UNIVERSITY OF MUMBAI

PROJECT ON

ROLE OF INFORMATION TECHNOLOGY IN BANKING

MASTER OF COMMERCE

BANKING & FINANCE

SEMESTER III

(2022-2023)

SUBMITTED

In partial Fulfilment of the requirement for the

Award of Degree of Master of Commerce - Banking & Finance

SUBMITTED BY,

MISS SIMRAN NILESH PATIL

ROLL NO. - 4032

UNDER GUIDANCE,

ASST. PROF. PRIYANKA PRASAD

MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE &

COMMERCE

PAREL, MUMBAI - 400012.

1
 MAHARSHI DAYANAND COLLEGE

OF ARTS, SCIENCE, COMMERCE

PAREL, MUMBAI - 400012.

CERTIFICATE

This is to certify that MISS SIMRAN NILESH PATIL

Of M.Com (Banking & Finance) Semester III (2022-2023) has

Successfully completed the project on

ROLE OF INFORMATION TECHNOLOGY IN BANKING

Under the guidance of ASST. PROF. PRIYANKA PRASAD.

Course Coordinator Principal

Project Guide/ Internal Examiner External Examiner

2
 DECLARATION

I am MISS SIMRAN NILESH PATIL The student of M.com (Banking & Finance)
Semester III (2022-2023)
Hereby declares that I have completed the Project on ROLE OF INFORMATION
TECHNOLOGY IN BANKING. The information submitted is true and original to the best
of my knowledge.

Signature of student

Name of Student

MISS SIMRAN NILESH PATIL

Roll No. 4032

3
 ACKNOWLEDGMENT

The college, the faculty, the classmates, & the atmosphere, in the college were all the
favourable
Contributory factors right from the point when the topic was to be selected till the final copy
was
Prepared. It was a very enriching experience throughout the contribution from the following
Individuals in the form in which it appears today. We feel privileged to take this opportunity
to put on
Record my gratitude towards them.

ASST. PROF. C.S. GOGHARE made sure that the resource was made available in time &
also for
Immediate advice & guidance throughout making this project. The principal of our college
DR. C.S.
Panse.

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 CONTEXT
.SR. NO. CHAPTERS PPAGE
NO

INTRODUCTION
1.1 Introduction
1.2 History Of Indian Banking
1.3 Why Technology Needed?
1.4 Information technology considerations
1.5 Benefits of IT
1.6 Benefits of IT in Banking
1 1.7 Information technology in banking sectors
1.8 E Banking
1.9 E- banking in India
1.10 Information technologies and applications
used in banking sectors 6-36
1.11 Recent developments in banking sectors
1.12 Impact of It on the service quality
1.13 Impact of IT on banking system
1.14 Impact of IT on privacy and confidential data
2
RESEARCH METHODOLOGY
2.1 Objective 37-40
2.2 Need of the study
2.3 Data collection
3
LITERATURE REVIEW
3.1 Conceptual review 41-46
3.2 Empirical review
4
DATA ANALYSIS
4.1 Sample size 47-49
4.2 Sample design
4.3 Data collection method
50-58
FIGURES
5 59-60
CONCLUSION
6 61
REFERENCE

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 Chapter I
INTRODUCTION

6
 1.1 INTRODUCTION

The banking sector includes a lot of key players, including retail and commercial banks,
mobile (telecommunication) network operators, and financial institutions. Information
Technology (IT) has changed how business is conducted, how individuals live, work
and think there is stiff competition amongst banks and has also paved way for many
new and exciting banking products and services being offered nowadays for customers
with so many banks to choose from. The banking sector has paved way for the use of
IT in different ways namely the personal computer (PC), personal digital devices
(PDAs), tablets, smartphones, automatic teller machines (ATM) and standalone
machines with in the banks All the above technologies named assist the customer and
employees to access bank account information they need at the present time.

Mobile Banking has been in use since the 90’s , Banking information technologies used
by the banks include, mobile banking applications, contactless payments, SMS
banking, USSD, ATM, debit and credit card, mobile money, telephone banking,
wireless Point of Sale (POS) to name but a few. Mobile Banking is defined best as one
of the latest technologies that customers use on the go. Mobile Banking is also a service
that is offered to customers by retail and commercial firms, money lenders and service
providers for transacting by using a handheld device such as Smartphone, tablet,
cellular phone and personal organisers. It is utilising the mobile device to do the
following: access the bank account, balance inquiry, bill payments, deposits and
transfers. The account is accessed using an Internet connection (which can either be
Wi-Fi, mobile data or fibre optic cable) or by mobile network by sending an SMS or
calling. An individual does not have to physically go into the branch to make
transactions now a days. The account information can be accessed from virtually
anywhere in the world and transactions achieved as well. Mobile banking in a large
sense is part and parcel of E-commerce.

Information Technology which will be referred to as IT within the rest of the document
refers to the application of computers (which include hardware, software, networking
and the internet) and communication apparatus to ensure the facts obtained can be used
by individuals and businesses . Many companies now have IT departments which are

7
setup to manage the computers, networks, and other technical areas of their businesses.
There have been vast changes and additions to IT used worldwide
With globalization trends all over the world it is difficult for any nation big or small,
developed or developing, to remain isolated from what is happening around. For a
country like India, which is one of the most promising emerging markets, such isolation
is nearly impossible. More particularly in the area of Information technology, where
India has definitely an edge over its competitors, remaining away or uniformity of the
world trends is untenable. Financial sector in general and banking industry in particular
is the largest spender and beneficiary from information technology. This endeavours to
relate the international trends in it with the Indian banking industry.

The last lot includes possibly all foreign banks and newly established Private sector
banks, which have fully computerized all the operations. With these variations in the
level of information technology in Indian banks, it is useful to take account of the
trends in Information technology internationally as also to see the comparative position
with Indian banks. The present article starts with the banks perception when they get
into IT up gradation. All the trends in the IT sector are then discussed to see their
relevance to the status of Indian banks.

