TOP TEN BANKING EMERGENCY

https://www.enterpriseedges.com/banking-financial-service-trends-india

digiltal and internet banking

http://www.researchjournali.com/view.php?id=704

1. Digitization:
With the rapid growth of digital technology, it became imperative for banking and financial services
in India to keep up with the changes and innovate digital solutions for the tech-savvy customers.
Besides the financial institutions, insurance, healthcare, retail, trade, and commerce are some of the
major industries that are experiencing the enormous digital shift. To stay competitive, it is necessary
for the banking and financial industry to take the leap on the digital bandwagon.

In India, it all began not earlier than the 1980s when the banking sector introduced the use of
information technology to perform basic functions likes customer service, book-keeping, and
auditing. Soon, Core Banking Solutions were adopted to enhance customer experience. However, the
transformation began in the 1990s during the time of liberalization, when the Indian economy exposed
itself to the global market. The banking sector opened itself for private and international banks which
is the prime reason for technological changes in the banking sector. Today, banks and financial
institutions have benefitted in many ways by adopting newer technologies. The shift from
conventional to convenience banking is incredible.
Modern trends in banking system make it easier, simpler, paperless, signatureless and branchless with
various features like IMPS (Immediate Payment Service), RTGS (Real Time Gross Settlement),
NEFT (National Electronic Funds Transfer), Online Banking, and Telebanking. Digitization has
created the comfort of “anywhere and anytime banking.” It has resulted in the reduced cost of various
banking procedures, improved revenue generation, and reduced human error. Along with increased
customer satisfaction, it has enabled the customers creating personalized solutions for their investment
plans and improve the overall banking experience.

Digitalized / Internet banking

With growing importance of IT, banking in future is definitely going to be hi-tech. All the
banks have already geared up their machinery and man power in this direction. New
generation private sector banks and foreign banks are ahead in the race. Apart from CBS
(Core Banking Solution), ATM, Net Banking and Plastic Money, new dimensions are
being added to the digitization kitty of banks day by day. Self-operating vending
machines, cash deposit machines, mobile banking, has already pulled out the crowd from
the branches. Customers get satisfied, privileged and dignified doing their own banking
transaction themselves without going to branch or taking help of branch staff.

The biggest advantage of digitization of banking is that, process flow will be smooth,
systematic, transparent and less time consuming. This will save time and cost to banks.
The branch staff will be able to invest the surplus time in other services like consultancy,
cross selling, relationship building and recovery.
Modern trends in banking system make it easier, simpler, paperless, signatureless and branchless with
various features like IMPS (Immediate Payment Service), RTGS (Real Time Gross Settlement),
NEFT (National Electronic Funds Transfer), Online Banking, and Telebanking. Digitization has
created the comfort of “anywhere and anytime banking.” It has resulted in the reduced cost of various
banking procedures, improved revenue generation, and reduced human error. Along with increased
customer satisfaction, it has enabled the customers creating personalized solutions for their investment
plans and improve the overall banking experience.

https://www.hdfcbank.com/personal/learning-center/digital-banking/what-is-digital-banking

What is Digital Banking?

In the old days, banking used to be a time-consuming business. If you wanted
cash, for instance, you had to go to the bank branch, hand over a cheque to a
bank employee, get a token and wait until the cashier called your number. In the
first week for a month, when there was a scramble for cash among customers,
you had to wait a long time indeed.
All that, thankfully, is a thing of the past. Digital banking has transformed the
way things are done. Now all you have to do to get cash is to get to the nearest
ATM, use your card and get cash in under a minute! Moreover, going digital
allows you the perfect opportunity to enjoy a paperless banking experience,
where you no longer need to keep track of your transactions or banking history
through physical documents.

What is Digital Banking?

Digital Banking has completely changed the way we bank in today’s times.
With Digital Banking, you can transact with higher speed, ease and
convenience.

The Digital Banking is banking done through the digital platform, doing away
with all the paperwork like cheques, pay-in slips, Demand Drafts, and so on. It
means availability of all banking activities online. Digital Banking gives you the
luxury of freely accessing and performing all traditional banking activities 24*7
without having to personally go to a bank branch to get your work done.
Digital Banking can be done either through a laptop, tablet or your mobile
phone. This is what is Digital Banking in India all about. Here are some of its
advantages.

1. Fund transfers: The ability to transfer funds is one of the most

significant advantages of Digital Banking. There’s no need to go through
the hassle of issuing cheques or Demand Drafts. All you need to do is use
Digital Banking to transfer funds to anyone, anytime. There are several
options available, like IMPS(Immediate Payment Service), RTGS(Real
 Time Gross Settlement), NEFT(National Electronic Funds Transfer), and
so on. It’s even easier to do it on the MobileBanking App.

2. Cash withdrawal: With ATMs in every nook and cranny, you don’t have
to visit a bank branch. Digital Banking allows to you withdraw cash from
the ATM at any time of the day or night!

3. Getting statements: You can use Digital Banking to download bank

statements for any period at any time. There’s no need to visit a bank
branch and get a printout. It’s there on your device, to access whenever
you want.

