The banking sector has been
modernized by the strategic adoption of Information Technology (IT). Emergence of
IT in the banking industry has given impetus to e-banking.
The rapid switch to e-banking has paved the way for a major
restructuring of the entire banking system. Banks have started
redefining their business logic by adopting e-banking system.
The entire credit for making e-banking a success goes to the IT.
Innovations like call-centers and data warehouses offer a new
way for fulfilling the requirements of the customer through
Customer Relationship Management (CRM). IT-enabled banking
services helps customers to carry out their transactions, without
any constraints. E-Banking, as a delivery channel, helps banks
to offer many other services to their customers. In order to have
a competitive advantage, banks are now offering various
e-banking products. They are making all the efforts to meet the
expectations of their customers.
IT has enabled the banking industry to shift from the
`brick and mortar' structure to `click and order' model.
Transaction costs have reduced as a result and large volume of small as
well as huge transactions, are now, being executed at low cost
with great speed and high accuracy. Manpower requirements
have also come down and the productivity has vastly
improved. Drudgery and monotony in banking work has given place
to innovation and creativeness. Patrons of the Indian
banks have felt the positive impact of technological solutions
executed by the banks. Thanks to IT, a virtual menu is accessible
in terms of delivery channels, with the most visible benefits
happening in the area of banking services. Indian banks are now
able to cross-sell diverse products offering e-banking solutions,
e-payment, ATM facilities, mobile banking,
online-transactions, smart cards, Point-of-Sales (PoS) devices, biometric
devices, electronic fund transfers, etc. With technological
solutions evolving rapidly, new products and services, may soon
become the order of the day. It is important to understand here that
technology itself cannot develop in isolation but will be a function
of the environment that governs the growth of the banking sector.
IT facilitates banks to offer fee-based services also. IT-enabled
banking has helped in plugging the loopholes in the traditional
banking system. Of late, Indian banks are using IT to tap rural markets.
In order to serve the poor in the rural areas, they have started
innovating novel products and services. With the advent of IT,
Indian banks are able to offer high quality services at
affordable costs to all the sections of people. |
