The article presents a study that aims to analyze the role of data technology (IT) within the banking system. It’s helped the banking industry to affect the challenges the new economy poses. Quite most other industries, financial institutions believe gathering, processing, analyzing, and providing information so on satisfy the wants of consumers. Given the importance of knowledge in banking, it isn’t surprising that banks were among the earliest adopters of automated informatics technology.

The banking environment has become highly competitive today. To be ready to survive and grow within the changing market environment banks are going for the newest technologies, which is being perceived as an ‘enabling resource’ which will help in developing learner and more flexible structure which will 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 related to the banking business.

The Software Packages for Banking Applications in India had their beginnings in the middle of the 80s when the Banks started computerizing the branches in a limited manner. The early 90s saw the plummeting hardware prices and the advent of cheap and inexpensive but high-powered PC’s and Services and banks went in for what was called Total Branch Automation (TBA) packages. The middle and late 90s witnessed the tornado of monetary reforms, deregulation globalization, etc. coupled with the rapid revolution in communication technologies and evolution of the novel concepts of convergence of communication technologies, like the internet, mobile/cell phones, etc. Technology has continuously played a crucial role within the working of banking institutions and therefore the services provided by them. Safekeeping of public money, transfer of cash , issuing drafts, exploring investment opportunities and lending drafts, exploring investment being provided.

For the banking sector, technology has opened up new markets, new goods, new services, and more efficient delivery routes. Online electronics banking, mobile banking, and internet banking are just a few examples. Information Technology has also provided the banking industry with the time to affect the challenges the new economy poses. Information technology has been the cornerstone of recent financial sector reforms aimed toward increasing the speed and reliability of monetary operations and of initiatives to strengthen the banking sector. The IT revolution has set the stage for an unprecedented increase in financial activity across the planet. The progress of technology and thus the event of worldwide networks have significantly reduced the worth of worldwide funds transfer. Its information technology enables banks in meeting such high expectations of the purchasers who are more demanding and are also more techno-savvy compared to their counterparts of the yesteryears. They expect to be able to bank at any time and from any location. It’s been providing solutions to banks to need care for their accounting and back-office requirements.

Many banks have upgraded their services by incorporating computer and electronic technology. The electronics revolution has made it possible to provide ease and adaptableness in banking operations to the advantage of the customer. The e-banking has made the customer say good-bye to large account registers and massive paper hank accounts. The e-banks, which may ‘ call, as easy bank offers the next services to its customers like Credit Cards/Debit Cards, ATM, E- Cheque, EFT (Electronic Funds Transfer), DEMAT Accounts, Mobile banking, telephone banking, internet banking, and EDI, are all options available to you (Electronic Data Interchange).

The banking industry is slowly shifting from normal banking towards relationship banking. Traditionally, the bank’s relationship with its customers has been one-to-one via the branch network. This was put into operation with clearing and deciding responsibilities concentrated at the individual branch level. The top office had responsibility for the overall clearing network, the size of the branch network, and thus the training of staff within the branch network. The bank monitored the organization’s performance and set the selection-making parameters, but the knowledge available to both branch staff and their customers were limited to a minimum of one geographical location. And it’s now affecting the way banks provide services to their clients. However, this technology comes at a price, implementing all this technology has been expensive but the rewards are limitless.

The banking sector has embraced the utilization of technology to serve its clients faster and also to try to do more with less. Emerging technologies have changed the banking system from paper and branch-based banks to” digitized and networked banking services. Unlike before, broadband internet is reasonable and it makes the transfer of knowledge easy and first all banks’ accounting and management systems have been altered by technological advancements. It’s also affecting the way banks provide services to their clients. However, this technology comes at a price, implementing all this technology has been expensive but the rewards are limitless. Below I even have listed a variety of the roles of technology within the banking industry.

• E-banking: this allows the bank to deliver its services easily to its high-end customers. to form the system user friendly to all or any clients, banks have used a Graphical interface (GUI), with this software, customers can access their bank details on their own computers, make money transfers from one account to a different, print bank statements and inquire about their financial transactions. Another technology employed by banks to exchange data between the bank and clients is named Electronic Data Interchange (EDI); this software is often wont to transmit business transactions during a computer-readable form. Therefore the client on the other end is getting to be in a position to read the knowledge clearly.

• NRI Banking Services: This technology has been embraced in countries like India, the USA, UAE, just to say but a couple of. Since many folks go abroad to work, they have a requirement of supporting their families. As a result, technological advancements have made it simple for individuals to send money to their loved ones.

• RURAL Banking: Unlike within the past when banking was centralized in urban areas, now day’s technology has made it simple to line up banking facilities in rural areas. For example: In Africa, they need to introduce Mobile money banking facilities. During this case, a user during a country will have an account with a mobile company which is opened for free of charge. They will then deposit money thereon account via nearby mobile money operating center. This money is often withdrawn at any time any were therein area and that they also can receive or send money using an equivalent system.

Today, information technology is applied altogether the industries. The purpose of information technology in modern society is to manage data by storing, collecting, retrieving, manipulating, and supplying large amounts of vital data. The use of knowledge technology in the banking business has changed the industry. The way people live and work has altered as a result of this. From paper to computerized and networked banking services, the banking sector has evolved. As a result of the greater efficiency, productivity has increased.

The use of knowledge technology within the banking industry has been advantageous to the purchasers, the banks, and thus the workers. the purchasers have had several advantages. First, there are self-inquiry services.

Furthermore, the installation of ATMs, which provide nonstop cash withdrawals, has simplified transactions. Without going to the bank, money can be accessed from anywhere. Customers can transact from any branch via intra-city links thanks to the networking of computerized branches. Banks also provide 24-hour customer service for transaction-using phones. Banks can now perform multiple jobs at the same time after using information technology. The status of transactions is updated in real-time. There are many inquiry options available thanks to information technology, which aid the bank in business development and follow-up. Many banks base their choices on information gathered about customer behavior. This type of data is gathered through the use of computers and the analysis of transaction types and frequencies. All of this is made possible by technological advancements. Furthermore, reports and financial statements are generated automatically. The automatic balancing of accounts and interest calculations have substantially enhanced productivity. Automatic printing of covering schedules, deposit receipts, and passbook/pass sheet relieves employees of these time-consuming tasks, allowing them to devote greater attention to customer demands. Information technology, when used strategically, boosts industry productivity. When all transactions are automated, the decision-making process is simplified. The data is automatically processed, and the findings are forwarded to a variety of destinations. Customers can also receive automated SMS about offers and changes on their mobile phones, making marketing easier. However, there are reservations regarding the industry’s use of data technology. There have been instances of cyber-attacks on bank systems, resulting in money being transferred through networks of overseas accounts that are difficult to follow. Furthermore, technology cannot be totally trusted. It carries the risk of failure, which might be catastrophic. When the computers finally arrived. Many individuals lost their employment as a result of the layoffs. More people are losing their employment as information technology advances. It may be argued that using information technology boosts production, however, this only helps the bank’s owners as a result of their investment.

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