Automated System in Banking

AUTOMATED SYSTEM IN BANKING 2011

CHAPTER - 1

INTRODUCTION

Introduction of automation has also liberated the banks from a lot of paper-work. While banks in

India have not become fully paperless, there is a steady movement in that direction. Banks have

realised that persuading customers to carry out transactions using electronically available

channels without physically visiting the bank is less expensive for them. Hence, exploiting new

technologies should also improve the profitability of the banks.

The message that uses Structured Financial Message Solutions is encrypted for security reasons

through Public Key Interface. The system, called Real Time Gross Settlement, and developed in

May 2004 by the Institute of Development and Research for Banking & Technology, enables

inter-bank transfer of funds in two hours. This has , to some extent, reduced the need for

telegraphic transfer and demand drafts .

Similarly, cheque collection time will be significantly reduced (especially for outstation cheques)

by the process, which transmits truncated cheque data through electronic imaging to the drawee

bank. The cheque need not be moved physically. A National Electronic Fund Transfer scheme

will thus empower the customers further. ECS has made banking operations cheque-less.

This electronic representation of money has made it easier to progressively increase the use of

information technology for banking operations. It is also possible to make banking more global

due to electronic automation of work processes.

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Technological innovation has also speeded up bank transactions, in the process, reducing human

drudgery and possibilities of human error. Banking operations have become more customer-

friendly and flexible.

Approach to the bank branch concerned has become multi-channelled and more and more

customers are finding little need to visit the bank.

Thanks to electronic systems, a quantum jump has been achieved by banks in Customer

Relationship Management (CRM). This not only includes information about transactions in his

account, but also his preferences and his interest in a particular scheme or product of the bank.

Thus, even before the customer interacts with the bank representative over the phone or in

person, the bank representative has total and comprehensive information about the customer.

This helps improve the quality of response the caller gets from the bank.

The process of having a machine or machines accomplish tasks hitherto performed wholly or

partly by humans. As used here, a machine refers to any inanimate electromechanical device

such as a robot or computer. As a technology, automation can be applied to almost any human

endeavor, from manufacturing to clerical and administrative tasks. An example of automation is

the heating and air-conditioning system in the modern household. After initial programming by

the occupant, these systems keep the house at a constant desired temperature regardless of the

conditions outside.

The fundamental constituents of any automated process are (1) a power source, (2) a feedback

control mechanism, and (3) a programmable command (see illustration) structure.

Programmability does not necessarily imply an electronic computer. For example, the Jacquard

loom, developed at the beginning of the nineteenth century, used metal plates with holes to

control the weaving process. Nonetheless, the advent of World War II and the advances made in

electronic computation and feedback have certainly contributed to the growth of automation.

While feedback is usually associated with more advanced forms of automation, so-called open-

loop automated tasks are possible. Here, the automated process proceeds without any direct and

continuous assessment of the effect of the automated activity. For example, an automated car

wash typically completes its task with no continuous or final assessment of the cleanliness of the

automobile. See also Control systems; Digital computer.

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1.1:Elements of an automated system

Because of the growing ubiquity of automation, any categorization of automated tasks and

processes is incomplete. Nonetheless, such a categorization can be attempted by recognizing two

distinct groups, automated manufacturing and automated information processing and control.

Automated manufacturing includes automated machine tools, assembly lines, robotic assembly

machines, automated storage-retrieval systems, integrated computer-aided design and computer-

aided manufacturing (CAD/CAM), automatic inspection and testing, and automated agricultural

equipment (used, for example, in crop harvesting). Automated information processing and

control includes automatic order processing, word processing and text editing, automatic data

processing, automatic flight control, automatic automobile cruise control, automatic airline

reservation systems, automatic mail sorting machines, automated planet exploration (for

example, the rover vehicle, Sojourner, on the Mars Pathfinder mission), automated electric utility

distribution systems, and automated bank teller machines. See also Assembly machines;

Computer-aided design and manufacturing; Computer-integrated manufacturing; Flexible

manufacturing system; Inspection and testing; Space probe; Word processing.

A major issue in the design of systems involving both human and automated machines concerns

allocating functions between the two. This allocation can be static or dynamic. Static allocation

is fixed; that is, the separation of responsibilities between human and machine do not change

with time. Dynamic allocation implies that the functions allocated to human and machine are

subject to change. Historically, static allocation began with reference to lists of activities which

summarized the relative advantages of humans and machines with respect to a variety of

activities. For example, at present humans appear to surpass machines in the ability to reason

inductively, that is, to proceed from the particular to the general. Machines, however, surpass

humans in the ability to handle complex operations and to do many different things at once, that

is, to engage in parallel processing. Dynamic function allocation can be envisioned as operating

through a formulation which continuously determines which agent (human or machine) is free to

attend to a particular task or function. In addition, constraints such as the workload implied by

the human attending to the task as opposed to the machine can be considered. See also Human-

factors engineering.

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CHAPTER-2

HISTORY OF AUTOMATION

A prototype device was invented by John Shepherd-Barron in the 1960s and pioneered by

Barclays Bank in Enfield, North London, although parallel development of similar devices was

happening at multiple locations around the world at that time. Plastic cards had not yet been

invented, so Mr Shepherd-Barron's machine used cheques that were impregnated with carbon 14,

a mildly radioactive substance. The ATM machine detected it, then matched the cheque against a

Pin number. Asked about health fears, Shepherd-Barron calculated that a user would have to eat

136,000 cheques before suffering any ill-effects.

Like Archimedes, Shepherd-Barron claims to have hit on the idea for the cash-dispensing

machine whilst taking a bath. Shepherd-Barron also invented a device designed to scare off the

seals which were depredating the stock on his Scottish salmon farm.

This device used a recording of Killer Whale noises, but unfortunately it seemed to attract more

seals than it deterred. His cash-dispensing machine was fortunately rather more successful,

gaining him an OBE in 2005 and marking a significant stage in the development of modern-day

banking techniques, paving the way for networked systems, online bank accounts and chip &

PIN security technology. The internationally accepted standard of the 4-digit PIN was also

originated by Shepherd-Barron. Originally he suggested a 6-character format, similar to his old

6-digit Army serial number, but, thankfully for those of us with defective memories, his wife

persuaded him that a 4-digit sequence was quite enough for the average person to retain.

In 1967 Reg Varney (of 'on the Buses' fame, a TV sitcom popular in Britain in the 1960s)

became the first person in the UK to use Shepherd-Barron's invention, in a publicity stunt for

Barclay's bank. I don't know how much money Reg withdrew on that red-letter day, but it would

have been a maximum of 10. Back then this was considered enough money for a night out on the

tiles in London, including drinks, dinner, a show and a taxi-ride home. According to Mr

Shepherd-Barron himself, 10 was more than enough for a 'wild weekend'. Well, maybe on a

salmon farm in Scotland it would have been. It's too late to ask Reg what he did with his tenner,

as sadly he passed away in 2008, aged 92. John Shepherd-Barron died in May 2010, aged 84.

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Moving on into the 1970s, he found this interesting nugget of historical information posted by

'Stareager'on the BBC's 'History of the World in 100 Objects' website:

While he was at University between 1971 and 74, National Westminster Bank introduced the

'24-hour Cashcard' which allowed you to withdraw 10 (no more, no less) from a hole in the wall.

You entered your number, not then called a PIN, he think, and got your money in an envelope;

your card was retained. If you used it at the weekend, you had to wait till about Thursday to get

your card back, by post. he suppose in its day it was meant for emergencies; its successors are

now probably the predominant means of getting cash as well as a range of other services, not all

bank-related (like phone top-ups.) How did we cope before this technology? Well, we queued at

the bank or cashed a cheque at a compliant pub. At least, even with this new plastic card, you

still felt that money was real.'

In 1975 he went to University in Reading, Berkshire, and opened my first bank account with

Lloyds. he can remember a short period when he had to go into the bank and write out cheques

for 'Cash' in order to get my hands on my student grant money, but he am pretty sure that it

wasn't long before he received my very own cashpoint card. This was a credit-card sized piece of

plastic, looking pretty much like any modern-day card, and worked in the same way as the ATM

cards we are familiar with today. he can't remember what the daily withdrawal limit was, but

back then my needs were simple enough for me never to have reached it. Lloyds Bank was in

fact an early adopter of ATM technology, and commissioned the design of the IBM 2984 CIT

(Cash Issuing Terminal), the first up-and-running cash point machine. Cashpoint is still a

registered trademark of Lloyds TSB in the UK.

The inimitable Shepherd-Barron continued to take a lively interest in technology well into his old

age, and predicted that the development of contactless technology was likely to bring about the

demise of cash within the next couple of years. So his famous invention may now be in its last

days. With the rise and rise of the mobile phone as a multi-function device it looks like the glory

days of the plastic card are also numbered.

The ATM is also commonly known as the Cashpoint or Hole-in-the-Wall Machine (Britain),

ABM or Automatic Banking Machine (USA), All-time Money (India), and Minibank (Norway).

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CHAPTER - 3

EVOLUTION OF BANKING AUTOMATION:

The Rangarajan Committee report in early

1980s was the first step towards computerization

of banks. Banks started exploring the idea of

'Total Bank Automation (TBA)'. Although titled

'Total Bank Automation,' TBA was in most cases

confined to branch automation.

It was only in the early 1990s that banks

started thinking about tying-up disparate branches

together to facilitate information sharing.

