Benefits of Information Technology in Banking Assignment Sample

Introduction of Growing Demand & Benefits of Information Technology in Banking Assignment

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The term information technology is now suffering from mouth to mouth. Several years ago IT did not have too many demands. But in the current days IT has a huge demand in the market. In an article of 1958 in the review of Harvard business he referred to the term Information Technology. And this has consisted in between three basic parts: the first one is computational processing data, decision support, and the support of business. This time frame represented the commencement of IT as a specifically defined area of employment; in fact, that article is thought to have created the phrase. Several firms established an "IT department" to administer computer technology connected to business companies during the next generations. That is what these departments produced constituted the country's official understanding of information technology, one that has developed through the time. IT companies now handle computer assistance of the engineers, company internet connection and data management systems, business of software interaction, and data protection. During the dot-com explosion of something like the 1990s, Technological Advancement has become connected with computer features other than those controlled by IT organizations. This generic approach of IT encompasses disciplines such as software developments, design of computer development, and product development. Mainly the current investing is going to be done on Banking sectors. Basically, the use of Information technology in the banking sectors are going to be discussed through this paper.

Literature Review

According to Uppal 2008, The banking industry plays a vital role in the Indian financial structure, and it is plagued by several adverse factors. The one driver is the information technology renaissance. In today's world, technical assistance is critical to the smooth operation of the banking industry. People cannot imagine the development of the banking business without the support of IT and telecommunication; it has expanded the significance of the industry of this banking sector (Abu-Alkeir, 2021). Technology is playing a critical part in the development of an automated financial systems which is capable of meeting the requirements of a developing economy. In the last ten years, the banking sector had already strongly invested significantly including the tele banking as well as the mobile banking, internet banking ad the credit cards, ATMs, debit cards, digital payments, and information retrieval resource extraction ideas to continue improving the customers satisfaction However, changes in IT implementation, utilization, and productivity have a significant effect on productivity. In the banking sectors, information technology makes reference to use of the advanced and powerful communication and the information technology, as well as operations research, to connection and communication to provide better service and better opportunity to the customer in a protected, credible, and cost in an effective manner, while gaining a reasonable favorable position over other banks. The presence of technology is felt strongly in the financial industry due to the highly competitive advantage for banks that results in excellent dealing with customers. The banking industry is generally highly essential as well as critical in the development of the Indian economy. There seems to be an expansion in absorption, creativity, and profitability as a result of the usage of information technology. It has not only boosted economic viability, and it has also aided in the viability of small purchases. Digital ordering systems, ATMs, a multitude of credentials, web-based finance, and phone banking are only a few of the outputs of the mechanization and information technology procedure in the banking sectors of several countries and states.

Figure 1: Information Technology

(Source: https://www.tutorialspoint.com/fundamentals_of_science_and_technology/images/information_technology_features.jpg)

Evaluation of the IT in banking sector: Inside the late 1980s, the banking industry recognized the necessity of computer technology in order to increase customer services, administration, and MIS reporting. The Reserve Bank of India formed a Committee on the Bank Computer technology in 1988, chaired by Dr. C. Rangarajan.

Banks first used computer technology with the development of freestanding PCs, which were later upgraded to Local Area Network (LAN) connections (Ali and Sohail, 2022). Banks embraced the Core Banking platform as technology advanced. As a result, branch banking gave way to bank financing. As a promising move toward boosting consumer conveniences using Elsewhere and Anywhere Banking, Conventional Banking Solution (CBS) financial organizations to improve the comfort characteristic for clients. Various Core Banking solutions, such as Infosys' Finacle, TCS' BaNCS, and i-FLEXCUBE, flex's have grown in prominence.

With the liberalization of the business in the year 1991-92, the development of computer technology accelerated. Competitiveness from domestic and international banking was a significant cause of this transformation. Several banking sectors began to shift onto digital consumer services in order to stay relevant and contemporary inside this race.

Adoption of modern technology has benefited banks in some varieties of ways. Ebanking has resulted in substantial cost savings being done in several ways. According to the most recent available data, the cost of a bank transaction on Branches And atms is projected to be between Rs.71 and Rs.74, whereas it is between Rs.15 and Rs. sixteen on Atms, Rs.one maybe less on Netbanking, and Rs.2 maybe less on through the Mobile Payments (Altintas, 2020). The percentage of visitors has grown. and this is the amount that has been increased just because of human error reduction. this is possible for making the access and making the analysis of the data and information to enable the strong support.

