UNERSITY OF MUMBAI PROJECT ON

ROLE OF TECHNOLOGY IN BANKING SECTOR

BACHEROL OF COMMERCE

BANKING AND INSURANCE

SEMESTER VI

(2022 – 2023)

SUBMITTED

In partial Fulfilment of the requirement for the Award of Degree

ofBachelor of Commerce- Banking & Insurance

SUBMITTED BY,
SHUBHAM VIJAY KADAM
ROLL NO - 221025

UNDER THE GUIDANCE OF, ASST. PROF. SHAKTI CHAVAN

MAHARSHI DAYANAND COLLEGE OF

ARTS, SCIENCE & COMMERCE PAREL, MUMBAI- 400 012.

 MAHARSHI DAYANAND COLLEGE
OF ARTS, SCIENCE & COMMERCE
PAREL, MUMBAI- 400 012.

CERTIFICATE

This is to certify that SHUBHAM VIJAY KADAM

, of B.Com (BANKING & INSURANCE) Semester VI (2022-2023)

has successfully completed the project on

“ROLE OF TECHNOLOGY IN BANKING SECTOR”

under the guidance of ASST. PROF SHAKTI CHAVAN

Course Coordinator Principal

Project Guide/ Internal Examiner External Examiner

 DECLARATION

I SHUBHAM VIJAY KADAM, the student of B.Com

(BANKING & INSURANCE) Semester VI (2022-2023) has
declare that I have completed the Project on ROLE
OF TECHNOLOGY IN BANKING SECTOR.
The information submitted is true and original to the best of my
knowledge.

Signature of student

Name of

Student
SHUBHAM VIJAY KADAM

Roll No. 221025

 ACKNOWLEDGEMENT

The college, the faculty, classmates & the atmosphere, in the

college were all the favourable contributory factors right from
the point when the topic was to be selected till the final copy
was prepared. It was a very enriching experience throughout the
contribution from the following individuals in the form in which
it appears today. Wefeel privileged to take this opportunity to
put on record my gratitudetowards them.
Course Coordinator Dr. KUNAL SONI made sure that the
resource was made available in time & also for immediate
advice &guidance throughout making the project. The principal
of our college Dr. C.S PANSE has always been inspiring and
driving force.
 ROLE OF TECHNOLOGY IN BANKING SECTOR

INDEX

Sr no. TOPIC Page no.

1. CHAPTER 1:- INTRODUCTION 1-18

2. CHAPTER 2:- FEATURES 19- 33

3. CHAPTER 3:- SOURCES OF DATA 34- 35

4. CHAPTER 4:- DATA ANALYSIS & INTERPRETATION 36 – 45

5. CHAPTER 5:- SUGGESTIONS 46
6. CHAPTER 6:- CONCLUSION 47
7. CHAPTER 7:- REFERENCES 48
8. CHAPTER 8:- APPENDIX 49- 50
 CHAPTER 1:

1.1 INTODUCTION:

The banking sector has experienced a tremendous technological revolution that has paved the
way for creating newer, better opportunities for its customers. The impact of technology on
the banking industry is manifold and can be witnessed with the speed at which banks operate
in the country today. Gone are the days of standing in long queues to open an account,
receive a physical statement of account, or wait days for loan approval. Each of these
processes and more has improved with accuracy and precision, thanks to the positive impact
of technology!

The technological disruption in the banking space has encouraged each banking or related
entity to adopt this radical shift to sustain and thrive. An absence of this critical business
resource could not only lead to poor business decisions and ultimately a failure but also
render them irrelevant to the current landscape of meeting banking customer expectations that
are increasingly becoming digital savvy.

Let’s understand a few critical changes that have resulted due to the impact of technology on
the banking sector and how swiftly banks have adopted them as a part of their internal work
process.

There was a time when huge databases existed in silos, and churning out meaningful data
from the same consumed endless time and energy. New age technologies such as Artificial
Intelligence (AI) and Machine Learning (ML) have radically shifted the way banking works
today. Thanks to AI, it is possible to conduct real-time data analysis from a large volume of
data sets and provide customised solutions to banking customers.

With powerful AI tools, banks can make informed decisions faster by using predictive
analysis, which is at the core of AI and ML. As soon as a potential customer searches for
something online, the AI tools pick it up and serve related content that leads to quick sales.
This improves customer service tremendously as tailor-made solutions are provided to the
customer without as much human intervention.

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Banks’ lending processes have also improved considerably as they can analyse customers’
spending patterns, study different customer data points, and determine borrowers’
creditworthiness. A lot of paperwork has also been reduced owing to this.

Customer-centric banking has become indispensable with the introduction of chatbots and
chats agents that utilise Natural Language Processing (NLP) to read, process and understand
text and speech. Banks have successfully deployed chatbots to answer customer questions,
which has helped them reduce the time and effort of human capital and provide quick and
consistent service. Using chatbots, banks are expected to save $7.3 billion in operational
costs.

Changing customer profile

The changing profile of banking depends a lot on the digital ecosystem around them to meet
their needs, especially the millennial generation. Their expectations from their banks to
provide an omni-digital experience have enabled the shift, allowing them to fulfil their
banking needs sitting from a remote location. Rightly so, banks quickly jumped onto the
digitalisation bandwagon and refreshed their services in line with their requirements.

Mobile banking

For example, has already found deep roots amongst millennials. An Insider Intelligence’s
Mobile Banking Competitive Edge study indicated that a staggering 97% of millennials use
mobile banking! Right from transferring funds, checking their transactions online,
downloading their account statements or even applying for a loan, everything can be done
through a click of fingers on their mobile phones. This has also eliminated the need for
physical branches, enabling banks to operate in a lean manner and cut unnecessary costs.

The usage of credit cards, debit cards, mobile banking apps, mobile wallets, third-party
payment apps, etc., have all shot up considerably, indicating an essential shift in the mindset
of customer preferences. Banks have streamlined their processes and broken the barriers
between the different entities involved, such as branches, ATMs, and online banking, to
create a seamless flow for their customers.

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The changing customer profile inclines towards bringing both physical and digital worlds
closer, and this is impacting the finance and banking sector favourably. Banks heed this need
for digitalisation to retain their customers in the long run.

Technology has significantly impacted the banking sector, transforming it in ways that were
once unimaginable. Here are some of the roles that technology plays in the banking
industry:

1. Online banking: Online banking enables customers to access their accounts,

transfer funds, pay bills, and view transaction history online. This technology has
made banking more convenient and accessible.
2. Mobile banking: Mobile banking allows customers to perform banking transactions
using their mobile devices. With the rise of smart phones and mobile devices, mobile
banking has become increasingly popular, making banking even more convenient.
3. ATMs: ATMs (automated teller machines) have been around for decades and have
revolutionized the way customers access their money. With ATMs, customers can
withdraw cash, make deposits, transfer funds, and check their account balances
24/7.
4. Online fraud prevention: Banks use sophisticated software to monitor and detect
fraudulent activities such as identity theft, phishing scams, and unauthorized access to
accounts.
5. Digital payments: Digital payments include credit and debit cards, online payments,
and mobile payments. These technologies have made transactions faster, more
secure, and convenient for customers.
6. Data analytics: Banks use data analytics to analyze customer behaviour
and preferences, detect fraud, and make informed business decisions.