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1.2 HISTORTY OF INDIAN BANKING

The first banks were The General Bank of India which started in 1786, and the Bank
of Hindustan, both of which are now defunct. The oldest bank in existence in India is
the State Bank of India, which originated in the Bank of Calcutta in June 1806, which
almost immediately became the Bank of Bengal. This was one of the three presidency
banks, the other two being the Bank of Bombay and the Bank of Madras, all three of
which were established under charters from the British East India Company. For
many years the Presidency banks acted as quasi-central banks, as did their successors.
The three banks merged in 1921 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India. Indian merchants in Calcutta
established the Union Bank in 1839, but it failed in 1848 as a consequence of the
economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still
functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A
company that issues stock and requires shareholders to be held liable for the
company's debt) It was not the first though. Thathonor belongs to the Bank of Upper
India, which was established in 1863, and which survived until 1913, when it failed,
with some of its assets and liabilities being transferred to the Alliance Bank of Shimla.
When the American Civil War stopped the supply of cotton to Lancashire from the
Confederate States, promoters opened banks to finance trading in Indian cotton. With
large exposure to speculative ventures, most of the banks opened in India during that
period failed. The depositors lost money and lost interest in keeping deposits with
banks. Subsequently, banking in India remained the exclusive domain of Europeans
for next several decades until the beginning of the20th century. Foreign banks too
started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de
Paris opened a branch in Calcutta in 1860, and another in Bombay in1862; branches
in Madras and Pondicherry, then a French colony, followed. HSBC established itself
in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to
the trade of the British Empire, and so became a banking centre.

9
The first entirely Indian joint
stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed
in 1958. Thenext was the Punjab National Bank, established in Lahore in 1895,
which has survived to
the present and is now one of the largest banks in India. Around the turn of the 20th C
entury, theIndian economy was passing through a relative period of stability. Around
five decades had elapsed since the Indian Mutiny, and the social, industrial and other
infrastructure had improved. Indians had established small banks, most of which
served particular ethnic and religious communities. The presidency banks dominated
banking in India but there were also some exchange banks and number of Indian joint
stock banks. All these banks operated in different segments of the economy. The
exchange banks, mostly owned by Europeans, concentrated on financing foreign
trade. Indian joint stock banks were generally undercapitalized and lacked the
experience and maturity to compete with the presidency and exchange banks. This
segmentation let Lord Curzon to observe, "In respect of banking it seems we are
behind the times. We are like some old-fashioned sailing ship, divided by solid
wooden bulkheads into separate and cumbersome compartments." The period between
1906 and 1911, saw the establishment of banks inspired by the Swedish movement.
The Swedish movement inspired local businessmen and political figures to found
banks of and for the Indian community. A number of banks established then have
survived to the present such as Bank of India, Corporation Bank, Indian Bank, and
Bank of Baroda, Canada Bank and Central Bank of India. India’s independence
marked the end of a regime of the Laissez-faire for the Indian banking. The
Government of India initiated measures to play an active role in the economic life of
the nation, and the Industrial Policy Resolution adopted by the government in 1948
envisaged a mixed economy. This resulted into greater involvement of the state in
different segments of the economy including banking and finance. The major steps to
regulate banking included The Reserve Bank of India, India's central banking
authority, was nationalized on January 1,1949 under the terms of the Reserve Bank of
India (Transfer to Public Ownership) Act, 1948(RBI, 2005b). In 1949, the Banking
Regulation Act was enacted which empowered the Reserve

Bank of India (RBI) "to regulate, control, and inspect the banks in India.

10
The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could
have common directors. By the 1960s, the Indian banking industry had become an
important tool to facilitate the development of the Indian economy. At the same time,
it had emerged as a large employer, and a debate had ensued about
the possibility to nationalize the banking industry. Indira Gandhi, the-
then Prime Minister of Indiaexpressed the intention of the GOI in the annual
conference of the All India Congress Meeting in paper entitled "Stray thoughts on
Bank Nationalization." The paper was received with positive enthusiasm. The GOI
issued an ordinance and nationalised the 14 largest commercial banks with effect from
the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India,
described the step as a "masterstroke of political sagacity." Within two weeks of the
issue of the ordinance, the Parliament passed the Banking Companies (Acquisition
and Transfer of Undertaking) Bill, and itreceived the presidential approval on 9
August 1969.A second dose of nationalization of 6 more commercial banks followed
in 1980. The stated reason for the nationalization was to give the government more
control of credit delivery. With the second dose of nationalization, the GOI controlled
around 91% of the banking business of India. Later on, in the year 1993, the
government merged New Bank of India with Punjab National Bank. It was the only
merger between nationalized banks and resulted in the reduction of the number of
nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks
grew at a pace of around 4%, closer to the average growth rate of the Indian economy.
In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known as
New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be setup), which later amalgamated with Oriental Bank of
Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, revitalized the banking
sector in India, which has seen rapid growth with strong contribution from all the
three sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in
the norms for Foreign Direct Investment, where all Foreign Investors in banks may be
given voting rights which could exceed the present cap of 10%, at present it has gone
up to 74% with some restrictions.

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1.3 WHY TECHNOLOGY NEEDED?

With the globalization trends world over it is difficult for any nation big or small,
developed or developing, to remain isolated from what is happening around. For a
country like India, which is one of the most promising emerging markets, such
isolation is nearly impossible.

More particularly in the area of Information technology, where India has definitely an
edge over itscompetitors, remaining away or uniformity of the world trends is
untenable. Financial sector in general and banking industry in particular is the largest
spender and beneficiary from information technology. This endeavours to relate the
international trends in it with the Indian banking industry. The last lot includes
possibly all foreign banks and newly established Private sector banks, which have
fully computerized all the operations. With these variations in the level of information
technology in Indian banks, it is useful to take account of the trends in Information
technology internationally as also to see the comparative position with Indian banks.

12
 1.4 INFORMATION TECHNOLOGY CONSIDERATIONS

Since the early nineties, each Indian bank has done some IT improvement effort. The first
and foremost compulsion is the fierce competition. While deciding on the required
architecture for the IT consideration is given to following realities.

(1.) Meeting Internal Requirement:

The requirements of the banks are different individually depending upon their nature and
volume of business focus on a particular segment, spread of branches and a like. Many a
time‟s banks do have the required information but it is scattered. The operating units seldom
know the purpose of gathering the information by their higher authorities.

(2.) Effective in Data Handling:

As stated earlier the banks have most of the needed data but are distributed. Further the cost
of collection of data and putting the same to use is prohibitively high. The accuracy and
timeliness of data generation becomes the causalities in the process.
Best of the intentions on computerization are wished away because there is no visible
reduction in cost /efforts/time required for the required data gathering.

(3.) Extending Customer Services:

Addressing to rising customers’ expectations is significant particularly in the background of

increased competition. In case bank A is unable to provide the required service at a
competitive price and in an accurate manner with speed. There is always a bank IT at its next-
door waiting to hire the customer. Awareness of customers about the availability of services
and their pricing as also available options have brought into sharp focus the issue of customer
satisfaction.