According to Salboni et al. 2008, The RBI has always been a driving factor for banks in developing rules and making guidance to attain various goals. Professional banking sector has evolved toward technology through bank digitization and mechanization, such as the adoption of MICR-based cheques printing, e - payment, interconnection across banking institutions, and ATM (Automated Teller Machine) deployment. Machinery Channel has contributed to the ease of banking at every moment. The Reserve Bank of India has made steps to improve the rupee. Banking trading and settlements procedures

Analysis

Current status in the digital space

Digital space in the current status

(Source: https://serialsjournals.com/abstract/54264_4-new.pdf)

The National Payments Corporation (NPCI) deployment of the United Payments Interface (UPI) and Bharat Interface for Money (BHIM) are key developments. Towards advancement in the Electronic Payments sector UPI is a smartphone interface that allows On the internet, customers may conduct rapid transfers of funds between accounts in various banks. Instead of naming the checking account on the grounds of an address space, Banks now strive to give customers quick, efficient, and high-quality internet banking services (Hundal and Zinakova, 2020). Their clients Digital marketing is currently somewhere at top of the priority list for all Indian banks. In the year between 2016-17, there would have been more than 2,00000 Automated Teller Machines, according to the RBI report of RBI. NEFT (National Electronic Fund Transfer), ECS, and also with some other payment systems that go on through the internet. (Electronic Clearing Service), and RTGS (Real Time Gross Settlement).

Cheque termination, online money, card payments, credit cards, and contactless payments have all acquired mainstream popularity in Indian banks. All of them are outstanding structures. In the financial company's overall digitalization Online banking has altered the financial landscape. complexion of banks and resulted in the significant revolution in the financial industry Deployments. The much more widely utilized computerized payment method is "National Electronic Funds Transfer" (NEFT). modes of transaction for moving funds from a banking institution to another in Asia. It runs in split increments. There are indeed 22 villages. The "Real Time Gross Settlement" (RTGS) protocol is typically utilized for increased operations. would operate in real time' The average number that must be transmitted using RTGS is two lakh rupee There's really no ceiling.

The Immediate payment service which is formally known as the IMPS as generally the transfer of instant electronic funds which is actually being offered by the NPCI. The name of the process is “National Payment Corporations”.

In recent days, there has been a significant growth in the use of planned payment mechanisms for the purchase of services as well as money transfers. Overall value of trade using PPI Card numbers (which would contain mobile prepayment devices, reward points, overseas travel tokens, including corporate cards) & mobile payments has increased dramatically between Rs. Hundred and five billion that has been calculated in the recent years in between 2016 to 2017.

Banking Transformation: Throughout the last few years, the Indian financial industry has seen a complete makeover. This has been a miracle that can go from a laborious, spectrum context to a technologically leadership market. Such a metamorphosis occurs in such a short period of time and at such a minimal cost.

The introduction of technologies into the banking industry of several countries may be attributed back to the year 1998, when the banking sector underwent numerous deregulation measures (Khalil and Alam, 2018). One of the primary goals of Indian recapitalization was to promote functional personality, versatility, and competitiveness in the business, as well as to raise Indian banking requirements to the international standards as well as some best practices. Also, with the relaxation of license requirements, privately owned and international banks arose, properly equipped with cutting-edge software. Economic liberalization has provided banks with additional avenues for income growth by branching into corporate finance, reinsurance, or in the part of credit cards, mortgage loans, fixed deposits, and other areas. Banking's position has evolved from that of a mere mediator to that of a phone company of diverse banking activities under a proper and secured roof, akin to an economic marketplace.

Recent trends of the banks: The banking business is undergoing fast transformation in order to satisfy competitiveness, technological hurdles, and terminal demand. Certainly, technology is a critical difference in bank success. Banks must have encountered people not only for products as well as for processes.

Technology has transformed not only the atmosphere, but also for the way businesses interact with their consumers. Technology has not only torn down boundaries, but this is also having the resulted in improved goods and platforms. This has heightened the importance of the customer connection.

It has been seen as a tool for expense reduction and improvement communication with individuals and organizations involved in the banking industry (Kimani, 2018). The RBI has prioritized the improvement of the economic program's communications networks. Technology is creating opportunities in order to provide the good services to the customers and providing the best delivery channels with the use of the IT facility. This also used to provide the framework of the banking industries to get into some more challenges in this current competitive market and this responsible environment. IT used to enable the cut most of the cost for the transformation of the global funding.

Discussion

Some of the IT devices which is being used in the banking sectors are described in the below parts:

Payment through the electronic devices and the system of settlement: in most of the common media in the recent payments through the banking sectors are naturally negotiable instruments like the cheques. These devices might be used with the money. Clearing and settlement systems might be used to materialize intergovernmental cheques. Initially, cleansing was done manually. However, the increasing number of financial transactions necessitated the development of cleansing order processing.