QR CODE:

QR codes, or Quick Response codes, are two-dimensional barcodes that can store
information in a square pattern. They were invented in 1994 by a Japanese company
called Denso Wave, and they were originally used for tracking car parts in factories.
Today, QR codes have become increasingly popular as a marketing tool, payment method,
and information sharing mechanism.

QR codes can store a variety of information types, including URLs, text, phone numbers,

3
email addresses, and even multimedia content like images and videos. To use a QR code,
you

4
need a device with a QR scanner or QR code reader, such as a smartphone or tablet. Simply
point your device's camera at the QR code and scan it to access the information stored within.

QR codes can be customized with different colors and designs, and can be printed on
various surfaces, including posters, flyers, business cards, and product packaging. QR codes
can also be created and shared digitally, making them an ideal tool for online marketing
campaigns.

QR codes are commonly used for a variety of purposes,

including: Marketing:

QR codes are used in advertisements to provide customers with additional

information about a product or service.

Payments:

QR codes can be used to make mobile payments by scanning the code with a
Smartphone or mobile device.

Event tickets:

QR codes can be used as electronic tickets for events, such as concerts and sports
games.

Inventory management:

QR codes can be used to track inventory in retail and warehouse settings.

Contactless menus:

QR codes are increasingly being used in restaurants and cafes as a contactless menu
option.

QR (Quick Response) scanners are devices or software applications that can decode QR
codes.

QR scanners are available in different forms, including:

Mobile apps:

QR scanner apps can be downloaded from app stores for both iOS and Android

5
devices. These apps use the device's camera to scan the QR code and decode the information.

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Desktop software:

QR scanners are also available as desktop software that can be installed on Windows
or Mac OS. The software uses the computer's webcam or external camera to scan the QR
code.

Handheld scanners:

Standalone handheld scanners are also available for scanning QR codes. These
devices are portable and can be used to scan QR codes on products, documents, and other
items.

QR scanners have become increasingly popular in recent years due to the widespread use of
QR codes in various industries. For example, QR codes are used in advertising, marketing,
and product labelling to provide customers with additional information about a product or
service

There are also various mobile apps which are used for payment purpose:

Google Pay:

Google Pay (also known as GPay) is a digital wallet platform and online payment system
developed by Google. It allows users to store credit and debit card information, as well as
other sensitive financial data, securely on their mobile devices, and use it to make purchases
online and in-store. Google Pay also offers peer-to-peer (P2P) money transfer services,
enabling users to send and receive money to and from other Google Pay users directly from

7
their mobile phones. Additionally, Google Pay provides loyalty and rewards programs,
enabling users to earn points and redeem them for discounts and other perks at participating
merchants. Google Pay is available on both Android and iOS devices, and can be used with a
wide range of banks and financial institutions around the world.

Paytm:

Paytm is a digital payment platform and financial technology company based in India. It was
founded in 2010 by Vijay Shekhar Sharma and is headquartered in Noida, Uttar Pradesh.

Paytm offers a range of services, including mobile recharges, bill payments, movie and event
ticket bookings, and online shopping. It also provides a digital wallet that allows users to
store money and make payments for various services.

In addition to its consumer-facing services, Paytm also offers a range of business solutions
such as payment gateway services, point-of-sale (POS) systems, and invoicing software.

Paytm has become one of the leading digital payment platforms in India, with a large user
base and a wide range of services. It has also expanded into international markets, with
operations in Canada and Japan.

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1.2 OBJECTIVES :

The objectives of technology in the banking sector are to improve efficiency, reduce costs,
enhance customer experience, and increase security. Here are some specific objectives:

 Automation of routine tasks: Technology can automate many routine tasks such
as data entry, account opening, and transaction processing. This can save time and
reduce errors, leading to increased efficiency and cost savings.
 Enhanced customer experience: Technology can enable banks to provide a better
customer experience through online banking, mobile banking, and other digital
channels. This can increase customer satisfaction and loyalty.
 Improved security: Technology can help banks protect their customers' data and
prevent fraud. This includes measures such as encryption, multi-factor authentication,
and real-time monitoring of transactions.
 Cost reduction: Technology can help banks reduce costs by streamlining
processes, reducing the need for physical infrastructure, and increasing operational
efficiency.
 Innovation: Technology can enable banks to develop new products and services that
can meet the evolving needs of customers. This can help banks stay competitive and
attract new customers.
 The IT revolution has set the stage for unprecedented increase in financial activity
across the globe. The progress of technology and the development of worldwide
networks have significantly reduced the cost of global funds transfer. It is information
technology which enables banks in meeting such high expectations of the customers
who are more demanding and are also more techno-savvy compared to their
counterparts of the yester years. They demand instant, anytime and anywhere banking
facilities.
 The main objectives of this paper are
1. The main objective of this paper is to review the implementation of
information technology in the banking sector.
2. IT has been providing solutions to banks to take care of their accounting and
back office requirements.
3. IT also facilitates the introduction of new delivery channels--in the form of
Automated Teller Machines, Net Banking, and Mobile Banking to provide large
services to customers.
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 4. Taking the help of IT to meet the challenges posed by the new economy changes.

Technology has played a significant role in transforming the banking sector. In recent
years, the banking industry has witnessed a wave of technological advancements that have
transformed the way banks operate and serve their customers. Here are some of the ways
technology has impacted the banking sector:

1. Digital banking: The rise of digital technology has led to the development of various
digital banking services, such as mobile banking, internet banking, and digital
wallets. These services allow customers to access their accounts, check their balances,
transfer money, pay bills, and make purchases from their mobile devices or
computers, without visiting a bank branch.

2. Automation: Automation has allowed banks to streamline their processes, reduce

costs, and improve their efficiency. With the help of automation, banks can now
automate various tasks, such as loan approvals, account opening, and account closures,
which were previously done manually.

3. Customer experience: Technology has significantly improved the customer

experience in the banking sector. With the rise of chat bots, customers can now receive
instant responses to their queries, and with personalized digital communication, banks
can now provide tailored solutions to their customers.

4. Big Data: Big data analytics has transformed the way banks understand their
customers and make decisions. By analyzing customer data, banks can now gain insights
into customer behaviour, preferences, and needs, and offer personalized products and
services.

5. Cyber security: With the rise of technology, cyber security has become a critical
concern for banks. Banks have implemented various security measures, such as
encryption, biometrics, and firewalls, to ensure that their customer's data is protected.

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors [18].
The information system is paramount concern to the banks in today’s business environment.
The business of cooperative bank has increased phenomenally in recent years due to the
sharp increase in numbers of urban co-operative banks. This exponential growth of Co
10
operative

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Banks in India is attributed mainly to their much better local reach, personal interaction with
customers, and their ability to catch the nerve of the local clientele. A software development
methodology refers to the framework that is used to structure, plan, and control the process
of developing an information system. Each of the available methodologies and techniques are
best suited to specific kinds of projects, based on various technical, organizational and
available resources. With reference to above relevant information the main objective is to
study the induction of IT tools in urban cooperative bank in light of software engineering
concept. With the help of this initial information the followings are some of the objective of
the study –

 To study the Information Technology in view of research study

 To study the use of Information technological means in the system
 To study the feedback of the past transaction system
 To study the existing transaction system
 To study the all dependent parameters
 To study the work culture of customer, employee and management
 To study the feedback of the existing transaction system
 To study the service provided by the system in view of customer relation
 To study the view of management, employee and customers review
 To study the Software Engineering in view of research work
 To study the feedback of implemented technology
 To study on collected data and information by applying various methods.

