unit
thereby reducing the complexities associated with heterogeneity within their
environments.

6. Mobile banking:
 As per the survey in India we Indians have more cell phone than the population. As now
having mobile phone is common, Mobile banking is a new way through which banks are
now targeting more young group and people using mobile phones.
 Mobile banking is a financial transaction conducted by logging on the bank website by
using a mobile phone or Personal Digital Assistant (PDA) to view balance account
transaction, balance checks, payments etc. Today the mobile banking service is
performed mainly via SMS or the internet.

7. Electronic bill presentment and payment
 This service facilitate payment such as electricity, telephone, insurance premium and
many others by permitting customers to electronically settle payments of goods and
services. Customers of bank and billing companies can make use of the phone or the
internet to easily remit payment as well as accessing to their billing information. EBPP
can provide considerable savings to traditional print and mail billing and payment
remittance and causes significant reduction in the use of paper.

8. Electronic fund transfer (EFT)
 It refers to the transfer of money from one account to another either
with the same financial institution or across multiple institutions.
 Customer can transfer fund in any bank using EFT. It provides greater
security since there is no tangible cash involved and also offer
continuous connection with the bank.

9. ELECTRONIC PAYMENT
SERVICES - E CHEQUES
 A new technology is being developed in US for
introduction of e-cheque, which will eventually replace the
conventional paper cheque. So customers now able to pay
through e-cheque.

10. REAL TIME GROSS SETTLEMENT
(RTGS)
 Real Time Gross Settlement system, introduced in India since March 2004, is a Interlink
Research Analysis system through which electronics instructions can be given by banks
to transfer funds from their account to the account of another bank.
 The (RTGS) Real Time Gross Settlement system is maintained and operated by the RBI
and provides a means of efficient and faster funds transfer among banks facilitating their
financial operations.
 As the name suggests, funds transfer between banks takes place on a ‘Real Time’ basis.
 Therefore, money can reach the beneficiary instantaneously and the beneficiary’s bank
has the responsibility to credit the beneficiary’s account within two hours.

11. Automatic Teller Machine (ATM)
 As it name suggest an Automatic Teller Machine acts as a teller in a bank by giving and
ting money over the counter. It an electronic device that allows customers to have access
to a financial institutions in a public place.
 It provide facilities of any time money. People having ATM card will able to withdraws
and deposit money any time. ATM is run through identity such as card and password
which help to identify customer.

13. Benefits
Customers
Banks
Employees

14. • Transaction
• Balance
• connection to
the branch
site.
• ATM
• Computerized
branches
• Using of
internet

15.  Immediate replies to the customers.
Generation of various MIS reports and periodicals returns on due
dates.
 Fast and up to date information, Speedy Decisions.
 Storage .
Connected productivity benefits

16. Accurate computing of time consuming jobs .
Automatic printing of covering schedules , deposit
receipts, pass book
Avoidaton of duplication of enteries due to
existance of single point data entry

17.  Cost
 Risk of failure
 Penetration of IT in rural areas
Challenge of Operations
Transferring whole tradition banking to digitized.
 Upgrading the skill of work force spread across the country.