Role if it in banking

1. ROLE OF IT IN BANKING SECTOR

2. Challenges
 Security risks
 Customer awareness
 Fear factor
 Training
 Cyber threats and regulatory compliance
 Employee retention
 Reduced revenue and profitability

3. Risk Management and Compliance
 Credit risk
 Market risk
 Liquidity risk
 Operational risk
 Security breaches
 Potential security breaches

4. Security measures
 Firewall
 Encryption algorithms
 Secure socket layer (SSL) certificates
 Intrusion detection/prevention systems
 2FA –factor authentication (password policy)
 Network segmentation
 Access Control Privilege Management
 Data Backup and Recovery
 Regular software updation
 Antivirus/malware software implementation
 Employee education & awareness
 Security Audit & Testing

5. Why Technology?
 Offer enhanced customer service
 Decrease transaction costs and overheads
 Increase productivity and profitability
 Attract the growing youth population
 And…there are several more benefits to
technology implementation…….

6. The Benefits
 Multi channel, real time transaction processing
 Better cross selling ability
 Improved management
 Increased safety and security of funds
 Enhanced efficiency due to system integrations
across multiple locations
 Efficient NPA management
 Minimal transaction costs
 Improved financial analyses capabalities
 Better ability to collect business intelligence

7. Bank-----Technology Synergy
Banking
Information
Storage
Processing
Transmission
Technology

8. 1960s
Mainframes
1970s
Mini
Computers
1980s
Personal
Computers
ALPMs -
single user,
no
connectivity
1990s
ATMs, Thin
clients era
2000 &
beyond
Electronic
Banking
Payment
System
Innovations
IT evolution in Banking Sector

9. Batch
Processing
Private
Online
Systems
Shared
Online
Systems
Integrated
Computer
Networks
IT evolution in Banking Sector

10. --AL and ML
increasingly
utilised for fraud
detection risk
assessment and
customer service.
--Block chain
technology for
transparent and
secure
transaction.
--Robotic Process
Automation (RPA)
for automating
repetitive tasks
and streamline
operations.
--Emphasise on
cybersecurity and
data protection
intensified due to
rising cyber threat
and regulatory
requirements.
2020
--Secured banking
with Biometric
authentication.
--Introduction of
UPI by NPCI in
2016-enabled
instant fund
transfer through
mobile devices.
--Introduction of
Aadhar –a
biometric
identification
system facilitated
e-KYC verification
–simplified
onboarding
process.
--Digital wallet to
store fund and
make payment
digitally.
2010
--Implementation
of Core Banking
Solution (CBS)
enabling real time
transaction
processing and
centralised
customer data
management.
--Emerging of
internet banking
enabled online
banking services.
--Banking
operation through
mobile device –
Mobile banking.
--Introduction of
NEFT/RTGS/ECS
has enhanced
transaction
efficiency.
2000
--Personalised
computers (PCs)
led to
decentralisation
of Banking
operation.
--Introduction of
Electronic Fund
Transfer (EFT)-
Facilitated inter
bank transactions.
--Introduction of
SWIFT (Society
for Worldwide
Interbank
Financial
Telecommunicatio
n ) enabled
communication
between banks
globally.
1980-90
 Computerizatio
n of back-office
 Mainframe
computers
1960-70
IT evolution in Banking Sector

11. Before Technology
The pluses
--Greater interaction
--Greater customer loyalty
--Competition not a threat
--Lesser security hassles
--No staff hassles
The Minuses
--Long queues
--Large space requirement
(office/storage)
--Restricted banking services hours
After Technology
The Pluses
--Greater productivity & profitability,
efficiency
--Faster services & customer
satisfaction
--Convenience & flexibility
--Customer of Bank not branch
--24 * 7 operations
--Space & cost savings
The Minuses
--Security a real threat
--Staff hostility & morale
--High expenditure & maintenance
--Competition
--Need to keep pace with global
standards
--Lack of customer loyalty
Bank

12. Advanced data
analytics
• IT enables us to analyze vast amount of
data and identify pattern that indicate
potential fraudulent activities
Real time
monitering
• Real time monitoring system continuously
monitors transaction, detecting and
flagging suspicious activities instantly
Enhanced
security
measures
• IT solutions provide robust security
measures, such as biometric authentication
and encryption, to safeguard against fraud.
FRAUD DETECTION

14. THANK YOU