MICR technology: MICR is used to overcome the barrier of processing cheques during the banking hours, allowing the consumer to obtain credit rapidly. These are computer codes put to the bottom of each check leaf to aid in banking and branch-specific grouping of payments for easy transmission to the business and give on which they would be drawn. Although this aided in increasing the acceleration of the examination operation, personal transportation of cheques persisted even with this direct monitoring.

CTS: CTS formerly known as the “Check Truncation System '' Truncation seems to be the process of halting the movement of personal checks delivered by a drawer here to bank draft location. The actual document is terminated somewhere along the way to the demand draft from the branch, as well as an electronic picture of the check is delivered together with the right information such as the MICR fields, dates of presentation, offering banks, and on and on. Exception of extraordinary circumstances, it would also completely remove some need to move corporeal equipment throughout branches, leading to a strong reducing the amount of time considered necessary for cheque compensation, the additional expense of public transportation, and slowdowns in computation, etc, consequently streamlining the procedure of this fund transfer compendium or realization.

ECS: ECS is generally known as the “Electronic cleaning services” this was the very initial version of electric payment in the country (Lwin et al. 2019). This is actually the node of an electronic fund which is transferred from a banking organization to another bank for the accounting use with the clearing house mechanism. This is actually very important and also useful in the formation of account transfers.

EFT: This is basically known as the electronic fund transfer that is having the transfer system of retail electronic funds and the mechanism is dealing in between the several network branches in the continent. NEFT used to provide the integration with the process of “Structural financial messaging solution” of the financial networks.

RTGS: The RTGS is basically a system used to make the funds transfer mechanism that allows money to be transferred by one account to another unreal times' and on a 'company’s income statement.' This is really the quickest funds transfer mechanism available via the payment method. Payment transactions are settled in the real time,' which implies there is no timeframe. As soon as the processes are performed, they are automatically completed. The term "gross settlement" refers to a business that is resolved on a one-to-one basis without ever being bundled at all with any operation or in some other transactions.

CBS: CBS is formally known as the Core banking solutions in this kind of banking systems — Digital transformation of commercial banks began with the deployment of modest computer to streamline branches operations, particularly in high areas. Traditional Banking Technology is the connectivity of a lender's facilities so that consumers may access personal assets from just about any bank location, independently of where they established the institution. CBS branches connected with the employees centralized data administration and supported the introduction of online and mobile facilitated banking’s. Furthermore, CBS aids in the consolidation of bank activities into a single development platform.

Let's discuss a very crucial thing about the banking system (Lwin et al. 2022). Most of the people are currently using this and also taking advantage of the machine. Yes, this is an automated teller machine. The most used IT based machine which is being used in the current society. This might be the best invention of IT in the banking system. The gatherers has been reduced in a highway by the use of this IT service. More than ninety percent of the people are taking advantage of this ATM. because this can be used anywhere any time. ATMs are possibly the most innovative part of internet banking. ATM access is supplied by card payments containing credit and debit cards that send signals on the consumer as well as the account. ATMs seem to be the most important instrument in today's society for ensuring the notion of anywhere and anytime.

Let's discuss the most important thing that is being used in the current days which is mobile banking or can be said as the phone banking. Consumers may now ring the bank's allocated phone number and connect to the company's specified computers by inputting his ID number. The consumer may conduct all non-cash banking activities over the phones by utilizing an autonomous recording device (AVR) for simple questions and money transfers and staffed contact booths for more difficult enquiries and operations. Everywhere, at any moment. The banking through the mobile service is generally an extension of the online banking service.

A commercial bank that offers mobile banking permits its clients to execute money transfers distantly using a smartphone. Unlike linked online banking, it makes use of programming, sometimes referred to as an App, offered by the finance system as a means. Mobile banking is often available round the clock a day, seven days a week (Miah et al. 2021). Several fintech companies restrict which portfolios may be visited via digital money, and also the money that can be exchanged. Mobile banking activities may involve retrieving accounting records and reports of recent activity, electronic payment services, and number of commercials here between company's and somebody else's accounts.

Challenges and Opportunities

While financial technology startups have benefitted from the administration's superstar initiatives as well as the Banking System of India's (RBI) flexibility regulatory system, conventional establishments have a developed apparatus and history that is tough to replace.

Fintech businesses must build better reputation in Indian clients, who are historically known to be cautious in their spending tastes (Galdolage et al. 2021). Some of the most difficult difficulties include determining how to appeal to their requirements and encourage financial behavior, as well as establishing a robust and proactive legislative regime to keep up with rapid research and innovation.

