LATEST TRENDS IN BANKING

1. UNIVERSAL BANKING :- All the operations are performed at a single step.

Electronic conveniences are provided for the busy life. There are various services
provided as a E-Bank facilities:
• Check account balance
• Keep track of account transactions
• Make third party payments
• Transfer funds
• Download transactions
• Order chequebooks
• Request stop payments
2) GLOBALISATION OF BANKING:-
Globalization has
emerged as a prime mover in the Indian banking system. This has come about as a result
of the policy of liberalization and opening up of banking and other sectors pursued after
1991 in India. Foreign banks that wish to set up their offices/branches in India have been
granted licenses by RBI.

3) SATELLITE BANKING:-
Satellite banking is an upcoming
technological innovation in the Indian banking industry. • It is expected to help in
solving the problem of weak terrestrial communication links in many parts of the
country.

4. ) PHONE BANKING :-
Pick up the phone to access a host of Bank services, day or night. Phone
and mobile banking are a fairly recent phenomenon for the Indian banking industry.
Phone banking channels function through an Interactive Voice Response System (IVRS)
or Tele banking executives of the banks.
5 Electronic data interchange (EDI)
It facilitates computer to-computer exchange of
electronic documents (such as purchase orders, advance shipment notices and
without human intervention or human readable (paper or electronic documents).

6. RTGS:-
• RTGS stands for Real Time Gross Settlement system which
can be described as a transfer system wherein the transfer of money takes place
from one bank to any other bank on a “real time” and on a gross basis.
• ‘Real Time’ means the processing of instructions at the time they are received
and ‘Gross Settlement’ means that the settlement of funds transfer instructions
occurs on a one-to-one basis.
7.)Electronic Clearing System:-
ECS is an electronic mode of funds transfer
from one bank account to another.
• It can be used by institutions for making payments such as distribution of
dividend interest, salary, pension, among others.
• It can also be used to pay bills and other charges such as telephone, electricity,
water.
• For making equated monthly installments payments on loans as well as SIP
investments. ECS can be used for both credit and debit purposes’
8. Letters of credit :- The letter of credit is a document from a bank that says
it will pay the exporter when the conditions in the letter are met.
• In effect, the bank’s credit is substituted for the importer.
• The issuing bank pays the seller through the advising (paying) bank.
• The importer pays the issuing bank a fee for its services.
 9) International banking •
• Indian banks have extended their activities beyond the national
boundaries.
• The extension may take place in the form of borrowings as well as lending and it
may take place through official or private or commercial channel.
• • In the process of internationalization, the domestic financial institutions
participate in foreign financial markets and the foreign institutions participate in
domestic market to a significant extent.
10. UPI (Unified Payments Interface)
UPI or Unified Payments Interface has changed the way payments are made.
It is a real-time payment system that enables instant inter-bank transactions with the
use of a mobile platform. It is one of the fastest and most secure payment gateways
that is developed by National Payments Corporation of India. This system makes
funds transfer available 24 hours, 365 days unlike other internet banking systems.
11) Artificial Intelligence Robots
Several private and nationalized banks in India have started to adopt
chatbots or Artificial intelligence robots for assistance in customer support
services. This technology will remove the chances of human error and create
accurate solutions for the customers. Also, it can recognize fraudulent behavior,
collate surveys and feedback and assist in financial decisions.
12 Biometrics
Essentially for security reasons, a Biometric Authentication system is
changing the national identity policies and the impact is expected to be
widespread. Banking and financial services are just one of the many other
industries that will be experiencing the impact. With a combination of encryption
technology and OTPs, biometric authentication is forecasted to create a highly-
secure database protecting it from leaks and hackers attempts.
• 13. Wearables:
With smartwatch technology, the banking and financial services
technology is aiming to create wearables for retail banking customers and provide
more control and easy access to the data. Therefore, this technology is anticipated
to be the future retail banking trend by providing major banking services with just
a click on a user-friendly interface on their wearable device.