In the present scenario major economical and technical changes are undergoing in industrial
and financial revolution through the new information-processing technology. Especially in
finance sector it has a significant role for overall development. After identifying the subject
(research area) and referring the relevant literatures, it has been found that in most of the
literature, the information technologies have a wide application area. However, in finance
sector major changes have been made. Due to these drastic changes we have chosen to do the
study on urban cooperative bank system. After completing step by step procedure for
automation process, now it is required to take the review of the system. People used
information technological tools to manage and process the information. Atomization process
use in the financial sector for transaction system. This type of working methodology is used
in the financial Institute since long years. The Urban Co-operative bank sector is mostly

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related to all classes of people like businessmen, industry, agriculture, labour, small
entrepreneurs, workers etc. It has been changing complete culture and working methodology.
Therefore, it has a wide scope to study the existing modern transaction system in the financial
sector mainly in urban cooperative bank system. For that purpose we are going to utilize
software engineering model based techniques for theoretical evaluation of atomization
process. In the literature survey it has been found that the software engineering technology
has monopoly for the development of software product and it is observed that such
technology is not used for study purpose in any other different field. So why not this
technology be tested on the external field application intentionally for this study ? It requires
framework, structure, plan and controlling parameters for research field. Such type of theory
and planning is available in the software engineering subject.

The performance of the Indian banking sector is intimately correlated with the overall health
of the economy, perhaps more so than any other sector. The sector is tasked with supporting
other economic sectors like agriculture, small-scale businesses, exports, and banking
activities in developed commercial areas and remote rural areas. The improvement of asset
quality, application of rational risk management procedures, and capital adequacy are some
of the main functions of the Indian banking system.

Banking sector reforms are implemented to improve the condition of the banking system.
Multiple banking sector reforms have been introduced in India in the context of economic
liberalisation and the growing trend toward globalisation. The main objective is to improve
operational efficiency and promote banks' health and financial reliability, so that Indian banks
can meet internationally recognised standards of performance.

CURRENT SCENARIO:
In 2021, the world suffered through multiple waves of the Covid-19 pandemic, bringing
supply chain and logistics disruptions. In order to restore and sustain growth on a long-term
basis while ensuring that inflation stays within the target range, India's monetary policy
committee (MPC) decided to maintain the status quo on the policy repo rate. Additionally,
the Reserve Bank of India (RBI) kept up its targeted efforts to address industry credit needs
by:

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 Providing unique refinancing facilities for all-India financial institutions (AIFIs)

 A term liquidity facility to finance the infrastructure and services for Covid-related healthcare

 Providing special long-term repo operations (SLTRO) for small finance banks (SFBs)

The overall banking sector in INDIA has evolved significantly over the last decade, from
being major lenders to the industry, to being the majority providers of personal loans, vehicle
loans, credit cards, and housing loans. Private banks are gradually taking over from public
sector banks as the main lenders in the country.

Another recent change in the banking sector is the emergence of e-banking, which is crucial
in offering better services to clients. Internet banking, e-wallets, and mobile banking are some
of the new methods that have replaced the traditional methods of conducting transactions.

BANKING REFORMS
The reforms in the Indian banking sector have been introduced to increase the efficiency,
stability, and effectiveness of banks. Some of these recent reforms are:

 National Asset Reconstruction Company Limited (NARCL): Setting up of the NARCL

was announced in the Union Budget 2021-22. The objective was to construct a 'bad bank'
which would house bad loans of Rs. 500 crore (US$ 62.63 million) and above.
o There are already 28 existing asset reconstruction companies (ARCs) on the market.
However, due to the sizeable and fragmented nature of the bad loan book held by different
lenders, significant amounts of NPAs continue to appear on bank balance sheets. Thus,
more choices and alternatives like the NARCL are required.

o NARCL will have a dual structure – it will consist of an asset management company (AMC)
and an asset reconstruction company (ARC) to recover and manage stressed assets. It is a
collaboration between private and public sector banks (PSBs), but PSBs will maintain 51%
ownership in NARCL.

o NARCL will be capitalised through equity from banks and non-banking financial
companies (NBFCs). If necessary, it will also issue new debt. The guarantee provided by
the
Government of India will lower the need for up-front capital. The NARCL will be assisted by
the India Debt Resolution Company Ltd (IDRCL).

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o In August 2022, the NARCL offered to buy the distressed loan accounts of five companies,
including Future Retail.

 India Debt Resolution Company Ltd. (IDRCL): The IDRCL is a service

company/operational entity whose purpose is to manage the assets of the NARCL with
the help of turnaround experts and market professionals. The NARCL will buy assets by
presenting an offer to the lead bank; IDRCL will be included for management and value
addition after NARCL's offer is accepted. Public FIs and PSBs will hold a 49% stake in
IDRCL, and the rest will be with private banks.

 Digital Rupee: The central bank's digital currency (CBDC), the RBI's digital rupee, was
announced in the Union Budget 2022-23, and is expected to be launched by the end of this
financial year. India's digital economy is predicted to benefit greatly from the introduction
of

the digital rupee.

o A CBDC is a digital representation or token of a nation's legal currency.

o A CBDC can benefit customers with better liquidity, scalability, acceptance, convenience
of transactions with anonymity, and quicker settlement.

o Similar to how UPI made digital cash more user-friendly, this development will
increase people's access to digital currencies.

o Adopting the digital rupee is expected to help cross-border remittances and reduce the
transaction cost for businesses and the government.

o The digital rupee would reduce the settlement risk in the financial system.

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 National Bank for Financing Infrastructure and Development (NaBFID): The NaBFID
has been set up as a Development Financial Institution (DFI) to aid India in developing long-
term infrastructure financing.
o The NABFID has both developmental and financial objectives.

o Unlike banks, DFIs do not take deposits from the general public. Instead, they raise funds
from the government, the market and multilateral institutions, and are often backed by
the government's guarantee. The government initially holds 100% of the shares in the
bank, which may subsequently be reduced to 26%.

o The NABFID was set up as a corporate body with an authorised share capital of Rs. 1 lakh
crore (US$ 12.53 billion).

o The NABFID plans to finance multiple projects that are a part of India's Rs. 6 trillion (US$
75.18 billion) National Monetisation Pipeline.

Roadahed :
India's financial regulators have helped craft one of the strongest banking and financial
systems in the world. In order to provide better and more accessible banking experiences,
the Indian government has implemented several reforms and policies, which help the
country deal with any change in economic conditions and demographics.

Information technology and electronic money transfer systems have become the two
cornerstones of modern banking development in the area of technology-based banking. Banks
now offer a variety of products that go far beyond traditional banking, and these services are
now available 24/7.

Consumers today are more demanding of virtual banking experiences due to the advancement
of digital technologies. The pandemic has only increased the demand for stress-free access to
financial products and services, and the necessity for quick and easy access to banking
products, services, and information. After internet and mobile banking, payments banks will
provide a third alternative channel, increasing efficiency and lowering expenses associated
with serving customers in rural and semi-urban areas. Upcoming technical advancements,
such as the digital rupee, will significantly impact India's banking sector as we move forward.

