Chanhging Technology In Changing Banking Operations

4539 words - 19 pages

Impact of IT in Changing banking operation
Introduction of Indian banking industry
History of Indian Banking
The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of ...view middle of the document...

They have a combined network of over 53,000 branches and 17,000 ATMs.

Business Segmentation
The entire range of banking operations are segmented into four broad heads- retail banking businesses, wholesale banking businesses, treasury operations and other banking activities. Banks have dedicated business units and branches for retail banking, wholesale banking (divided again into large corporate, mid corporate) etc.
Retail Banking
retail banking includes exposures to individuals or small business.retail banking products include all kinds of deposits accounts on the liability side and mortgages and loans on the asset side of bank. It also includes ancillary products and services such as credit cards, demand draft etc.
Wholesale banking
Wholesale banking includes high ticket exposures primarily to corporates. Internal processes of most banks classify wholesale banking into mid corporates and large corporates according to the size of exposure to the clients. A large portion of wholesale banking clients also account for off balance sheet businesses. Hedging solutions form a significant portion of exposures coming from corporates. Hence, wholesale banking clients are strategic for the banks with the view to gain other business from them. Various forms of financing, like project finance, leasing finance, finance for working capital, term finance etc. form part of wholesale banking transactions. Syndication services and merchant banking services are also provided to wholesale clients in addition to the variety of products and services offered
Treasury Operations
Treasury operations include investments in debt market (sovereign and corporate), equity market, mutual funds, derivatives, and trading and forex operations. These functions can be proprietary activities, or can be undertaken on customer’s account. Treasury operations are important for managing the funding of the bank.

Other Banking Businesses
This is considered as a residual category which includes all those businesses of banks that do not fall under any of the aforesaid categories. This category includes para banking activities like hire purchase activities, leasing business, merchant banking, factoring activities etc.
Products of the Banking Industry
The products of the banking industry broadly include deposit products, credit products and customized banking services. Most banks offer the same kind of products with minor variations. The basic differentiation is attained through quality of service and the delivery channels that are adopted. Product differentiating services have been attached to most products, such as debit/ATM cards, credit cards, nomination and demat services.

Operation in Early Days
In traditional banking, much of the operations of the banking industry were manually operated. There was large amount of human intervention. Manual registers and pages using dot matrix printer were used for storing record. As it is said “To err is human”, so the system was...

Other assignments on Chanhging Technology In Changing Banking Operations

Net Banking Essay

2892 words - 12 pages showcases the challenges faced and the opportunities available. INDEX TOPIC PG. NO * Online Banking in India 1 ( Introduction) * Features of Online Banking 2 * Requirements of Online Banking

Banking In Uk Essay

2379 words - 10 pages leaders are strong end-to-end managers who understand sales through delivery. Indeed, we frequently hear of business leaders complaining about their operations and technology cost allocations, instead of managing them. Since the crisis, banks have been fighting hard to cut costs. Headcounts have been significantly reduced paving the way for a variation of branch models to support the anticipated customer experience despite the reduction in face-to

Mgmt591 Courseproposal

650 words - 3 pages their dreams in their financial lives. The eight Lines of Business that Bank of America operates as are: Global Consumer & Small Business Banking, Global Banking & Markets, Global Commercial Banking, Global Wealth & Investment Management, Financial Advisors, Global Technology & Operations, Corporate Staff & Support and Mortgage. Bank of America planned to eliminate approximately 30,000 jobs by the end of 2013, largely in consumer and technology

Information Technology Management

1919 words - 8 pages Introduction Since the growth of information technology there has been a change in the banking industry from branch banks and paper to net working and digitized banking services. The ways of communicating information and knowledge through computers has truly changed the way we think, work and live. A good example is through Information Systems, which can be defined as any method of communication knowledge from one person to another and/or