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(4.) Creative Support for New Product Development:

It has become necessary for the banks to vitalize the process of product development.
Marketing functionaries needs a lot of information not only from the outside sources but also
from within the banks. Banks are looking to retail segment as the future market places for
sales efforts. Having full-fledged information of existing customer is the key for this purpose.
The emergences of data requirement and an appropriate architecture to support the same are
significant issues to be handled in this regard.

(5.) End-user Development of the Non-technical Staff:

Banking being a service industry, it is the staffs at counters that deliver the products. In
Indian scenario, virtual banking is likely to have a few more years to establish. The
dependence on counter staff is unavoidable. The staffs are large in number and the majority is
non-technical. The customer satisfaction levels at the counter determine the ultimate benefit
of IT offensive. Giving due consideration to this aspect in choosing architecture in necessary.

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1.5 BENEFITS OF IT

Information Technology enables sophisticated product development, better market

infrastructure, implementation of reliable techniques for control of risks and helps the
financial intermediaries to reach geographically distant and diversified markets. Internet has
significantly influenced delivery channels of the banks. Internet has emerged as an important
medium for delivery of banking products and services. The customers can view the accounts;
get account statements, transfer funds and purchase drafts by just punching on few keys. The
smart card's i.e., cards with microprocessor chip have added new dimension to the scenario.
Collection of Electricity bills and telephone bills has become easy. No doubt banking services
have undergone drastic changes and so also the expectation of customers from the banks has
increased greater.

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 1.6 BENEFITS OF IT IN BANKING

1. Major Business Initiative:

The use of technology to support initiatives such as customer relationship management,

enterprises resources planning, sales for automation, and supply change management.

2. Supply Change Management (SCM):

An IT system that supports supply chain management activities by automating the

tracking of inventory and information among business processes and across
companies.

3. Customer Relationship Management (CRM):

CRM consists of the processes a company uses to track and organize its contacts with its
current and prospective customers. CRM software is used to support these processes;
information about customers and customer interactions can be entered, stored and accessed
by employees in different company departments.

4. Business Intelligence:

The knowledge about your customers, your competitors, your business partners, your
competitive environment, and your own internal operations – that gives you the ability to
make effective, important, and often strategic business decisions.

16
 5. Globalisation:

Information Technology has brought the world closer and allowed for information to be
shared easily, quickly and effectively. Allowing for transactions to be performed regardless
of where an individual or business are located. Information Technology has broken down
geographical boundaries making the global village so small.
Communication: Information Technology has made communication easier, quicker, cheaper
and more efficient. People are now able to communicate with each other from anywhere
around the world. For example through video conferencing, email, texting, instant messaging,
social networking, radio on the go, television on the go, voice calls and VoIP.

6. Cost Effectiveness and Operational Excellence:

Automation of processes for individuals and businesses means our daily lives have been
transformed. Our daily lives have been made so much easier and economically effective. Cost
effectiveness gives rise to profits realised and better pay for employees. Making daily lives
easier and less strenuous working conditions. Transactions are achieved in the less amount of
time compared to the days before automation. Fewer errors are made by the use of IT.

7. Bridging the Cultural Gap:

People from different nationalities and cultures are able to communicate amongst themselves
and this allows for exchange of views and opinions which could better their lives, increase
awareness and decrease prejudice.

8. Longer Working Hours:

Business hours are extended from the normal Monday to Friday and 8-5 working days. The
business is virtually open 24 hours and 7 days a week. This applies to all businesses around
the globe. The extended hours allows for business transactions to be conducted from
anywhere and anytime of day. People are now allowed to purchase anytime and anywhere.

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 9. Creation of New and Exciting Jobs in the Field of IT:

Creation of new and interesting jobs within the Information Technology field. For example,
would have computer programmers, system administrators, system analysts, technical
specialists of hardware and software, web development, computer engineering and network
administration.

10. Business Intelligence:

IT in banking gives competitive lead amongst other rivals. Crucial and essential information
obtained will be used in making strategic business decisions. Information attained from
competitors, individuals, business environment, internal operations and business partners.

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1.7 INFORMATION TECHNOLOGY IN BANKING SECTORS

Banks and financial institutions are now offering many services that benefit their potential
and current customers in many ways. The management have now seen that with the
technology they have to keep up with the times in order to keep the customers happy and
interested in their products. IT has also brought about stiff competition wars within the
industry.

IT also aids the employees of the bank as well as the banks and financial institutions
themselves. Operations are now automated making life simpler and easier.
Telecommunication Mobile Operators, Internet Service Providers (ISPs), computer hardware
manufacturers, software developers, mobile device manufactures and the operating software
manufactures have all assisted in the giving the banking sector the much needed boost.
Mobile devices meet the following criteria, having light operating software (mobile phones,
smart phones, tablets and Personal Digital Assistant (PDA)) and being portable

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 1.8 E-BANKING

E-banking made its debut in UK and USA 1920s. It becomes prominently popular during
1960, through electronic funds transfer and credit cards. The concept of web-based baking
came into existence in Europe and USA in the beginning of 1980. Only in the early 1990s has
there been a start in the non-branch banking services. Many banks have modernized their
services with the facilities of computer and electronic equipment's. The electronics revolution
has made it possible to provide ease and flexibility in banking operations to the benefit of the
customer. The e-banking has made the customer say good-bye to huge account registers and
large paper bank accounts.

1.8.A BENEFITS OF E-BANKING:

1. Customer:

 Anywhere Banking -no matter wherever the customer is in the world. Balance enquiry,
request for services, issuing instructions etc., from anywhere in the world is possible.
 Anytime Banking - Managing funds in real time and most importantly, 24 hours a day, 7days
a week.
 Convenience acts as a tremendous psychological benefit all the time.
 On-line purchase of goods and services including online payment for the same.

2. Bank:

 Innovative, scheme, addresses competition and present the bank as technology driven in the
banking sector market
 Reduces customer visits to the branch and thereby human intervention
 Inter-branch reconciliation is immediate thereby reducing chances of fraud and
misappropriation
 On-line banking is an effective medium of promotion of various schemes of the bank, a
marketing tool indeed.
 Integrated customer data paves way for individualized and customized services.

