CONTENTSSL.No. Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Topics Introduction of the study Introduction of the organization Discussion on training Findings Observation, Suggestion & Recommendation Summary
Chapter-7Webliography & Questionnaire
T.John College, Bangalore 2 Role of I.T. in Banking Industry
CHAPTER-1Introduction of the studyOverview of the study Role of I .T. in banking Objective of the study Scope of the study Methodology of the study Limitations of the study
T.John College, Bangalore 3 Role of I.T. in Banking Industry
INTRODUCTION OF THE STUDYBANKING Banking, the business of providing financial services to consumers andbusinesses. The basic services a bank provides are checking accounts, savingsaccounts and time deposits that can be used to save money for future use; loansthat consumers and businesses can use to purchase goods and services; andbasic cash management services such as check cashing and foreign currencyexchange. TYPES Four types of banks specialize in offering these basic banking services: 1) Commercial banks, 2) Savings and loan associations, 3) Savings banks, and 4) Credit unions. A broader definition of a bank is any financial institution that receives, collects,transfers, pays, exchanges, lends, invests, or safeguards money for itscustomers. This broader definition includes many other financial institutions thatare not usually thought of as banks. These institutions include finance Companies, investment companies, investment banks, insurance companies,pension funds, security brokers and dealers, mortgage companies, and realestate investment trusts. The following are the Scheduled Banks in India (Public Sector): y y y y y y y y State Bank of State Bank of State Bank of State Bank of State Bank of State Bank of State Bank of Andhra Bank India Bikaner and Jaipur Hyderabad Indore Mysore Saurashtra Travancore
T.John College, Bangalore 4 Role of I.T. in Banking Industry
y y y y y y y y y y y y y y y y y y
Allahabad Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of Commerce Punjab National Bank Punjab and Sind Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank
The following are the Scheduled Banks in India (Private Sector): y y y y y y y y y The y y y y y y y ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd following are the Scheduled Foreign Banks in India: American Express Bank Ltd. ANZ Grid lays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C.
T.John College, Bangalore 5 Role of I.T. in Banking Industry
y y y y y
Deutsche Bank A.G. Hongkong and Shanghai Banking Corporation Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG.
PURPOSE Banking services serve two primary purposes. First, by supplying customers withthe basic mediums-of-exchange (cash, checking accounts, and credit cards),Second, by accepting money deposits from savers and then lending the moneyto borrowers, banks encourage the flow of money to productive use andinvestments. This in turn allows the economy to grow.Enabling the flow of money from savers to investors is called financialintermediation, and it is extremely important to a free market economy. TECHNOLOGY There is an imperative need for not mere technology up gradation but also itsintegration with the general way of functioning of banks to give them an edge inrespect of services provided to their constituents, better housekeeping,optimizing the use of funds and building up of MIS for decision making, bettermanagement of assets & liabilities and the risks assumed which in turn have adirect impact on the balance sheets of banks as a whole. Technology hasdemonstrated potential to change methods of marketing, advertising, designing,pricing and distributing financial products and services and cost savings in theform of an electronic, self-service product delivery channel. These challenges callfor a new, more dynamic, aggressive and challenging work culture to meet thedemands of customer relationships, product differentiation, brand values,reputation, corporate governance and regulatory prescriptions. Technology holdsthe key to the future success of Indian Banks. Internet, wireless technology and global straight-through processing havecreated a paradigm shift in the banking industry. The explosive growth of both theInternet and mobile and wireless technology is revolutionizing the way thefinancial
T.John College, Bangalore 6 Role of I.T. in Banking Industry
industry conducts business. The overall wireless technology market isexpected to grow profoundly in the coming years.
ROLE OF INFORMATION INDUSTRY.
The role of information technology (IT) in the banking industry. Based on the technological innovations have enabled the industry to open up efficient delivery channels. It is said that IT has helped the banking industry to deal with the challenges the new economy poses. The study also examines the views of bank employees on the implementation of IT in banks. According to the observation, private and foreign banks use more IT-related banking services than public sector banks. OVERVIEW OF THE STUDY If one were to say that the future of banking in India is bright, it wouldbe a gross understatement. With the growing competition andconvergence of services, the customers (you and I) stand only tobenefit more to say the least. At the same time, emergence of amultitude of complex financial instruments is foreseen in the nearfuture (the trend is visible in the current scenario too) which is boundto confuse the customer more than ever unless she spends hours(maybe days) to understand the same. Hence, I see a growing trendtowards the importance of relationship managers. The success (orfailure) of any bank would depend not only on tapping the untappedcustomer base (from other departments of the same bank, customersof related similar institutions or those of the competitors) but also onthe effectiveness in retaining the existing base.India has witness to a sea change in the way banking is done in thepast more than two decades. Since 1991, the Reserve Bank of India(RBI) took steps to reform the Indian banking system at a measuredpace so that growth could be achieved without exposure to any macroenvironmentand systemic risks. Some of these initiatives werederegulation of interest rates, dilution of the government stake inpublic sector banks (PSBs), guidelines being issued for riskmanagement, asset classification, and provisioning.
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Technology hasmade tremendous impact in banking. Anywhere banking andAnytime banking have become a reality. The financial sector nowoperates in a more competitive environment than before andintermediates relatively large volume of international financial flows. Inthe wake of greater financial deregulation and global financialintegration, the biggest challenge before the regulators is of avoidinginstability in the financial system. NEED FOR THE STUDY y The deeper the company understands of consumers needsand satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important. y This study will help companies to customize the service and product, according to the consumers need. y This study will also help the companies to understand the experience and expectations of the existing customers.
OBJECTIVES OF THE STUDY The vital objectives of this project arey To enhance and sharpens skill. y To get awareness about changing business environment in banking. y To understand the retail banking process. y To find out the differences among perceived service and expected service. y To produce an executive service report to upgrade service characteristics. y To understand consumers preferences. y To access the degree of satisfaction of the consumers SCOPE OF THE STUDY This study is limited to the consumers within the city.The study will be able to reveal the preferences, needs, satisfaction ofthe customers regarding the banking services w.r.t. the new technology, It also help banks toknow whether the existing products or services they are offering arereally satisfying the customers needs or not.
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1. The Perception of Employees towards the Implementation ofInformation Technology in the Bank. 2. To assess the Customers' Satisfaction Level towards the Use of Information Technology related Services in the Bank. METHODOLOGY OF THE STUDY A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile ofa group of problems, people, or events.Such studies may involve the collection of data and the creation of adistribution of the number of times the researcher observes a singleevent or characteristic (the research variable), or they may involverelating the interaction of two or more variables. Organizations thatmaintain databases of their employees, customers, and suppliersalready have significant data to conduct descriptive studies usinginternal information. Yet many firms that have such data files do notmine them regularly for the decision-making insight they mightprovide. This descriptive study is popular in business research because ofits versatility across disciplines. In for-profit, not-for-profit andgovernment organizations, descriptive invest