Description
Access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for telephone banking.
Banking Technology
Presentation by: Hardik Ravi
July 3, 2013 Sample footer 1
What is banking technology?
o “Banking technology” refers to the use of sophisticated information and communication technologies together with computer science to enable banks to offer better services to its customers in a secure and reliable manner, and get competitive advantage over other banks.
July 3, 2013
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2
IT Developments affect Bank
o Reduction of costs
o Bank services
July 3, 2013
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3
Remote Banking
Remote banking refers to the provision of extending banking services without face to face contact between the bank employees and its customers.
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4
Types of Remote Banking Services
o Kiosk banking
The customer uses multipurpose ATMs installed by the bank which may also be used as an interactive link between the customer and the bank. o Telephone banking Telephone is used as a message carrier to enable person to person or voice activated automated communication between the bank and the customers.
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o Online banking
Internet is used as a message carrier where the computer uses a PC and a modem to connect to the bank using its online website or a software provided by the bank.
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6
Future Trend in Remote Banking
o Spectacular growth in the use of online banking facilities to manage money rather than just for accounting reportingin both retail & corporate sector.
o New digital signatures legally binding in many countries leading to entirely new patterns of consumer activity. o Huge growth in wireless banking & payment services using mobile phones.
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Electronic Payment channels
o Payment systems
payment is made by two ways - paper based and electronic bases system In the paper based there are various types of instruments like cheques, drafts, payment orders and interest/dividend warrants. Inter bank clearing, G-sec clearing and Forex clearing are the system of electronic bases payment.
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Diffusion of Electronic Money
Types of e-money
1. 2. Card based money Network based money
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Reason for adopting the e-money slowly
1. Reluctance of merchants to accept the card as the mode of payment
2. Cost consideration of the merchant. i.e., the installation & transaction costs 3. Cost consideration of the consumer. 4. Insufficient customer information.
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Technology and Bank’s strategies
Technology is an important strategic tool for banks to safeguard long-term competitiveness , cost efficiency and profitability.
o Cost Aspects The use of technology in banking sector reduce per transaction cost o Revenue Aspects Offering new services and attracting more number of customers , reach customers demand.
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o Banking sector
The technology resources are used in a number of ways by the banks. o Number of customers Number of customers to be serviced through both remote banking and conventional banking. o Bank branches Because of the remote channel would not become complete substitutes, physical presence of the bank is still available. o Mergers and strategic alliances
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Effect of Technology on Risks in Banking
? Strategic Risks
• • Increased competition Excessive investment in technology
•
Long time lag for break even
? Legal Risks ? Operational Risks ? Credit Risks
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Diffusion of Electronic Money
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Diffusion of Electronic Money
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Diffusion of Electronic Money
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Diffusion of Electronic Money
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Diffusion of Electronic Money
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Diffusion of Electronic Money
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Diffusion of Electronic Money
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doc_822961089.pptx
Access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for telephone banking.
Banking Technology
Presentation by: Hardik Ravi
July 3, 2013 Sample footer 1
What is banking technology?
o “Banking technology” refers to the use of sophisticated information and communication technologies together with computer science to enable banks to offer better services to its customers in a secure and reliable manner, and get competitive advantage over other banks.
July 3, 2013
Sample footer
2
IT Developments affect Bank
o Reduction of costs
o Bank services
July 3, 2013
Sample footer
3
Remote Banking
Remote banking refers to the provision of extending banking services without face to face contact between the bank employees and its customers.
Sample footer
4
Types of Remote Banking Services
o Kiosk banking
The customer uses multipurpose ATMs installed by the bank which may also be used as an interactive link between the customer and the bank. o Telephone banking Telephone is used as a message carrier to enable person to person or voice activated automated communication between the bank and the customers.
Sample footer
5
o Online banking
Internet is used as a message carrier where the computer uses a PC and a modem to connect to the bank using its online website or a software provided by the bank.
Sample footer
6
Future Trend in Remote Banking
o Spectacular growth in the use of online banking facilities to manage money rather than just for accounting reportingin both retail & corporate sector.
o New digital signatures legally binding in many countries leading to entirely new patterns of consumer activity. o Huge growth in wireless banking & payment services using mobile phones.
Sample footer
7
Electronic Payment channels
o Payment systems
payment is made by two ways - paper based and electronic bases system In the paper based there are various types of instruments like cheques, drafts, payment orders and interest/dividend warrants. Inter bank clearing, G-sec clearing and Forex clearing are the system of electronic bases payment.
Sample footer
8
Diffusion of Electronic Money
Types of e-money
1. 2. Card based money Network based money
Sample footer
9
Reason for adopting the e-money slowly
1. Reluctance of merchants to accept the card as the mode of payment
2. Cost consideration of the merchant. i.e., the installation & transaction costs 3. Cost consideration of the consumer. 4. Insufficient customer information.
Sample footer
10
Technology and Bank’s strategies
Technology is an important strategic tool for banks to safeguard long-term competitiveness , cost efficiency and profitability.
o Cost Aspects The use of technology in banking sector reduce per transaction cost o Revenue Aspects Offering new services and attracting more number of customers , reach customers demand.
Sample footer 11
o Banking sector
The technology resources are used in a number of ways by the banks. o Number of customers Number of customers to be serviced through both remote banking and conventional banking. o Bank branches Because of the remote channel would not become complete substitutes, physical presence of the bank is still available. o Mergers and strategic alliances
Sample footer
12
Effect of Technology on Risks in Banking
? Strategic Risks
• • Increased competition Excessive investment in technology
•
Long time lag for break even
? Legal Risks ? Operational Risks ? Credit Risks
Sample footer 13
Diffusion of Electronic Money
Sample footer
14
Diffusion of Electronic Money
Sample footer
15
Diffusion of Electronic Money
Sample footer
16
Diffusion of Electronic Money
Sample footer
17
Diffusion of Electronic Money
Sample footer
18
Diffusion of Electronic Money
Sample footer
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Diffusion of Electronic Money
Sample footer
20
doc_822961089.pptx