Question

essay on how is technology impacting the banking sector

Answer 1

What we see today's banking features, ease of banking, banking right from our bedroom, banking on-the-go, etc. are the impact of the technology in banking.

Since, the RBI being the central bank always focused on improving the productivity of the banks and of course for that the major player is Technology.

Now lets have a insight of how technology has changed the banking process from old physical book keeping process to today's advanced computerized systems:

Development of Computerized Banking Software:

With the development of Banking Applications, the banks process becomes faster and more reliable and the record keeping and retrieval becomes much easier.

Development of Core Banking Solution:

However, the Computerized Banking offers great and reliable service but with the expansion of the Internet the concept of core banking comes into picture and whoa! there comes the new Core Banking System. With implementing the CBS, the banks branches are getting interconnected to common centralized database and hence, were able to provide Multi-City Banking.

Development of MICR Cheque Processing:

With the use of Magnetic Ink - the MICR Cheque Processing System has been developed and strategically implemented. This technology revolutionizes the cheque clearing process from over the counter to a more systematic procedure which is fast and efficient. Development of Credit/Debit Cards (Plastic Money):

The magnetic data recording technology was used with the magnetic strips on the plastic cards and hence, the ATM/Debit/Credit Cards are used along with the ATM Machines which reduces the account holder's requirement to visit the branch within the banking hours to withdraw the money from his/her account.

Development of Internet Banking Solution:

With data being centralized, and increasing internet reach, the Internet Banking Solution was developed and now it is offered by almost every bank. The Internet Banking offers you many transactions and inquires to be performed online without visiting the branch.

Development of Banking Services Automation Solution:

The various banking automation systems also facilitated the users with ease of automated banking services like cash deposit machine, cheque deposit machine, passbook printing machine, automated inquiry manchine, etc.