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As new technologies drastically disrupt how financial services businesses operate, the
banking industry is undergoing a massive phase of digital transformation. Artificial
intelligence, machine learning, and robotics are dragging this sector into a new digital world.

Financial institutions must adapt and embrace this revolution to keep pace in a fast-moving
business environment. However, many companies – particularly smaller institutions – are
sceptical of the actual value of such a commitment. These firms should review and consider
the several benefits of digital transformation in banking to better understand its long-term
value to them and their customers.

Digital Transformation in Banking.

Digital transformation in banking refers to integrating various fintech technologies

to automate, optimize, and digitize processes in the banking industry.

Eight Benefits of Digital Transformation in Banking

Digital transformation is revolutionizing business in almost every industry worldwide, but

here are eight ways in which banks specifically can benefit from digitally transforming core
systems:

1. Increased Customers. Digitalization is necessary to increase customer bases and

compete in any sector in today’s tech-heavy world, where people expect faster and
faster results. These raised expectations include customers who demand fast-paced
online banking solutions instead of slow and cumbersome traditional banking.

2. A More Efficient Banking Process. Efficiency is critical in a society with huge

premiums on speed and accuracy. Banking procedures are now much more
straightforward and faster because of advanced digital analytics everyday banking
activities impacted by digital transformation include the following:

 Deposits and transfers via smart phone mobile apps

 Electronic signatures without the need for physical printing
 On-the-go loan approvals without setting foot inside a loan office
 Automated bill pay to ensure customers are not late meeting monthly obligations

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3. More Data-driven Decisions. The more information any management team can
collect, the better they can make solid decisions. The most critical choices are data-
driven, and digitalization helps financial institutions make those tough (but well-
informed) calls based on accurate and real-time data that best meets customer
needs.

4. Minimal Transaction Costs. Digital transformation promotes long-term cost

efficiency by requiring fewer ongoing financial investments than conventional money
exchange processes. For example, digitalization has made online, cashless
transactions more accessible and straightforward, reducing the money spent on
intermediary channels to deliver physical cash from one party to another.
5. Enhanced Adaptability and Flexibility. In today’s banking and financial services
industries, mergers and acquisitions are near commonplace. Historically, combining
firms with differing physical systems can cause compatibility issues, which often
cause havoc for both IT departments in question. However, cloud-based solutions do
away with the necessary onsite systems, providing a smoother digital consolidation of
business entities.

6. Consolidated Data and Processes. Banks can use digital transformation to move
from their legacy systems – often a patchwork of disparate technologies that don’t
communicate data correctly – to a more user-friendly centralized system. This
transition has multiple advantages, including:

 Smaller and simplified bank technology stacks

 Less expensive and time-consuming maintenance
 Standardized data across the financial institution
 Improved data accuracy
 Fewer to no time-consuming data transformation processes

7. Improved Reporting Processes. Real-time, consolidated data is more immediately

available, significantly improving how quickly and accurately banks can handle
reporting. Financial institutions can keep an eye on changing trends, react
promptly, and spot problems early in the process. These added insights allow senior

18
management to generate reports themselves that would otherwise require IT’s

19
 resources to compile and format. Because generating these reports requires less time
and workforce, banks can move employees traditionally responsible for compiling
this information to more analytical roles with a more significant influence on the
business.

8. Automated Compliance Features. Digital financial management platforms provide

financial institutions with automated compliance monitoring features. As a result,
banks can afford to spend fewer resources on auditing. Data from legacy applications
can be automatically standardized and delivered onto the new platform, decreasing
the risks associated with manual inputs. The bank will also not need to address any
new or revised regulations because these digitalized cloud-based systems receive
compliance updates regularly.
The use of appropriate hardware for conducting business and servicing the
customers through various delivery channels and payment systems and the associated
software constitutes one dimension of banking technology.
1. The use of computer networks, security algorithms in its transactions, ATM and credit
cards, Internet banking, telebanking, and mobile banking are all covered by this dimension.
The advances made in information and communication technologies take care of this
dimension.
2. On the other hand, the use of advanced computer science algorithms to solve
several interesting marketing-related problems such as customer segmentation, customer
scoring, target marketing, market-basket analysis, cross-sell, up-sell, and customer retention
faced by the banks to reap profits and outperform their competitors constitutes the second
dimension of banking technology. This dimension covers the implementation of a data
warehouse for banks and conducting.
3. Moreover, banks cannot ignore the risks that arise in conducting business with
other banks and servicing their customers, otherwise their very existence would be at stake.

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Thus, the quantification, measurement, mitigation, and management of all the kinds of risks
that banks face constitute the third important dimension of banking technology. This
dimension covers the process of measuring and managing credit risk, market risk, and
operational risk. Thus, in a nutshell, in ‘banking technology’, ‘banking’ refers to the
economic, financial, commercial, and management aspects of banking, while ‘technology’
refers to the information and communication technologies, computer science, and risk
quantification and measurement aspects.

4. Over a decade Indian banking system witnessed metamorphosis. The

main driver of transformation has been the fast adoption of Information, Communication
and Technology (ICT) based system in the banks. The huge red ledgers, row of racks of
ledger holders, cash scrolls, registers, clearing cheque scrolls, totalling machines, long rolls
of paper ribbons often gazing the floor formed part of hardware in the branches.

21
5. It was also common to see staff hiding behind the tall branch counters, row of
signature cabinets standing between the counters and supervisory staff, customers eyeing
frantically on movement of ledgers and cheques until their transactions were done. They are
now no more relevant. The banking work space has changed for good. Bank branches are
now sporting a smart look with refurbished interior, radiating corporate colour, well dressed
bank logos, wide glass doors, and plush interiors and well-developed customer lounges etc.

6. The onsite ATMs, teller counters, swipe machines / kiosks have speed up
standard transactions of every day need of consumers. With the onset of alternative delivery
channels, even the branch timings are not very significant. Phone and mobile banking, smart
cards, debit cards, rechargeable electronic purse are also some of the modern-day banking
facilities that allow round the clock access. With the profile and aptitude of bank consumers
fast changing toward the use of ICT facilities, the popularity of e-channels of banking are set
to assume more significance. Banks are fast gearing up to introduce add-on services to attract
young generation of customers.

7. The low height counters handled by trained employees wearing inviting look,
customers having one to one interface with departments, banking halls buzzing with clicks of
mouse, laptops, computers, currency notes zipping through the counting machines form part
of modernized attire of bank branches at least in metro cities. Banking and technology go
hand-in-hand these days.

22
 CHAPTER 2 :-

2.1 FEATURES:

There are many features of technology in the banking sector that have transformed the way
we bank today. Some of the key features include:

1. Online banking: The ability to access your bank account information and make
transactions online from anywhere, at any time.

2. Mobile banking: The ability to access your bank account information and
make transactions using a mobile device.

3. ATM machines: Automated teller machines allow customers to withdraw cash,

deposit checks, and transfer funds between accounts.

4. Electronic fund transfers: The ability to transfer funds electronically between

accounts, whether within the same bank or across different banks.

5. Online bill payment: The ability to pay bills online without having to write checks or
mail payments.

6. Digital wallets: The ability to store credit and debit card information in a mobile app
for easy and secure payments.

7. Biometric authentication: The use of biometric data such as fingerprints or

facial recognition to authenticate customers and enhance security.

8. Block chain technology: A distributed ledger technology that enables secure

and transparent transactions, reducing the need for intermediaries.

