Technology in Banking[1]

7/31/2019 Technology in Banking[1]

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Technology in Retail BankingTushar Ambwani (A006)

Swetha Avula (A008)

Deepak Kadam (A028)

Shweta Mehani (A035)

Neha Mittal (A039)

Rishit Parikh (A043)

Aniket Rane (A046)

Niral Shah (A053)

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CONTENTS

Evolution of technology and Statistics Technology in

Payment Systems

Mobile Wallet

Internet Banking

Fraud Detection

Prepaid Cards

Improvements in processes Recommendations

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Evolution of technology

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Evolution of Banking Technology

Main Driver: RBI

Main Purpose: 1. Housekeeping2. Increased efficiency of operations

3. Increased customer service

Ref: Uppal R. K., (2008), Banking With Technology,

New Delhi, New Century Publications 4


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Initiatives by RBI..

Ref: http://www.rbi.org.in/home.aspx 5

Year Action Implementation

1982 MICR feasiblity Late 1980s

1983 Rangarajan Committee I Immediate

1987 BANKNET, SWIFT 1991

1988 Rangarajan Committee II Immediate1994 ECS, EFT feasibility Immediate

1995 Nationwide EFT 1997-98

1996 IDRBT -

2003 SEFT Immediate

2004 NEFT, RTGS Till 2006

2008 CTS in NCR region 2008


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Statistics

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Total Cheque Clearances Vs. Time

0

200

400

600

800

1000

1200

1400

1600

1980-81 1990-91 2000-01 2010-11

No.

Oftransactions(Millions)

Year



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Total Cheque Clearance Amount Vs. Time

0

2000000

4000000

6000000

8000000

10000000

12000000

1980-81 1990-91 2000-01 2010-11

Rs.

Cror

es

Year

Cheque Clearing Value

Agregate Deposits inBanks



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NEFT & RTGS Transactions


-

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

14,000,000.00

16,000,000.00

18,000,000.00

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Jun

/08

Aug

/08

Oc

t/08

Dec

/08

Fe

b/09

Apr/

09

Jun

/09

Aug

/09

Oc

t/09

Dec

/09

Fe

b/10

Apr/

10

Jun

/10

Aug

/10

Oc

t/10

Dec

/10

Fe

b/11

Apr/

11

Jun

/11

Aug

/11

Oc

t/11

Dec

/11

Amount/No.o

ftransactions

Time

NEFT No. of Transaction RTGS No. of Transactions

NEFT Transaction Amoun (Rs. lakhs) RTGS Transaction Amount (Rs. Crores)


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ECS transactions


0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

No.ofTra

nsactions

Time

ECS Credit Volume ECS Debit Volume ECS Credit Value (Rs. Lakhs) ECS Debit Value (Rs. Lakhs)

Transac

tion

Am

oun

t(Rs.

La

khs

)


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Technology in

Payment Systems

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RTGS Types

Ref: http://www.bis.org/index.htm 12


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Mobile Wallet

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VisionMobiCASH

BANKSNetworkProvider

HardwareSolution

MobiCash

Airtel Money Internet Banking

Nokia Money

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VisionMobiCASH

Independent of Network provider and Hardware Solution Provider

First full fledged wallet - fund transfer, cash withdrawal, utilitypayment

Long Port message service

Pilot at Delhi, Mumbai; Expected launch on 31 March 2012

Tested for 54 Mobile handsets before launch excluding Blackberry

Wallet to Wallet: Rs 0.1/ transaction Wallet to SBI account: Rs 0.1/ transaction Wallet to interbank account: Rs 10/ transaction

**** Interviewed Mr Pravin Kumar, New Business Products, AGM ,SBI.

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Self Service Banking

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VisionBunchNoteAcceptor

Biometric identification along with user-id authentication

Money will be credited to the account on Real Time Basis.

Allowed denominations are 100, 500, 1000.

Pilot Projects in 10 branches across Mumbai with heavy footfalls

Interviewed Mr Balasubramanian V Iyer, IT Services, AGM, SBI

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Internet Banking



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Money Monitor (Yes)

Rs 249 + taxes per annum

Yoddle: account aggregator service

Retrieves transactions nightly

--------------------------------------------------

Other services offered are:

Bill Reminders, Reward Manager,Budget allocation, Detailed Reports,Asset Account.

