Page 38 - Banking Finance July 2019

ARTICLE

Let us discuss some broad changes taken place at above Earlier there were huge red ledgers, row of racks of ledger
mentioned two points. holders, cash scrolls, registers, clearing cheques scrolls,
totaling machines, long rolls of paper ribbons often gazing
Changes at macro level viz technology, the floor formed part of hardware in the branches.
competition, compliance, risk level,
It was also common to see staff hiding behind the tall branch
regulation etc. counters, row of signature cabinets standing between the
counters and supervisory staff, customers eyeing frantically
Over the decade Indian banking system witnessed
on movement of ledgers and cheques until their transactions
metamorphosis. The main driver of transformation has been
were done. It was a very laborious and tiresome job for the
the fast adoption of Information, Communication and
banker to manage update bulky ledger of different
Technology (ICT) based system in the banks. This all started
schemes/accounts. In manual banking era customer could
in 1990s when we witnessed radical policy changes with
perform their banking at the branch where they have
regard to fiscal deficit and structural changes in India. It was
opened their account, as assess to account information and
also necessitated due to globalization and liberalization to
other KYC details was confined to that branch only.
cope with the new economic world order.
Earlier there was possibility of mistake on part of omission
The banking sector also had to embrace rapid and striking
and commission generally termed as clerical error, but scope
changes in globalised and liberalized world. Stiff competition
of real time - online big fraud was not there. Speed of the
started due to the entrance of new private and foreign
transaction was also not that fast as most of the operations
participants in the sector. Introduction of new computer
were done manually. Gradually we are experiencing a
based technology, resulting into downsizing of the
change at our bank branches and now sporting a smart look
workforce, increased fraud related threats, then with the
with refurbished interior, radiating corporate color, well
introduction of Core Banking Solution banking space saw a
dressed bank logos, wide glass doors, and plush interiors and
great transformation and still we are witnessing the changes
well developed customer lounges etc.
brought in with the up gradation of the technology.
The concept of the core banking solution changed the We have heard that there were time in the branches where
banking sector, earlier a customer was considered to be they do not have even electricity, no running water facility
branch customer whereas it is now transformed to be the etc. Now mostly at all places barring some rural or semi
bank's customer. Technological up gradation which urban location, a strong improvement is being withnessed.
introduced anytime anywhere banking on real time basis With the use of alternate delivery channels and percentage
also brought in certain risk elements, scope of fraud also of transaction carried out through these alternate delivery
increased, so in order to prevent any fraud one needs to be channels of total transaction is also increasing by day
alert all the time and remain vigilant, ensure strict resulting in lesser foot fall in the branches.
compliance of the KYC and other due diligence processes as
it is defined and changed from time to time.

Changes at micro level viz operational
procedures, basic amenities, ambience

and infrastructure of the branch.
With the passage of time over decade we saw a
considerable improvement in basic facilities/infrastructure
of the branches, still there may be certain branches at
certain location that may not have very good infrastructure
or facilities as compared to some location but it is for sure
that no branches are devoid of basic facilities. The banking
work space and procedures has definitely changed for good.

38 | 2019 | JULY | BANKING FINANCE