Group J

Group Members Sandeep Bhagwat Keshav Modi Neha Birari Nikhil Mehra Sanil Yadav Wasif khan

y In 80·s, banks started to establish centralized data processing

y Essentially the roles of these data processing centers are: y Collect the handwritten documents from branches y Compile the documents y Manual data entry by the operators y Generate reports for the bank staff and the central bank y Execute some banking transactions

Timeline (Branch Automation)
y In 90·s, banks started technology investments for the

y The first step is offline branches-

Terminals connected to local branch computer
y The second step is online branches-

Connected centrally. Most of the transactions started to be performed in the central mainframe.

Sample Internet Banking Architecture

Innovative Risk Management Complex Credit Calculations

Global Operations

Pervasive Branch Network Mass Transaction & Items Processing

1. Transactional y Fund transfer y Electronic bill presentment and payment y Investment purchase or sale y Loan applications and transactions 2. Non transactional y Online statements y Check links y Co-browsing y Chat 3. Personal Management Service

Benefits of Internet Banking
y Quality customer service y Organized customer data y Minimal transaction costs y Facilitate the offering of more services y Attracts new customers

Benefits to Customers
y More convenience & flexible timings y Better awareness of products & services y Up-to-date information on accounts y Low cost of accessing the accounts
y Accessibility y Value

y Transfer funds online y Request for cheque book y Stop cheque or payments y Payment of credit card or other utility bills y Manage fixed deposit y Tax calculation and payment y Debit card online y Secure mailbox

Online security Complete control over the accounts Save money [demand draft] Account balance enquiry Open fixed deposit

Link your bank/demat/card accounts Prepaid mobile recharge Send a money order Subscribe for mobile banking Request a change of address Monthly bank a/c statement Re-issue or upgrade your ATM card Ticket booking

Customize your profile for safety Define limits Interface with merchants for railway and airline reservations

Core Banking System (CBS)
y It·s an integration of Bank employees head office, regional offices & branches.  Bank Management: Executives/Managers at respective locations head office, regional offices & branches.  Bank customers: Personal banking, corporate banking & international banking.  Bank Auditors, internal and external auditors who need to verify systems and procedures.  Bank Regulators: Mandatory reporting to central bank and other financial bodies.  Bank share holders: Providing the desired return to shareholders from banking operations.

Components of CBS
y General Ledger y Customer Information System y Deposit System y Loan System y Management Information System (MIS)

New Components (Add-on)y Branch Automation system y ATM Switch and connected ATM y Call center system y Internet Banking System

Impact of CBS(1)
y Bank Employee: Head office, regional offices, branches

etc: Using Core banking System. With appropriate authority employee as given above can help customers do their financial transaction. y Bank management: Executives / managers at respective locations, head office, regional offices, branches etc. can obtain the financial position from Core Banking Systems related the respective sphere of banking operations and thus help pinpoint potential problems so as to avoid crises. y Bank Customers: Can operate any of their accounts from any branch or preferred delivery channel and have access to his funds any time 24 hours a day.

Impact of CBS(2)
y Bank Auditors : Ones accounts audited, they operate the

same year on year thus enabling auditors to focus more on systems and procedures at delivery channels like branches, call center etc. y Bank regulators: CBS produce the required reports for regulatory bodies like the central bank, financial statement, asset and liability reports, NPA reports, large currency & transaction reports. are all produced by either the deposits, or the loan or a combination of deposit, loan. y Bank Share Holders: C.B. providing the desired return to shareholders from banking operations Trends overtime on such data informs S.H. about how the banks is doing and help take timely action to accelerate or improve performance.

Communication Networks
y Bank Net y INFI Net y SWIFT y Electronic Data Interchange (EDI) y Electronic Funds Transfer (EFT) System y Electronic Clearing Services (ECS) y ATM network - SWADHAN (Shared Payment Network

System -SPNS) y RTGS

Issues with Internet Banking
y Issues of Confidentiality y Hacking and Fraud prone y Scope for failure of Technology y Resultant denial of Services

1. Firewalls 2. Filtering routers 3. Encryption techniques

Where does INDIA stand??
y Competition from non-traditional institutions y Indian banks ² retail banking y Emerging phase y Provide only basic services as compared to foreign and

private banks


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