Page 34 - Banking Finance November 2017

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Anytime, anywhere banking, using differentiated channels regardless of where they maintain their account. The
and technology, has enabled multi-fold increase of reach in customer is no more the customer of a particular branch.
rural and remote areas. Already, more than 22 crore bank Thus, CBS is a huge step towards enhancing customer
accounts have been opened under the Pradhan Mantri Jan- convenience through 'Anywhere and Anytime Banking'.
Dhan Yojana, 14 crore insurance & pension policies have
been issued to the people and Rs. 180,000 crore loans have CBS provides the following benefits:
been disbursed under MUDRA scheme, which have been an Y Anytime and Anywhere banking (online mediums / SMS)
outstanding example of financial inclusion. With the
Y Standardised, simple and automated processes
emergence of a new class of banks the small and payments
banks one of the biggest impacts of technology adoption will Y Increase in quality of the service provided to the
be rapidly accelerating financial inclusion by making last mile customers
access more cost effective and expanding the reach of Y Timely and accurate information for management
banking to the unbanked. decision making
Y Strong audit and internal controls
The improving communication infrastructure, increasing
competition from the tech savvy new generation private Y Reduction in the cost of transaction and thereby
sector banks, rapid innovations in the ICT sector, particularly improving operational efficiency
internet as well as nudging from the Reserve Bank, enabled Y Paving way for new value added services thereby
the banks to catch up with the leaders in the banking sector generating additional revenue
as far as IT adoption in banks was concerned.
Banks have made rapid stride in recent years in migrating
In the recent times, almost all the business activities in the their operations to CBS Platform. Almost all PSBs, Private
banking industry have undergone rapid changes due to Sector Banks and Foreign Banks are now on CBS. Many Co-
various factors with IT being the most significant. The Operative Banks are also in the process of migrating their
banking products, services, processes, delivery channels, etc, operations to CBS.
have largely moved from physical to electronic. So we have
come to a stage in banking, where IT is an enabler, one of 2. ATM
the most important business drivers and also a crucial
ATM card is a convenient method to make payment and
component of the business process itself. In a way a large conduct other banking transactions. An ATM card can be
part of the 'Internal Transformation' of banking organizations
extremely convenient as long as we track our purchases and
could be attributed to IT adoption. Further, as all the stake
cash withdrawals carefully. The ATM card can be used in a
holders for banks, including the regulators, are adopting variety of ways that include:
more and more technology platforms, banking sector has
Y cash withdrawal
got an ideal IT ecosystem to flourish, so to say. Resultantly,
Y payment for goods and services purchased
now we are in a situation when not only the digital assets
constitute a significant portion of a bank's assets in Y balance enquiry
comparison to the physical assets, its share is also growing Y account statement
day by day.
Y deposit of cash and cheques
Ten Pillars of Banking Technology & Y fund transfer between accounts
Their Impact on Customer Service Banks have also issued large number of debit and credit cards

1. Core Banking Solution (CBS) to facilitate easy and fast banking transactions and migrate
Core Banking Solution (CBS) is a networking of branches, more and more branch transactions to alternate channels.
which enables customers to operate their accounts and avail Issuance of debit cards is much higher as compared to credit
banking services from any branch on CBS network, cards and they remain a preferred mode of transactions.

34 | 2017 | NOVEMBER | BANKING FINANCE

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