Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario.
Information Technology (IT) has become the base of the recent financial sector reforms and has helped the banks in developing leaner and more flexible structure that can respond quickly to the dynamics of a fast changing market.
The use of IT in the banking sector has increased beyond one’s imagination with features like online loan application, online uploads of documents, net banking, online bill payments, etc. Before a couple of decades, who would have thought these things could have been possible.
Few years ago, in banks working with hands and saving data on paper was a norm. But with the arrival of computer, everything has changed. Now entries are directly and efficiently recorded in PC files, money can be transferred online, account balance can be checked, people have been provided with the service online banking service to carry out various transactions.
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.