Figure 3: Challenges in Information technology

(Source: https://mms.businesswire.com/media/20180214005781/en/640837/5/5_Challenges_That_the_Tech_Industry_Needs_to_Be_Prepared_For.jpg)

Established banks and other economic companies, on the other hand, may use their current number of clients and implement digital services that foster solid financial connections and enhance operational effectiveness and extend distribution to fulfill consumer needs.

Conclusion

First of all, in the current report a small demonstration over Information technology has been provided. In the very next part, a particular organization has been selected to make the research complete. So, this is why a particular banking system is selected to make continuous research. All the positive approaches and facilities that can be provided to the banking customers, all the points have been selected in a rapid and proper way. And in the final stage of the research report some challenges that can be faced through the IT services in the banking sectors are also being discussed. The banking business has immense opportunity and several prospects due to advances in information technology. It offers consumer services that are expense, timely, and methodical. The effective utilization of technologies has permitted precise The appropriate administration of banks' lower investment volumes that result from with a wider clientele IT has immensely benefited the banking business. All around the planet, there is a popular uprising.

References

Journals

Abu-Alkeir, N.I., 2021. Examining the Relationship between Corporate Social Responsibility (CSR) and Competitive Advantage (CA) in the Commercial Banking Sector/Case Study of Jordan. American Journal of Multidisciplinary Research & Development (AJMRD), 3(07), pp.27-31.

Ali, M.H. and Sohail, A., 2022. The Effect of General Banking Information Technology System on Customers Satisfaction with The Moderating Effect of Customer Trust-An Empirical Study From Pakistan’s Commercial Banks. Journal of Business Management Studies-JBMS, 1(01), pp.41-52.

Altintas, N., 2020. The impact of regulatory reforms on cost efficiency, ownership and competition in the Turkish commercial banking sector (Doctoral dissertation, University of Reading).

Hundal, S. and Zinakova, T., 2020. Financial technology in the Finnish banking sector and changing stakeholder dynamics in the Covid-19 era. In Proceedings of the International Online Conference: Corporate Governance: An Interdisciplinary Outlook in the Wake of Pandemic. November 19-20, 2020. Virtus interpress.

Khalil, F. and Alam, H.M., 2018. Evidence of market discipline through operational risk disclosures in commercial banking sector of Pakistan. Pakistan Bus Rev, 20, pp.768-782.

Kimani, J., 2021. INFLUENCE OF INFORMATION TECHNOLOGY ON THE BANKING SECTOR. Journal of Technology and Systems, 3(1), pp.48-61.

KUMAR, R., ROLE OF INFORMATION TECHNOLOGY IN COMMERCIAL BANKING SECTOR IN INDIA.

Lwin, N., Ameen, A. and Nusari, M., 2019. Mobile banking adoption among customers within private commercial banking sector in Yangon, Myanmar. International Journal of Management and Human Science (IJMHS), 3(2), pp.44-59.

Lwin, N., Liana, S.R. and Nusari, M.S., Analysis of Mobile Banking Adoption by Customers of Private Commercial Banking Sector in Yangon, Myanmar.

Miah, M.D., Rahman, S.M. and Mamoon, M., 2021. Green banking: the case of commercial banking sector in Oman. Environment, Development and Sustainability, 23(2), pp.2681-2697.

Muazu, M.H. and Nashehu, H.H., 2021. Operational Excellence and Commercial Banking Performance: A Competitive Advantage Opportunity. Journal of Technology Management and Business, 8(1), pp.28-34.

Pasiparowa, P.B., 2018. Maximizing the use of electronic banking for competitive advantage: A case study of the Zimbabwean commercial banking sector (2012-2013).

S Galdolage, B. and MKS Rasanjalee, R., 2021. Technology Playfulness and Anxiety as Motivators and Hindrances of SST Adoption: Commercial Banking Sector in Sri Lanka.

Senesombath, V. and Sukcharoensin, S., 2020. Evaluating the Operating Efficiency of Commercial Banking Sector in Lao PDR. Journal of Global Business Review, 22(2), pp.23-39.

Yusheng, K., Asubonteng, S. and Antwi-Adjei, A., 2019. Assessment of the relationship between capital, risk and efficiency in Ghana commercial banking sector. European Journal of Business and Management Research, 4(6).