9. Data analytics: The use of big data and analytics to gain insights into customer behaviour,
improve risk management, and develop targeted marketing strategies.

The rapid advancement of digital technology has impacted almost every aspect of modern
life. The banking industry is one sector in the Indian economy that has been completely
transformed and revolutionised with the introduction of digitisation.

Digital banking services have made banking activities fast, hassle-free and highly efficient.
The following sections offer a clear insight into the ten major features of digital banking.

Digital Banking: Top 10 Features

23
Here are some of the most useful features of digital banking that has helped it become more
popular than conventional banking:

1. Online banking

Owing to online banking, a customer can avail all kinds of banking facilities anytime,
anywhere. Most banks usually provide several technological solutions to make banking a
hassle-free experience.

One can access these banking features with online banking:

Funds transfer

Account balance enquiry

Bill payments through credit

cards E-statement

Recharge DTH, broadband, mobile, etc.

2. UPI

Unified Payments Interface, developed by the National Payments Corporation of India,

provides real-time inter-banking transactions. After the integration of UPI and digital banking
services, one can quickly carry out fund transfers with a few clicks.

3. Personal financing solutions

Most banks in India offer next gen banking services, which allows customers to access a wide
range of online tools. Tools like EMI calculator, eligibility calculator and FD calculator
enable one to manage and organise their investments, credits, savings and more.

4. Loyalty programs

24
Individuals today can participate in rewards and loyalty programs offered by several banks.
One can receive reward points based on the transaction activities one carries out with a bank
or its partners. They can later redeem such points and get attractive rewards such as cash
backs or discounts.

5. Digital wallet

Digital wallets, also popular as mobile wallets, have become quite popular in the past few
years. Individuals do not have to carry cash with them all the time as they can easily carry out
necessary transactions with their smart phones.

6. Mobile banking

Nowadays, financial institutions offer superior mobile banking solutions allowing consumers
to avail all banking features from the comfort of their homes. Individuals need to download
apps of the respective banks and log in with their credentials.

7. Phone banking without internet

Banking facilities are also available for those without an internet connection. In this case, one
can access banking facilities through SMSes, phone calls or USSD services. Through this
feature, individuals can avail banking features free of cost, even in the remotest areas.

8. Message alerts

One of the most crucial aspects of digital banking is secure message alerts. Individuals can
get instant alerts through messages whenever any activity takes place with regard to their
bank account. Such alerts are useful in preventing fraudulent transactions.

9. Dedicated remote advisor

With remote banking, customers can now enjoy a seamless banking experience through
services offered by dedicated digital relationship managers. These executives take care of
one’s banking needs even beyond regular banking hours.

25
10. Automatic payment of bills

Bill payments are not a cumbersome task anymore, owing to automatic bill payment
facilities. Banks today let customers link their monthly bills with their digital bank account.
Thus, one can get timely reminders about bill payments from the banks.

2.2 ADVANTAGES:

The use of technology in the banking sector has revolutionized the way banks operate and
interact with their customers. Here are some of the advantages of technology in the banking
sector in detail:

1. Convenience and Accessibility:

Technology has made banking services available 24/7 to customers,

regardless of their location. With internet banking and mobile banking, customers can
access their accounts, transfer funds, pay bills, and perform other transactions from
anywhere, anytime. This has reduced the need for customers to physically visit a bank
branch, saving them time and effort.

2. Faster and More Efficient Transactions:

Technology has enabled faster and more efficient transactions between banks,
which means that customers can receive and transfer money quickly. This has been made
possible through the use of electronic fund transfers (EFTs) and real-time gross settlement
(RTGS) systems, which allow for near-instantaneous transfer of funds.

3. Enhanced Security:

Technology has enabled the banking sector to enhance security measures to

protect customers' financial information and transactions. Banks use advanced security
systems such as biometric authentication, encryption, and two-factor authentication to protect
customers' data and transactions from fraudulent activities.

26
4. Cost Savings:

Technology has enabled banks to automate many of their processes, reducing

the need for manual intervention and the associated costs. This has resulted in cost savings
for banks, which can be passed on to customers in the form of lower fees and charges.

5. Improved Customer Experience:

Technology has made it possible for banks to offer personalized services and
targeted marketing to customers. With the use of data analytics and machine learning, banks
can understand their customers' preferences and behavior and offer relevant products and
services to them. This has improved the overall customer experience and helped banks retain
their customers.

6. Increased Financial Inclusion:

Technology has enabled banks to reach previously unbanked or under

banked populations, especially in developing countries. Mobile banking has made it possible
for people with no access to a physical bank branch to open accounts, transfer funds, and
access other financial services.

7. Enhanced Adaptability and Flexibility:

In today’s banking and financial services industries, mergers and
acquisitions are near commonplace. Historically, combining firms with differing physical
systems can cause compatibility issues, which often cause havoc for both IT departments in
question. However, cloud-based solutions do away with the necessary onsite systems,
providing a smoother digital consolidation of business entities.

Advantages of online banking

In addition to being able to bank at any time, from anywhere, there are other advantages to
banking online. You may also be able to:

Pay bills online

This might be one of the top advantages of online banking because you don’t have to take
time out of your day to go to the bank. You can simply log into your account and pay your
bill online right away. For increased efficiency, you may also set up automated bill payments,
which helps you manage your cash flow when you have monthly payments to and from
vendors.

27
Transfer money
You may need to do a rapid money transfer to a client or vendor, or you may need to
transfer money from one account to another. Instead of sending a registered cheque and
waiting for it to clear, you may securely transfer the money online.

Deposit cheques online

Rather than driving to a bank branch and waiting in line, you may be able to deposit cheques
online in minutes. And because most financial institutions have an app that replicates its
services from your phone, you have the ability to always bank on the go. Plus, some banks
offer 24/7 customer service, so you can speak to a customer service representative at any
time.

Lower your overhead fees

If your business banks online, your banking fees may be lower, as online banks may not have
to pay for the cost and upkeep of branches, and those savings may be transferred to you.
Plus, they may have more no-fee options that add to your savings.

There are a number of online banking advantages that can truly have a positive impact on
your banking experience. Whether you are a technology whiz or not, mobile and online
banking offer many benefits that anyone can use to get started. Sometimes you just can’t get
to the bank or you need to get a banking task done in the moment, and online banking is there
for you. It’s simple and straightforward to get started – no sophisticated digital engineering
savvy required. For convenience, comfort and ease-of-use, mobile and online banking offer
you tremendous flexibility to bank anytime and anywhere.

Here are the five main online banking advantages.

1. Banking wherever you need to be: There are many common banking tasks you can do
without ever coming into a branch. This freedom is one of the main benefits of online
banking. From the comfort of your home, while you are at work, or even from a trusted
friend’s house, you can deposit checks, pay bills or transfer money. Log on to Online
Banking and with a few clicks you are able to get many of your banking to-do’s crossed off
the checklist. Just remember the importance of a secure Wi-Fi network. Be very careful
conducting any banking transactions on a network where you did not enter a password.

2. Save time: When you are ready to deposit that check, Having 24/7 access to your
accounts is another benefit of mobile banking. No need to wait in line, just log on and get it
done. On your schedule.

