Question

Ekran Görüntüsü Köprü Yer Çapraz Üstbilgi Altbilgi Sayfa Metin Hizli İşareti Başvuru Numarası Kutusu Parçalar Bağlantılar Üstbilgi ve Altbilgi WordArt Büyük Harf esim Küçük Şekiller SmartArt Grafik Resim Çizimler Metin How the emergence of information technology (IT) may have changed the way typical bank conducts its operations?

Answer 1

When was the last time you actually walked to your bank physically and spoke to the teller? Several days ago or perhaps weeks right? Technology has had a very big effect on almost every area of our lives. From the way we work to how we associate with others or how we entertain ourselves, technology has altered almost everything.

The banking sector hasn't been left out either; the impact has been profound and has affected every part of banking from the way banks operate through to how clients access different banking services. Gone are the days of standing in endless lines to deposit or cash a check. Information is also now transferred and stored in a much more convenient and efficient way.

Prominent Advantages of IT emergence are mentioned below:

1. The World at your Fingertips

A lot of people will be able to relate to this, because in some way or the other, all of us are being effected by technology. From ordering food or shopping for clothes, everything is only a tap away. You also do not have the need to carry cash in hand, you can just make a digital payment from your E-Wallet. Similarly, through net banking, one is allowed to transfer money from one account to another, order for cheque books, check the balance, make payments, create Fixed Deposits, and so on.

2. Less Errors and Better Data Protection

In the olden days when banking was completely dependent on the human accuracy and skill, mistakes and errors were more apparent. As human capabilities have a limit, they are prone to skip certain things or make calculation errors. With the introduction of computers, the frequency of errors has reduced to almost nil. Also, another important perspective to this, is that it can protect the data much more efficiently. Today’s technology provides complete security of your transactions and safety of your data that there are very rare occasions on which the data is misused.

3. Better Customer Experience

The ancient system of banking was extremely tiring and lengthy that resulted in poor customer experiences. This was because one had to stand in long queues, file a lot of papers and be physically present. The advent of net banking and mobile banking has reduced the time you spend for banking related tasks and has also ensured hassle-free customer service even from a remote location.

4. Business Intelligence to Drive Profitability

RBI has encouraged all the Indian Banks to adapt Business Intelligence (BI) to increase the overall profitability in the industry. Business intelligence system provides data for historical, current and future trends. This data aids the banks in a way that they are able to take accurate decisions and thereby can bring an overall increase in the productivity, efficiency and profitability.

In a Nutshell

1. Work will be completed on time

2. People has not to waste there precious time

3. Work load on employee will be reduced

4. Payment form cheque will become faster.

5. Employee will be reduced due to technology and bank will be in greater profit.

Now let’s have a insight of how technology has changed the banking operations from old physical book keeping process to today's advanced computerized systems:

Development of Computerized Banking Software:

With the development of Banking Applications, the banks process becomes faster and more reliable and the record keeping and retrieval becomes much easier.

Development of Core Banking Solution:

However, the Computerized Banking offers great and reliable service but with the expansion of the Internet the concept of core banking comes into picture and whoa! there comes the new Core Banking System. With implementing the CBS, the banks branches are getting interconnected to common centralized database and hence, were able to provide Multi-City Banking.

Development of MICR Cheque Processing:

With the use of Magnetic Ink - the MICR Cheque Processing System has been developed and strategically implemented. This technology revolutionizes the cheque clearing process from over the counter to a more systematic procedure which is fast and efficient.

Development of Credit/Debit Cards (Plastic Money):

The magnetic data recording technology was used with the magnetic strips on the plastic cards and hence, the ATM/Debit/Credit Cards are used along with the ATM Machines which reduces the account holder's requirement to visit the branch within the banking hours to withdraw the money from his/her account.

Development of Internet Banking Solution:

With data being centralized, and increasing internet reach, the Internet Banking Solution was developed and now it is offered by almost every bank. The Internet Banking offers you many transactions and inquires to be performed online without visiting the branch.

Development of Banking Services Automation Solution:

The various banking automation systems also facilitated the users with ease of automated banking services like cash deposit machine, cheque deposit machine, passbook printing machine, automated inquiry manchine, etc.

Development of Mobile Banking Solution:

With the introduction of Mobile Internet and Mobile Application Development, the Mobile Banking Applications were developed and it makes your life easy just banking on your mobile which is truly anywhere - anytime.

Development of Cheque Truncation System (CTS):

With the refinement in imaging and internet technology, the Cheque Truncation System came into existence. The CTS removes the movement of physical instruments (cheques, demand drafts, warrants, etc.) which was required in old MICR Clearing System. With this the clearing process becomes more fast and secure.

Development of Online Loan Processing:

The development of very intelligent system which process the pre-approved online loan applications of the customers and disburses the amount online. A great facility with ease of availing the loan within seconds and that to at any time.