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International Journal of Trend in International Journal of Trend in Scientific Research and Development (IJTSRD)Research and Development (IJTSRD)
International Open Access JournalInternational Open Access Journal | www.ijtsrd.comwww.ijtsrd.com

ISSN No: 2456 ISSN No: 2456 - 6470 | Conference Issue – ICDEBIICDEBI-2018

INTERNATIONAL CONINTERNATIONAL CONFERENCE ON DIGITAL ECONOMY AND FERENCE ON DIGITAL ECONOMY AND

ITS IMPACT ON BUSINESS AND TS IMPACT ON BUSINESS AND INDUSTRYINDUSTRY

Organised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, Sangli

Digitalization Digitalization in Banking Sector

Mrs Jyoti Suraj Harchekar
Assistant Professor, Tilak Maharashtra Vidyapeeth, PuneTilak Maharashtra Vidyapeeth, Pune, MaharashtraMaharashtra, India

ABSTRACT KEYWORDS: Digitalization, Internet Banking, Digitalization, Internet Banking,
In order to improve the customer service, bookIn order to improve the customer service, book- Online Banking
keeping and MIS reporting, the need for reporting, the need for
I. INTRODUCTION
computerization was felt in the Indian banking sector computerization was felt in the Indian banking sector
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Digitalization is the process of transforming igitalization is the process of transforming
in late 1980s. Reserve Bank of India set up a in late 1980s. Reserve Bank of India set up a
information into a digital format, in which the format, in which the
Committee headed by Dr. C. Rangarajan on Committee headed by Dr. C. Rangarajan on i information is organized intonformation is organized into bits. The result is the
computerization in banks in 1988.
r representation of an object, epresentation of an object, image, sound,
Conversion of data into a digital format with the Conversion of data into a digital format with the document or signal (usually an(usually an analog signal) by
adoption of technology is called as digitization. By n of technology is called as digitization. By generating a series of numbers that describe a generating a series of numbers that describe a
implementation of digitalization, banks can provide implementation of digitalization, banks can provide discrete set of its points or samples. The result is
enriched enriched customer customer services. services. This This provides provides called digital representationdigital representation or, more precisely,
convenience to customers and helps in saving time. convenience to customers and helps in saving time. a digital image, for the object, and, for the object, and digital form, for
Digitalization decreases human error and thus builds Digitalization decreases human error and thus builds the signal. The digitized data is the signal. The digitized data is in the form of binary
customer reliability. A new wave of technology is iability. A new wave of technology is numbers, which simplify computer processing and , which simplify computer processing and
revolutionizing the way customers engage with their revolutionizing the way customers engage with their other operations. Digitizing simply means the other operations. Digitizing simply means the
finances. From social to mobile capabilities, banks finances. From social to mobile capabilities, banks transformation of analog source material into a transformation of analog source material into a
have to rethink the way they do business to deliver a have to rethink the way they do business to deliver a numerical format; the decimaldecimal or any other number
better customer experience and remain competitive. better customer experience and remain competitive. system that can be used instead.that can be used instead.
The recent introduction of open banking and the t introduction of open banking and the
Digitization is of vital significance to data igitization is of vital significance to data
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Payments Services Directive 2 (PSD2) regulation is Payments Services Directive 2 (PSD2) regulation is
processing, storage and transmission, because it rocessing, storage and transmission, because it
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hastening this transformation by placing power in the hastening this transformation by placing power in the "allows information of all kinds in all formats to be allows information of all kinds in all formats to be
"
hands of customers. Banks must now allow customers hands of customers. Banks must now allow customers carried with the same efficiency and also arried with the same efficiency and also
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to share their financial data, such as spending habits to share their financial data, such as spending habits
i intermingled”. Unlike analog data, which typically ntermingled”. Unlike analog data, which typically
and regular payments, with authorized thirdgular payments, with authorized third-party
suffers some loss of quality each time it is copied or oss of quality each time it is copied or
providers if customers wish to do so.
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transmitted, digital data can, be transmitted with ransmitted, digital data can, be transmitted with
In addition, until the past few years, banks were not In addition, until the past few years, banks were not absolutely no deprivation.
visualizing the tremendous shift in consumer behavior visualizing the tremendous shift in consumer behavior
that occurred as a result of the millennial generation that occurred as a result of the millennial generation
now become the largest consumers of financial the largest consumers of financial
products. With the increasing usage of smartproducts. With the increasing usage of smart-phones,
digitization of banking sector is predictable to catch digitization of banking sector is predictable to catch
up the increasing expectations of the world. It indeed up the increasing expectations of the world. It indeed
reduced human errors and increased convenience. reduced human errors and increased convenience.
Now, cyber threats are on the rise hence, banks must r threats are on the rise hence, banks must
be very vigilant and should be prepared to handle be very vigilant and should be prepared to handle
cyber-attacks.
Diagram 1: 5 Key Banking Technology Trendsiagram 1: 5 Key Banking Technology Trends
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