At the same time, private banks entered the banking arena with radically different

strategies. Given the huge IT budgets at their disposal and with almost no legacy IT

equipment to worry about; private banks hastened the adoption of technology. The

philosophy for private banks was very clear: to provide a whole new range of financial

products and services at minimal costs. And technology made this possible. The improved

connectivity and falling costs offered by leased lines and VSATs provided a booster to inter-

branch automation.

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3.1:Waves of change

The first wave in banking technology began with the use of Advanced Ledger Posting

Machines (ALPM) in the 1980s. The RBI advised all banks to go in for massive

computerization at the branch level.

With the second wave of development in late 1980s came Total Bank Automation

(TBA). This automated both the front-end and back-end operations within the same branch.

TBA comprised of total automation of a particular branch with its own database.

In the third wave, the new private sector banks entered the field. These banks opted for a

different model of having a single centralized database instead of having multiple databases

for all their branches.

The fourth wave started with the evolution of the ATM delivery channel. This was the

first stage of empowerment of the customer for his own transactions.

Traditionally, banking players relied extensively on their reach to effectively put emerging

banks out of competition. This forced new banks develop strategies that could help them

reach out to end-customers cost effectively. The solution came in the form of a delivery

channel known as Automated Teller Machines or ATMs, as they are more popularly known.

This turned out to be one of the biggest growth drivers for private banks in India. And when

new private banks started installing ATMs across the length and breadth of the country,

customers started flocking in droves. A case in point is ICICI Bank. During the liberalization

of the banking sector, ICICI Bank, which did not have a huge national network, realized that

it could use IT to enhance its value-added offerings.

HDFC Bank is the other big player from the banking industry, which has aggressively used

ATMs to its advantage. Though HDFC Bank has around half the number of ATMs as

compared to ICICI Bank; its ATMs are among the highest transacting ones in the world.

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CHAPTER-4

VARIOUS AUTOMATION CHANNELS USED IN BANKING

INDUSTRY

Automation is the basic thing that banks

need to have in place. It involves a

combination of centralized networks,

operations, and a core banking application.

Automation enables banks to offer

24x7x365 service using lesser manpower.

No doubt, innovations like tele banking and

automated teller machines (ATMs) have

considerably put customers at ease in the recent past. But with net banking the customer will

be able to transact with the help of a mouse and his visits to the neighborhood bank will

become a thing of the past.

With Computerization and networking of bank branches in the country, most banks today are

in a position to capture and consolidate financial data about a customer. Financial data is

typically a summary of the loans granted, savings and fixed accounts held by the customer,

credit card facilities availed. More so, their IT systems also record operational data, such as

the number of times a customer has visited the bank branch in the last month, the number of

ATM transactions he has undertaken in the same time period.

Private and foreign banks also analyze each customer’s financial behavior, in terms of

average balances maintained, number of cheques used each month, number of cheques

dishonored and many other things such as regular payment of loan installments, credit card

payments and so on.

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4.1:The logical question is how do banks benefit from this data?

They first determine the

profitability of each customer to

the bank. Also, this data helps

them to select customers for

profitable cross-sell opportunities.

Most banks these days have a

proxy profit and loss statement for

each customer, which records the

revenue the bank earns from each

customer and the money the bank

spends in servicing the customer.

Revenue is in the form of interest

income on loans such as home/auto/personal loans and fee income which bank earns from a

customer when it sells insurance policies, foreign exchange, etc

The other side of the profitability statement shows the transaction cost the bank is incurring

to service you. For instance, each branch visit, vis-à-vis an ATM visit of a customer is 3

times more expensive for the bank. Hence each time you visit the branch to withdraw money

instead of the ATM, you are costing the bank thrice the amount of money. Similarly, for the

other channels such as internet, phone and mobile, the cost of servicing the customer is

significantly lower for the bank.

Summary of the statement shows the bank the amount of profits it is earning from each

customer. Consequently, it is obvious that the bank prefers the more profitable customers.

While the loss-making ones are either gradually upgraded to better levels or are weeded out

of the bank’s business through disincentives. For instance, the customers who do not

maintain the average quarterly balance are charged heavy fines and are also restricted on the

number of free ATM transactions they can undertake each quarter.

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4.2 :ATM (automated teller machine)

Introduction:

10 years ago, an ATM was a novelty in Indian

bank branches. But with the entry of aggressive

private sector banks, ATMs have mushroomed in

the urban Indian landscape.

With ATMs now a part of everyday life, access to

funds has to be ensured anytime, anywhere, by

most banks if they are to survive the dog-eat-dog

competition in the banking sector.

Users visit their ATM center on an average of two times per week. Office (40%) happens to

be the most favored place to access Internet for banking purpose. Home comes close second

and Cyber café in third place. ATM in the close vicinity to the office is the most preferred

place among users for banking. While ATMs do help banks to attract customers, there is also

one more critical aspect to consider—the immense cost savings from which a bank can

benefit due to a transaction taking place over an ATM vis-à-vis a branch. Typically, it costs a

bank close to Rs.50 per transaction if conducted in a branch. The same if done through an

ATM costs about Rs. 15. A look at the volume of ATM transactions conducted reflects the

level of success of this delivery channel. From standing in a queue for hours on end to

withdraw paltry sums, we have reached a stage where we hardly need to know where our

bank is located. A welcome relief for those of us who had to start a morning on a bad note,

courtesy of the pompous officer at the bank counters.

Another group that has benefited immensely from progress on this front are frequent

travelers. From having to carry wads of notes stuffed into a wallet ready to burst at the seams

all that the traveler now needs is a small piece of plastic that can be used to withdraw money

from almost any corner of the country, if not the world.

While today each and every bank touts ‘The customer is King’ mantra, it was a quite a

different story not so long ago. Customers patronizing PSU banks were greeted with the

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typical ‘babu’ culture, where getting even a cheque encashed used to take ages. A customer

had to adjust their schedule to the bank and very rarely was it the other way around. A person

in a city like Mumbai usually had to wait for a weekend to deposit a cheque, because by the

time he reached home, the bank would have closed. Today, while the timings of banks have

not changed drastically—banks have become more customer-friendly. Now, power has

shifted into the hands of the customer.

The ATM industry is an evolving one, which has seen radical and business-changing

events occur frequently in its first three decades.

Banking in India has come a long way thanks to a combination of factors like increasing

consumer awareness, technological advancement, as well as the growing financial muscle of

our populace. One such innovation is the Automated Teller Machine (ATM), today’s most

preferred mode of delivery channel in all FIs. Banks like ICICI Bank, UTI Bank and HDFC

Bank all deploy ATMs aggressively and have seen their customer base swell. Subsequently,

even PSU banks have followed suit with an increasing numbers of ATMs. Increasing

pressure to cut costs, coupled with changing customer expectations and competitive pressures

forced most banks to look at IT deployment as a part of a comprehensive strategy rather than

fragmented investments.

“A combination of regulatory and competitive issues have led to the increasing

importance of banking automation”

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Banks are focused on three areas: meet customer's service expectations, cut costs, and

manage competition. For this banks are exploring new financial products and service options

that would help them grow without losing existing customers. And any new financial product

or service that a bank offers will be intrinsically related to technology.

“The new generation banks showed the way and others had no option but to follow the

tech infusion to retain and attract profitable customers”

Customers today consider services and facilities such as Internet, ATM, phone and mobile

banking an essential part of the banking experience. This calls for channel aggregation,

which would be possible only through complete automation.

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4.3 :ATM cum debit card

Prior ATM cards were been used to access only

ATM transactions, but nowadays the banks are

offering facilities of Debit card with ATM’. A

Debit card is a card that has direct access to your

bank account. The bank issues the card. Whenever

you use your debit card, your bank account is

debited immediately. Unlike credit cards, you

don't enjoy any credit period and therefore the

debit card does not have minimum income

eligibility criteria.

Two types of debit card transactions:

1) Direct’ debit card:

A ‘Direct’ debit card allows only "on-line" transactions. An immediate electronic

transfer of money from your bank account to the merchant's account. This requires you to

enter your PIN or Personal Identification Number at the store's terminal. The system then

checks your account for sufficient funds to cover the purchase. These are typically the cards

that come with the "Maestro" logo, from MasterCard.

Example:

Suvidha debit card issued by Citibank in select cities.

2) Deferred debit card:

A 'Deferred' debit card looks similar to a credit card, but is not a credit card. It bears a

Visa or MasterCard logo, and can be used wherever your card's brand name is displayed.

This card allows "off-line" and "on-line" transactions. Off-line purchases are where the

shopkeeper's terminal scans your card and creates a debit against your account. You are not

required to enter your PIN at the store's terminal. Most off-line transactions are verified

immediately to see whether there is enough money in your account. Off-line debit cards

usually carry the 'Electron' logo, from Visa.

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Example

HDFC Bank issues Electron debit cards in more than 15 cities

around the country.

Salient features :

It is a combination of a Cheque an ATM card. Therefore, there

are no fees for using the ATM for cash withdrawal, or as a debit card for purchase.

A Debit card is more affordable than a credit card. You just use your bank account for all

your transactions.

Currently, there are only two issuers in India - Citibank and HDFC bank.

No credit period. Your bank account is debited immediately.

No credit check is required to get a Debit card.

Spending is limited to your bank balance.

Benefits :

1) Free with your Bank Account:

Obtaining a debit card is easy. If you qualify to open a bank account, you usually get a debit

card, if your bank offers the service.

2) No background check:

When you are applying for a debit card, the bank does not need to look into your credit

history. All you need is the documentation to open a bank account, and money in your bank

when you use your debit card.

