IT changed banking sectors traditional role

Written by Banking Bureau | Mumbai, Feb 25 | Updated: Feb 26 2008, 06:56am hrs
R B Barman, executive director, Reserve Bank of India, (RBI) has said the use of Information Technology (IT) in all spheres of financial and banking sectors is a deep reality.

Barman was speaking at CII's third BANKing Tech Summit, 2008 titled "Sustaining Growth and Managing Risk Through Technology" here.

"Nexus between financial and rural sectors is of paramount importance and that IT is a strategic medium to reach the masses," he said. While emphasising on the changing role of the technology he adds that this sector has enabled the banking sector to go beyond its traditional role and is now playing an increasingly important role in its key areas of operation as securitisation, risks preference and liquidity among others to which IT helps in a big way.

Deepak Ghaisas, chairman vice chairman & director, i-flex solutions, said, "Today market demand is created by private banks, who are the drivers of the banking industry, but unfortunately even they are also partially technology driven in comparison to their western counterparts. So we need to see a future that is technology driven not only for the number of transactions but also to save time," remarked Ghaisas.

He further stressed that the banks were being viewed in a new light and as a gateway beyond the transaction of money.

The Summit also shared the findings of the study conducted by PwC with the release of CII - PwC Study Report titled "Integrating with the Global Banking - Industry Issues and Challenges Relating to Technology."

Providing an overview of the report, Jairaj Purandare, senior executive director, PricewaterhouseCoopers, mentioned that new products witnessing the changing customer needs were being devised as customer analytics, customer data integration and efficient delivery channels and the banks' focus was gradually changing from not only tapping new customers but also greater emphasis was being laid on retention of old customers.

He also added that currently, ATMs played an important role in tapping the customers and in future it was going to be the mobile banking that would replace this feature.