Page 41 - ICDEBI2018

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

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

INTERNATIONAL CONFERENCE ON DIGITAL ECONOMY AND

ITS IMPACT ON BUSINESS AND INDUSTRY

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

Digitalisation in The Banking Sector

3
1,2
Laxmikanthanayaka T. O , Prof. Laxmana P
1 Research Scholar, Department of Studies and Research in Commerce, Davangere University, Karnataka, India
2 Asst. Professor, KLE’s Basavaprabhu Kore College, Chikodi, Belagavi Dist, Karnataka, India
3 Chairman and Research Supervisor, Department of Studies and Research in Commerce,
3 Davangere University, Karnataka, India

ABSTRACT
It was only in the late 1980s that Indian banks took to leveraging this advantage banks can afford to raise
computer is at ion seriously. They had to improve their rural penetration since they can ensure the
customer service and tone up book-keeping and MIS financial viability of their rural operations.
reporting. Their large customer base (in terms of
numbers) was mostly comprised of “low balance” KEYWORDS: Book-keeping; CBS; digitalization;
accounts. An effective but low-cost tool that could leverage; LAN; MIS reporting; SMS; tool
handle the transactions was needed. It led them to
embrace digital is at ion. They started with 1.1 INTRODUCTION
standalone PCs and migrated to Local Area Network In the late 1980s Indian banks embraced
(LAN) connectivity. Core Banking Solution (CBS) computerisation. They had to improve customer
platforms followed that transformed branch banking service and tone up book-keeping. Their large
into bank banking. CBS helped banks to provide customer base was mostly comprised of “low
“anywhere and anytime banking” service to balance” accounts. An effective but low-cost tool
customers. The researcher set out to ascertain the that could handle the transactions was needed. It led
implications of such digital is at ion for bank them to embrace digitalisation. They started with
customers. He interviewed bank officers and bank standalone PCs and graduated to Local Area Network
customers for the purpose. He concluded that digital (LAN) connectivity and Core Banking Solution
banking was customer-centric in design and purpose. (CBS) platforms, in that order, transforming branch
As a result, banks were in a position to offer an banking into bank banking. The penetration of
“experience” to their customers as against the banking services into rural India is still on the low
“convenience” they offered presently. One such side but mobile penetration is on the higher side. By
“experience” banks lately offer is worth citing here. leveraging this advantage, banks can afford to raise
To access information about account balance or to their rural penetration without affecting the financial
receive a mini statement through SMS, all that the viability of their rural operations.
customer has to do is to give a missed call to the bank
concerned by dial ling a bank-designated mobile 1.2 Statement of the problem
phone number. Another digital product innovation, Banks have embraced computerisation and
namely, UPI/Aadhaar-based payments make banking subsequently digitalisation, in slightly various degrees
seamless for customers, particularly rural customers, though. They have invested in physical infrastructure
who are not familiar with the English language. Thus, and human resources for the purpose. But such
digital is at ion has proved to be positive sum game investment in itself is not the end. Periodically, the
for all stakeholders. The penetration of banking transformation engendered by the investment should
services into rural India is still on the low side but be gauged to ascertain if the outlay has translated into
mobile penetration is on the higher side. By outcome.

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