 

INTRODUCTION TO INFORMATION TECHNOLOGY

Abstract

Banking systems used to play a very important role in the economy of any country. This is actually like the central nerve in a nation's economy. The financial needs of credit in all kinds of domains of the current society. The advancements and the growth in the current technology have a paradigm shift in the entire banking operations. Further growth of e-banking resulted in a significant shift in terms of meeting the diverse demands of clients. The present economy's two goals, namely nationalizations and GST, are entirely dependent on digital banking. The current study investigates the influence of technology in the banking sector across consumers by analyzing relevant material from previous studies. The purpose of this study is to investigate some of the most essential and widely used IT-enabled banking services, as well as their benefits and current issues.

Keywords: ATM, Internet banking, Information technology, MICR, CTS, ECS, RTGB, CBS

Table of Contents

Introduction. 4

Literature Review.. 4

Analysis. 7

Discussion. 9

Conclusion. 12

Reference List 14

Introduction

The term information technology is now suffering from mouth to mouth. Several years ago IT did not have too many demands. But in the current days IT has a huge demand in the market. In an article of 1958 in the review of Harvard business he referred to the term Information Technology. And this has consisted in between three basic parts: the first one is computational processing data, decision support, and the support of business. This time frame represented the commencement of IT as a specifically defined area of employment; in fact, that article is thought to have created the phrase. Several firms established an "IT department" to administer computer technology connected to business companies during the next generations. That is what these departments produced constituted the country's official understanding of information technology, one that has developed through the time. IT companies now handle computer assistance of the engineers, company internet connection and data management systems, business of software interaction, and data protection. During the dot-com explosion of something like the 1990s, Technological Advancement has become connected with computer features other than those controlled by IT organizations. This generic approach of IT encompasses disciplines such as software developments, design of computer development, and product development. Mainly the current investing is going to be done on Banking sectors. Basically, the use of Information technology in the banking sectors are going to be discussed through this paper.

Literature Review

According to Uppal 2008, The banking industry plays a vital role in the Indian financial structure, and it is plagued by several adverse factors. The one driver is the information technology renaissance. In today's world, technical assistance is critical to the smooth operation of the banking industry. People cannot imagine the development of the banking business without the support of IT and telecommunication; it has expanded the significance of the industry of this banking sector (Abu-Alkeir, 2021). Technology is playing a critical part in the development of an automated financial systems which is capable of meeting the requirements of a developing economy. In the last ten years, the banking sector had already strongly invested significantly including the tele banking as well as the mobile banking, internet banking ad the credit cards, ATMs, debit cards, digital payments, and information retrieval resource extraction ideas to continue improving the customers satisfaction However, changes in IT implementation, utilization, and productivity have a significant effect on productivity. In the banking sectors, information technology makes reference to use of the advanced and powerful communication and the information technology, as well as operations research, to connection and communication to provide better service and better opportunity to the customer in a protected, credible, and cost in an effective manner, while gaining a reasonable favorable position over other banks. The presence of technology is felt strongly in the financial industry due to the highly competitive advantage for banks that results in excellent dealing with customers. The banking industry is generally highly essential as well as critical in the development of the Indian economy. There seems to be an expansion in absorption, creativity, and profitability as a result of the usage of information technology. It has not only boosted economic viability, and it has also aided in the viability of small purchases. Digital ordering systems, ATMs, a multitude of credentials, web-based finance, and phone banking are only a few of the outputs of the mechanization and information technology procedure in the banking sectors of several countries and states.

Figure 1: Information Technology

(Source: https://www.tutorialspoint.com/fundamentals_of_science_and_technology/images/information_technology_features.jpg)

Evaluation of the IT in banking sector: Inside the late 1980s, the banking industry recognized the necessity of computer technology in order to increase customer services, administration, and MIS reporting. The Reserve Bank of India formed a Committee on the Bank Computer technology in 1988, chaired by Dr. C. Rangarajan.

Banks first used computer technology with the development of freestanding PCs, which were later upgraded to Local Area Network (LAN) connections (Ali and Sohail, 2022). Banks embraced the Core Banking platform as technology advanced. As a result, branch banking gave way to bank financing. As a promising move toward boosting consumer conveniences using Elsewhere and Anywhere Banking, Conventional Banking Solution (CBS) financial organizations to improve the comfort characteristic for clients. Various Core Banking solutions, such as Infosys' Finacle, TCS' BaNCS, and i-FLEXCUBE, flex's have grown in prominence.

With the liberalization of the business in the year 1991-92, the development of computer technology accelerated. Competitiveness from domestic and international banking was a significant cause of this transformation. Several banking sectors began to shift onto digital consumer services in order to stay relevant and contemporary inside this race.

