Banking sector in India remained mostly unscathed from global financial crisis of 2008, but faced a slowdown in the growth momentum due to weakening trade and finance. But the long term sustainability of banks in India will depend mostly on ability of banking sector to mobilize the savings and meet the credit needs of growing economy through innovative products and services that poster financial inclusion. The emerging economic scenario with huge prospects, expected positive economic performance, favorable demographic dividend, emphasis on infrastructure development and extended financial inclusion provides a number of opportunities to the banks. To benefit from these opportunities Indian Banks need to be globally competitive and well aligned with the Information Communication Technology.
Information Technology has given rise to new innovative product developments and also their delivery in the banking and financial sector. Customer service and customer satisfaction has become the motive of every bank. In this scenario banking through internet has emerged as a strategic move to achieve efficiency and it also has become a competency. IT also reduced operating costs by replacing paper based and labor intensive processes with automated processes. Total value of digital payments in India in 2014 was Rs. 1.2 trillion a 40% increase over 2013 from Rs. 85800 crore due to growing internet penetration, growing e-commerce and ease of payments according to a report by Internet and Mobile Association of India.
Using modern technology in implementing the banking products have improved the efficiency in payments system helping smoother functioning of the banking and financial sector. Using IT, cost-effective, speedier and hassle free products and services can be provided to the customers. This will improve innovation in the products developed by the banks and also increases reach of banks to remote places.
Having many advantages will also bring disadvantages. Implementing IT will cost huge IT development and installation costs. Along with speed of payments, risk will also increase proportionately as the systems may not be completely safeguarded. There cannot be guarantee for the customer data which is confidential. Though it has some disadvantages, it is always important to meet the demands of the customers. Customers are getting closer to technology, so it is important to serve them innovative banking products accordingly.
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5 Comments. Leave new
Integration of IT and banking has simplified the working of banks and lives of consumers.
IT like all other aspects of our life, took a major place in banking too
Nice article.
Very interesting. Well written article.
Interesting read 🙂
Nice