28
And when you deposit your check before 9 p.m. (Pacific Time), you will generally get access
to your money the next business day.1

3. Easy-to-use: If you have used a website before, you can use online banking. Some
features, such as alerts2and Bill Pay3might require set-up, but once you’ve done the set-up its
straightforward from there. Take some time to find out which tabs contain which banking
tasks you use most often so the next time you log on, it’s just a click away.

4. Lower fees: Domestic Online Banking Wire Transfers are just $20 when utilizing
Union Bank Online Banking ($10 less than when in person at a branch and $25 less than
when conducting a Transfer over the phone) and you can complete them without ever
leaving the comfort of your home.

5. It’s secure: You can set up facial recognition4with your smart phone (if supported by
your device). And your personal information is always secured and protected through our
authentication and security processes. We take protecting your information as seriously as
you do.

29
 2.3 DISADVANTAGES:

Although technology has brought significant benefits to the banking sector, there are
also some disadvantages to consider:

1. Security risks:

With the increasing use of technology in banking, there is also an increase in

the risk of cyber security threats. Hackers may try to steal sensitive data, such as personal
information and financial data, by exploiting vulnerabilities in technology systems.

2. Costly implementation:

Adopting and integrating new technologies can be costly for banks,

particularly for smaller ones that may struggle to keep up with larger competitors. This can
result in higher fees for customers or a reduction in services offered.

3. Dependency on technology:

As banking becomes more reliant on technology, there is a risk of disruption

if systems fail. This could lead to customers being unable to access their accounts or carry
out transactions.

4. Job displacement:

The automation of certain banking processes, such as account management

and loan processing, can lead to job displacement for some employees. This can create
social and economic challenges, particularly for those who may struggle to find alternative
employment.

5. Privacy concerns:

The use of technology in banking raises privacy concerns, particularly with

the increasing use of data analytics and AI. Customers may be uncomfortable with the use of
their data, particularly if it is being used for targeted marketing or other purposes without
their explicit consent.

30
 Disadvantages of new technology also include:

 Increased dependency on technology

 Often large costs involved with using the latest technology (especially for
small businesses)

 Increased risk of job cuts

 Closure of high street stores in favour of online business

 Security risk in relation to data and fraud

 Required regular updates

 Can go down or have faults, which can stop all business operations instantly.

1. No Actual Branches:

The workers at your local branch may be spoken with directly when you use a traditional
bank. If and when you require extra financial services, such as a loan, or when you must
modify your banking arrangements, that can be a benefit. In addition, many conventional
banks offer current clients special deals on credit cards, vehicle loans, and mortgages. With
an online bank, you'll probably have less access to in-person assistance and fewer chances to
form those interpersonal bonds.

2. Tech-Related Service Disruptions

We are dependent on the reliability and effectiveness of the system whenever we utilise
computers or an internet connection. If your internet service is delayed or unavailable for a
while, it will obviously limit your ability to access accounts online. Similarly, you won't be
able to access your banking information over the internet or a mobile device if the bank's
servers crash or become momentarily inaccessible as a result of planned site maintenance.

3. Concerns about Identity Theft and Security

In general, internet banking platforms and mobile applications should be secure because
banks frequently install new security measures. However, neither system is completely safe,
and hacked accounts can result in identity theft due to stolen login credentials. Therefore,

31
even if you may generally use mobile or online banking with confidence, be cautious to avoid
using insecure networks, change passwords frequently, and safeguard your login information.

4. Deposit Restrictions

Individuals, particularly enterprises, may find it challenging to make significant online

deposits due to daily or monthly mobile deposit restrictions. Once you've spent your allotted
amount, you'll need to make the trip to a bank to make a deposit. Additionally, not all check
types can be read by computer scanning software with ease. For instance, handwritten
company checks with a black line on the back to create a carbon copy in an account register
would not be accepted by the internet deposit system, necessitating an on-site deposit.

5. Faster is Not Always More Convenient

Even while it can just take a few seconds to deposit a check using a bank's mobile app, you
still have to wait before your money is available. Online banking is convenient in that it saves
time on travel and line waiting at branches, but depending on the amount placed, it might take
up to three business days for all deposits to be reviewed and monies to be made available for
access.

6. No Relationship with a Personal Banker

You might be able to take care of your everyday banking requirements on your own for the
most part. However, it could be more challenging to address concerns if you don't have
personal contact with a banker when problems emerge. While customer service departments
are available on online banking sites, you frequently have to navigate a phone tree and wait
on hold before interacting with someone who is unfamiliar with your requirements or
financial history. Local banker, on the other hand, is driven to help their clients and develop
their personal ties.

7. Limited Services Scope

Even while you may do quite a bit with a banking account, including such make payments,
checking balances, and making payments, there are many limits on the types of facilities you
may access. You might be able to submit an initial application for a new account, a loan, or a
mortgage online, but you will often need to go to a branch to sign documents and provide

32
identification. Similarly to this, even if you may transfer funds to a checking account or debit
card to make purchases, you'll need to go to a branch office or an ATM close by if you need
cash.

8. Possibility of Overspending

Some people could exceed their checking account limitations as a result of being able to
check account balances on the spur of the moment. The account balance might not accurately
reflect your true available funds unless you carefully review your chequebook or a list of
debit transactions that were not cleared. If you don't keep a close eye on all of your
transactions, overdrafts and fees may happen.

9. No Cashless Deposit Option

There is no provision for cash deposits. You must visit your nearest bank branch
or cash deposit machine to deposit money.

10. Internet Requirement

Your access to Internet banking services can be hindered in the absence of a stable
internet connection. It can also be affected when bank servers are down.

11. Internet Fraud

You could become a victim of internet fraud if you do not comply with the security
measures prescribed by the bank, such as not setting strong passwords, sharing
passwords, or not logging out from your internet banking account.

Apart from the advantages of technologies in banking sector, there are some disadvantages.
The biggest negative impact of technology is loss of jobs as automation has replaced number
of jobs in banking sector. As the banking sector is increasing their dependency of work on
technology, the need of manual task has decreased exponentially. This decreases the demand
of employees, which will increase unemployment. This will affect the economy of the
country in adverse way.

Though the system of transaction is very secure, there are several loopholes in Internet
banking which leads to the cybercrime. In cyber attack, millions of data can be lost in blink
of eyes.

33
2.4 TOOLS USED IN BANKING SECTOR:

The banking sector has seen a significant increase in the use of technological tools to improve
efficiency, security, and customer experience. Some of the technological tools used in the
banking sector include:

1. Mobile banking applications: Banks now offer mobile banking applications that allow
customers to perform banking transactions such as checking their account balance,
transferring funds, paying bills, and more, all from their mobile devices.

2. Online banking: Online banking enables customers to manage their accounts, view their
transaction history, and pay bills online. Online banking allows a user to conduct financial
transactions via the Internet. Online banking is also known as Internet banking or web
banking.

Online banking offers customers almost every service traditionally available through a local
branch including deposits, transfers, and online bill payments. Virtually every banking
institution has some form of online banking, available both on desktop versions and through
mobile apps.

KEY TAKEAWAYS

 Online banking allows a user to conduct financial transactions via the Internet.
 Consumers aren't required to visit a bank branch in order to complete most of their
basic banking transactions.
 A customer needs a device, an Internet connection, and a bank card to register. Once
registered, the consumer sets up a password to begin using the service.

