Page 37 - Banking Finance May 2020

ARTICLE

customers can now carry out transaction on mobile banking
apps. Most of the banks in India have launched apps for
mobile banking. Examples are YONO by SBI, UMobile by
Union Bank, M connect plus by Bank Of Baroda etc.

Tele Banking: Tele Banking allows the customer to do
entire non-cash related banking on telephone. Under this
IVR (interactive voice response) system is used for simpler
queries and transactions. For complicated queries and
transactions, manned phone terminals are used.

Lobby Banking: It implies, primarily machine based
banking and all the transactions and enquiries are carried
out by customers on self-managed machines in a lobby segmentation which has helped in customizing their product
premises. The machines are ATM, CRM (Cash Recycler folios well. Thus retail lending has become a focus area
Machine), Self-passbook printing machine, CDM (Cheque particularly in respect of financing of consumer durables,
Deposit Machine). personal vehicles etc.

Electronic Data Interchange (EDI): Electronic Data Lack of infrastructure & awareness: It is due to lack
Interchange is the electronic exchange of business of awareness regarding technology that customers are not
documents like purchase order, invoices, shipping notices, gaining momentum in its used form. There is lack of proper
receiving advices etc. in a standard, computer processed, infrastructure for the installation of E-delivery channels.
universally accepted format between trading partners. EDI Educating customers and staff about technical changes is a
can also be used to transmit financial information and big challenge for banking companies.
payments in electronic form.
Security challenge: The main disadvantage of IT in
Social Media: Most of the banks in India are now having banking is the security problems that surround it. It is a fact
an active presence on social media. Bank have their that making transactions online possess a much bigger risk
Facebook pages , LinkedIn profiles, YouTube channels, in comparison to making transactions in a brick and mortar
twitter and Instagram profile to be in touch with customers branch. Combating security problems like hacking, identity
and respond to them 24*7 basis. Social media is also a very theft is also a big challenge.
strong platform for marketing of new products and receive
feedback from customers without direct interaction. Risk Management: Managing risk arising out of
technological advancement in banking is a great challenge
Challenges for Banks for banking sector. The attackers are very innovative and
they fabricate various methods to commit cyber-crimes on
With the technological reforms in banking sector, the
customers to get access to their account numbers/
expectations of customers are rising high which has led to
the following challenges before banking sector. passwords and they attack banks in order to get access to
confidential information.
Customer Satisfaction: Today in banking sector
customers are more value oriented in their services because Opportunities
they have alternative choices in it. So that each and every The doors of new opportunities opened by technology for
bank have to take care about fulfilling the customers the development of banking sector are mentioned below:
satisfaction. E banking coverage: It is clear that with the usage of
technology, anytime anywhere banking is very common and
Retail Lending: Recently banks have adopted customer banks have opportunity to upscale. Such up scaling could

BANKING FINANCE | MAY | 2020 | 37