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ROLE OF IT IN BANKING SECTOR
Challenges
 Security risks
 Customer awareness
 Fear factor
 Training
 Cyber threats and regulatory compliance
 Employee retention
 Reduced revenue and profitability
Risk Management and Compliance
 Credit risk
 Market risk
 Liquidity risk
 Operational risk
 Security breaches
 Potential security breaches
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
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…….
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
Bank-----Technology Synergy
Banking
Information
Storage
Processing
Transmission
Technology
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
Batch
Processing
Private
Online
Systems
Shared
Online
Systems
Integrated
Computer
Networks
IT evolution in Banking Sector
--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
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
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
THANK YOU

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Role of Information and technology in banking and finance .pptx

  • 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
  • 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
  • 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
  • 13.