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B. BENEFITS TO CUSTOMERS

The major turn-on of technology based banking derives services. These results in not only
convenience to customers but significant reduction in time and effort involved. What follows
is a decline in cost of availing services, as well as continuous access to information.
Automation of banking services also facilitates record-keeping of one’s transactions, leaving
behind a financial trail that can be easily tracked. For corporations and firms, it supports
better fund management, and provides access to various services on the go, thereby
increasing efficiency. A number of new services such as warnings, notifications, budgeting
are also a by- product of digital. Due to removal of time limitation, geographical
limitation and cost limitations, digital banks generally have an upper hand over branch-
based banks

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 1.9 E-banking in India

In India, since 1997, when the ICICI Bank first offered internet banking services, today, most
new-generation banks offer the same to their customers. In fact, all major banks provide e-
banking services to their customers.

Popular services under e-banking in India

 ATMs (Automated Teller Machines)

 Telephone Banking

 Electronic Clearing Cards

 Smart Cards

 EFT (Electronic Funds Transfer) System

 ECS (Electronic Clearing Services)

 Mobile Banking

 Internet Banking

 Telebanking

 Door-step Banking

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 Further, under Internet banking, the following services are available in
India:

1. Bill payment

Every bank has a tie-up with different utility companies, service

providers, insurance companies, etc. across the country. The banks use these tie-ups to offer
online payment of bills (electricity, telephone, mobile phone, etc.). Also, most banks charge a
nominal one-time registration fee for this service. Further, the customer can create a standing
instruction to pay recurring bills automatically every month.

2. Funds transfer

A customer can transfer funds from his account to another with the same bank or even a
different bank, anywhere in India. He needs to log in to his account, specify the payee’s name,
account number, his bank, and branch along with the transfer amount. The transfer is affected
within a day or so.

3. Investing

Through electronic banking, a customer can open a fixed deposit with the bank online through
funds transfer. Further, if a customer has a demat account and a linked bank account and
trading account, he can buy or sell shares online too. Additionally, some banks allow
customers to purchase and redeem mutual fund units from their online platforms as well.

4. Shopping

With an e-banking service, a customer can purchase goods or services online and also pay for
them using his account. Shopping at his fingertips.

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1.10 INFORMATION TECHNOLOGIES AND APPLICATIONS USED
IN BANKING SECTORS

The technologies listed below are currently in use in the banking industry around the world.
The technologies are still being utilised. The future will see more technologies being
introduced and used in the developing and developed world. With the advancement of
technology, will also assist in the infrastructure advancements. Here is a list of some old and
new technologies used in banking today.

• Automated Teller Machine (ATM):

The ATM is a technology in use world over. The ATM assists in customers being able to
cash out money at any time when they need cash, thus replacing the human teller . A unique
PIN number is used to identify the customer which is provided by the bank, the customer is to
change this number to their own preferred number for security reasons. To use this service
the customer has to have a bank account, debit or credit and PIN number. Money can be
withdrawn from anywhere in the world. If withdrawn from another country or ATM a service
charge will be issued for each transaction. The following are facilities available to the
customer at the ATM; check their account balance, withdraw cash, mini statement print out,
PIN change, money transfer with linked bank accounts, pre-paid mobile top-up and credit
card payment.

• Mobile Banking:

Mobile Banking Application is the latest of technologies used in the banking sector that is
offered to the customers. A customer has to have a smart phone, tablet or Personal Digital
Device (PDA). An application is developed which has to be compatible with Windows,
Android, iOS and other mobile phone operating software. The Mobile application is
downloaded straight to the mobile device. The customer has to have an active Internet
connection be it mobile data or Wi-Fi that they will be able to use on the go to be able to
utilise mobile banking service. The features offered are balance enquiry, view of a mini bank
statement, funds transfer, checking of recent account activity, create and update standing

24
order and direct debit payments, finding the nearest bank branch and ATM’s and making
payments. In order to use the service of mobile banking the customer has to be registered for
internet banking service and they are given the choice of creating their own password and
memorable information. Mobile banking is a service that is offered free of charge. The
customer has to register using an active mobile line. In addition a customer nowadays does
not have to make a deposit physically in the bank they are able to take a picture of the cheque
with their Smartphone and are able to send the picture via mobile banking or deposit via the
ATM. 65 Cavus, N. & Chingoka, D., N., C. (2015). Information technology in the banking
sector: Review of mobile banking. Global Journal of Information Technology. 5(2), 62-70.

• Internet Banking:

One of the older technologies, where the aim of mobile banking was to go paperless. A
customer accesses their bank account online by using and active Internet connection and is
able to access the account balance enquiry, make payments, funds transfer, international
money payments, create and update standing order and direct debit payments and check
recent transactions. The customer accesses the website via a personal computer or laptop and
the account information can be accessed from anywhere in the world. The following services
can be accessed online; account balance enquiry, fund transfer among the accounts, create
and update standing order and direct debit payments, remittance, account overview, account
history, loan repayment, refill prepaid card and password change

• Video Teller Machine (VTM):

A new and innovative service available through the banks. A customer is remotely connected
to the customer service representative via the VTM for all banking transactions. VTM offer
all branch banking services to the customers.

• Secure Short Messaging Service (SSMS):

SSMS banking is used for customers to send and receive text messages on their mobile
phones. Banks keep records of the customers mobile number, the customer is able to make
enquires on their bank account. A customer has to register their mobile number to utilise the

25
SSMS Banking service through the bank. The bank also sends the customer messages of each
transaction that has occurred on the account. The customer will also be aware of the any
transactions they did not make. A transaction is achieved by sending an SSMS to the Mobile
Banking Service assigned number. The structured SMS has to have a tag word which the
bank provides. The SMS service interacts with the customer as the customer responds. Unlike
SMS, which is “store and forward”].

• SIM Application-toolkit:

The SIM Application Toolkit is stated as a standard SIM card with an interactive menu
programmed into it, allowing for the customer to interact. The interaction is between the
customer and the network, the exchange is done by the customer being shown an interactive
menu and inputting of the information for the application to then display. The mobile
network operators can send updates for the customers to their SIM cards over the network or
to issue completely new SIM cards. The challenge being who will fit the bill, the customer or
the network operator? The biggest advantage of implementing the SIM Based Applications
for mobile network service providers and financial institutions, it guarantees the firm’s
application is on the SIM and this therefore gives competitive advantage to the bank.

• Near Sound Data Transfer (NSDT):

It is a fast, secure and convenient contactless payment technology used in mobile banking
that utilises any mobile phone. NSDT uses a onetime audio password that is issued every
time a customer wishes to make payments to verify a transaction rather than using Secure
SMS or USSD technologies. NSDT enables secure transactions on the Tag pay platform.
NSDT transactions are executed through a customer's cellular and a dealer or operators'
acceptance device for payment. A customer deposits money via a registered agent and the
money goes into a virtual wallet. NSDT aims for all transactions are speed of Communication
and data compression, security and cryptography, error detection and correction and lastly

26
sound optimization and performance. Therefore, NSDT makes effective and excellent
transactions, and can even be used in very noisy environments.

