managing an account segments has made quick walks in improving and make even
itself to the new focused business condition. Indian Banking Industry is amidst
the Information Technology Revolution and its progressions has advanced the
opposition among the Banks around the world. Indian financial condition is
seeing way breaking change measures. The money related area, of which the
managing an account industry is the biggest player, has likewise been
experiencing a transformative change. Today, we are having a genuinely very
much created managing an account framework with various classes of banks – open
segment banks, remote banks, private area banks – both old and new age, local
provincial banks and co-agent keeps money with the Reserve Bank of India as the
wellspring Head of the framework. Amid the most recent a long time since 1969,
enormous changes have occurred in the keeping money industry. The banks have
shed their conventional capacities and have been advancing, enhancing and
turning out with new kinds of the administrations to oblige the developing
needs of their clients.
sector is the key player of an economy. Since origin this sector has gone
through many changes. People today are highly bankable. So there have been many
changes and innovations in this sector. Many reforms have been made. Banking is
now confined not only in retail banking. Shape of banking has been modified and
to meet the demand of people E-banking, Islmaic banking etc have been invented.
Banking products has been modernized and people are now enjoying so many
banking products. This paper focuses on all the changes and trends experienced
by banking sector.
is one of the best 10 economies all around, with tremendous potential for the
managing an account segment to develop. The most recent decade saw a colossal
upsurge in exchanges through ATMs, and Internet and portable keeping money. In
2014, the nation’s Rs 81 trillion (US$ 1.34 trillion) managing an account
industry is set for a more noteworthy change. Two new banks have effectively
gotten licenses from the legislature. Besides, the Reserve Bank of India’s
(RBI) new standards will give motivating forces to banks to spot potential
awful credits and make restorative strides that will check the acts of rebel
Indian government’s part in extending the saving money industry has been
critical. Through the Financial Inclusion Plan (FY 10– 13), keeping money
availability in the nation expanded more than three-crease to 211,234 towns in
2013 from 67,694 toward the start of the arrangement.
are also looking at new ways to attract customers. In September, 2013, ICICI
bank leveraged the popularity of the social platform, and launched its Facebook
banking service, Pockets. The service enables customers to transfer funds and
pay bills from within the website.
Money related area change has been started in such
huge numbers of nations with a specific end goal to accomplish the monetary
advancement. Imperative issue is currently whether there exists any association
between the improvement and change; and whether money related changes in
creating nations empower development. In spite of the fact that few scholastic
writing and observational investigations demonstrate that monetary change
creates money related framework by enhancing saving money industry’s
aggressiveness, activation of funds, and assignment of productivity whereby
accomplishing monetary development (Besanko and Thakor, 1992; Claessens and
Laeven, 2004), there are restricted examinations those show budgetary changes
are troublesome and expands the weakness of the monetary framework (Rajan,
1992; Allen and Gale, 2000).
Literatures analyze several aspects of banking
sector reforms and show its consequences in different countries. Khan and Aftab
(1994) reviewed the effect of denationalization and privatization aspects of
financial reforms in Pakistan. They conclude that denationalization of banks
improved performance of these banks in terms of growth of assets, recovery of
loans and ratio of bad loans.
Impact of banking sector reforms to the fiscal and
monetary stability of many transitional economies was assessed by Feldman and
Wagnar (2002) and they observed that the success of reforms significantly
contributes to the fiscal and monetary stability.
Relationship between reform and bank efficiency was
also examined by Fu and Heffernan (2008). They studied the performance of
Chinese banking sector, and reviewed the reforms and their influences on the
ROE, ROA and NIM. They found a significant relationship between profitability
Brownbridge and Gockel (n.d.) examined necessity of
banking sector reforms in Ghana in the 1980s and evaluated its impact. They
concluded that while the reforms have brought about improvements in the banking
system, banks are now more prudently managed and supervised.
OBJECTIVES OF THE STUDY
main objective of the study is to understand Banking sector.
explain the changing banking scenario
understand the emerging technological trends in banking sector in india.
The present research study is based on the analysis
of the secondary data and the research proposes to throw light on the emerging
technology trends in the banking sector. The secondary data that are mainly
used are books realted to E-Banking,Banking Services Quality, E-Commerce,
M-Commece,Infromation Tecnology, Marketing, Banking, Finance etc.
research study pertaining to the above objectives was collected and reviewed
the literature on the topic concerned.