3) Convenience:

A Debit card frees you from carrying a lot of cash or a chequebook. In case, you are an

international traveller, you don't need to stock up on Traveller's Cheque or cash. You can use

your debit card to withdraw cash from over 500,000 ATMs around the world in over 100

countries. You can withdraw in the local currency of the country you are in; limited only by

the money you have back home in your account, and your Business Travel Quota (BTQ)

limit availability.

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4) Fair Exchange:

If you return merchandise or cancel services paid for with a Debit card, the transaction

is treated as if it were made with cash or a check. Customers usually get cash back for off-

line purchases; for on-line transactions, the amount is credited to your account.

Drawback:

Unlike a credit card, debit card transactions are on a "pay now" basis.

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CHAPTER-5

INTERNET BANKING

Banking is an industry that is based on

intensive information, and transactions in banking

can normally be consummated without any

physical exchange. These ingredients have made

banking a perfect passenger for the Internet

vehicle. However, in the initial stages Internet

banking had to go through hard times and failures.

As a result, customers do not seem to be much excited about Internet banking. In fact, an

article in the Euromoney magazine quoted Internet banking as "Click, click – you are dead" .

The other important delivery channel, from a bank’s perspective, is Internet banking.

Consumers in today's fast paced technology driven world expect access to information

regardless of the time or place. In a borderless world spinning on the axis of the Internet,

Internet Banking assumes a special and sophisticated significance. With Internet Banking,

your bank travels with you around the world. You have on-line, real-time access. We call it

24*7*.365 banking.

Internet Banking is a service offered by banks that enables their customers, easy and secure

access to their accounts via computer with an internet connection. One can have access to

account information from anywhere in the world anytime.

Future belongs to technology. Cheaper delivery points like Internet and tele banking will

improve their shares. ATM banking costs 80% while Internet and telebanking costs only

15% compared to normal banking transactions.

Internet banking for the retail segment is a recent phenomenon that has generated a lot of

interest among the banks in India. Private and foreign banks have been the prime movers in

the area while public sector banks are also beginning to latch on to the bandwagon

Prime driver for any bank to offer services online is to offer 24 X 7 availability and

convenience to its customers. Beyond that, cost reduction is another major reason. It is

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estimated that cost to the bank per transaction done over Internet is nearly one eight of that

done through branch banking.

It is clear that Internet banking is here to stay and will be a major channel to acquire

and service customers.

With the facility of being able to execute a host of banking transactions at one's own

convenience, one is no longer restricted to branch timings. Internet banking is provided at no

extra costs by banks.

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The kind of transaction that one can carry out using internet banking largely depends on the

bank providing the service. Some of the transactions are:

Allows new account application for deposits and loans.

Provides with a summary of all your bank accounts.

Allows transaction tracking which enables retrieval of transaction details based on

cheque number, transaction amount, and date and so on.

Provides viewing demat transaction and holding statement (if one have a demat

account with the bank)

Change Customer profile. (I.e. the customer can update their mailing address and

all your communication from bank will go to their new address.)

Allows transfer funds between ones accounts including loan payments.

Offers payment of utility bills such as (telephone, mobile, electricity, insurance

premium, credit card, etc.) online.

Allows electronic submission of request for a cheque-book, stop payment

instruction, opening a fixed deposit, etc.

Request for a Demand Draft.

TDS Inquiry

Customer Support

In the long run Bank can save money by not paying for tellers or for managing branches

infact the Internet will provide the bank with an almost paperless system. Then the bank can

reach a whole new market, as there are no geographic boundaries with the Internet. Banks

provide a highly secure environment for carrying out the banking activities on the internet.

ICICI bank was the first to launch Internet banking in India in 1997.After that many

Private and Nationalized Banks have jumped into the bandwagon, of providing financial

services on the Net. It removes the traditional geographical barriers as it could reach out to

customers of different countries/legal jurisdiction. It has added a new dimension to different

kinds of risks traditionally associated with banking, heightening some of them and throwing

new risk control challenges. It poses a strategic risk of loss of business to those banks who do

not respond in time to this new technology, being the efficient and cost effective delivery.

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Online banking commands finances, deposits, payments, balances etc whenever one’s feel

like, through PC without taking the pain of visiting the bank, physically. One can make

financial transfers sitting at home or at your office, just by logging into the site of the bank.

Net banking does not require any software installation on your computer. As long as you

have an Internet account and a 'secure connection' you can access your account from

anywhere, anytime.

"Net banking provides both the Bank and the customers an opportunity to re-evaluate

their relationships and move to a new paradigm of faceless banking."

There is no doubt that the potential for Net banking is immense considering the rising

penetration level of Internet in Indian homes and offices. The lure of convenience through

internet banking is definitely going to catch up with the business executives, homemakers

and people who work odd hours.

Internet Banking is quickly revolutionizing the entire financial industry . It is providing

the banking industry an opportunity to expand its reach into a broader market – primarily

composed of the bank's most profitable customers. Through the collection of data captured

online, the banks can target specific customers for more efficiently, taking full advantage of

the least expensive delivery channel available today.

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5.1:Types of internet banking

Currently, there are three basic kinds of Internet banking that are being employed in the

marketplace:

Information

This is the most basic level of Internet banking. The bank has marketing information

about its products and services on a stand-alone server. This level of Internet banking

service can be provided by the bank itself or by sourcing it out. Since the server or Web

site may be vulnerable to alteration, appropriate controls must therefore be in place to

prevent unauthorized alterations to data in the server or web site.

Communication

This type of Internet banking allows interaction between the bank’s systems and the

customer. It may be limited to electronic mail, account inquiry, loan applications, or static

file updates. The risk is higher with this configuration than with the earlier system and

therefore appropriate controls need to be in place to prevent, monitor, and alert

management of any unauthorized attempt to access bank’s internal network and computer

systems. Under this system the client makes a request to which the bank subsequently

responds. Works on the same principle as the e-mail.

Transaction

Under this system of Internet banking customers are allowed to execute transactions.

Relative to the information and communication types of Internet banking, this system

possesses the highest level of risk architecture and must have the strongest controls.

Customer transactions can include accessing accounts, paying bills, transferring funds,

etc. These possibilities demand very stringent security.

Growth In Internet Banking

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The growth of Internet banking has been very encouraging and consequently financial

institutions are actively pursuing Internet banking business. It is of little surprise that the

number of customers banking online is expected to increase significantly over the next few

years and that too not merely in the industrial nations but also in developing countries

5.2: Opportunities for internet banking

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Internet banking as an alternative delivery channel offers many

opportunities for growth and development of the financial institutions.

Financial institutions have begun to realize that although the Internet is

simply a delivery channel it is nevertheless an extremely powerful one.

Therefore, financial institutions are investing in electronic Customer

Relationship Management (eCRM) solutions that span across all

channels, with the goal of strengthening customer loyalty and increasing fee-based transactions.

In order to achieve this, eCRM solutions track customer interactions across channels, analyzing

the aggregate data that will reveal patterns about customer usage of financial products.

Consequently, by using this information, financial institutions can generate business rules that

define as to which type of offers need to be made to customers at various times of their lives.

Increasingly, financial institutions make offers through all channels, tracking the results to make

business strategies even more effective

5.3:Advantages of Internet Banking.

The greatest advantage of Internet banking perhaps lies in the fact that customers are no longer

required to wait in those long and wearisome queues of the banks to request a financial

transaction or statement. Another important advantage of Internet banking is that it has made the

opening of an account quite simple and easy and without much paperwork. The same flexibility

can be observed even while closing an account. You can also apply for bank loans without

personally visiting any local branch of your bank.

Conventional banking has always been slow and time consuming, so much so that sometimes

you need to wait several hours to process a simple transaction like clearing a check. But, Internet

banking has tremendously reduced the time required to process banking transactions, thereby

making banking faster and convenient. For the bankers this system is cost-effective, as it has

considerably reduced the administrative costs and paperwork related to the transactions. Besides,

banks can also cater to the needs of thousands of customers at the same time. All these factors

have significantly increased the profit margins of commercial banks by lowering their operating

costs. This has enabled them to offer acceptable interest rates on savings account and credit

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cards.

With the help of Internet banking, you can access any information regarding your account and

transactions, any time of the day. This means that you no longer have to depend on the office

hours of your bank to obtain information. Therefore, you can regularly monitor your account as

well as keep track of financial transactions, which can be of immense help in detecting any

fraudulent transaction. In addition to this, fund transfers, both national and international, have

also become faster and convenient with Internet banking. Nowadays, you can transfer funds from

one account to another within a few minutes. You can easily carry out stock trading, exchanging

bonds and other investments with the help of Internet banking.

All these features have made Internet banking ideal for people who make a number of financial

transactions each day. In addition to availing banking facilities for 24 hours a day, you can also

receive other important information regarding banking policies, rates of interest offered on

different types of bank accounts and formalities required in executing various transactions. With

such information you can compare the services of different banks and opt for the one that

satisfies your individual needs and requirements.

However, there can be some serious disadvantages of internet banking, out of which the security

of your bank account is the most important one. So while availing the facilities of Internet

banking, you have to be very careful to ensure the security of your computer and personal

information like the password, user name and pin number of your bank account. Otherwise, you

may become a victim of computer hacking, which can lead to unauthorized use of your account

by computer hackers. Though banks have come up with several security measures, the customers

are also required to be a bit careful to ensure security and safety of internet banking.

CHAPTER -6

23


MOBILE BANKING

In today's business environment, with so many

deadlines to fulfill, appointments to meet and

meetings to attend, we are hard pressed for time.