3. ATMs: Automated Teller Machines (ATMs) allow customers to perform basic banking
transactions such as withdrawing cash, checking their account balance, and depositing
checks. An automated teller machine (ATM) is an electronic banking outlet that allows
customers to complete basic transactions without the aid of a branch representative or teller.
Anyone with a credit card or debit card can access cash at most ATMs, either in the USA or
abroad.

34
ATMs are convenient, allowing consumers to perform quick self-service transactions such
as deposits, cash withdrawals, bill payments, and transfers between accounts. Fees are
commonly charged for cash withdrawals by the bank where the account is located, by the
operator of the ATM, or by both. Some or all of these fees can be avoided by using an ATM
operated directly by the bank that holds the account. Using an ATM abroad can cost more
than using one in the USA.

ATMs are known in different parts of the world as automated bank machines (ABMs) or
cash machines.

KEY TAKEAWAYS

 Automated teller machines (ATMs) are electronic banking outlets that allow people
to complete transactions without going into a branch of their bank.
 Some ATMs are simple cash dispensers, while others allow a variety of transactions
such as check deposits, balance transfers, and bill payments.
 The first ATMs appeared in the mid- to late 1960s and have grown in number to
more than 2 million worldwide.
 Today’s ATMs are technological marvels, many capable of accepting deposits as
well as several other banking services.
 To keep ATM fees down, use an ATM branded by your own bank as often as
possible.

4. Card readers: Card readers are used to read credit and debit cards, allowing customers
to pay for goods and services without the need for cash. A card reader is a device that can
decode the information contained in a credit or debit card’s magnetic strip or microchip.

In finance, the term “card reader” refers to the technologies used to detect the account
number, cardholder information, and authorization code contained on a credit card. This
information is contained either in the magnetic strip of the card, or in the microchip
embedded in chip-enabled cards.

Although historically card reading technologies relied on physical copies being made and
stored by the vendor, today’s card readers are able to scan and process this information
electronically at nearly instantaneous speeds.

35
KEY TAKEAWAYS

 Card readers are the devices used to read the cardholder and account information
contained on a credit or debit card.
 Today’s card readers are Internet-connected and are able to complete transactions
electronically within seconds.
 Older models of card readers required customers or merchants to physically copy the
information from their card, slowing down the transaction process.

5. Biometric authentication: Biometric authentication tools such as fingerprint and

facial recognition are used to verify the identity of customers, enhancing security and
reducing fraud. Most people are familiar with biometric verification in banking as a way to
access their mobile banking app. But the use of biometric systems in banking actually goes
beyond this example.

Biometrics offers an easy, secure way for customers to open a bank account in the first place.
To satisfy KYC and AML compliance requirements, banks have to take certain measures to
verify customer identities at account opening. Historically, this has been done in person, via a
branch. But a new wave of market players (the likes of Revolt, Monzo and Chipper Cash)
changed that.

The rest of the market quickly followed suit, especially to stay competitive as customers adopted
the new location-independent ability to open bank accounts. Today, customers can open a bank
account purely online or via a mobile banking app. They simply take a photo of their
government ID, capture their biometrics, and are ready to start making payments in a matter of
minutes.

Payment is another area where biometrics are used in banking. We can now make payments
directly from our phone, simply using a fingerprint or facial recognition. If customers want to
move large amounts of money, biometric verification again comes into its own. It’s a quick and
easy way for businesses to confirm the rightful owner of that bank account is making a higher-
risk transaction. The customer simply needs to re-perform a biometric check, and the bank can
confirm that their identity matches that which is registered to the account (authentication).

36
 6. Chat bots: Chatbots are used to provide customers with quick and efficient responses
to their queries and concerns.

7. Blockchain: Blockchain technology is being used in the banking sector to enhance

security, reduce fraud, and improve the speed of transactions.

8. Electronic payments: Electronic payments such as wire transfers, ACH payments, and
electronic bill payments are increasingly being used by banks and customers to make
transactions. An electronic payment is a digital transaction between two parties, with e-
payment types including ACH, cards, bank transfers, digital wallets, mobile pay, and
more.

Any number of different factors can guide businesses toward the types of electronic payment
that might work optimally for them. There are pros and cons for each of the common
electronic payment types, and it’s sometimes tricky for financial decision makers to identify
the type of e-payments that works best for their processes.

9. Artificial intelligence: Artificial intelligence is being used in the banking sector to analyze
customer data, identify patterns, and personalize services for customers.

10. Cloud computing: Cloud computing is being used by banks to store and process
customer data, improve accessibility and enhance security. In essence, cloud banking is the
on-demand delivery of hosted computing services (servers, data storage, communication
and networking, applications and data analytics) to banks, credit unions, Fintechs and other
financial institutions (FIs) via the Internet.
With cloud banking, FIs have access to scalable, cost-efficient computing resources and IT
services.

The result?

 They can manage core applications and banking systems over the Internet (« the cloud »).
 They can improve practically all areas of their business operations.
 More importantly, FIs can deliver outstanding financial services and digital
banking experiences to their prospects and clients.

37
 CHAPTER 3:
3.1 PRIMARY DATA:

As per a survey conducted many people used technology for banking purpose.

Conducting surveys helped to gather quantitative data on the usage of technology in the
banking sector. Questions can be designed to gather information on the types of technology
used the frequency of use, and customer satisfaction with the technology.

 Online Banking was found convenient through the survey conducted.

 Technology was used more often for banking.

 Customers visited bank less often.

 Problems were also faced by customers in online banking while making transactions.

 Problems also occurred in offline banking.

38
3.2 SECONDARY DATA:

There is a wealth of secondary data available on the role of technology in the banking
sector. Here are some key findings:

1. Mobile Banking:

According to a report by Statistic, the number of mobile banking users worldwide is

expected to reach 1.8 billion in 2023. The rise of mobile banking has allowed customers to
easily check account balances, transfer funds, and pay bills from their mobile devices.

2. Digital Payments:

Digital payment methods, such as mobile payments, e-wallets, and contactless

payments, have become increasingly popular in recent years. In fact, a report by McKinsey &
Company found that digital payments are expected to account for 40% of all payments by
2025.

3. Artificial Intelligence (AI):

Banks are using AI-powered chatbots to provide customer support and automate
routine tasks such as account balance inquiries and fraud detection. AI is also being used to
analyze customer data and provide personalized recommendations for financial products
and services.

4. Block chain:

Block chain technology is being used by some banks to improve security and
transparency in transactions. The technology allows for secure and tamper-proof record-
keeping, which can reduce the risk of fraud and errors.

5. Big Data Analytics:

Banks are using big data analytics to gain insights into customer behaviour and
preferences, as well as to detect potential fraud and money laundering. These insights can
be used to personalize marketing efforts and improve risk management.

39
 CHAPTER 4:
4.1 DATA ANALYSIS AND INTERPRETATION:

Following figures / diagrams shows the detail study conducted through survey form
on technology in banking.

4.1.1 Figure showing people knowing about modern technology in banking

1st Qtr 2nd Qtr

 The above figure indicates that 92.3% of the people know about
modern technology in banking sector.

 Whereas the remaining 7.7% are unknown to technology.

40
 Figure 4.1.2: showing tools used in banking sector

None of the above

Cloud computing

Card reader

ATMs

Online banking

0 10 20 30 40 50 60 70 80 90100

 Following graph shows that most of the people prefer online banking.

 After online banking they use ATMs as a tool for banking.

 Cloud computing is not known to people more often.

