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Saturday, 2 April 2022

How Technology Impact the Banking Industry

  Ahamed       Saturday, 2 April 2022

IMPACT OF TECHNOLOGY ON BANKING

Technology has impact the way impect banking is done. It has made banking easier, faster and more accessible to everyone. It has enabled people to do their banking through their mobile phones and also enabled customer service to be done through messaging platforms like Facebook and Twitter. This blog will examine some of these trends and how they are changing the way banking is done.

Impact of technology on banking

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EXPERIENCE BANKING LIKE NEVER BEFORE

Banks have undergone a metamorphosis. In the past, they were seen as traditional lenders who accepted and saved people's deposits and then passed these on to those wanting to borrow money via loans. Their customer base used to be based solely on the basis of money saved with them, but now things are completely different impact. Modern banks serve individuals and businesses in a wide range of capacities, whether it's through issuing loans or through offering insurance and investment services that help customers manage their assets; this has led to a focus on things beyond lending over the years. impact Banks are now categorized based on their target market - small business banking, retail banking for mid-sized companies, or corporate banking for large businesses usually with international dealings who want integrated financial planning options or need short term assistance. This is a great deviation from its traditional impact.

INITIAL INITIATIVES OF THE RESERVE BANK

Because the Reserve Bank  impact of India is considered to be a central bank, its main focus is on developing banks and financial markets. In the 1950's and 60's, this was referred to as "organizational development," while during the 60's, 70's and 80's this was referred to as "output improvement." During the 80’s, the government felt that technology would help improve productivity in the banking industry.

From time to time, the Reserve Bank has commissioned working groups and committees to study the emerging trends and innovations happening in technology, including trends in financial technology.

THESE GROUPS INCLUDE:

  • -Rangarajan Committee-1 In the early 1980s.
  • -Rangarajan Committee -Late 1980s.
  • -1Saraf Task Force in the early 1990s.
  • Vasudevan Working Group in the late 1990s.
  • Barman Working Group in the early 2000s.

Recently, the impact Reserve Bank of India established a committee on digital banking to investigate new guidelines related to financial technologies. The Reserve Bank selected its members based on their experience and expertise rather than surveying all available experts. At the start of the 1980s, competition between banks increased as they focused on improving their IT systems. In this time period, biometric identification was used in mobile deposit applications. These were used primarily for domestic interbank payments and account management purposes such as cashing checks and making withdrawals from an ATM with the use of a debit card or wallet.

TWO IMPORTANT DECISIONS OF THE RESERVE
BANK IN THE 1990S ALWAYS CHANGED THE SITUATION:

a) The Central Bank has advised us to use technology in the full expansion of new private sector banks as a precondition for licensure. We can only achieve this if we receive support and help from the technical side of things.

b) The establishment of a specialized research and development institute for the banking sector has become more relevant than ever and technology based solutions are an essential support function for absorbing the economic and social changes in this sector.

The protest effect on the restructuring of the banks was compounded partly by the so-called technology-savvy banks, who entered the financial market as such in front of their customers. Many innovations like machine-based (ATMs and PC banking), card based (credit / debit / smartcards), telecommunication-based (telebanking and internet banking) are offered at any time and anywhere by Indian banks. Especially IDRBT has been instrumental in establishing a modern, secure and highly secure communication backbone called INFINET from INFINET as a closed user group solely for the banking sector in India.

CHANGING THE FACE OF BANKING SERVICES

When it comes to banking, the purpose is really simple. You want to be able to deposit money and withdraw from your account as seamlessly and quickly as possible, but how you go about this has changed since India liberalized. Before liberalization, banks were much different from what they are today. They were exclusive institutions that served a specific impact in society and offered almost no other services aside from deposit and withdrawal. After liberalization however , we've seen a very different scene unfold. Customer service is more responsive now because when you think of banks, you're thinking of incentives to attract business, which is why services have rapidly ramped up so far as speed is concerned with ATM machines being opened 24/7 all around the country! This was unthinkable just 20 years ago!

Technology is having a huge effect on the way that people manage their finances. The internet, particularly when combined with mobile technology is revolutionizing how things are conducted in the financial sector. This faster and more efficient form of banking known as Internet Banking is transforming the whole banking industry and seeing more customers than ever before!

