Emergence of banking technology

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: The buzzword today is 'Innovation and technology' in every Industry. We are inhabitants of a global village wherein every industry is moving ahead faster than the speed of light. Over the last couple of years, technology in particular has revolutionised industry dynamics and the way economies work.

Amongst many, the banking industry has been witness to the marvels of technology and has also utilised the same to maximum advantage.

Over the years, banks have understood how to use technology to simplify finance for its customers and deliver unique service in the face of intense competition. Aspirations have risen, salaries have increased and simultaneously the duty of banks towards satisfying their customers. Let us understand how technology has stepped in and uncomplicated the banking process by analyzing emerging trends in banking technology.

The role of IT has become so integrated and pervasive with banking that it is impossible to think about banking processes without an effective IT system in place. Today, the failure of IT systems could render a bank dysfunctional. A number of banks such as State Bank of India, Oriental Bank of Commerce, Canara bank, Bank of Maharastra, Indian Overseas Bank have floated tenders to scale up their disaster recovery and business continuity systems.

In the future, such requirements will increase manifold as the banks in India are now looking at their business continuity plans seriously and gearing up to put disaster recovery systems in order.

Banking in India has undergone a dramatic transformation. The last two decades have witnessed a massive change in the nature of services offered which have had a positive impact on the customers of banks.

Changing technology

What was once a public sector dominated scenario with a few foreign banks is, now, a fertile domain wherein private sector banks co-exist along with their public sector counterparts who have also adapted themselves well with the changing times. The foreign banks have further widened their operations and simultaneously the plastic money revolution is gathering speed technology. This is perhaps a strong indicator of the new banking order. There is no doubt that the way banks conduct business has changed due to technology. Why such dependence on technology?