Adoption of modern technology has benefited banks in some varieties of ways. Ebanking has resulted in substantial cost savings being done in several ways. According to the most recent available data, the cost of a bank transaction on Branches And atms is projected to be between Rs.71 and Rs.74, whereas it is between Rs.15 and Rs. sixteen on Atms, Rs.one maybe less on Netbanking, and Rs.2 maybe less on through the Mobile Payments (Altintas, 2020). The percentage of visitors has grown. and this is the amount that has been increased just because of human error reduction. this is possible for making the access and making the analysis of the data and information to enable the strong support.

According to Salboni et al. 2008, The RBI has always been a driving factor for banks in developing rules and making guidance to attain various goals. Professional banking sector has evolved toward technology through bank digitization and mechanization, such as the adoption of MICR-based cheques printing, e - payment, interconnection across banking institutions, and ATM (Automated Teller Machine) deployment. Machinery Channel has contributed to the ease of banking at every moment. The Reserve Bank of India has made steps to improve the rupee. Banking trading and settlements procedures

Analysis

Current status in the digital space

Figure 2: Digital space in the current status

(Source: https://serialsjournals.com/abstract/54264_4-new.pdf)

The National Payments Corporation (NPCI) deployment of the United Payments Interface (UPI) and Bharat Interface for Money (BHIM) are key developments. Towards advancement in the Electronic Payments sector UPI is a smartphone interface that allows On the internet, customers may conduct rapid transfers of funds between accounts in various banks. Instead of naming the checking account on the grounds of an address space, Banks now strive to give customers quick, efficient, and high-quality internet banking services (Hundal and Zinakova, 2020). Their clients Digital marketing is currently somewhere at top of the priority list for all Indian banks. In the year between 2016-17, there would have been more than 2,00000 Automated Teller Machines, according to the RBI report of RBI. NEFT (National Electronic Fund Transfer), ECS, and also with some other payment systems that go on through the internet. (Electronic Clearing Service), and RTGS (Real Time Gross Settlement).

Cheque termination, online money, card payments, credit cards, and contactless payments have all acquired mainstream popularity in Indian banks. All of them are outstanding structures. In the financial company's overall digitalization Online banking has altered the financial landscape. complexion of banks and resulted in the significant revolution in the financial industry Deployments. The much more widely utilized computerized payment method is "National Electronic Funds Transfer" (NEFT). modes of transaction for moving funds from a banking institution to another in Asia. It runs in split increments. There are indeed 22 villages. The "Real Time Gross Settlement" (RTGS) protocol is typically utilized for increased operations. would operate in real time' The average number that must be transmitted using RTGS is two lakh rupee There's really no ceiling.

The Immediate payment service which is formally known as the IMPS as generally the transfer of instant electronic funds which is actually being offered by the NPCI. The name of the process is “National Payment Corporations”.

In recent days, there has been a significant growth in the use of planned payment mechanisms for the purchase of services as well as money transfers. Overall value of trade using PPI Card numbers (which would contain mobile prepayment devices, reward points, overseas travel tokens, including corporate cards) & mobile payments has increased dramatically between Rs. Hundred and five billion that has been calculated in the recent years in between 2016 to 2017.

Banking Transformation: Throughout the last few years, the Indian financial industry has seen a complete makeover. This has been a miracle that can go from a laborious, spectrum context to a technologically leadership market. Such a metamorphosis occurs in such a short period of time and at such a minimal cost.

The introduction of technologies into the banking industry of several countries may be attributed back to the year 1998, when the banking sector underwent numerous deregulation measures (Khalil and Alam, 2018). One of the primary goals of Indian recapitalization was to promote functional personality, versatility, and competitiveness in the business, as well as to raise Indian banking requirements to the international standards as well as some best practices. Also, with the relaxation of license requirements, privately owned and international banks arose, properly equipped with cutting-edge software. Economic liberalization has provided banks with additional avenues for income growth by branching into corporate finance, reinsurance, or in the part of credit cards, mortgage loans, fixed deposits, and other areas. Banking's position has evolved from that of a mere mediator to that of a phone company of diverse banking activities under a proper and secured roof, akin to an economic marketplace.

Recent trends of the banks: The banking business is undergoing fast transformation in order to satisfy competitiveness, technological hurdles, and terminal demand. Certainly, technology is a critical difference in bank success. Banks must have encountered people not only for products as well as for processes.

Technology has transformed not only the atmosphere, but also for the way businesses interact with their consumers. Technology has not only torn down boundaries, but this is also having the resulted in improved goods and platforms. This has heightened the importance of the customer connection.