 After ATMs card readers are known to people.

41
 Figure 4.1.3: indicating how often do people visit banks

sometimes never regularly

 This figure shows that people visit banks sometimes.

 They do not visit bank regularly.

42
 Figure 4.1.4: showing banking method of customers

onlinebanking physically visiting bank

 It shows that 61.5% of the customers do online banking.

 Rest 38.5 % visit banks.

 Study shows that online banking was found convenient for customers.

43
 Figure 4.1.5: showing often use of ATMs by people

sometimes never
daily basis

 Following figure shows the frequent use of ATMs.

 92.3% Customers use ATMs sometimes.

 Whereas 7.7% of the people never use ATMs.

44
 4.1.6 Figure showing method which is used for payment more often

both as per occasion online payment hard cash

 As per the survey conducted the above figure shows the payment method customers
uses often.

 61.8% of customers make payment through both online as well as offline method
depending upon the occasion.

 38.2% of customers use only online method.

 Whereas no one uses only hard cash for payment.

45
 4.1.7 Issues faced by customers while online banking.

 Sometime the server is down

 cyber security issues
 Server Issues
 Nothing
 Server issue
 Unsecured network
 Server down issue
 Issues like weak passwords and using unsecured networks make people
vulnerable to online attacks, like login credential theft and phishing, which
could result in fraudulent bank transactions
 Sometimes server is down its effected on transactions
 Network issue
 During online banking issue arises if the server is down
 Issue like weak password and unsecured network
 Server down
These are some of the issues which are sometimes faced by customers while online
banking.

46
 Figure 4.1.8: showing satisfaction of technology.

Yes Maybe No

 It shows that 92.3% of customers are satisfied with the technology which is
provided for banking purpose.

 Whereas only 7.7% of the customers are in the maybe category.

47
 4.1.9 Problems faced while offline banking.

 Rush and long time

 Timings of the banks vary and also banking offline is not possible during holida ys

 Payment carried out face to face

 Nothing

 Offline banking is time consuming

 Time consuming

 Lunch time in SBI

 It takes long time even if small transaction

 Wastage of time and resources

 Server down issue

 It takes a few working days to get the amount transferred to the bank account of the
receiver. Bank charges additional fees on dishonoured and bounced cheques.
Depositing cheques require the physical presence of the user, and cannot be done
online.

 It is time consuming

48
So most of the people found offline banking as time consuming in today’s world.

Figure 4.1.10: showing method which people find convenient while banking

online banking offline banking

According to the survey people find online banking more convenient.

Whereas offline banking is not used so often.

Reasons for inconvenient offline banking are:

 It is time consuming

 It has many other issues

 There is server down problem.

49
 CHAPTER 5:

5.1 SUGGESTION:

Technology plays a crucial role in the banking sector and has significantly transformed the
way banks operate. Some suggestions for the role of technology in the banking sector are:

1. Online Banking:

Online banking has become an essential part of banking services. It allows customers to
perform various banking transactions such as checking account balances, transferring funds,
paying bills, and more from anywhere in the world, using a computer or mobile device.

2. Mobile Banking:

Mobile banking is similar to online banking, but it allows customers to access their
accounts using their smart phones or tablets. This makes banking more accessible and
convenient for customers.

3. Digital Payments:

The introduction of digital payments has revolutionized the banking industry. Digital
payment systems such as e-wallets, mobile payments, and online payment gateways have
made transactions faster, more secure, and more convenient.

4. Artificial Intelligence:

Banks are using artificial intelligence (AI) to improve customer service, fraud detection, and
risk management. AI-powered chatbots and virtual assistants are being used to provide quick
and efficient customer support.

5. Blockchain Technology:

Blockchain technology is being used to create secure and transparent financial transactions.
This technology provides a tamper-proof ledger that records every transaction, making it
difficult for fraudsters to manipulate financial records.

6. Big Data Analytics:

Banks are leveraging big data analytics to improve their services, personalize customer
experiences, and reduce fraud. By analyzing large amounts of data, banks can identify
patterns and trends that help them make better decisions.

7. Cyber security:

Cyber security is crucial in the banking industry, and banks are investing heavily in this
area. Technologies such as firewalls, encryption, and biometric authentication are being used
to protect customer data and prevent cyber attacks.

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 CHAPTER 6:

6.1 CONCLUSION:

The study focuses on the role of information technology in banking sector.

Majority of respondents are now using e-banking services. Technology is one among the
foremost factor of human beings. Customers are started using e-banking made their banking
transactions easy. Respondents rated e banking as good after computerization. Customers
feeling safe about their transactions. Bank also changed their approach from conventional
banking to convenient banking. There is also need to maintain e-banking services easy as
possible. IT enabled better market infrastructure, implementation of reliable technique for
control of risk and help the financial intermediaries to reach geographically distant and
diversified markets. But IT can be fully useful only if they enable to met the challenges in the
present environment. There is also need to maintain privacy and confidentiality of data’s.
Another important responsibility is to ensure that the data is only used for the purpose
intended. For this there is a need to implement IT and other cyber laws properly. This will
ensure the developmental role of IT in banking industry.

Banking systems have been with us for as long as people have been using
money. Banks and other financial institutions provide security for individuals, businesses and
governments, alike. Let's recap what has been learned with this tutorial:

In general, what banks do is pretty easy to figure out. For the average person
banks accept deposits, make loans, provide a safe place for money and valuables, and act as
payment agents between merchants and banks. Banks are quite important to the economy and
are involved in such economic activities as issuing money, settling payments, credit
intermediation, maturity transformation and money creation in the form of fractional
reserve banking.

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 CHAPTER 7:

7.1 REFEENCES:

 https://www.google.com/search?q=role+of+technology+in+banking+sect
or&oq=&aqs=chrome.0.35i39i362l8.10613322j0j15&sourceid=chrome&
ie=UTF-8
 https://www.idfcfirstbank.com/finfirst-blogs/beyond-banking/what-is-the-
impact-of-it-on-the-banking-sector
 https://www.studocu.com/in/
 https://chat.openai.com/
 https://www.vedantu.com/
 https://www.researchgate.net/
 https://www.ijmra.us/
 https://www.javatpoint.com/
 https://www.scribd.com/
 https://www.investopedia.com/
 https://www.researchgate.net/
 https://appinventiv.com/
 https://www.santander.com/
 https://www.natwest.com/
 https://www.stampli.com/
 https://www.americanexpress.com/
 https://www.ijtsrd.com/
 https://www.stampli.com/
 https://www.bbc.co.uk/
 https://adilblogger.com/
 https://www.unionbank.com/

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 CHAPTER 8:
8.1 APPENDIX:
These are some of the questions which can be asked from the survey done or
through study till now.

Are you aware of modern technology in banking sector.

Yes

No

Maybe

Which of the following tools are you aware about.

Online banking

ATMs

Card readers

Cloud computing

None of the above

How often do you visit bank.

Regularly

Sometimes

Never

How do you do banking.

Through banking app/ online

By physically visiting the bank

How often do you use ATMs.

Daily

Sometimes

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 Never

Through which way do you prefer to make payment.

Online

Physical cash

Both as per occasion

What problem do you face while online banking.

Do you find technology helpful in banking field.

Yes

No

Maybe

What problem do you face while offline banking.

Which method of banking do you find convenient.

Online banking

Offline banking

Or any other method

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