Money Manager (ICICI)

Rs 365 + taxes per annum

Partnership with intuit and moneycontrol

Real time information of spends

Live Community Supports up to 50 FI

New Enter cash transactions bySMS

--------------------------------------------------

Other services offered are:

Bill Reminders, Reward Manager,Budget allocation, Detailed Reports,Asset Account.

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Fraud Detection

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VisionData Analytics

Loan application fraud detection

Application frauds Impersonation or Misrepresentation

Prevention is better a way to leverage the existing businessanalytics systems in place

Combines data intelligence, predictive analytics, decision-enabling technologies, strategy optimization, consulting services

Pay as you use service Axis Bank, ICICI Bank, HDFC Bank

With growing sophistication of fraudsters in creating false documents, it

becomes imperative for banks to collaborate and bring in technologysolutions that would significantly enhance fraud detection capabilities. TheExperian Hunter service offered in a hosted model will enable ICICI Bankto detect inconsistencies in applicant information and is expected to help

create a better quality portfolio. - Rajiv Sabharwal, Executive Director,ICICI Bank

21Ref: http://www.experian.com


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Previousapplications

Other

sources(Banks)

Experian Hunter

(Data Analytics)

Generalanamolies

Fraud detection

Rules

Fraudulent

Applicants

22

Info: Santosh Ghate,

HR Head, Experian India


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Advantages

Reduced fraud losses and bad debts

Reduced cost of processing the fraudulent application

Reduced turnaround time

Better customer service levels for genuine customers

Easier integration into existing Information Systems

23Ref: http://www.experian.com


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Prepaid Cards

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Freedom Prepaid Card


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VisionFreedom Prepaid CardAs Tool For Financial

Indias first multi-purpose Open Ended Prepaid Card :The Bank Led Model

Purpose: online payments, withdrawals at any ATM and at over 500,000 Merchant

Establishments that accept VISA /MasterCard

Minimum Rs. 250 and maximum Rs. 50,000

The Freedom Prepaid Card can be reloaded at ItzCash franchisee branded as ItzCash

World (ICW)

The annual limits of transaction are from 2L to 6L

The Freedom Prepaid Card offers Insurance Cover against Loss of Card/fraudulent

use of Card ,Accident & Death Cover & Health Insurance for self & Spouse

The Freedom Prepaid Card can be hot listed in case of loss or theft of Card

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Freedom Prepaid Card


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VisionFreedom Prepaid CardAs Tool For Financial

The Freedom Prepaid Card holder can also open a No Frills Account with DCB Bank

Prepaid Payment Systems can dramatically reduce the cost of delivering financial

services to poor people and the unbanked

For poor, Unbanked and Underserved people Prepaid Cards are alternative to

banking by including agent N/W

E-commerce and M-commerce industry may only be INCLUSIVE if supported with

Prepaid Payment Systems

Prepaid Payment Systems Track the utilization, frequency etc providing BETTER END

USE Monitoring, with audit trail to detect money laundering and any such suspicious

activity

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IMPACTS in Terms of Process Management


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VisionIMPACTS in Terms of Process Management

IT Governance

Improved auditing and control processes to prevent frauds.

Enhancing Enterprise knowledge Huge multitude of information collected through channels of technology

aid in decision making

Improving Business Continuity Management

Safeguards interests of key stake holders, reputation, brand and valuecreating activities.

Effective Business Process Re-engineering

As retail banking evolves, processes have to be re-engineered to adapt.

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RECOMMENDATIONS


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VisionRECOMMENDATIONS

Instant Card Machine

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G P S 5 1Processing


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information received

information flow

1.Persona

l2.KYC

ISSUE CARDS

3. RequestCred

itinfo

4. Credit info. received

5.Credit infotothebank

6.Card options and limits

displayed.

7. Customer chooses and waits

8.Cardembos

sed and delivered

G P S 5.1Processingand lookuptable

5.2 Info

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Vision Goal is to move fromtransaction base technology to admin base.

Aadhar limitations, CIBIL limitations and limited to the existing customers.

Faster data exchange through use of Infinet.

Benefits

Instant service provided to customers.

Cost savings by cutting down on operations(revenue can be used toadapt technology of this kind). Information from CIBIL obtained on run-time.

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VisionSMART TV Banking App

With expected growth rate of 150 to 300 percent in Smart Tvs, an app will addto customer service.

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QUESTIONS ?


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QUESTIONS ?

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Documents

Technology in Banking[1]