• RFID Technology:

A bank card is embedded with a chip made for payment. Payment is made is simply made by
placing the card in front of an RFID reader, and the payment is processed automatically.

• Telephone Banking or Interactive Voice Response (IVR):

A customer has to register for the telephone banking service through the bank. Telephone
Banking is an Information Technology (IT) that allows a customer to interact with the system
once they place a call to a dedicated number provided by the bank. A customer interacts by
selecting various options from a voice prompt system or can also speak to select options. The
customer is to select the most applicable option when prompted to by the pre-recorded voice
on 66 Cavus, N. & Chingoka, D., N., C. (2015). Information technology in the banking
sector: Review of mobile banking. Global Journal of Information Technology. 62-70. the
designated number for telephone banking. Voice prompt system utilises speech recognition
which interprets the customer's voice. The customer must use simple words such as "yes",
"no", or a number to select an option. Telephone Banking proves to be expensive as the
customer has to make calls.

• Wireless Application Protocol (WAP):

It is a technology utilised in mobile banking where the customer accesses the bank website
via the Internet using a browser on the mobile phone. A customer is able to access their bank
account information using the mobile which acts as a computer. The customer is able to gain
access without having to download any software.

27
• Unstructured Supplementary Service Data (USSD):

Is an SMS service with a menu and timed session. It is a standard that is utilised in all handset
models. The customer has to choose from the list of options in the menu to continue as
opposed to using sentences to reply. A major advantage of USSD: the customer replies
quickly by choosing the applicable options from the menu. USSD allows for communication
between the customer, mobile network and bank. To use the USSD service the customers
SIM card is preinstalled with the commands required for the service. A customer uses the
dedicated numbers for the USSD service provided by the bank or the mobile network
operator. The customer starts the request by dialling the USSD service number, the mobile
network operator returns a menu. The customer enters a choice from the available options.

• Contactless Payments using Near Field Technology (NFC):

It is a two-way radio waves communication, as well as mobile contactless and wireless form
of payment using a smart mobile devices which run compatible software and are also touched
together within close proximity of each other. NFC is a short-range, high-frequency
technology, which allows an exchange of information between devices within 10 cm. NFC
was built upon the RFID technology. Allowing wireless communication and data exchange
between devices. A device is either active or passive modes. Encryption is used to secure
sensitive data, antivirus and phone lock must be used to secure the phone in case it’s lost or
stolen. As stated in the NFC website NFC technology is mostly popular in Europe, America
and Asia. NFC aim is to keep the queues short, faster times for transactions to be processed,
less cards to carry around as one just has to remember to carry their mobile device for
payment.

28
• Mobile Money:

Also referred to as mobile wallet, mobile payment and mobile money transfer. Mobile
money service is used worldwide, mainly used in Africa for those with or without bank
accounts. The service is provided by the mobile network operators who are in partnership
with the commercial banks. The mobile money accounts can also be linked with a customer’s
bank account. The mobile money service is another way of banking money, without the
hassle of opening a bank account. The money in the virtual “wallet” can be used to pay for
anything for example buying of mobile credit, payment of bills, goods and services rendered.
A PIN number is used to verify the transactions made. The service is at a cost to both the
sender and receiver. Mobile Money customers have a virtual wallet where there funds are
kept, they deposit, make payments and

29
 1.11 RECENT DEVELOPMENTS IN BANKING SECTOR

1. .Internet:

Internet is a networking of computers. In this marketing message can be transferred and received
worldwide. The data can be sent and received in any part of the world. In no time, internet
facility can do many a job for us. It includes the following:
 This net can work as electronic mailing system.
 It can have access to the distant database, which may be a newspaper of foreign country.
 We can exchange our ideas through Internet. We can make contact with anyone who is a
linked with internet.

2. Society for Worldwide Inter-bank Financial Telecommunications (SWIFT):

SWIFT, as a co-operative society was formed in May 1973 with 239 participating banks from 15
countries with its headquarters at Brussels. It started functioning in May 1977. RBI and 27
other public sector banks as well as 8 foreign banks in India have obtained the membership of
the SWIFT. SWIFT provides have rapid, secure, reliable and cost effective mode of
transmitting the financial messages worldwide. SWIFT is a method of the sophisticated
message transmission of international repute. This is highly cost effective, reliable and safe
means of fund transfer.

3. Automated Teller Machine (ATM):

ATM is an electronic machine, which is operated by the customer himself to make deposits,
withdrawals and other financial transactions. ATM is a step in improvement in customer
service. ATM facility is available to the customer 24 hours a day. The customer is issued an
ATM card. This is a plastic card, which bears the customer’s name. This card is ISSN: 2249-
2496 Impact Factor: 7.081 139 International Journal of Research in Social Sciences
http://www.ijmra.us, Email: editorijmie@gmail.com magnetically coded and can be read by
this machine. Each cardholder is provided with a secret personal identification number (PIN).
When the customer wants to use the card, he has to insert his plastic card in the slot of the
machine. After the card is a recognized by the machine, the customer enters his personal
identification number. After establishing the authentication of the customers, the ATM

30
 follows the customer to enter the amount to be withdrawn by him. After processing that
transaction and finding sufficient balances in his account, the output slot of ATM give the
required cash to him. When the transaction is completed, the ATM ejects the customer’s card.

4. Bank net:

Bank net is a first national level network in India, which was commissioned in February 1991. It is
communication network established by RBI on the basis of recommendation of the
committee appointed by it under the chairmanship of the executive director T.N.A. Lyre.
Bank net has two phases: Bank net-I and Bank net- II. Areas of Operation and Application of
Bank net:

 The message of banking transaction can be transferred in the form of codes from the city to
the other.
 Quick settlement of transactions and advices.
 Improvement in customer service-withdrawal of funds is possible from any member branch.
 Easy transfer of data and other statements to RBI.

