Technology in Finance

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Electronic Banking

ATMs

Head Office

Branch Banking

Branch 1

Branch 2Branch 3

Branch 4

Branch 5

Branch 6

Branch n

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E-Banking BANKNET –

A communication software to provide message and file transfer between branches of banks and across banks

CRM (Customer Relationship Management) - Is an information technology industry term for methodologies, strategies, software, and other web-based capabilities that help an enterprise organize and manage customer relationships.

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E-Banking

ALPM (Advanced Ledger Posting Machine) –

Micro processor based electronic device used for maintenance of primary ledgers, working out products and interests at periodical intervals, preparation of account statements and listing of standing instructions to be executed in the accounts.

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DBMS (Database Management System) – A set of computer programs that controls the

creation, maintenance, and utilization of the databases of an organization.

E-Commerce - Is conducting business communications and transactions viz

computers over networks. It is the buying and selling of goods and services through digital communication

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E-Banking Touch Screen :

Recognizes human touch. Users can point to the select something on the screen.

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E-BANKING DEVELOPMENTS

ALPMs and Back Office Computerization.

NEED TO IMPROVE CUSTOMER SERVICE

INTRODUCTION OF COMPUTERISATION

ATMs, ELECTRONIC FUND TRANSFERS, BANKNET, ELECTRONIC MAIL, CREDIT CARDS, ONLINE BANKING, TELE-BANKING, ETC

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Indian Banking-Now...

Mobile Banking / Phone Banking

Network Banking

Virtual Banking

Universal Banking

Online Banking / Internet Banking

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WHY TECHNOLOGY IN FINANCE ?

To transform financial services industry in the net worked world,

Banks to be customer centric Provided services/ products Across range of channels To be futuristic and have “TIME”

value in all its dealings with customer.

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Many Benefits of Technology Increased operational efficiency,

profitability & productivity Superior Customer Service Multi-channel, real-time transaction

processing Better Cross-Selling ability Improved management / accountability Efficient NPA and Risk Management Minimal transaction costs Improved financial analyses capabilities

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Focus aspects of Financial Banking

Core Banking (CBS)

ATMs

Card Management

Any Branch Banking

DocumentManagement

RiskManagement

ResourceManagement

MIS & Intranet

CRM

Corporate Network

Electronic Banking

POS Terminals and Cash dispenser

Financial Business

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Benefits of Virtual Banking Large satisfied customers and higher

retention Scope to attract new customers Improve quality and differential

services Greater opportunity to cross sell Sharing network and Cost Saving Increased volumes and profits Reduce overall risk with proper MIS

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Benefits to Customer

More convenience & flexi timings

Better awareness of products & services

Up-to-date information on accounts

Low cost of accessing the accounts

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BANKS’ IT STRATEGY

INVESTMENT IN HARDWARE ACQUIRING / DEVELOPING SOFTWARE TRAINING OF STAFF AT DIFFERENT LEVELS SECURITY FOR TRANSACTIONS & INFO GLOBAL REACH ONLINE BANKING, OUTSOURCING

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Internet Banking Issues of Confidentiality ? Hacking and Fraud prone ?? Scope for failure of Technology ??? Resultant denial of Services ????

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Automated Teller Machines ATMs or 24 hour Tellers – Electronic

Terminals - allow to bank at any time... On-site (near branch) and Off-site ATM ATMs facilitate withdrawal/deposit.... Customer provided with a PIN / Card Introduced in India by Foreign Banks SWADHAN / SPNS wef Feb 1, 1997 Introduced in Mumbai by IBA initiative

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SBI’s Mobile ATM in Kerala

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Electronic Funds Transfer (EFT) Hosted and operated by the RBI Permits fund transfer up to Rs

5 lacs from any account at any branch of any member bank in any city to any other account at any branch of any member bank in any other city

RBI acts as the service provider as well as regulator

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ECS Electronic Clearing Scheme (ECS)

operated by the RBI since 1996-97 Utilises BANKNET and  INFINET Facilitates payment from a single

account at a bank branch to any number of accounts maintained with the branches of the same or other banks – Eg., Payment of dividends

RBI has also launched ECS – Debit for payment to utility companies like Telephones, Electricity etc

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SERVICES Bill Payment through Electronic

Banking Electronic Shopping Mall Effecting Personal Investments

through Electronic Banking Trading in shares Investing in Mutual Funds Trade In Derivatives IPOs Online

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Customer Relationship Management (CRM) Not a product / service, but a strategy Increasing competition among banks Customer expectations and demands Product development / Service Quality Know Your Customer (KYC) guidelines Knowledge Management in Banks Call Centres, DSAs, Franchisees in Banks Two Banking Ombudsman Schemes Core Banking Solutions & CRM Packages for

Best Customer Service

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Beware of

Hacking Phishing Pharming Skimming Trojan