PRESENTED BY : GEETA BINDRANI 05 JYOTSNA

The two letters which have changed the way businesses operate has been IT

 And no other sector has

benefited to such a large extent as the financial sector, with the Banking sector in particular, from the inroads made by IT

CHANGING FACE OF BANKING SERVICES

 Liberalization brought

several changes to Indian service industry.  Pre-liberalization  Post-liberalization

CORE BANKING SOLUTIONS
qCore Banking Solutions is new jargon frequently used in banking circles of India .

qThe evolution of Core Banking Technology in India has empowered and transformed customer of the branch to the customer of the bank providing him / her the convenience of anytime and anywhere banking in India . q

qHere computer software is developed to perform core operations of banking like
 recording of transactions  passbook maintenance  interest calculations on loans and

deposits  customer records  balance of payments and withdrawal.

BENEFITS OF CORE BANKING SOLUTIONS TO BANKS
 Global customer, Global bank, and Global employees  Bank can get information from its entire database at any

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instant at a high level or at any level of detail by pressing a button rather than wait for all the reports to come in at the end of the day and then consolidate them. It is cost effective as no separate database server is required at each branch and no database administrator is required at each branch Centralized parameter and product setup removes the possibility of human error in copy paste and allows the bank to get onto the new products instantly across all its branches. This is a must in order to have risk management and know your customer (KYC) as the customer belongs to the bank and not to individual branches. Paperless banking. Easy implementation of integrated customer centric services like online ATM’s, tele-banking, internet banking, any branch banking, kiosk banking, cash management services, etc

TECHNOLOGY PRODUCTS IN A BANKING SECTOR
Net Banking Credit Card Online Instant Alerts Mobile Banking e - Monies Electronic Fund Transfer  Online Payment of Excise & Service Tax  Phone Banking
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Bill Payment Shopping Prepaid Mobile Recharge Smart Money Order Card to Card Funds Transfer Funds Transfer ( eCheques ) Anywhere Banking Internet Banking Mobile Banking Bank @ Home “ Express Delivery

ANYWHERE BRANCH BANKING
 Any Branch Banking (ABB) is a facility

for customers to operate their account from any of the networked branches.  Anywhere B ranch B anking S erver (ABBS) component will be installed at every branch  These branches will be connected through a centralized server called eSWITCH by Leased / ISDN / VSAT lines .     

SALIENT FEATURES:
 Supports 365 * 24 * 7 banking hours  Each branch maintains its own database

and hence any problem at the Switch will not affect the functioning of the individual branch operations  Provides after branch hour services  Maintains data consistency and integrity through reversal request both at the switch level and at the branch level  Encrypted messages that prevents any hacking or fraudulent activities

SUPPORTED TRANSACTIONS AT ABB:
 Balance Enquiry  Statement Enquiry (Maximum up to 15       

latest transactions) Cheque Status Enquiry Cash Withdrawal Cash Deposit Debit Funds Transfer Credit Funds Transfer Stop Payment Instructions Cheque Book Request

ATM
 The introduction of Automated teller

machines has given facility to the bank customers for banking beyond the banking hours.

Advantages of ATMs To the customers: ATMs provide 24 hours, 7 days a week and    

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365 days a year service. Service is quick and efficient. Privacy in transaction. Free from errors. On networking, card holder can access cash and service at any location regardless of where he maintains account. Wider flexibility in withdrawals. Fund transfer across the branches/banks. Anywhere banking facility.

Advantages of ATMs To the banks
 Alternative to extend banking hours.  Crowding at bank counter considerably reduced.      

Service is cheaper, if there is sufficient large number of transaction Alternative to new branches and to reduce operating expenses. Cash transportation and cash handling is avoided. ATMs can be located in any convenient location in the city. Can be installed in any form as wall unit or lobby unit. Relieves bank employees to focus on more analytical and innovative work. Increased market penetration.

INTERNET BANKING
 Net Banking is the Internet Banking

Service provided by Bank for the customers of Core Banking (CBS) Branches  Net-Banking is the most comfortable channel for you to experience round the clock banking from any part of the world.

BENEFITS
 Easy access of account 24 hours / 7     

days a week Updates on  latest balances and transactions Electronic Payment of bills Transfer of funds between accounts Secured and high-encrypted banking Banking at own convenience -anytime, anywhere.

TELEPHONE BANKING
Service provided by a financial •institution which allows •its customers to perform •transactions over the •telephone.  TeleBanking is an IVR (Interactive voice response) software application which allows customers to gain immediate access to their account information and other related banking services using a push button telephone. 

 Telephone banking is a

A D V A N TA G E S
 Obtain foreign exchange rates & interest          

rates Enquire about Account Information Order new cheque book Stop payments Print Account statement via Fax or e-mail Make payments to different accounts Transfer funds between related accounts Leave or Retrieve voice messages from bank Access accounts anytime anywhere – available 24/7. Check transaction history Request statement of accounts

MOBILE BANKING
 Mobile Banking (also known as M-

Banking, mbanking, etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone.

Account Alerts: Instant bank account updates anytime, anywhere via SMS and e-mail
 Now many banks are providing Account alert

services. With Account Alert, your bank account transaction information will be delivered to you automatically, wherever you are.  "Your salary has been credited" in your cell phone inbox, as soon as the cheque gets cleared. Or you get an email "Your account balance is Rs 30,000”. Or a message, "Your MTNL bill has been paid" as soon as your bill payment instructions have been executed.

DEBIT CARD
 The Debit Card gives you the freedom

to access your Savings or Current Account at merchant locations and ATMs.  Debit cards are typically used as substitutes for cash and cheques to pay for everyday items .

ATMs with biometric devices
ongoing effort to offer •banking services to the •rural masses. • ATM enhancements with •biometric support envisaged •by vendors eliminate the need •for PIN entry, and •authenticate customer •Transactions by thumb •impressions.

 The latest solution in the

Benefits of Biometric supported ATMs
 Provides strong authentication  Can be used instead of a PIN  Hidden costs of ATM card management like

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card personalisation, delivery, management, re-issuance, PIN generation, help-desk, and re-issuance can be avoided Ideal for Indian rural masses It is accurate Flexible account access allows clients to access their accounts at their convenience Low operational cost of the ATMs will ultimately

DISADVANTAGES OF TECHNOLOGY
 Yes, online banking is generally

secure, but it certainly isn't always secure.  Not all online setups are an extension of a brick-and-mortar bank.  Not all online transactions are immediate.  Using online banking effectively requires some basic computer literacy and familiarity with navigating the Internet.

CHALLENGES FACED BY BANKS
 LONG IMPLEMENTATION PERIODS  RETURN ON INVESTMENT  TECHNOLOGY ABSORPTION RATE AT      

INDIA ’ S RURAL BRANCHES CONNECTIVITY HIGH COSTS  LEGACY SYSTEMS TECHNICAL PROBLEM

CONCLUSION

THANK YOU