TECH TRENDS THAT WILL CHANGE BANKING EXPERIENCE IN INDIA
2016 was, undoubtedly, the year of disruptions on a global scale. The
events of last year – most notably India’s demonetisation drive, the US
elections and Brexit – have begun to or are soon expected to create
far-reaching impacts on globalisation. Of these, the banking and financial
sectors are the ones that are likely to witness the most changes. Looking at
the scenario in India, on one hand are traditional banks that are still
encumbered by legacy systems and processes. On the other, a global, digital India
has entered an age of innovation with the adoption of updated technology.
Nevertheless, despite their legacy systems, Indian banks are leading the
digital transformation by constantly reinventing their business to stay ahead
in this age of digital hyper-connectivity.
The new financial
year can be expected to fuel growth in the banking sector with the development
of latest innovations like Unified Payments Interface (UPI), adoption of cloud
technology, etc. Some of the key technology trends that will reshape Indian
banking are as follows:
1. Open banking
In 2017, many
banks have already introduced and are operating their open, unified solutions
and many more are likely to follow. Consequently, this will facilitate the
creation of a well-connected financial and non-financial ecosystem of multiple,
interconnected services and service providers.
launched Unified Payments Interface (UPI) by the National Payments Corporation
of India (NPCI) will particularly serve as a gateway to future innovations in
the open banking domain. UPI also promises to enable payment service platforms
to enhance their products and offerings without being bound by account
relationships. Customers today desire maximum flexibility, which unified
interoperable interface guarantees, allowing for innovation among service
providers to drive improved customer experiences.
2. Cloud technology
is the one technology that supports many other disruptive technologies such as
Big Data, artificial intelligence (AI), blockchain, IoT. The more progressive
banks around the world have already made significant headway with the adoption
of cloud computing, and Indian banks are fast warming up to its many benefits.
They have begun to realise the degree of agility it brings into business, a
fact that has already been evident through the success of fintech companies. As
a result, business models for banks and fintech companies in the future are
expected to give much greater emphasis to cloud computing. Demonetisation has
propelled India’s move towards being a cashless society, or at least a less
cash-dependent society; cloud technology will provide banks the much-needed
bandwidth to deal with the rising demand for and scale of digital transactions.
be a substantial force enabling banks through the process of reinvention and
satisfy increasing customer demands. However, this will not be the year when
blockchain goes mainstream, but banks will take specific projects from pilot to
production stage and power inter-organisational processes through blockchain. A
partnership between Emirates NBD and ICICI Bank announced in October
2016 will see the launch of a blockchain pilot network to process
international remittances and trade finance and is expected to herald the
transition of blockchain into mainstream banking in the country.
4. Artificial Intelligence
intelligence (AI) has the potential to transform both front office and back
office operations with its self-improving programs. The brilliance of AI has
already been evident in the enhanced customer experiences and seamless,
differentiated services on digital channels. It has also helped in creating
advanced security measures by integrating with banking infrastructure. The use
of intelligent digital assistants is now common in some of the more developed
banking markets like US, Japan and Hong Kong. The self-learning capabilities of
these programs help them get better with every subsequent interaction.
5. Simplifying banking architecture
The foundation for
the integration and development of any of the above technologies will be the
simplification of banking architecture. Banks will gradually break down their
architecture into components in place of the conventional monolithic structure.
Simply put, complex architecture will be split into smaller fragments for easy
deployment and upgradation of certain functionalities. Besides enabling agile
modernisation to keep up with technological trends, compartmentalisation will
also allow to mitigate risks associated with specific projects. In addition,
banks will be able to enhance their capabilities further through the
implementation of enterprise-class applications.
strategy has been adopted by many Indian banks to provide customised offerings
through mobile apps. There are other methods of customer interaction besides
apps such as smart virtual personal assistants on mobiles that can drive
greater, more interactive customer engagement. New-age service providers are
leading by example; Ola Cabs now allows customers to make bookings through
Siri. So, it wouldn’t come as a surprise if Siri soon helps you move money
around or open a new fixed deposit account with your bank.