It has been seen as a tool for expense reduction and improvement communication with individuals and organizations involved in the banking industry (Kimani, 2018). The RBI has prioritized the improvement of the economic program's communications networks. Technology is creating opportunities in order to provide the good services to the customers and providing the best delivery channels with the use of the IT facility. This also used to provide the framework of the banking industries to get into some more challenges in this current competitive market and this responsible environment. IT used to enable the cut most of the cost for the transformation of the global funding.

Discussion

Some of the IT devices which is being used in the banking sectors are described in the below parts:

Payment through the electronic devices and the system of settlement: in most of the common media in the recent payments through the banking sectors are naturally negotiable instruments like the cheques. These devices might be used with the money. Clearing and settlement systems might be used to materialize intergovernmental cheques. Initially, cleansing was done manually. However, the increasing number of financial transactions necessitated the development of cleansing order processing.

MICR technology: MICR is used to overcome the barrier of processing cheques during the banking hours, allowing the consumer to obtain credit rapidly. These are computer codes put to the bottom of each check leaf to aid in banking and branch-specific grouping of payments for easy transmission to the business and give on which they would be drawn. Although this aided in increasing the acceleration of the examination operation, personal transportation of cheques persisted even with this direct monitoring.

CTS: CTS formerly known as the “Check Truncation System '' Truncation seems to be the process of halting the movement of personal checks delivered by a drawer here to bank draft location. The actual document is terminated somewhere along the way to the demand draft from the branch, as well as an electronic picture of the check is delivered together with the right information such as the MICR fields, dates of presentation, offering banks, and on and on. Exception of extraordinary circumstances, it would also completely remove some need to move corporeal equipment throughout branches, leading to a strong reducing the amount of time considered necessary for cheque compensation, the additional expense of public transportation, and slowdowns in computation, etc, consequently streamlining the procedure of this fund transfer compendium or realization.

ECS: ECS is generally known as the “Electronic cleaning services” this was the very initial version of electric payment in the country (Lwin et al. 2019). This is actually the node of an electronic fund which is transferred from a banking organization to another bank for the accounting use with the clearing house mechanism. This is actually very important and also useful in the formation of account transfers.

EFT: This is basically known as the electronic fund transfer that is having the transfer system of retail electronic funds and the mechanism is dealing in between the several network branches in the continent. NEFT used to provide the integration with the process of “Structural financial messaging solution” of the financial networks.

RTGS: The RTGS is basically a system used to make the funds transfer mechanism that allows money to be transferred by one account to another unreal times' and on a 'company’s income statement.' This is really the quickest funds transfer mechanism available via the payment method. Payment transactions are settled in the real time,' which implies there is no timeframe. As soon as the processes are performed, they are automatically completed. The term "gross settlement" refers to a business that is resolved on a one-to-one basis without ever being bundled at all with any operation or in some other transactions.

CBS: CBS is formally known as the Core banking solutions in this kind of banking systems — Digital transformation of commercial banks began with the deployment of modest computer to streamline branches operations, particularly in high areas. Traditional Banking Technology is the connectivity of a lender's facilities so that consumers may access personal assets from just about any bank location, independently of where they established the institution. CBS branches connected with the employees centralized data administration and supported the introduction of online and mobile facilitated banking’s. Furthermore, CBS aids in the consolidation of bank activities into a single development platform.

Let's discuss a very crucial thing about the banking system (Lwin et al. 2022). Most of the people are currently using this and also taking advantage of the machine. Yes, this is an automated teller machine. The most used IT based machine which is being used in the current society. This might be the best invention of IT in the banking system. The gatherers has been reduced in a highway by the use of this IT service. More than ninety percent of the people are taking advantage of this ATM. because this can be used anywhere any time. ATMs are possibly the most innovative part of internet banking. ATM access is supplied by card payments containing credit and debit cards that send signals on the consumer as well as the account. ATMs seem to be the most important instrument in today's society for ensuring the notion of anywhere and anytime.

Let's discuss the most important thing that is being used in the current days which is mobile banking or can be said as the phone banking. Consumers may now ring the bank's allocated phone number and connect to the company's specified computers by inputting his ID number. The consumer may conduct all non-cash banking activities over the phones by utilizing an autonomous recording device (AVR) for simple questions and money transfers and staffed contact booths for more difficult enquiries and operations. Everywhere, at any moment. The banking through the mobile service is generally an extension of the online banking service.

A commercial bank that offers mobile banking permits its clients to execute money transfers distantly using a smartphone. Unlike linked online banking, it makes use of programming, sometimes referred to as an App, offered by the finance system as a means. Mobile banking is often available round the clock a day, seven days a week (Miah et al. 2021). Several fintech companies restrict which portfolios may be visited via digital money, and also the money that can be exchanged. Mobile banking activities may involve retrieving accounting records and reports of recent activity, electronic payment services, and number of commercials here between company's and somebody else's accounts.