5. Phone Banking:

Customers can now dial up the bank’s designed telephone number and he by dealing his ID number
will be able to get connectivity to bank’s designated computer. The software provided in the
machine interactive with the computer asking him to dial the code number of service required
by him and suitably answers him. By using Automatic voice recorder (AVR) for simple
queries and transactions and manned phone terminals for complicated queries and
transactions, the customer can actually do entire non-cash relating banking on telephone:

6. Tele-banking:

Tele banking is another innovation, which provided the facility of 24 hour banking to the customer.
Tele-banking is based on the voice processing facility available on bank computers. The
caller usually a customer calls the bank anytime and can enquire balance in his account or
other transaction history. In this system, the computers at bank are connected to a telephone
link with the help of a modem. Voice processing facility provided in the software. This
software identifies the voice of caller and provides him suitable reply. Some banks also use

31
 telephonic answering machine but this is limited to some brief functions. This is only
telephone answering system and now Tele-banking. Tele banking is becoming popular since
queries at ATM‟s are now becoming too long.

7. Internet Banking:

Internet banking enables a customer to do banking transactions through the bank’s website on the
Internet. It is a system of accessing accounts and general information on bank products and
services through a computer while sitting in its office or home. This is also called virtual
banking. It is more or less bringing the bank to your computer. In traditional banking one has
to approach the branch in person, to withdraw cash or deposit a cheque or request a statement
of accounts etc. but internet banking has changed the way of banking. At present one can
operate all these type of transactions on his computer through website of bank. All such
transactions are encrypted; using sophisticated multi-layered security architecture, including
firewalls and filters. One can be rest assured that one’s transactions are secure and
confidential.

8. Mobile Banking:

Mobile banking facility is an extension of internet banking. The bank is in association with the
cellular service providers offers this service. For this service, mobile phone should either be
SMS or WAP enabled. These facilities are available even to those customers with only credit
card accounts with the bank.

32
9. NRI Banking Services:

This technology has been embraced in countries like India, USA, UAE, just to mention but a few.
Since many people go abroad to work, they have a need of supporting their families. So
technology has made it simple for them to send money to their loved ones easily.

10. Anywhere Banking:

With expansion of technology, it is now possible to obtain financial details from the bank from
remote locations. Automated Teller Machines are playing an important role in providing
remote services to the customers. Withdrawals from other stations have been possible due to
inter-station connectivity of ATM‟s. The Rangarajan committee had also suggested the
installation of ATM at non-branch locations, airports, hotels, Railway stations, Office
Computers, Remote Banking is being further extended to the customer’s office and home.

33
 1.12 Impact of IT on the Service Quality:

 The most visible impact of technology is reflected in the way the banks respond strategically
for making its effective use for efficient service delivery. This impact on service quality can
be summed up as below:

 With automation, service no longer remains a marketing edge with the large banks only.
Small and relatively new banks with limited network of branches become better placed to
compete with the established banks, by integrating IT in their operations.

 The technology has commoditising some of the financial services. Therefore the banks
cannot take a lifetime relationship with the customers as granted and they have to work
continuously to foster this relationship and retain customer loyalty.

 The technology on one hand serves as a powerful tool for customer servicing, on the other
hand, it itself results in depersonalising of the banking services. This has an adverse effect on
relationship banking. A decade of computerization can probably never substitute a simple or
a warm handshake.

 In order to reduce service delivery cost, banks need to automate routine customer inquiries
through self-service channels. To do this they need to invest in call centres, kiosks, ATM’s
and Internet Banking today require IT infrastructure integrated with their business strategy to
be customer centric.

34
1.13 Impact of IT on Banking System:

The banking sector has experienced a tremendous technological revolution that has paved the
way for creating newer, better opportunities for its customers. The impact of technology on
the banking industry is manifold and can be witnessed with the speed at which banks operate
in the country today. Gone are the days of standing in long queues to open an account,
receive a physical statement of account, or wait days for loan approval. Each of these
processes and more have improved with accuracy and precision, thanks to the positive impact
of technology!

The technological disruption in the banking space has encouraged each banking or related
entity to adopt this radical shift to sustain and thrive. An absence of this critical business
resource could not only lead to poor business decisions and ultimately a failure but also
render them irrelevant to the current landscape of meeting banking customer expectations that
are increasingly becoming digital savvy.

Let’s understand a few critical changes that have resulted due to the impact of technology on
the banking sector and how swiftly banks have adopted them as a part of their internal work
process.

The banking system is slowly shifting from the Traditional Banking towards relationship
banking. Traditionally the relationship between the bank and its customers has been on a one-
to-one level via the branch network. This was put into operation with clearing and decision
making responsibilities concentrated at the individual branch level. The head office had
responsibility for the overall clearing network, the size of the branch network and the training
of staff in the branch network.

The bank monitored the organisation’s performance and set the decision making parameters,
but the information available to both branch staff and their customers was limited to one
geographical location.

35
 1.14 Impact of IT on Privacy and Confidentiality of Data:

Data being stored in the computers is now being displayed when required on through internet
banking mobile banking, ATM’s etc. all this has given rise to the issues of privacy and
confidentially of data are:

 The data processing capabilities of the computer, particularly the rapid throughput,
integration, and retrieval capabilities, give rise to doubts in the minds of individuals as to
whether the privacy of the individuals is being eroded.
 So long as the individual data items are available only to those directly concerned, everything
seems to be in proper place, but the incidence of data being cross referenced to create detailed
individual dossiers gives rise to privacy problems.
 Customers feel threatened about the inadequacy of privacy being maintained by the banks
with regard to their transactions and link at computerized systems with suspicion.

Aside from any constitutional aspect, many nations deem privacy to be a subject of human
right and consider it to be the responsibility of those who concerned with computer data
processing for ensuring that the computer use does not revolve to the stage where different
data about people can be collected, integrated and retrieved quickly. Another important
responsibility is to ensure the data is used only for the purpose intended.

36
 CHAPTER 2

RESEARCH METHODOLOGY

37
 2.1 OBJECTIVE

The study focuses to examine the relationship between new technology implantation in
banking sector and customers. How they are aware about the technologies and how they are
using it. The study covers the service offered by banks to the customers by the use of
technology. More specifically latest technological delivery channels, namely ATM/Debit
card, Credit card, internet banking, mobile banking etc. As been taken up for the purpose of
study. This project is an analytical study based on random sampling to ascertain the usage
and satisfaction level and customers attitude towards these channels. The study also gives an
idea of rendering secure, 24×7×365 ebanking services at a lower cost, without compromising
with the quality thereby resulting in the widening of customer base.

OBJECTIVES OF THE STUDY

 To know the profile of respondents in the study area

 To study the perception of customers and bankers towards IT in the study area.

 To understand the various services rendered by banking sectors to their customers through
information technology.