Bank Of America: Mobile Banking

664 words - 3 pages as credit cards or mortgages. The problem is to decide whether to invest in increasing the functionality of the app, as it would mean “reprioritizing critical bank technology resources from other important business areas”. Bank of America could add additional functionalities to their current smartphone application. As an alternative they could make no changes, focus more on online (website) banking, or even mobile banking through SMS as Chase

An Analysis Of The Choice Between Separated And Mixed Operation Model For Icbc( London)

9211 words - 37 pages separated operation model in UK. 1.2 Significance of the Problem The operation and supervision model of China’s financial banking are different from any of other countries’. Recalling the journey of China’s financial business operations, in 1993, the operation model of Chinese financial industry had changed from mixed operation to separated operation. Prior to 1993, China adopted a mixed operation, and commercial banks were one of the main

4 Factors

2036 words - 9 pages successes. Second, the technological innovations, it has made what was once impossible. Advances in communications, information processing, and transportation technology have made today’s large international business feasible. Many firms depend on satellite technology to link worldwide operations and integrate plants and activities. In 2010, DBS introduced Singapore’s first Internet Banking guarantee. That is a form of self-service technology

Financial Regulation

954 words - 4 pages established. Apart from Islamic banks, other financial institutions also offer Islamic banking services through the “Islamic Banking Scheme”. Discount Houses Discount houses began operations in Malaysia since 1963. Generally, the discount houses specialise in short term money market operations and mobilise deposits from the financial institutions and corporations in the form of money at call, overnight money and short term deposits. The funds

Bank Of America

5971 words - 24 pages competitors and breakdowns in net income, assets, market capital and equity.) The reason why JPMorgan Chase is so far ahead of the game in today’s mobile banking is because they are taking advantage of advanced technology. JPMorgan also created an application for Apple’s iPhone which enables a customer to take a check and deposit it into their bank account without actually having to go to a branch or ATM machine. All you have to do is take a picture

Bjhkh

2668 words - 11 pages chosen study period experienced huge structural changes in the banking sector of Pakistan. Many foreign banks are acquired by the private banks. Small banks are merged with large banks. Due to this reason, this study included only those banks which are performing their operations consistently over the period of last one decade. The selected thirty banks include all types of banks such as private, public, foreign and Islamic. But the number of

State Bank Of India

8300 words - 34 pages extract maximum value from business and market situations. While the bank is strongly positioned to structure financial packages that anticipate the changing business environment, its vast network--the world’s largest—ensures delivery channels of unmatched reach, both in India and abroad.   PERSONAL BANKING State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here. Their products are designed with

Similar Documents

Absrux Essay

9046 words - 37 pages . In turn it helps to raise gross domestic product of the country. Governments as well as different international organizations have also identified that underdeveloped banking technology creates hindrance on economic progress of the country. On line banking system is a way of conducting, managing, and executing banking transactions utilizing information and communication technology (ICT) and electronic communication networks such as the

Capital One Bank Customer Service Training Design

609 words - 3 pages , questionnaires, online technology, interviews of employees and customers and observation are the techniques that can be used to conduct this needs assessment. However, as a great deal of banking and credit card operations takes place online and over the phone, of particular value will be the utilization of online technology; even face to face banking and credit card operations occur with an employee in front of a computer. Help desk management software can

Project On Retail Banking Essay

7281 words - 30 pages . ------------------------------------------------- Top of Form In today The entire banking sector has undergone a restructuring during recent years as a result of recent developments. New technologies have added to the competition. The I-T revolution has made it possible to provide ease and flexibility in operations to customers thus making life simpler and easier. Rapid strides in information technology have, in fact, redefined the role and

Ba Case Essay

473 words - 2 pages transactions. This will provide bank of American with a huge cost savings and the customers a huge savings in time and hassle. The lessons learned from the online component are: give customers more control over their finances, reduction of fees will geerate quicker adaption of the service and increase customer comfort with online and mobile transactions will also cause quicker adoption. 4. How is mobile technology likely to influence the banking industry in the future? 5. How should McDonald and Brown respond to the LOB managers' request to include more functions in the bank's mobile app?