Don't we wish we could do all your activities while

traveling from one meeting to another.

Now one can access bank account and conduct a host of banking transactions and

inquiries through our Mobile Banking service. Also can check balance, stop a cheque

payment, or even pay utility bills. Mobile Banking service gives an account information and

real-time transaction capabilities from the mobile phones at a true "anywhere, anytime,

anyhow" convenience. All this through SMS or WAP or R World (for Reliance India Mobile

customers). SMS Banking brings your bank accounts to your fingertips. It works using Short

Messaging Service (SMS) technology. With SMS we can perform a wide range of query-

based transactions from our mobile phone, without even making a call.

Mobile Banking on regular mobile phones can be conducted with normal SMS codes:

Example: FOR HDFC BANK

a) Get your balance details (HDFCBAL)

b) Request a cheque book (HDFCCHQ)

6.1:Steps for activating mobile banking

24


1) Fill the requisite mobile application form, which will be available on the bank’s website

and / or at its branches. One can even also call the customer care centre and request a

customer care executive to have the form sent to you. This form elicits personal information

like the customer’s name, mailing address, bank account number and the branch and their

mobile phone number. It may also require the customer to choose the mobile banking

services that you are interested in.

2) Submit this form to the bank and wait for the processing period, which is usually 2-3

working days.

3) Enter the mobile number (as indicated by the bank) on the mobile phone, followed by the

mobile banking request, in the format specified by the bank.

4) Thereafter, you will receive mobile phone alerts and can put in request for your banking

information and/transaction through the mobile.

But still ATMs remain the most successful delivery channel followed by telephone

banking and internet banking. With drastic fall in cell phone tariff and emergence of

seamless connectivity between fixed and mobile lines, mobile banking is set to emerge as

one of the cost-effective delivery channels in near future. Toll-free-numbers would also gain

popularity as an important delivery channel. Although banks abroad are using call centre as a

delivery channel for some time, banks in India have just begun to exploit it as an effective

non-branch delivery channel.

The bankers will have to take a comprehensive view about their delivery channels. Till

now delivery channels were viewed in terms of cost and technology. Delivery channels were

devised focussing mainly on time and place advantage to the customers. However, with the

continuing advances in wireless technology, flexibility in delivery channel device would be

the forte of banks.

The modes of delivery like ATM, telebanking and Internet banking not only offer

convenience to customers, but also reduce the overhead costs of operations significantly

25


for banks by reducing the need for maintenance of records, books of accounts, etc. in

the traditional format.

With about thousands of off-site and on-site ATMs installed, banks are effectively reaching

out to a large customer base at a substantially lower cost. While ATMs do help banks to

attract customers, there is also one more critical aspect to consider—the immense cost

savings from which a bank can benefit due to a transaction taking place over an ATM vis-à-

vis a branch. A look at the volume of ATM transactions conducted reflects the level of

success of this delivery channel.

Typically, it costs close to Rs.50 per transaction if conducted in a branch and the same if

done through ATM costs about Rs.15. In order to reduce the cost of transaction banks have

started out-sourcing and sharing of ATM services and this trend will gather momentum in

near future. As this delivery channel gains mass acceptability and is user friendly, the

bank can use it to cross-sell it’s as well as others' products. It would be wise therefore to

restrict your branch visits and instead use ATMs. To Sum up, “For while winners may not

see massive gains, the losers will fade from view as their ability to compete is eroded with

every mouse click."

Chapter-7

FUNCTIONING OF ATM’S

26


Since, ATM’s has provided a boon to

the automation of the banking industry

therefore it is advisable to restrict the

branch visit and insist on more usage of

ATM’s.

Let us see the functioning of ATM’s.

Following are the basic steps:

Insert your card into the slot

provided.

Select the language in which you want to be led through the transactions. Most ATMs

offer you the options of conducting your transactions in English and Hindi. At some

locations, you will be able to select between English and the regional language.

At the prompt, enter your PIN. Press the "Enter" key.

Select the transaction you wish to conduct (e.g.: withdrawal/ balance inquiry).

Select the account type. If you are using a Credit Card, select the "Credit" option.

If you are making a withdrawal, enter the amount you wish to receive.

Confirm that the amount is correct.

Collect your cash, card and receipt.

Technical working of ATM

27


7.1:Initial slow growth of ATMs

Although the first ATM installed in India was in late eighties. The real boost in the ATM

services came in the wake of the economic reform process. The banking sector reforms

allowed for more competition in the market and to gain a competitive edge the banks started

to look for new ways to differentiate. The reform process also brought to the fore a new

generation of banks, namely the private banks and more and more foreign banks started

opening their shops in India. These developments in the industry provided reasons to the

banks to increase reach, gain competitive edge and respond to growing customer awareness.

First there were Rigid bank union restrictions on deployment; there was no government

regulation restricting the deployment of ATMs by banks but the it was an indirect control

whereby the Indian Bank Unions determined the number of ATMs deployed by the bank

hence putting a constraint on the growth of ATM services. Second there were extremely high

tariffs on the hardware import: Earlier the duties on the ATMs were 150 to 200 percent. With

the levels of duties as high the feasibility and viability of putting ATM outlets also became

an issue for the banks.

28


However the most important factor for the slow growth was the Lack of sophisticated

computer technology that hindered the progression of processing networks. Most government

banks are still on distributed databases and the move toward complete automation has been

slow.

7.2:Sharing of atm amongst various banks:

29


The critical issue, which is engaging the attention of most bankers these days, is ATM-

sharing. This too can become a major risk-mitigation measure, and will help bring down the

transaction costs significantly and enhance usage. Essentially, a shared ATM network will

mean the getting together of a clutch of banks, with a common switch, where any bank’s

ATM card can be used to access his funds from any of the ATMs in that group of banks. For

instance, if I have a Bank X ATM card, it should not matter to me which ATM I go to (that

of Bank Y, Z or P). I can access my money from any of the ATMs, which are part of that

shared ATM network. This also spreads the risk effectively and ensures customers have easy

access to their money at low cost. Some banks, however, are still holding on to a proprietary

ATM model (meaning they don’t want to share their networks with others), little realising

that would only expose them to greater risks.

The shared network would facilitate optimum use of the banks' resources, the

infrastructure and rationalise deployment of ATMs. Participating Banks as well as the

customer will gain from the arrangement. Since many Banks have evinced interest to join the

network the number of ATMs under our network will definitely grow.

The system will work on an integrated backbone network and will be online and

available on a 24 / 7 basis with all new security features. This is a very unique proposal of

broad-basing the customer service through a concerted effort and in a very cost-effective

manner.

7.3:Frauds and ATM

30


ATM Fraud has been with us since we first started

using them. Although it is not considered one of the major

frauds, it could have devastating effects on the victims

thereof.

A victim can loose an entire month’s salary or hard earned

savings money. The most important fact to remember is that

criminals can only access your bank account via an ATM if

they are in possession of your ATM bankcard and your secret pin number. It is therefore up

to you to protect yourself against ATM fraud.

ATM cards that function as debit cards are particularly vulnerable to fraud because they are

used in "point of sale" transactions that require only a signature rather than a PIN to verify

withdrawals. These cards withdraw money from a customer's account at the time of sale and

deposit the funds into a merchant's account.

Techniques used to carry out ATM crime

Card swapping – where a customer’s ATM card is swapped for another card without

their knowledge whilst undertaking an ATM transaction.

Card jamming – where an ATM machine card reader is deliberately tampered with so

that a customer’s card will be held in the card reader and cannot be removed from the

machine by the customer. The criminal removes the card once the customer has departed.

Vandalism – where an ATM machine is deliberately damaged and/or the card reader is

jammed preventing the customer’s card from being inserted.

Physical attacks – where an ATM machine is physically attacked with the intention of

removing the cash content.

Mugging – where a client is physically attacked whilst in the process of conducting a

transaction at an ATM machine.

CHAPTER-8

FEW SUCCESS STORIES:

31


8.1: ICICI bank

ICICI Bank is one bank, which has seen a massive surge in volumes, since the

introduction of ATMs. The number of ATMs, which numbered around 90 in December

1999, has now swelled to 540. Currently, the total volume of ATM transactions is pegged at

an astronomical 2, 00,000 transactions a day.

“The larger the volume of transactions, the less the cost per transaction.” Also, the

convenience of anytime money has attracted a lot of customers. ICICI has also shown how

technology can translate into reduced costs. Typically, a transaction through a bank branch

costs approximately Rs.45. The same transaction done telephonically costs Rs.30, through an

ATM costs about Rs.18, and through the Internet in huge volumes, only Rs.4.

8.2: Federal bank

The increase in the percentage of cash transactions through ATMs has led to a reduction

in costs for the bank. The cost of a transaction done across the counter is nearly Rs.50.

However, the costs are only Rs.15.50 per transaction when done through the ATMs.

Interestingly, the average number of transactions through ATMs of Federal Bank is around

200 per day.

8.3: UTI bank

The automatic teller machine, set up at an altitude of 13,200 feet (4023m) along the

winding route that links the Tibetan capital Lhasa to Sikkim's capital Gangtok, has been

installed by UTI Bank with the help of US-based NCR Corp, which made the special

machine. "This is a technological feat," stated. ICICI Bank is one bank, which has seen a

massive surge in volumes, since the introduction of ATMs. The number of ATMs, which

numbered around 90 in December 1999, has now swelled to 540. Currently, the total volume

of ATM transactions is pegged at an astronomical 2, 00,000 transactions a day.