4. Paying the bills: Digital Banking has made it so much easier to pay your
bills. Whether it’s electricity, gas, phone or other bills, all you need to
pay is via logging in. And there’s the auto-debit facility that allows your
bills to be paid automatically as and when they arrive. HDFC Bank
allows you even to recharge your pre-paid mobile phone number. Digital
Banking has indeed transformed the everyday life of an individual!

5. Investments: Investing has never been easier, thanks to Digital Banking.

Opening a Fixed Deposit with the bank takes a few seconds. And you can
use Digital Banking to make investments in other instruments as well. For
example, you can invest in Mutual Funds through HDFC Bank
NetBanking, buy insurance products, and even apply for loans.

6. Mobile Banking:
A)The first phase of the Digital Banking revolution was through the
internet.
B) The second phase of Digital Banking involves mobile phone
platforms. After smartphones came into the market, Digital Banking has
taken off in a big way. Smartphones now allow customers to carry out
bank transactions on the go. They can transfer funds, invest in Fixed
Deposits, pay the bills… even while commuting on the go.
Most banks like HDFC Bank have their apps for customers,
such as MobileBanking App and PayZapp amongst many others. HDFC
Bank also has a mobile phone application called HDFC Bank Mobile
Banking LITE that can be used without an Internet connection. This app
allows users to check balances, get statements, place requests for cheque
books, view fixed deposit summary etc.

7. Keeping track of transactions: Digital Banking has made it so much

easier for customers to track transactions. Want to know if your salary
has been credited to your account? Just whip out your smartphone and
 check -- you’ll know in a matter of seconds. Plus, banks send SMSes if
money has been debited from your account. So in the unlikely event of a
fraudulent transaction, you’ll come to know of it immediately.

8. Stop cheques: Sometimes you may need to stop cheques for some reason
– like you may have got the amount wrong, or the beneficiary was not the
one you wanted. In that case, Digital Banking makes it very easy to stop
cheques. All you need to do is log in and with a simple click, you can
update the cheque processing.

Digital Banking has drastically changed the way banks and customers interact
with one another. And in a booming technological and financial economy like
India, more and more people are being connected to Digital Banking Platforms
with each passing day.

Most banks in the country offer Digital Banking services today, and these have
become an integral part of banking.
The true Digital Banking meaning is a transformation!

PROJECT


Why the future of banking depends on Digital Inclusion

https://news.abs-cbn.com/business/06/19/19/the-future-of-fully-digital-banking

https://vinodsblog.com/2017/01/01/2017-year-of-ai-digital-payments/

http://www.anantcomputing.in/1250-2/

Financial inclusion is the need of the hour in India – according to World Bank data, only 35% of Indians
have an account with a formal financial institution. Less than 8% have debit cards, and less than 2% have
credit cards. As per the 2011 Census, only 58.7% of households utilise formal banking services.

The Indian government is on a mission of financial inclusion with the Jan Dhan Yojana, an ambitious
scheme that envisions a bank account for every Indian. The target for the first phase of the scheme was 75
million accounts by August 15, 2015. As per the current status report, we have over shot this figure – we
stand at 112.3 million accounts, and it’s heartening to note that 66.9 million accounts are in rural India.

(Source : http://www.pmjdy.gov.in/account-statistics-country.aspx)

What is disturbing is that 81.1 million (or 72%) of the accounts opened under the scheme have Zero
Balance. In the past also, we have seen that no-frills accounts are opened and then stay inactive or dormant
once the initial enthusiasm dies down. Why is this? The same banks who are keen to push their services
aggressively to urban, affluent customers are missing out on capitalising on the vast user base of first time
customers who have a great need for a range of banking products and services. As social entrepreneurship
group Ashoka points out in this article on Forbes magazine “The basic obstacle is that mainstream banks
will never be able to deliver tomorrow’s low-cost services (services the unbanked need most of all) using
today’s high-cost business models.” Therefore banks engage only in a limited way with the marginalised
customers. Banks should not see the Jan Dhan Yojana as something that is done only to ensure
compliance, they should also see an opportunity that can impact their growth positively.

This is where technology, and digital inclusion can play a role, hand in hand with innovative thinking in
the design of products and services. Did you know that SBI is the bank with the largest market share (51%
or 1.15 Crore users) of mobile banking users in India? According to an SBI report, the vision is to
“gradually move in a direction where every poor person is able to operate his bank account from his
mobile, as mobile penetration is higher than financial services penetration.” The existence of a vibrant,
lower income market that can be reached on mobile, has been demonstrated powerfully by the success of
mobile payment services like M-Pesa. The World Bank’s 2014 Global Financial Development Report
notes that low income customers benefit the most from technology-driven innovations like mobile
banking, as they make financial services cheaper and easier to access. The constant presence of the cell
phone with the customer also makes it a valuable tool for financial literacy, without which financial
inclusion is meaningless.

India has 900 million plus phone subscribers as per the latest TRAI report, and already has the second
highest number of cell phone sales, after China. Banks can experiment with mobile phone technology to
pilot innovative and more flexible business models. And if they fail to do so, they will certainly face stiff
competition from the new entities that will be set up in 2015 as per RBI’s new norms that allow retail
chains, corporates and telcos to open payment banks.

https://www.slideshare.net/ps2516/digital-banking-65077558(for project)