38
2.2 NEED OF THE STUDY

The need of the study is to state the advantages and disadvantages, the different models to
test the effects of individual’s intention to adopt mobile banking, the different technologies
that are being implemented currently by banks and what the future holds for mobile banking.
Information Technology (IT) has evolved over time and has changed the way business is
conducted. The way people conduct business has been made easier and more efficient. IT has
opened many doors for new technologies that are used within business and for individual use;
the Banking sector is of no exception. Mobile banking is the fastest growing channel of
banking as a result few people are walking into bank branches nowadays. Banks now need to
remain relevant by catering to the needs and expectations of the customers and to the
technology advancements. By providing better services and products customers are able to
utilise. The role of IT in the banking sector can be divided into two categories:
Communication and connectivity, and individual and business transactions. IT enables for
sophisticated products to be developed with better frameworks, execution of dependable
strategies and help with communication so to connect with people from different countries,
businesses across the globe, geographical distance and diverse markets5

39
2.3 DATA COLLECTION

This study is a descriptive research. The descriptive research includes the data

Gathered mainly through Google websites and many websites doing research on
this sector were used as the primary data.

While doing the research online many new things came across and got to know
about that

Also had the conversation with peoples working in the real estate sector from
many years and got the knowledge how it is been worked at the ground level.

To reach to the aim of research, primary data was collected from different
resources.

 Primary data

The primary data is mainly collected through the websites available on Google
to get the correct information about the research. It helped to know how
stabilize can a real estate company be in the market. How the profits are gained
and how the funds are been made available for them.

 Secondary data

The secondary data is the data collected by having conversation with the
peoples working in this sector. They helped me in understanding how the real
estate company runs at ground level. They helped me in which websites would
be more helpful to make the research achieve the objectives.

40
 CHAPTER 3

Literature and Review

41
2.1 Conceptual review

The Indian banking system trying to wake up from sleep and become proactive till 1990, The
Indian banks have been working in a very comfortable and protected environment. However,
the technology is lifting the banking sector. Traditionally, banks have been using technology
to improve their products and efficiency. The technology is shifting from mass banking to
class banking with the introduction of value added and customized products. Technology
allows banks to create what look like a branch in a business building’s lobby without having
to hire manpower for manual operations. This chapter is going to study about the role of IT in
banking sector and how it helps the banking industry by analysing the study made by early
researchers.

2.1.1 CONCEPT

IT enabled sophisticated product development, better market infrastructure, implementation

of reliable techniques for control of risk and help the financial intermediaries to reach
geographically distant areas.

2.1.2 DEFINATION

Vadlamani Ravi(2007)defines the term “banking technology “refers to the use of

sophisticated information and communication technologies together with computer science to
enable banks to offer better services to its customers in a secure, reliable, and affordable
manner, and sustain competitive advantage over other banks.

42
2.1.3 ADVANTAGE

• Allows handling transactions and monitoring bank statement at anytime

• Offering more services that benefit their potential and current customers.

• Made communication easier, cheaper, quicker and more efficient.

• Transactions are achieved in the less amount of time compared to day before automation.

• Creation of new and interesting job in the information technology fields.

2.1.4 DISADVANTAGE

• Less security in transactions and it is risky to communicate account details through internet.

• Bank offers mobile banking to all customers, some customers are limited to the number of
services offered as they do not have compatible mobile devices.

• Cost of mobile banking occur if the customer do not have compatible devices.

43
2.2 EMPERICAL LITERATURE

Aggarwal (2003) in his paper, hunted for such avenues wherever e-banking may play
important role in e-democracy. The author mentioned to case study’s on the implementation
of e-banking in digital democarcy.one was farmer service and different was e-seva. Where as
applying e banking in e-democracy, services become safer, efficient, clear and quick. It
becomes a win-win state of affairs for all, for banks its low price, for presidency its higher
service, for business its quick and secure, and for voters its clear and economical. The author
evaluated that e-banking might be used for thriving e-banking for online bill payment, online
brokerage, online account management, anyplace banking, etc. The author terminated that e-
banking services give one stop service and informational unit that gives nice advantages to
banks, customers, employers and government.

Arora (2003) created an effort to prove that technology had a definitive role in facilitating
transactions within the banking sector, and also the impact of technology had resulted into the
introduction of recent product and services by varied banks in Asian nation. The author
mentioned Barrier initiatives taken by the banks to manage transformation and these
initiatives had brought customers the convenience of anyplace, anytime banking. The author
ended that technology was a helper for advancement with in the court business of banking
and not an finish in itself.

Hogarth & Hilgert (2004) highlighted that electronic banking technology represents a spread
of various services, starting from common ATM services and direct deposit to automatic bill
payment (ABP), electronic transfer for funds (EFT)and pc banking (PC banking). The
utilization of e-banking technologies had grownup chop-chop within the USA, whereas
others are adopting it slowly. The authors explored such factors that have an effect on the
adoption to Adopt 3 e banking technologies and changes in these factors over time. They
advised that e banking technologies couldn’t be aggregate in to one class, and thus, “one size
Fix all” wouldn’t work. The utilization of e-banking depends upon however it helps in saving
time, decrease the errors, up inaccurate accounting and preventing in manipulation of
information.

Ashiya (2006) evaluated developments created by electronic payments. The author evaluated
completely different modes of e-payment used across the world. The most objective of the
study was to seek out the present offerings and development provided by electronic
payments. The author evaluated completely different modes if e-payment like plastic cards,
debit cards, credit cards, sensible cards, electronic cheques etc. These electronic ways in
which provided a wonderful instrument for payment system. The author analyzed that

44
security was the most concern among electronic payments. However, epayment this subtle
technology maybe used as a tool for the improvement of client loyalty and business of banks
because it had reduced the danger &value and will increase the client loyalty. Enders et al.

(2006), in their paper, self-adressed a basic downside of the troubled innovation theory that
lies within the problem to categories new technologies into sustaining and troubled
innovation. The researchers 1st mentioned basic principle of troubled innovation theory,
printed 5 main strategic divisions that incumbent companies ought to address ones they face
troubled circumstance in their business. They more mentioned completely different e-banking
modes employed by Nordea banks, i.e., eidentification, e-signature services,e-billing services,
e-salary performs, e-payment performs. However, e-banking services ought to be properly
analyzed for the Einstein theory of relativity of disruption.

