Many Indian banks are adopting the information technology not merely as a frill, but as a dire need. It is helping the banks in many core and diversified functions. Technology is key business enabler in six critical areas of banks. These are augmenting profit pool, operational efficiency, customer management, product innovation, distribution and reach, and efficient payment and settlement system. For the success of any IT program, integration of IT and business strategy is crucial factor.

Banking basics have undergone radical shifts, thanks to the advent of modern technology, increasing pace of globalization and the need for stronger fundamentals to operate in the fiercely competitive environment. The digital divide among Indian banks that was quite discernible before the millennium has considerably narrowed down with many banks taking to technology not merely as a frill, but as a dire necessity. Technology today catalyzes many core and diversified functions in banks, including issues like transaction automation and multiple delivery channels, product innovation, data warehousing and effective MIS, secured storage mechanisms and a real-time based payment and settlement system.

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