Both public and private banks are spending large amounts of money on technology to provide innovative products and services to their customers with more convenience and satisfaction. Technology is reducing the cost of transaction and helping to increase customer base and enable wider reach. These innovations are happening not only in the retail banking segment but also in the corporate segment.

"Banks' IT spending in China is growing rapidly at 23.9% year on year, and will reach US $10.5 bn by 2005" according to a report published by www.celent.com

In India too, banks are spending huge money to acquire latest technology. Banks are adopting the cutting edge technology to fight competition and improve their margins. There are several tech savvy banks in India like ICICI Bank, HDFC Bank etc., that are still spending more to acquire highly developed technology. Public sector banks are also in the race, upgrading their tech edge; for e.g., State Bank of India is spending around Rs. 500 cr to acquire ultra modern technology. "Technology in modern banking is not an option, it is a necessity", according to a banker. Besides private and public sector banks, urban cooperative banks are also going tech savvy. Maharashtra's Greater Bank, a UCB, has almost all-innovative channels. It is expected that a complete change will occur in the banking process in the next 3-5 years.

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