Krishnamurthy (2006) highlighted the benefits, risks, innovations and convenience concerned
in e-banking. ATM, telephone, web and cluster banking helped banks to deliver the
merchandise a lot of effectively. The author, in his paper, conjointly delineated operational
potency of ebanking. It enclosed basic e-banking, straight forward transactional and advanced
transactional e banking. Every website offered a differential reasonably service to customers.
The author conjointly commented upon some risks like loss of secrecy of the shoppers,
money stability, fraud prone potentialities, eruption of legal claims, etc. So, the author argued
that banks ought to adopt such a technique during which risks and innovation in banking
merchandise move parallel and at the same time.

Paul (2006) mentioned the role of technology and scope of remote channels, their
implication, strength, weakness, chance and threat in banking sector. The author evaluated
that IT development effect banking in 2ways that. Firstly, it had contributed in reduction of
prices related to management of knowledge by substitution paper based mostly and labour-
intensive strategies with automatic processes. Secondly, it had changed the ways that during
which customers had access to banks services and product. The man of science found that the
introduction of ARGS, NDS, and CFMS had exaggerated the security, potency and
soundness in payment system. Lastly, the author discovered that technology had a good
impact on the structure of banking sector with in the variety of bank branches, bank personnel
and aliens.

Raghvan (2006) He mentioned the transformation within the banking sector thanks to impact
of knowledge technology, telecommunication and electronic processing. He conjointly tried
to check the perception Of banks in India within the year 2020 taking under consideration the
impact of net banking, ATMs, newt on the performance of bank and initiative taken in easing,

45
privatization and economic process. He conjointly evaluated the long run of online and net
banking. Technology has modified the face of the Indian banking sector through automation.
although the new non-public and foreign sector banks have a foothold at the present, however
public sector banks have conjointly created a big progress during this regard. The analysis of
the info collected from numerous banks has been done below the subsequent heads.

Dr. Satish Tanaji Bhosale (2018)“Technological Developments in Indian Banking Sector”

This paper talks about the role of banking sector in the development of Indian Economy, So
banks need to optionally leverage technology to increase penetration, improve their
productivity and efficiency, deliver cost-effective products and services, provide faster.
Efficient and convenient customer service and thereby, contribute to overall growth and
development of the country8.

Manoharan (2017) highlighted the e-payment system in India and its performance impact on
Indian banking sector. The author described that competition in banking industry had forced
the banks to rethink the way they operate their business. So, e- banking has made it possible
to find alternate banking practices. In the paper, the author divided the payment system in
India into three parts, i.e., large value payment system, retail payment system, and retail
electronic system9.

Prabhakar Rao (2014), Indian banking in 2015 IBA Bulletin Special Issues, in this study
discussed about the revolutionary changes that witnessed in the financial sector around the
world. He stated that net worked branches. ATMs, technology based payment and settlement
system, technology vision of RBI, floating rate of interest have changed the Indian banking
sector. He concluded that brick and mortar bank

46
 CHAPTER 4

DATA ANALYSIS

47
4.1 Sample Size

Sample size determination is the process of choosing the number of respondent’s observation
to include

In a statistical sample. It is an important feature of a research study because on the basis of

sample size

Data is collected and interpreted to give accurate and appropriate results.

The correct and appropriate sample size is said to give more accurate results. For example, in
a

Census, data is collected from the entire population. Therefore, the sample size is equal to
population

Of the country. Keeping in mind the rate of non-response and non-availability of

respondents, the

Sample size was taken between 25-100 working professionals. It was Random sampling
method that

Was considered to decide the sample size. Due to the sample size being small there may be
slight

Inaccuracy of data that can be rectified nu further study.

4.2 Sample Design

The sample design used to represent the survey data is in the form of Pie-Charts and Bar-
Charts based

On the survey. Probability sampling was used to collect response.

48
 4.3 Data Collection Method

Data for the study was collected from the primary as well as secondary sources.

A. Primary Source of Data Collection:

Primary source of data collection consisted of survey method. The survey was collected

Through a Structured Questionnaire. The questionnaire was prepared keeping in mind the

Objectives of the study and factors that were to be considered for the study. Questionnaire

Was prepared in such a manner that it could be easily understood by the respondents. The

Questionnaire being structured was in a single format to save time of the respondents. Most

Of the questions were close ended, so that the respondents could easily select one given

Alternative while answering the questionnaire. The questionnaire mainly consisted of two

Parts i.e. Name of the Respondent and Benefits social media has done in a positive way in

Their lives and in the world according to them.

B. Secondary Source of Data Collection:

The secondary source of data collection is assessed to gain information and knowledge

About our research problem that may be previously discussed by some other researcher.

The secondary is referred to know what has already been discussed and what more scope

Can be there for research. The secondary data is taken from selective websites and from

Online publication of some researchers. The secondary data was useful for the study of

Review of Literature. We could study various aspects of different researchers which gave us

An idea about the factors being previously discussed and also the conclusion drawn from

Them. It also gave us an insight on what more could be studied to solve the research

49
 DATA

ANALYSIS

FIGURES

50
Age

15-20years:- 16%

21-25 years:- 12%

26-30 years:- 24%

31-40years:- 24%

41-50years:- 24%

51
Employment

Bank:- 16%

Company:- 56%

Students:- 8%

Self Employed:- 20%

52
Gender

Male:- 40%

Female:- 56%

Others:- 4%

53
Qualification:-

Graduate:-44%

Post Graduate:-32%

HSc:- 16%

SSC:- 8%

54
55
56
57
58
CHAPTER 5

CONCLUSION

59
CONCLUSION

The study focus on the role of information technology in banking sector. Majority of
respondents are now using e-banking services. Technology is one among the foremost factor
of human beings. Customers are started using e-banking made their banking transactions
easy. Respondents rated ebanking as good after computerization. Customers feeling safety
about their transactions. Bank also changed their approach from conventional banking to
convenient banking. There is also need to maintain e-banking services easy as possible. IT
enabled better market infrastructure, implementation of reliable technique for control of risk
and help the financial intermediaries to reach geographically distant and diversified markets.
But IT can be fully useful only if they enable to met the challenges in the present
environment. There is also need to maintain privacy and confidentiality of data’s. Another
important responsibility is to ensure that the data is only used for the purpose intended. For
this there is a need to implement IT and other cyber laws properly. This will ensure the
developmental role of IT in banking industry.

60
 REFERENCE

https://www.iiis.org/CDs2015/CD2015SCI/SCI_2015/PapersPdf/SA781LX.pdf

https://www.mbaknol.com/business-finance/role-of-information-technology-it-in-the-
banking-sector/

https://www.vedantu.com/commerce/banking#:~:text=In%20Conclusion%2C%20banking%2
0holds%20a,banking%20system%20as%20responsible%20citizens.

61