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International Journal of Trend in ScientificInternational Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

History- place of cumbersome, redundant manual labour. redundant manual labour.
Traditional bank business processes are time raditional bank business processes are time
In 1988, Reserve Bank of India set up a Committee on set up a Committee on T
computerization in banks headed by Dr. C. computerization in banks headed by Dr. C. consuming and costly andcostly and prone to human error.
Hence banks need to implement BPR (business ence banks need to implement BPR (business
Rangarajan. In late 1980, banks were urged to In late 1980, banks were urged to H
process reengineering) Paperless working will rocess reengineering) Paperless working will
digitalise their operations, in order to improve the digitalise their operations, in order to improve the p
definitely reduce storage space cost as well as efinitely reduce storage space cost as well as
customer service and MIS reporting and hence started customer service and MIS reporting and hence started d
using Information Technology initially using Information Technology initially with the i increase human efficiency due to qualitative ncrease human efficiency due to qualitative
introduction of standalone PCs and migrated to Local introduction of standalone PCs and migrated to Local digital data and faster sensitivity to changing igital data and faster sensitivity to changing
d
Area Network (LAN) connectivity within the bank Area Network (LAN) connectivity within the bank m
market trends in the hyperarket trends in the hyper dynamic macro
branch setup. With further advancement, banks branch setup. With further advancement, banks environment.
adopted the Core Banking solution. Thus branch adopted the Core Banking solution. Thus branch
banking changed to bank banking. Core Banking banking changed to bank banking. Core Banking e.g. E-banking has resulted in reducing costs to banking has resulted in reducing costs to
Solution (CBS) enabled banks to enhance the n (CBS) enabled banks to enhance the t the extent that the cost of a bank transaction on he extent that the cost of a bank transaction on
Branch Banking is estimated to be in a range of ranch Banking is estimated to be in a range of
customer servicing through anywhere and anytime customer servicing through anywhere and anytime B
banking. Different Core banking platforms such as banking. Different Core banking platforms such as Rs.70 to Rs.75 while it is around Rs.15 to Rs.16 s.70 to Rs.75 while it is around Rs.15 to Rs.16
R
Finacle designed by Infosys, BaNCS by TCS, Finacle designed by Infosys, BaNCS by TCS, on ATM, Rs.2 or less on Online Banking and Rs.1 ATM, Rs.2 or less on Online Banking and Rs.1
o
FLEXCUBE by i-flex etc gained popularity during flex etc gained popularity during or less on Mobile Banking.r less on Mobile Banking.
this time.
2. Accurate and reliable operational performance Accurate and reliable operational performance
The process of Computerization gained pace with puterization gained pace with w
with no scope for human error ith no scope for human error – The prerequisite
deregulation and liberalisation in 1991deregulation and liberalisation in 1991-92 which led f for banks aspiring to digitalise their operations is or banks aspiring to digitalise their operations is
to rising competition from private and foreign banks. to rising competition from private and foreign banks. f financial accuracy. Traditional baninancial accuracy. Traditional banking had40%
error rate which needed recomputing and was rror rate which needed recomputing and was
Several commercial banks started moving towards Several commercial banks started moving towards e
digitalised customer services by adopting banking services by adopting banking w
worsened with lack of IT integration between orsened with lack of IT integration between
solutions by joint venturing with information nturing with information branch , Head office and back officeback office adding up to
technology firms. c
complexities in verification and authentication omplexities in verification and authentication
procedure.
RBI has been a driving force for Bank Mechanization RBI has been a driving force for Bank Mechanization 3. Faster speed of delivery channels Faster speed of delivery channels – customers are
enjoying round the clock connection with banks njoying round the clock connection with banks
and Automation with the introduction to MICR based and Automation with the introduction to MICR based e
and availability of services at the fastest speed. nd availability of services at the fastest speed.
cheque processing, Electronic Funds transfer, Intercheque processing, Electronic Funds transfer, Inter- a
connectivity connectivity among among bank bank Branches Branches and and 4. Improved customer satisfaction and relationships Improved customer satisfaction and relationships
d
implementation of ATM (Automated Teller Machine) TM (Automated Teller Machine) due to 24/7 support availability, customer follow ue to 24/7 support availability, customer follow
Channel . Strong guidelines from Reserve Bank of Channel . Strong guidelines from Reserve Bank of up process automation.
India have strengthened the Payment and Settlement Payment and Settlement 5. Acquisition and retaining ofAcquisition and retaining of customers thereby
systems in banks. achieving leadership in competitive environment. chieving leadership in competitive environment.
a
– The fierce competition ultimately aiming to The fierce competition ultimately aiming to
Goals of digitalised banking – i increase customer strength results due to CRM ncrease customer strength results due to CRM
solutions that assist the banks to maintain closer olutions that assist the banks to maintain closer
1. The goal of integrating banking services and The goal of integrating banking services and s
technology is convenience, flexibility,exibility, simplicity r relationships with tech savvy consumers. Bankelationships with tech savvy consumers. Banks
and security of operations for customers and to and security of operations for customers and to m
maintain pool of data containing customer history aintain pool of data containing customer history
t
meet the industry’s rapidly rising customer meet the industry’s rapidly rising customer therby facilitating quick access to email and other herby facilitating quick access to email and other
expectations. forms of online communication. Banks can orms of online communication. Banks can
f
effectively utilise customer reward programmes ffectively utilise customer reward programmes
2. Targeting the new customers by way Targeting the new customers by way of innovative e
digitalized products for continued loyalty and satisfaction of loyalty and satisfaction of
3. Moving from lifecycle banking to lifestyle Moving from lifecycle banking to lifestyle customers.
banking where bank will remain a constant part of bank will remain a constant part of 6. Cost effective for banks as well as customers.
daily life of its customers providing ultimate daily life of its customers providing ultimate ATMs help banks reduce TMs help banks reduce overhead costs,
A
e
personal and near real time solutions.personal and near real time solutions. especially if they are available at various strategic specially if they are available at various strategic
locations beyond branch offices.ocations beyond branch offices. Banks can take
l
Advantages of digitalisation – data-driven dynamic decisions with the aid driven dynamic decisions with the aid of
1. Huge saving in cost and time of banking Huge saving in cost and time of banking - digital analytics which lend helpanalytics which lend helping hand to both
Automated banking software solutions work in Automated banking software solutions work in customers and banks.

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