Challenges and the opportunities

While financial technology startups have benefitted from the administration's superstar initiatives as well as the Banking System of India's (RBI) flexibility regulatory system, conventional establishments have a developed apparatus and history that is tough to replace.

Fintech businesses must build better reputation in Indian clients, who are historically known to be cautious in their spending tastes (Galdolage et al. 2021). Some of the most difficult difficulties include determining how to appeal to their requirements and encourage financial behavior, as well as establishing a robust and proactive legislative regime to keep up with rapid research and innovation.

Figure 3: Challenges in Information technology

(Source: https://mms.businesswire.com/media/20180214005781/en/640837/5/5_Challenges_That_the_Tech_Industry_Needs_to_Be_Prepared_For.jpg)

Established banks and other economic companies, on the other hand, may use their current number of clients and implement digital services that foster solid financial connections and enhance operational effectiveness and extend distribution to fulfill consumer needs.

Conclusion

First of all, in the current report a small demonstration over Information technology has been provided. In the very next part, a particular organization has been selected to make the research complete. So, this is why a particular banking system is selected to make continuous research. All the positive approaches and facilities that can be provided to the banking customers, all the points have been selected in a rapid and proper way. And in the final stage of the research report some challenges that can be faced through the IT services in the banking sectors are also being discussed. The banking business has immense opportunity and several prospects due to advances in information technology. It offers consumer services that are expense, timely, and methodical. The effective utilization of technologies has permitted precise The appropriate administration of banks' lower investment volumes that result from with a wider clientele IT has immensely benefited the banking business. All around the planet, there is a popular uprising.

Reference List

Journals

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Ali, M.H. and Sohail, A., 2022. The Effect of General Banking Information Technology System on Customers Satisfaction with The Moderating Effect of Customer Trust-An Empirical Study From Pakistan’s Commercial Banks. Journal of Business Management Studies-JBMS, 1(01), pp.41-52.

Altintas, N., 2020. The impact of regulatory reforms on cost efficiency, ownership and competition in the Turkish commercial banking sector (Doctoral dissertation, University of Reading).

Hundal, S. and Zinakova, T., 2020. Financial technology in the Finnish banking sector and changing stakeholder dynamics in the Covid-19 era. In Proceedings of the International Online Conference: Corporate Governance: An Interdisciplinary Outlook in the Wake of Pandemic. November 19-20, 2020. Virtus interpress.

Khalil, F. and Alam, H.M., 2018. Evidence of market discipline through operational risk disclosures in commercial banking sector of Pakistan. Pakistan Bus Rev, 20, pp.768-782.

Kimani, J., 2021. INFLUENCE OF INFORMATION TECHNOLOGY ON THE BANKING SECTOR. Journal of Technology and Systems, 3(1), pp.48-61.

KUMAR, R., ROLE OF INFORMATION TECHNOLOGY IN COMMERCIAL BANKING SECTOR IN INDIA.

Lwin, N., Ameen, A. and Nusari, M., 2019. Mobile banking adoption among customers within private commercial banking sector in Yangon, Myanmar. International Journal of Management and Human Science (IJMHS), 3(2), pp.44-59.

Lwin, N., Liana, S.R. and Nusari, M.S., Analysis of Mobile Banking Adoption by Customers of Private Commercial Banking Sector in Yangon, Myanmar.

Miah, M.D., Rahman, S.M. and Mamoon, M., 2021. Green banking: the case of commercial banking sector in Oman. Environment, Development and Sustainability, 23(2), pp.2681-2697.

Muazu, M.H. and Nashehu, H.H., 2021. Operational Excellence and Commercial Banking Performance: A Competitive Advantage Opportunity. Journal of Technology Management and Business, 8(1), pp.28-34.

Pasiparowa, P.B., 2018. Maximizing the use of electronic banking for competitive advantage: A case study of the Zimbabwean commercial banking sector (2012-2013).

S Galdolage, B. and MKS Rasanjalee, R., 2021. Technology Playfulness and Anxiety as Motivators and Hindrances of SST Adoption: Commercial Banking Sector in Sri Lanka.

Senesombath, V. and Sukcharoensin, S., 2020. Evaluating the Operating Efficiency of Commercial Banking Sector in Lao PDR. Journal of Global Business Review, 22(2), pp.23-39.

Yusheng, K., Asubonteng, S. and Antwi-Adjei, A., 2019. Assessment of the relationship between capital, risk and efficiency in Ghana commercial banking sector. European Journal of Business and Management Research, 4(6).