Role of It in Banks

1560 WordsMar 6, 20137 Pages
Role of Information Technology (IT) in the Banking Sector Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions associated with the banking business. The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerising the branches in a limited manner. The early 90s…show more content…
All these banks are using home banking as a key “pull’ factor to remove customers away from the well entered public sector banks. Many banks have modernized their services with the facilities of computer and electronic equipments. The electronics revolution has made it possible to provide ease and flexibility in banking operations to the benefit of the customer. The e-banking has made the customer say good-bye to huge account registers and large paper bank accounts. The e-banks, which may call as easy bank offers the following services to its customers: * Credit Cards/Debit Cards * ATM * E-Cheques * EFT (Electronic Funds Transfer) * DeMAT Accounts * Mobile Banking * Telephone Banking * Internet Banking * EDI (Electronic Data Interchange) Benefits of E-banking: To the Customer: * Anywhere Banking no matter wherever the customer is in the world. Balance enquiry, request for services, issuing instructions etc., from anywhere in the world is possible. * Anytime Banking – Managing funds in real time and most importantly, 24 hours a day, 7days a week. * Convenience acts as a tremendous psychological benefit all the time. * Brings down “Cost of Banking” to the customer over a period a period of time. * Cash withdrawal from any branch / ATM * On-line purchase of goods and services including online payment for the same. To the Bank: * Innovative, scheme, addresses
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