Changing technology & customer needs in the banking

Introduction

• In the earlier stages of Economic Civilization the trading in the

economy faced many phrases:

• Barter Trade

• Commodity Money

• Metal Money

• Paper Money

• Cashless Trade

• Barter Trade- Involves two people, each has something other

wants.

• Commodity Money- Some useful commodity in demand which

can be used for trading in the market.

• Metal Money- People started using some metals as money wherein

the people used to get the products as per the weight of the metal.

• Paper Money- Issued by government, made from paper and used

as a common currency for trade.

• Cashless Trade- No use of Physical money, all the transactions

through internet banking or by using credit & debit cards at the

POS point.

Bank

• Financial institution which accepts deposits, gives

money, grants loan, provides financial assistance.

• An institution which inculcated the habit of savings

among the public.

• Give interest on the savings of the public.

Banks in Early Stage (Pre-Technology)

• In earlier time, there were no computers so the staff used to enter the transaction manually in the concerned registers.

• This also took a lot of time to enter a transaction in the concerned registers.

• The customers need to stand in queues for all the transaction they need to do.

• They would need to stand in queue to deposit & withdraw the money in the bank as per the token numbers and waiting for their turn.

• There was no option for withdrawing the money at any time as the banks were only open for limited period of time.

• But all these took a lot of time & energy to complete the transaction.

• Because of manual entry the staff would need more

• The customers did not had the flexibility to withdraw money any time when they needed.

• The bank had a limited scope of service.

• The banks had to do a lot of paper work even for a small transaction.

• But after sometime, the banks introduced computers for working.

Banks in Post Computer Stage

• In the 21st century, when the banks introduced Computers

and Network changed the whole working system and

pattern of the banks.

• Entry of computers and internet in the banking operations

wholly changed the banking scenario of the whole banking

system in India.

• Entry of computers and different technology in the banks

revolutionarised the working in banking.

• Even after the entry of computers was not the only

change, even after that there were many changes with

respect to software & different things.

• The different technological changes brought in the

Banking Sector were as follows:

Computers, Software's & Internet

Networking & connection between the branches of

the bank.

ATM at different places.

Debit Cards

Credit Cards

Website- Internet Banking, Online Banking

Telephone Banking

Demat Account

Applications on Mobile Phones (Smart Phones)

• Introduction of the above technologies brought a lot of

convenience to the customers as well as the staff.

ATM’s brought a big convenience for the customers in respect

of withdrawal of cash at any time and anywhere.

Just swipe your Debit & Credit Card at any POS for simplified

& cashless shopping.

Pay any bill online through net banking just from home no

need to go anywhere.

Online shopping through net banking no need to visit the

malls.

Get account details at one click- mini statement or quarterly

statement through emails.

Immediate SMS service on swiping of card at any POS/ ATM.

Shares trading online by using Demat service of the banks.

Apply for loan and other services by sitting at home.

Transfer money from one state to other state using money

transfer service.

NRI’s also can operate their accounts even being outside

India.

Impact……For Banks….• Revolutionary change• A change which changed the working perspective of the

banks.• Technology has given potential to bank to dream and give

the best service to their customers.• Enormous impact on officers, employees & customers.• Advanced technology are allowing effective and

convenient delivery of services.• Rapid access to critical information which help to take

rapid decision and also forecaster the future growth aspects.

• Availability of a wide range of inquiry facilities, assisting the bank in business development & follow-up.

• Immediate response to customers queries.• Automatic & prompt carrying out of standing instructions

on due date & generations of reports.• Generation of various MIS reports and periodical returns

For Employees….

• Accurate computing of cumbersome and time-consuming jobs such as balancing and interest calculations on due dates.

• Automatic printing of covering schedules, deposit receipts, pass book / pass sheet, freeing the staff from performing these time-consuming jobs, and enabling them to give more attention to the needs of the customer.

• Signature retrieval facility, assisting in verification of transactions, sitting at their own terminal.

• Avoidance of duplication of entries due to

For the Customers….• Facility for logging into specified self-inquiry terminals

at the branch to inquire and view the transactions in the account.

• Remote terminals at the customer site connected to the respective branch through a modem, enabling the customer to make inquiries regarding his accounts, on-line, without having to move from his office.

• ATMs offers non-stop cash withdrawal, remittances and inquiry facilities.

• Networking of computerized branches inter-city and intra-city, permits customers to transact from any of these branches.

• A 24-hour service through which inquiries regarding balances and transactions in the account can be made over the phone.

• Information is centralized and updates are available

Example: State Bank of India & its Subsidiaries

• Best example.

• Initially the people had to stand in long queues for doing all the transaction in the bank.

• The work efficiency was very poor and there used to be a lot of mistakes.

• Lot of work load.

• Waiting in the line to do all the transaction and to be cautious to do all the work in a limited time.

• For small things also they needed to come to the bank.

• But when TECHNOLOGY entered the banking system the whole working system and pattern changed.

• After the entry of TECHNOLOGY through computers, internet, servers, etc. the work of the customers, bank officials employees totally changed.

• As mentioned above the different good impacts of technology the same was seen in the SBI & its subsidiaries.

• In the normal course a customer had to wait for issue of a fresh new chequebook for 1 month but now due to interconnectivity the work has become fast.

• Opening an account also took a lot of time but now anyone can open account just by sitting at home.

• Withdrawal, enquiry, checking account for transaction, clearing of cheques, etc. has become very easy.

• The customers can do any transaction just sitting at home through computer.

• All these has increased the expectations of the customers as well as the efficiency of the employees & management to work for the people and to raise their standards.

• Customers can even download the bank application in their smart phones and can check their account status anywhere in India.

• This is not the only limit, it will go more ahead……..

Thank You