Banking Sector
Technology
Technological developments would render flow of information and data faster leading to faster appraisal and decision-making. This would enable banks to make credit management more effective, besides leading to an appreciable reduction in transaction cost.
To reduce investment costs in technology, banks are likely to resort more and more to sharing facilities such as ATM networks, the report says. Banks and financial institutions will join together to share facilities in the areas of payment and settlement, back-office processing, date warehousing, and so on.
The advent of new technologies could see the emergence of new players doing financial intermediation. For example, according to the report, we could see utility service providers offering, say, bill payment services or supermarkets or retailers doing basic lending operations. The conventional definition of banking might undergo changes.
The early 90s saw the plummeting hardware prices and advent of cheap and inexpensive but high-powered PCs and servers and Banks went in for what was called Total Branch Automation (TBA) Packages.
The middle and late 90s witnessed the tornado of financial reforms, deregulation, globalization etc coupled with rapid revolution in communication technologies and evolution of novel concept of 'convergence' of computer and communication technologies, like Internet, mobile / cell phones etc.
The evolution of IT services outsourcing in the Indian banks has presently moved on to the level of Facilities Management (FM). Banks now looking at business process management (BPM) to increase returns on investment, improve customer relationship management (CRM) and employee productivity.For, these entities sustaining long-term customer relationship management (CRM) has become a challenge with almost everyone in the market with similar products.
There is a wide spectrum of Banking Software available in the...
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