Chapter-9

FUTURE OF AUTOMATION CHANNELS

32


Market analysts believe that

the growth in the installed base of

ATMs, which was primarily driven

by private sector banks, will be

driven by Indian PSU banks in the

next year. The retail-banking scene

is getting hotter by the day with banks going all out to increase access points. This is great

news for ATM majors like NCR India and HMA Diebold, which are fighting aggressively to

increase market shares.

As part of its strategy in offering innovative services, NCR is talking to the Railways in

Mumbai for deploying an ATM, which could be used to dispense railway tickets. The focus

is on letting the customer use the ATM as a medium which can be used for non-cash

transactions like payment of bills, insurance payments, printing of statements or accessing

the Internet. The key idea is to get the customer used to these channels and then migrate him

to different low cost channels like the Internet. For example, a customer using a Web-enabled

ATM would be more likely to go in for, say, a service like Internet banking. Also, from the

bank’s point of view this would be more cost effective as a transaction over the Internet

would be minimal cost to the bank per transaction.

NCR is also looking at offering solutions that can bundle the ATM with the smart card.

For example, the value of a Petrocard (a smart card with stored value used in petrol stations)

would double if the Petrocard user has the option of topping up the pre-paid value of the card

via an ATM. This option would give the customer better flexibility.

“The trend now is to use the ATM as a tool to acquire new customers and retain them

by providing a range of services. Banks are slowly waking up to the ATM’s potential as a

serious marketing tool. They are also earning sizeable revenues by using ATMs to advertise

products from other companies.” A few banks are offering utility bill payment facilities on

their machines too. Apart from that, a variety of services ranging from railway card/season

tickets and cinema tickets to dispensing of mobile phone smart cards are being thought of as

a part of the strategy to attract customers and earn extra revenue. This could be the future of

33


ATMs, where more non-cash transactions will be done. Some banks are even toying with the

idea of selling movie tickets through ATMs.

For example:

The SBI ATM at CST railway station in Mumbai dispenses season tickets too.

Another unique strategy from NCR is the installation of local language ATMs which are

available in almost all Indian languages. In rural areas for example, some farmers are

extremely rich but do not have access to ATMs. How do banks reach out to such people? The

answer is in the form of intelligent ATMs. Besides, an illiterate person would not be able to

use an ATM, whichever language it displays. The answer is an ATM that offers an audio aid,

which has clear instructions on how to withdraw cash in the language he speaks.

“We are seeing two distinct trends—state-run banks are installing ATMs to ensure that

they do not lose customers, and to cut costs, while private and foreign-owned banks are using

it to acquire customers.” This does not mean that the cost-factor is not relevant to the latter.

Again, of the installed ATM base, nearly 70 percent is accounted for by private and foreign

players. We also see that state-run entities have more of onsite ATMs.

“ATMs have evolved from only basic cash dispensing solutions to one which can

provide value added services. The future of ATMs will be touch-screen kiosks, payment

of bills, and smart cards bundled in with ATMs.”

Consumers in this age of financial self-empowerment expect continuous access to their

money and account information. In these changing times ATMs are in a position to cater the

demand for cash availability and are finding growing acceptability in the Indian mentality.

This changing scenario gives a lot of scope for the proliferation of ATM services in India.

The future of ATMs in India is fantastic. In fact, within a few years, the country will be

flooded by ATMs. And, with e-commerce expected to boom in the next few years, banks will

play an increasingly important role. But for that to happen, banks will have to transform

34


themselves to serve customers in a better way. They will have to re-invent themselves so that

better services can be offered at all levels. Thus, ATM, telephone and Internet banking are set

to become the key drivers of growth for banks. According to International Data Corporation

(IDC) projections, banking through Internet will get revenues of more than US $ 3 bln in

another two years’ time.

In future a bank's ATM would function like a kiosk delivering more of non-cash

transactions, thereby simultaneously reducing the fixed and operating cost of ATM.

ATMs, the Internet, call centers, instant messaging, mobile phones, and wireless-

enabled handhelds are giving people round-the-clock access to cash, retail goods and

services. In this age of accessibility, people no longer need to visit their bank to retrieve their

money—it comes to them. Financial service sector organizations are competing with one

another to deliver to their customers the most sophisticated access points to funds.

Among all the delivery channels used by banks today, ATM’s remain the most

successful, followed by telephone banking and Internet banking. But the biggest potential

could lie in mobile banking. With cellphone tariffs falling and increased bandwidth, the

potential for banking player to tap this channel is enormous. “The future delivery channel

will have various mobile portals using technologies such as GPRS (General Packet Radio

Service). The customer would prefer to do banking transactions not only anytime, anywhere,

but also through any device. With the current rate of evolution in the wireless industry, the

mobile channel is poised to become the de-facto banking channel within the next three

years.”

One more delivery channel, which will increase in the future, is the deployment of call

centres. For instance, looking at the cost effectiveness of call centers.

As a delivery channel gains ground, it can be used to sell products of other vendors too.

Analysts believe that as banks discover the marketing power of ATMs, one would see a trend

where ATMs would be used to deliver products of other vendors as well.

35


The next five years will see a marked shift, wherein customers will show a preference for

non- branch delivery channels.

Research indicates that globally, 80 percent of cash withdrawals occur on ATMs; the

emphasis is now shifting towards adding new services at these touch points. ATMs thus

become an ideal banking unit of a bank, as acceptor as well as dispenser.

As per the survey over the last three months across nine major cities in India came up with

some startling figures. The potential banking consumer population in India is around 300

million. The number of ATMs required to service this population would be a whopping

200,000, at the minimum. At present we have a paltry 5,000 ATMs countrywide. To be very

precise, an ATM will have to be installed for every 1,489 cards issued. In order to break

even, the number of transactions per ATM would have to be 203 every day and the customer

would have to make a minimum of four transactions per month on an ATM.

9.1:ATM Outsourcing

The potential for the ATM industry in India thus remains largely untapped so far.

ATM Outsourcing:

36


The question remains as to whether the banks and the

bankers can afford to wait while building the required

infrastructure and formulating business and revenue

models to generate future profits for the bank.

As banks look at the difficult task of minimising

operational costs, while simultaneously enhancing

ATM channel availability and customer satisfaction;

outsourcing the management of the ATM channel has

presented itself as an attractive option. This would also enable them to concentrate more on

banking rather than getting involved with the intricacies of technology.

In order to outsource an important project, the bank has to consider various factors before

choosing a service provider. In this emerging highly competitive scenario, service providers

who can offer services in the shortest time frame and with the least down time will be the

winners.

Many Indian banks that were hampered because of lack of knowledge of technology are now

actively talking to ATM vendors for outsourcing their needs. For example, Bank of India

recently signed an agreement with India Switch Company, a Diebold HMA group company,

for outsourcing the setting up of ATMs. Other banks-especially PSU and co-operative banks

are expected to follow this trend.

The Indian ATM Industry has seen explosive growth in recent times, with the installed base

registering a CAGR of almost 60% in the last few years. While committing to substantial

capital outlays on the deployment if ATM channel, banks are recognizing the significance of

the 3Ms – Maintenance, Monitoring and Management to make the self-service channel a

profitable one.

ATMs represent the single largest investment in the electronic channel services for the banks.

Running a large ATM network is a serious business, involving varied disciplines and

complexities of hardware, software and processing requirements. The banks are working

towards optimum availability of ATM networks for their customers, while protecting

margins in a competitive environment. Outsourcing management of the ATM network to

37


subject-matter-experts is becoming an increasingly preferred alternative, since this

helps freeing the banks resources for their core business of banking.

This is part of a global trend, as banks and financial institutions the world over are

discovering that outsourcing the ATM channel management can bring both improved

performance and reduced operational costs.

Typically, outsourcing could involve various tasks. The scope depends on a bank's long-term

strategic goals. Tasks that could be outsourced include:

ATM Monitoring Sophisticated software and tools, such as those at NCR's ATM

Management Centre at Mumbai, make it possible to monitor the entire ATM

network remotely on a 24 x 7 basis. In addition, the tools also facilitate accurate

diagnosis capabilities help significantly in maximizing ATM availability across a widespread

geographical area through faster and accurate response to fix any problem or even pre-empt a

possible problem.

Cash and Consumables Replenishment; this service helps minimize outages and

maximize channel availability through improved logistical management of Cash and

Consumables Replenishment.

Currency Management; This is one of the important elements of ATM management. This

helps ensure that the ATM does not have cash-outs, which could mean dissatisfied customers

besides avoiding expensive emergency Cash replenishment trips. Mostly importantly,

currency management lowers a bank's cost of cash, eliminating excessive idle cash that could

mean a loss of interest revenue.

Network and Systems Management; This includes the monitoring of the entire network

connectivity on a 24 x 7 basis, including the network equipment and servers, the telecom and

transmission lines and the software within the ATMs.

38


9.2:Outsourcing Benefits

In today's ATM sharing, high availability of the ATM to the bank's customers is a must for

the channel to become a profitable one for the banks. Outsourcing of ATM management

39


plays a significant role in making the vital network available in an efficient and cost-effective

manner through the coordinated delivery of field services from a single service organization.

Lower Operational costs : Banks choosing to outsource operational management of

ATM channel may be able to achieve as much as 15 to 25 percent savings on ATM

management service over the cost of in-house operations. The outsourcing agency is able to

leverage economies of scale and continuously upgrade technology to drive cost efficiency.

Cost of Cash : Cash carrying costs are among the largest cost of running the ATM

channel. With the integration of advanced currency management tools, cash costs can be

reduced substantially.

