Technology in Indian banking is already transforming the new concepts and facts in financial services, allowing rapid change in the traditional banking landscape in few years. Involvement of safety features through technology, such as advanced cryptography and biometrics, ensure the protection to banks against scams, and remote applications and also make sure that maximum of your tasks are completed without having to visiting the branch.
Technology in banking has brought up a complete paradigm shift in the present functioning of banks and delivery of banking services to its customers. Days are gone when every banking transaction required a personal visit to the branch. In today’s scenario, most of the financial transactions could be done from one's home and customers need not visit the bank branch for doing the same. Growth of technology in the financial sector has expanded due to Internet and mobiles. The IT (Information technology) enabled solutions available today is being leveraged in customer satisfaction, driving automation and many more. Most of the IT initiatives of banks in India started in the late 1990s, or early 2000, with an emphasis on the implementation of core banking solutions (CBS), atomisation of bank branches and centralisation of all the financial operations in the CBS.
Over the last decade of Indian banking sector, it has been observed that most of the banks are capable of offering technology enabled services. While moving from a manual and scale-constrained environment, it is difficult to predict the adverse scenario where the banking sector was in the era before the reforms, when a simple money deposit or withdrawal of money would require a whole day. Use of ATMs, mobile banking and various online bill payments facilities allowed the customers to complete their tasks by without visiting the branch. Use of the technology in banking services is provided by the term called E-banking as discussed below.
E-Banking-
It is also known as web banking or in common terms “Internet Banking”. In 1997, ICICI bank was the only bank in India offering internet banking services. But today, most of the new-generation banks offer the same to their customers. It allows the easy and safe accessing of our banking records on 24*7*365 basis i.e. any time banking. Technically it is the use of networking where all banking systems are connected with each other. Through this a customer can access his saving account as well as other financial details through his computer or mobile phone. E-banking services are provided under the following phases:-
Phase I- Under this all the banking services are offered by bank website itself. The customer needs to register himself to attain these services.
Phase II- Customer can access his bank account details through various devices like smart phone, laptops, desk top etc. Under this scheme, customer can access the various services like checking their account balance, etc by e-banking.
Phase III- Bank allows its customer to use e-banking facilities to operate accounts for funds transfer, bill payments etc by making collaboration with third party.
Benefits of E-banking- E-banking is beneficial for both bank and customers. Some are discussed as follows:
For Banks-
• Less expensive due to reduced transaction costs.
• Less Error.
• Reduced paper work.
• More and effective services to customers.
For Customers-
• It is very convenient to customer to access account details.
• Fast and time saver for customers.
• Any time access for account details.
E-Banking Services-
E-banking services are provided to customers through the following:
· ATM- ATM is the automation of the Teller. The first ATM appeared in London in 1967 whereas in India the first ATM was setup in 1987 by HSBC bank in Mumbai. An ATM is an electronic cash dispensing and accepting machine. Banks installed these machines to dispense cash to the bank customers for 24*7*365 basis. For availing ATM services, customer needs to apply for ATM service to the bank and giving a prescribed fee a customer can avail this service. In general, banks make certain restriction in using this service like limitation on cash withdrawal and limit on certain transactions.
· Debit/ Credit Card- Debit Card or Credit Card are the two-service provided by the bank to his customers. Both of them are payment card that has been issued to the customers for making the payments. The major difference between Debit and Credit Card is in case of debit card the customer can avail the services of cash withdrawal or payments of bills by using his saving bank account i.e. debit card is linked with customers saving bank account. Whereas credit card also allows the customers to pay for various goods and services or get cash from ATM machine but after some time the amount has to be repaid to the bank by the customer i.e. one can say it is a type of unsecured loan provided by the bank to his customers as per his credit history/ good will.
· Mobile Banking- This is a system when bank would provide its services to his customers through mobile phone/smart phone. Under this service, the user can access his account details through mobile devices and it can also use this to make bill payments or transfer money from one location to other location.
· E-Wallet(s) - E-wallet is an e-card concept i.e. a user can use this service by using through online mode. E-wallet is a concept where user can link its saving bank account. In response to this a customer can get a user name and password for sending the payment to respective site. Some popular Wallets are: BHIM (Bharat Interface Money), IRCTC, PAYTM, MOBIWIK, AMAZON PAY, PhonePe, etc.