If more people got a taste of innovative products and stellar customer service, they would be more inclined to finance their futures with us. Products are very essential but so is the ease at which one can deal with them, and this is where we have made it easy for our customers. We use technology to keep things simple so that you can make the most out of your future sans irritating delays or clumsy processes. We pride ourselves on our ability to achieve perfection in everything we do, from checking every loan application thoroughly before approving it to ensuring that each product holds true value for money . All said and done - if you're looking for mere memorandums or hollow promises, this is not the place to find solace. Yet if you are willing to invest your trust in us, you will not be disappointed because transparency is what makes our relationship special. So come along for an adventure-filled ride with us!

PLASTIC MONEY

Smart cards are beautiful gifts for Indian customers. No longer having to carry too much money works wonders. Now many new features have been added to make the cards more attractive. They work on formula purchase, refund now, different instant cashback and discounts to use it just like a credit card at places where you never used to thought possible before!

A credit card is a financial instrument that can be used to borrow money or make purchases on credit (i.e. pay at a later date). These are made available by organizations, like banks and retailers, who typically publish their terms and conditions. Depending on the level of credit they have been given, these cards come in a variety of sizes including classic, gold or silver.

If you have access to a lot of capital through an overabundance of funds or some other source, you may be better off using your own money when it comes to funding projects or new business endeavors. The reason being, your own money is likely going to be cheaper than any other financial resource based on the promise of potential pay-back and interest fees.

For many years, India's banking sector has been a forerunner in terms of innovation, taking the market by storm with an array of products to choose from, designed to fit customers needs. More and more banks were focused on including customer feedback into their development process and strengthening relationships with clients, leading to significant changes all around that attract customers toward new offerings, while also meeting the expectations of existing customers with innovations like faster processing times.

MOBILE BANKING

Taking advantage of the growing market for mobile phones and cellular services many banks have introduced mobile banking, which allows customers to make banking transactions using their mobile phones. HDFC's Easy Banking, for example, has introduced SMS services in recent years.

RURAL BANK

KCC, one of the innovative schemes launched in rural banks, helps farmers procure their agricultural inputs. The KCC card is a convenient way for farmers to purchase the things that they need; this often forgotten segment of society is given much-needed attention and care through schemes such as these.

Decades ago, private sector banks also recognized rural communities as a lucrative market and began setting up bank accounts for people in underdeveloped areas. In 1995 ICICI Bank established the first banking infrastructure in rural Tamil Nadu when it rolled out automated teller machines (ATMs) at 200 locations.

NRI SERVICES

Throughout the years, India has had a high number of residents who have moved abroad to countries such as the United Kingdom and Canada to live there, with these immigrants often sending money back to their families who continue on in India. In recent years, banks have begun offering remittance services for customers related specifically to this impact, which is one of the more recent developments in money transfer.

E-BANKING

E-banking has become a popular solution to the banking and financial services industry. E-banking helps companies reduce costs and time by providing cheaper and faster ways to deliver goods to customers, such as e-commerce solutions. Such financial services also get to choose some of the ways in which their customers prefer obtaining these solutions with options like self-service kiosks or mobile apps, and even when it comes down to choosing what form (television ads, radio announcement, print media) and how many times (once a week or once an hour) that their product is delivered. An example of an e-bank is the one powered by "Customer-Bull" who delivers using "Bank-Bush" solutions from his electric car that runs on Google's Android platform!

CONCLUSION

Technology is an impressive feat of intellectual prowess. It has allowed us to network and communicate with other humans in ways that weren’t previously possible. One advancement that highlights this communication through technology is the use of a debit card that allows users to pay for goods without having to hand over cash or enter pin numbers at ATMs as well as on various websites. Technology has become a driving point for banks and similar institutions such as mobile banking options, smart banking technologies and more. Wherever there is technology, one can assume that technology would be helpful in making transactions easier and faster than ever before. One example of this kind of technological revolution is geometry which allows users not just to view many shapes in all kinds of dimensions but also to manipulate these shapes in a way that was previously impossible!


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