Improved performance : The single point of contact accountability maximizes

availability through the elimination of delays repeated callbacks and out-of-scope charges

that may occur when several organizations are providing the services. Through its

Management Centre Infrastructure, a company like NCR can instantly pinpoint and diagnose

problems throughout the ATM network ensuring an accurate and quick response.

Concentrating on core Competency : Outsourcing ATM management to

specialists frees Bank management to focus on its core business of banking. Outsourcing also

stimulates branch productivity, freeing branch personnel to concentrate on customer

interfacing and revenue generating functions.

Technologies Edge : On its own, it may be a difficult for a bank to keep ATM

hardware and software updated as technology evolves. NCR as a leading ATM manufactures

invests heavily in management infrastructure to provide customers with state of art tools. The

key to successful outsourcing strategy for the ATM channel is to have a partnership between

the two organizations rather than just traditional vendor relationship. A partnership approach

to ATM outsourcing can offer banks an operational model whether overall channel

availability is increased with the significantly lower cost and higher customer satisfaction.

9.3:Analysis Of Visits To Various Banks

I] Number of ATMs various bank have:

40


S.No. Banks No. Of

atms

1 Indian Bank 83

2 IDBI Bank 295

3 SBI 4100

4 The Greater Bombay Co-

op Bank

13

5 HDFC Bank

870

6 Syndicate Bank 182

7 Union Bank 145

8 Punjab National Bank 600

II] Frequency of Customer’s visit: Pre-Automation & Post-Automation.

S.No. Banks Frequency of visit --

Avg Customer per mth

Frequency of visit –

Avg Customer per

mth

41


Pre-Automation Post- Automation

1 Indian Bank 10 times 7-8 times

2 IDBI Bank 10 -12 times 5-6 times

3 SBI 10 times 3 times

4 The Greater

Bombay Co-op

Bank

10 times 5 times

5 HDFC Bank 10 times 6 times

6 Syndicate Bank 8-10 times 3-4 times

7 Union Bank 10 times 5 times

8 Punjab National

Bank

10 times 9 times

From the above table, it can be seen that the average customer’s visit to the branch in pre-

automation phase was 10 times and visit after introduction of Automation channels is Avg. 6

times. Retail Banking is going through an active metamorphosis. This is thanks to the

number of consumers who have migrated from paper to plastic, and of course also due to

changes in the banks themselves. So far there are just a few banks that have jumped onto the

retail banking bandwagon, but many are sure to follow.

III. Time taken per transaction (Teller v/s ATM)

Sr. No. Banks Teller per

transaction

Time taken by

ATM per

transaction

Saving in time

per transaction

42


1 Indian Bank Appx 10 min Appx 3-4 min 6-7 Min

2 IDBI Bank Appx 10-12

min

Appx 3 min 7-8 Min

3 SBI Appx 8-10 min Appx 2-3 min 6-7 Min

4 The Greater Bombay Co-

op Bank

Appx 10 min Appx 2-3 min 7-8 Min

5 HDFC Bank Appx 7 min Appx 3 min 4 Min

6 Syndicate Bank Appx 10-12

min

Appx 3-4 min 7-8 Min

7 Union Bank Appx 10 min Appx 3-4 min 6-7 Min

8 Punjab National Bank Appx 8 min Appx 3 min 5 Min

From the survey conducted, it can be observed that Avg. time taken by Teller is 10 Min.

whereas ATM takes on an Avg. 3 Min. Hence, it can be said that ATM is more effective in

terms of timing saving and providing better customer satisfaction than the Teller at Branch.

IV. Average Transaction per day by ATM

From the survey it was found that the Avg. transaction per day through ATM of various

banks is 92.

V. Impact on employment due to technology change.

43


As per the interview with various bankers, there is no significant impact on

employment.

VI. Other Services offered by the banks.

From the visit to various banks it was observed that many banks have started with

Payment of Utility bills, Prepaid Mobile Refill, Credit card payment, etc except few public

sectors yet to start the above services.

VII. Networking Channels used by banks.

Almost all banks have with networking channels like Internet, Phone & Mobile except

few public sector and co-operative banks.

CHAPTER-10

MAJOR ADVANTAGES OF USING AUTOMATED SYSTEM

IN BANKING SECTOR

44


Following are the advantages of the Proposed Computer aided system:

Speed: Computerization helps in processing the data placed in several data files in no time.

Accuracy: The data processed by the computer are highly accurate. The programs written

on the system checks and controls data before and during processing.

Flexibility: The modern digital computers can be used for a variety of purposes. E.g.

online processing, multiprogramming etc.

Choice of Configuration: Wide ranges of peripherals are available for many computer

systems, which allow business organization to select those which most suit its processing

requirements.

Storage capacity: Large volumes of data can be conveniently stored, accessed and

altered.

Management information: They can be used to provide useful information of

management for control and decision making.

Data Processing: Computer has lifted the heavy data processing constraint with the

manual system and has opened up new avenues for planning, control and data

experimentation.

Volume: Computers can store volumes of data and can retrieve the desired information

quickly.

45


Database: Computer facilities the establishment of database. Such a database integrates

data records and reduces data redundancy.

Reduction in paper work: The use of computers for data processing has helped the

management of business organizations to cope with increasing problem of paper handling

10.1:Benefits & pitfalls of automation channels

Benefits:

Traditionally ATMs deployment by the banks was seen as

an attempt to reduce the teller cost, it made the banking

46


convenient for the banks' customer handling their cash withdrawal transaction through

ATMs. Today with changes in technology, decreasing telecommunications and hardware

costs it is not only a tool for reducing costs, it provides several other opportunities to the

banks. First it helps the banks increase their reach; for any bank the key focus is to increase

the customer base. Deploying ATMs at an offsite location is cheaper and faster also the

hassles of regulatory clearance can be reduced.

Second the ATMs can also be used as marketing tool for the new products and services;

ATM locations offer important distribution points for new products and services by the

banks. The advances in technology have made the machines more functional; the online

ATMs connected to the customer databases can provide updated and customized information

to the customers.

Thirdly it helps the banks attract new customers; The shared ATM networks allows the

customers of different banks to do their banking transaction efficiently, giving the acquirer

banks an opportunity to open interfaces with new customers.

Apart for these ATMs also benefit the banks by providing Additional revenue

opportunities; these front end sites form an important resource for the banks for generating

revenues by marketing these distribution points for distribution of third party products and

services. Couponing schemes, distributing leaflets of the third party products etc are some of

the ways in which additional revenues from an ATM site can be generated. Advertising on

the screens and on the site can be another source of revenue for the banks. Utility payments,

ticket distribution points are the other areas where the ATMs can generate additional

revenues for the banks.

Customer is absolutely free to bank whenever and wherever he wants. That is, whether

it's a national holiday, a strike or a traffic jam, the ATM is there for you always. Plus, there's

no queue and most of the time, the crisp notes coming out of the ATM are an added bonus.

Most banks today are looking at ATMs not only as a delivery channel that bring in customers

in droves but also significantly reduce transaction costs.

E-Age Advantages:

24-hour access to cash

47


Balance inquiry

Mini-statement request

Cheque book request

Funds transfer

PIN change

Bill Payment of Utility Services, etc

Anytime cash deposits

Though Internet Banking-is not as popular as ATMs but it is an emerging delivery

channel-offers significant cost advantage to banks. A net-based transaction costs the bank

only around Rs. 4 and costs per transaction are even lower than those of an ATM. In

addition, as a delivery channel, Internet banking does not require physical infrastructure, thus

saving on prohibitive real estate costs. Thus, banks are trying to get customers to switch over

to this mode of banking.

Pitfalls

But in spite of all the positive signals, there are problems galore, which if not set right,

can come in the way of ATM growth rates in India. One is the familiar infrastructure

problem. Other problems are issues like obtaining many different permissions from different

authorities like the municipal authorities, building society permission, permission for

locating VSATs on top of a building, obtaining permission from the local telecom provider,

etc. The rapid deployment of ATMs earlier was because of the fact that there was no

permission required from the Reserve Bank of India. But today this is mandatory. Industry

48


experts point out that this was done because there were a lot of banks, which set up ATMs

without adequate funds. The RBI wanted to check the status of banks before allowing them

to set up ATMs.

First there were Rigid bank union restrictions on deployment; there was no government

regulation restricting the deployment of ATMs by banks but the it was an indirect control

whereby the Indian Bank Unions determined the number of ATMs deployed by the bank

hence putting a constraint on the growth of ATM services. Second there were extremely high

tariffs on the hardware import: Earlier the duties on the ATMs were 150 to 200 percent. With

the levels of duties as high the feasibility and viability of putting ATM outlets also became

an issue for the banks.

Although Internet banking has made its advent in the Indian Banking Scenario, the pace

of its acceptance is not exciting. Internet itself is out of reach for the potential consumers of

Net banking services. In the course of time when ISPs come up with sufficient bandwidth at

a reasonable price, then only we can expect a smooth acceptance of Internet Banking.

While Internet banking is a potential and powerful delivery channel, it has failed to make a

significant impact due to a variety of reasons.

There are three clear reasons why Internet banking has not taken off in India

1) Slowness in adoption of the Internet by the 40+ age group.

2) Lack of a strong trust environment prevents rapid move of corporate into adopting

Internet,

3) Lack of a critical mass of early adopters of security and trust technology among bankers

operating in India to drive the transition from bricks and mortar to e-banking.”

However the most important factor for the slow growth was the Lack of sophisticated

computer technology that hindered the progression of processing networks. Most government

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banks are still on distributed databases and the move toward complete automation has been

slow. One of the problems faced by Net banking in India is lack of customers having PC and

Internet access and above all security is a huge issue which is restraining the customers from

doing their banking on the Net. In spite of facing several such limitations, it is heartening to

see that many co-operative and rural banks have taken the technology plunge and are able to

offer the latest services to customers at affordable budgets.

CHAPTER-11

CONSUMER TIPS FOR AUTOMATED BANKING

Banks have aggressively pushed their customers to online

automated banking, even charging more for paper

statements. Automated payments and online banking work

well and are convenient, as long as banks can assure

customers that their money is safe and their accounts are

secure.

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However, if the system goes awry, it can cause significant problems for consumers. Last

month, the Chase online banking system had a service outage and was down for three days,

leaving 16 million customers without access to their account.

“An outage of this size is uncommon, but it is a good reminder for all of us to have a back-up

plan, to keep a personal record of account information. A lost credit card or a stolen wallet

can be just as damaging if you don’t have a record of all bills you’ve set up for automatic

payment,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card

Guidebook.

Many consumers use credit and debit cards for automatic bill payments. This is a system that

typically runs smoothly and on schedule but also makes it easy to forget about the merchants

and bills you are paying. If you must replace a card or an account number is changed, these

bills aren’t automatically transferred to the new account. It is up to you to immediately

contact each merchant and vendor with the new card information to avoid interruption. Keep

a record of the name and phone number for every person, business, bill or loan that is paid

with an online payment.

“A late notice, accumulating fines, or terminated service may be your first notification that a

bill was not paid. Missed payments can cost much more than a late fee. These problems can

negatively affect your credit score,” says Hardekopf. “Making a record of accounts to pay is

a small hassle, but there may be a time when you are glad you did. Scrambling to fix it after

you are delinquent on the payment is too late.”

For Chase customers, several days without account access was an anxious time for those that

had bills to pay. Even though Chase will refund any late fees incurred during the delay, the

bank cannot repair the credit scores that may drop after the late payments.

It is also possible that account information may have been corrupted. Chase customers should

look carefully at their account for lost transactions, incorrect account balances, missed

deposits, and missed payments

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CHAPTER-12

REPORTS RELATED TO AUTOMATED SYSTEM IN BANKING

12.1:Bank automation: Towards paperless transactions

Today, money has evolved beyond physical

form, and can be measured by electronic

pulses. This electronic representation of money

has made it easier to progressively increase the use of information technology for banking

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operations. It is also possible to make banking more global due to electronic automation of work

processes.

Technological innovation has also speeded up bank transactions, in the process, reducing human

drudgery and possibilities of human error. Banking operations have become more customer-

friendly and flexible. Approach to the bank branch concerned has become multi-channelled and

more and more customers are finding little need to visit the bank.

As a matter of fact, the very concept of a bank branch is becoming irrelevant as far as catering to

a customer’s needs is concerned. On the flip side, however, these improvements have been

associated with increased threat of misuse, forgery and fraud.

Introduction of automation has also liberated the banks from a lot of paper-work. While banks in

India have not become fully paperless, there is a steady movement in that direction. Banks have

realised that persuading customers to carry out transactions using electronically available

channels without physically visiting the bank is less expensive for them. Hence, exploiting new

technologies should also improve the profitability of the banks.

Automation

Automation came to banks, beginning with ALPMs (Automatic Ledger Posting Machines). The

repetitive and cumbersome task of ledger maintenance had been simplified. A server at every

branch contained the entire database. It was soon realised that it would be more fruitful to have

the total database at a central location and create a wide area network, WAN. Such a system

required a lot of redundancy to ensure 24x7 availability to the customers.

Core banking

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Introduction of these innovations created the idea of core banking. This happened around 1992

and changed the very concept of branch banking. The first ATM had been had been installed in

1980 and progressively provided an electronic channel with flexi-timing for customers’ banking

needs. Limited services like cash withdrawal, balance enquiries, printing of mini statements, etc.,

was available. Addition of Internet banking multiplied the delivery channels. This required that

the accounts be up-dated in real time.

Mobile banking

SMS banking provides another channel for banking. It indicates to the customer all the entries

like credit, debit or any other transaction that has taken place in his account. Mobile banking has

an edge over Internet banking, since it does not require any connectivity. Visits to the bank may

be made only for seeking advice.

The customer is really dealing with the bank and not that specific branch since the database is

centrally located. All this provides excellent flexibility in bank operations and timing.

Customer does everything

It is interesting to note that with more and more facilities becoming available, the customer is

doing almost all the tasks himself that were earlier done by the banking staff. Thus, technical

obsolescence is taking place fairly quickly in the banking system. Banks usually depreciate all

the system-related costs to zero in three years.

Real time settlement

The Reserve Bank of India has taken initiative to improve the functioning of financial

institutions by using the facilities offered by information technology. Major thrust has been to

achieving quick payments and settlement across the country. A network called Infinet was set up

linking all banking industry units and financial institutions. This network, based on V-Sats and

leased lines ensures settlement of funds all over the country on real-time basis. This has also

introduced transparency in these transactions.

54


The message that uses Structured Financial Message Solutions is encrypted for security reasons

through Public Key Interface. The system, called Real Time Gross Settlement, and developed in

May 2004 by the Institute of Development and Research for Banking & Technology, enables

inter-bank transfer of funds in two hours. This has , to some extent, reduced the need for

telegraphic transfer and demand drafts .

Similarly, cheque collection time will be significantly reduced (especially for outstation cheques)

by the process, which transmits truncated cheque data through electronic imaging to the drawee

bank. The cheque need not be moved physically. A National Electronic Fund Transfer scheme

will thus empower the customers further. ECS has made banking operations cheque-less. Thanks

to electronic systems, a quantum jump has been achieved by banks in Customer Relationship

Management (CRM). This not only includes information about transactions in his account, but

also his preferences and his interest in a particular scheme or product of the bank.

Thus, even before the customer interacts with the bank representative over the phone or in

person, the bank representative has total and comprehensive information about the customer.

This helps improve the quality of response the caller gets from the bank. With the banking

industry likely to be opened to foreign banks by 2009, this will complete the process of

globalisation for this segment. Banks in India have been taking steps to face 2009 with courage

and the above measures are aimed at meeting the challenges of new entrants head-on

12.2:Banking Sector’s Automation to Boost GDP growth

(September, 05, 2010) [Source: BBC]

The ongoing automation of the country’s banking sector is expected to gear up the

economic growth by at least 1 percent on its completion in around two-year time. Bangladesh

Bank (BB) is carrying out an integrated automation programme with assistance from the

Department for International Development (DFID) under which two major components of the

banking services will come under cyber technology by next year.

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BB Governor Dr Atiur Rahman and Consultant of the project Randy Kahn are confident

that the automation of the banking services will accelerate economic growth by no less than 1

percent. Under the programme, automated clearinghouse will replace the traditional cheque

clearing system by this year end and the Bangladesh Electronic Fund Transfer Network

(BEFTN) will be in place next year. The central bank already conducted a successful simulation

of its automated clearinghouse, which would link all 48 banks under an automated cheque

clearing system by November 1.

The system will facilitate all the banks clear their cheques in two days whereas the

current system takes about 21 days to clear a cheque from banks outside Dhaka. The banks in

Dhaka city, however, are enjoying the automated facility from April this year.

The central bank directed all the banks phase out all non- MICR (Magnetic Ink Character

Recognition) cheques by October as the clearinghouse will not entertain any traditional cheque

from November 1. Dr Atiur Rahman said the fund flow would be faster with introduction of the

automated clearing system for all the banks across the country. The faster fund flow, he

continued, would eventually accelerate businesses when the automated system would ensure

hassle-free and secured transactions.

With the launching of the electronic fund transfer network, all the transactions like bill

payment, fund transfer, tax payment and payments for online shopping will only be a click away.

Randy Kahn expected that this system would be in place by next year, offering a speedy fund

transfer to stimulate further the economic activities.

Lauding the efficiency and commitment of the BB’s staff, he said the automaton process

is progressing faster even than the process in the United States due to the skill and dedication of

people working in the central bank. Kahn said automating the US banking sector was a difficult

task and took more time than the progress in Bangladesh.

He observed the automation process as a driving force in achieving the vision for Digital

Bangladesh and advised continuous effort to make people tech-savvy. “It is easy to change

technology, but hard to change people,” Kahn said.

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12.3:IMF lauds BB progress in automation, reforms in Banking

Sector

IMF has lauded Bangladesh Bank's role in reform

measures and progress in automation in its operations

in order to make the country's financial sector a sound and efficient one, central bank officials here said.

A 10-member mission of International Monetary Fund (IMF) recently visited different departments of the

central bank and talked with various institutions involved in these activities under the Central Bank

Strengthening Project aided by the multilateral donor agency.

During the visit, the mission members discussed various reform measures taken by the Bangladesh Bank

under the IMF aided Financial Sector Reforms Programme taken in the 90's. "IMF mission appreciated

57


the role of Bangladesh Bank and expressed their satisfaction with the progress in a number of key areas

like automation and IT", officials told BSS. The IMF mission found a tremendous progress in automation

and application of IT in the operational functions of Bangladesh Bank, they added.

"Bangladesh Bank has already introduced e-commerce, e- banking and automated clearing house which

are historic moves towards achieving higher productivity in all economic sectors, including agriculture

and SME through use of ICT", IMF officials said. Bangladesh Bank Governor Dr Atiur Rahman has

already announced that the central bank would be turned into a paperless institution within the shortest

time and interbank market would be made completely digital by 2010 in order to increase efficiency and

transparency, reduce risks and corruption in the country's fragile financial sector. He also said the central

bank was going to introduce a digital trading system in interbank market to ensure transparency, increase

efficiency and deal with call money, securities, bonds and foreign currencies in line with international

trading practices.

The central bank has already asked the commercial banks and non- bank financial institutions to improve

their ICT base. The IMF mission also found that the central bank had already engaged commercial banks

in major programmes of upgrading their IT platforms with ample processing power and online

connectivity to enable efficient data management, processing and analyses for risk management purpose

and reporting to BB.

12.4:The Dragon and Tiger of the ATM Markets: China and India

Report Published by Celent

The ATM markets in China and India have experienced explosive growth over the past five

years. The next three to five years will see an even greater increase from about 125,000

ATMs in 2006 to 350,000 ATMs by 2010.

While traditional ATM markets are on the decline, overseas markets are rapidly becoming

attractive venues of growth. They are the destinations of choice for ATM industry players

seeking to sustain profitability levels. In particular, the rapid development of banking and

financial services in both China and India represents a significant opportunity for ATM growth.

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In a new report, The Dragon and Tiger of the ATM Markets: China and India, Celent

describes how retail banking across both countries has grown exponentially as consumers’

buying power has risen, increasing the demand for more flexible and convenient access to bank

distribution channels. With fairly large proportions of the population being either unbanked or

underbanked, particularly in India, and with low branch density per capita in both countries,

financial institutions face pressure to expand their retail distribution capabilities to meet growing

demand. Given the extremely low penetration levels of ATMs in both China and India, better

leveraging this cost-effective self-service distribution channel represents a key opportunity for

meeting this challenge.

Spurred by the high growth and competitiveness of the banking industries in both countries,

ATM installations have seen double-digit growth in each of the past five years. Celent predicts

that the best is yet to come. The next three to five years will see even higher growth in these two

countries from about 125,000 ATMs in 2006 to 350,000 ATMs by 2010.

”Like India, China is experiencing rapid growth in ATMs, driven by its largely cash-based

society, the low density of bank branches at a time when demand for financial services is

accelerating rapidly, and the need to more aggressively deploy ATMs beyond the largest

metropolitan centres to midsize and small cities and suburban regions,” says Wenli Yuan, Celent

senior analyst and coauthor of the report.

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http://reports.celent.com/bios/wyuan.htm


“In addition to regular ATMs, these markets will witness high growth in innovative technologies

such as biometric ATMs that cater to the large and underbanked rural population of both

countries,” says Sandeep Hebbar, Celent analyst and coauthor of the report

CHAPTER-13

SBI CASE STUDY

State Bank offers the convenience of over 4174 ATMs in India, already the

largest network in the country and continuing to expand fast! This means

that one can transact free of cost at the ATMs of State Bank Group (This

includes the ATMs of State Bank of India as well as the Associate Banks –

namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State

Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, and

State Bank of Travancore), using the State Bank Cash Plus card.

Transaction Limits :

Daily limit of Rs.15, 000/- at the ATM

Daily limit of Rs.25, 000/- at Point of Sale (POS) terminal for debit transactions

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http://reports.celent.com/bios/SHebbar.htm


Combined daily limit of Rs.40, 000/-

State Bank accepts Debit / Credit Cards issued by Banks in India and Abroad affiliated to

both VISA and Master Card International at its over 4174 ATMs in India. Cash transactions

and

Balance enquiries are allowed at a nominal fee as under: -

Transaction Costs : Rs.

Debit Cards Issued in India Rs. 30.00

Credit Cards Issued in India Rs. 50.00

Debit / Credit Cards Issued Out side India Rs. 60.00

Balance enquiries Rs. 12.00

SBI tied up with Indian Bank for sharing ATM on 16 th July, 2004 .

State Bank of India has entered into an agreement with Indian Bank for bilateral sharing of

their ATM networks. SBI has a network of 4100 ATMs while Indian Bank has a network of

104 ATMs.

SBI already has such bilateral sharing networks with HDFC and UTI Banks.

ICICI Bank signed MoU with SBI for ATM network sharing

ICICI Bank, India’s largest private sector bank, signed a Memorandum of Understanding

(MoU) with State Bank of India (SBI), India’s largest public sector bank for sharing of ATM

networks.

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SBI and Associates, having 2068 ATMs and ICICI Bank having a network of 1725 ATMs.

The agreement will enable the customers of ICICI Bank and SBI to have access to the

combined ATM network of 3793 ATMs, spread across over 600 centres in the country.

The country’s largest private and public sector banks, ICICI Bank and State Bank of India,

integrated their ATM networks to give their retail banking customers access to almost 4,000

automated teller machines across the country.

Customers of both banks will be able to use ATMs of the other bank at no extra charge

or fee. This is the first bilateral ATM sharing deal of this size in the country. Though the

trend had been started by other smaller banks, which have made attempts to form bilateral

and multi-lateral ATM networks in order to provide more machines at more locations to their

customers, as well as maximise revenues from each machine.

ICICI Bank has utilized technology to provide value-added services to its customers.

The Bank services a growing customer base of more than 6 million customer accounts

through a multi-channel access network comprising over 450 branches, over 1725 ATMs,

call centers and Internet banking. Today, ICICI Bank witnesses more than seventy percent of

its transactions on electronic channels as against only 5% usage less than three years ago.

SBI, HDFC link ATM sharing pact - January 28, 2004

PSU banking major State Bank of India has signed an ATM sharing agreement with private

sector HDFC Bank. The agreement covers 2,850 ATMs belonging to SBI and its seven

associate banks and 870 ATMs belonging to HDFC Bank.

“The ATM network sharing alliance reiterates our commitment towards maximizing

customer convenience. It further enhances the proposition of anywhere, anytime banking

offered by the ATMs for our customers. Hence it makes sense to enter into multiple sharing

arrangements with banks as it leads to greater utilisation of the machines.”

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Facts on State Bank of India’s banking automation project

One can only imagine the complexities involved in deploying a core banking solution for

an entity the size of State Bank of India. With more than 13,600 branches spread across the

length and breadth of the country, the project was huge in size and complicated in its

implementation. The project involved deploying a centralized core banking system

throughout the SBI group, consisting of SBI and its seven associate banks. In the group, SBI

alone has more than 9,000 branches with 51 foreign offices in 31 countries. The estimate of

investments for SBI is Rs. 500 crore ($102 million).

But this mammoth task, said to be one of the largest of its kind in the world in terms of

the number of branches, customers and transaction volume, was undertaken by TCS. The

project involved procurement, supply and installation of hardware and the core banking

63


software, customization of the core banking software, implementation and rollout of the

software at SBI branches, and training and support. TCS will manage the entire project and

the system integration activities involved. As the prime vendor, TCS has teamed with

Financial Network Services, Australia (FNS) and Hewlett Packard (India) for this project.

Hewlett-Packard will provide its ‘always-on Internet infrastructure’ solution consisting of

Superdome servers and XP storage systems, whereas the core banking system will be

supplied by FNS.

Computerization in public sector banks

Total number of branches in India 46,528

Partial computerization at branch level 16,526

Number of fully computerized

branches

13,078

Number of existing service branches 385

Number of partially computerized

service branches

63

Number of fully computerized service 318

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branches

Total ATMs installed 2490

Online terminals at corporate sites

installed

5980

Debit cards (as ATM cards) issued 30,62,628

In this prevailing scenario, a number of banks have adopted a new deployment strategy

of infrastructure outsourcing, to lower the cost of service channels. As a result, other banks

too will need to align their new technologies with their reinvented business models. The

required changes at both the business and technology levels are enormous. In a highly

competitive retail banking market, early adopters are profiting from increased efficiencies.

Even though there are certain limitations, it is heartening to see that many co-operative and

rural banks have taken the technology plunge and are able to offer the latest services to

customers at affordable budgets.

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As we move inexorably into the future, the banking sector is poised to scale new

heights, adopt advanced technologies and rise to new levels. The banker of the future will

look to technology as a tool to provide better quality and service to customers, while banking

technology will be increasingly sourced from trusted technology service providers to the

banking sector.

What has been achieved so far is only a modest beginning and many more industry wide

projects are in the offing. In addition, banks are yet to complete major technological up-

gradation of their systems. They are yet to see the real benefits of the technology. However,

the implications of large-scale technological usage are paramount for a robust and proven

disaster capability.

When banks depend on technology for their day-to-day business, the complexity and risks of

technology have to be understood and sufficient backup plan put in place to ensure continued

customer service.

In addition, as more technology based services are provided, the demand from

customers will keep increasing and banks would thereby end up in a technology war. In order

to win this war, investments in technology are going to increase and proper utilisation of

these investments is essential for banks to ensure that the systems deployed are fully

integrated with their operations.

Mumbai being the financial capital of the country will always set the pace of

automation in the banking and financial services industry.

It will also take the lead in deploying large-scale systems and reap the benefits. Several

banks, (RBI, SBI, BOB, BOI, CBI, Dena Bank, ICICI Bank, UTI Bank, etc.,) with their

headquarters in Mumbai, are already setting the pace of technology deployment. They have

set an example of how technology-based transformation is delivering enhanced customer

value.

It is only a matter of time before the Indian banking industry witnesses enhanced technology

deployment. With that, customers are assured of better service from the banking industry.

This would ensure better services to customers and also reduce the incidence of fraud or

scams in the banking industry.

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Documents

Automated System in Banking