The application management services market is now in the process of shifting from first generation, "emerging solutions", to second-generation "growth markets". With this shift has come market maturation, in terms of viable product offerings and services models, and entry into the enterprise market. There have also emerged a dazzling array of choices, along with market segmentation and the rapid development of whole new classes of offerings. For example, ASP offerings were formally limited to ERP solutions targeted to the small-to-medium businesses market. Today, all manner of applications are available as hosted or managed solutions. These offerings range from horizontal systems applicable to all classes and sizes of organizations, to niche systems limited to very narrow vertical market segments. Similarly, the number and scope of application management services that are available today are increasing rapidly and are just as equally rapidly being employed by the largest organizations in the world. Unfortunately, few business and technology managers know that these new solutions and services exist, to say nothing of the process of selecting competitive offerings.
Information Technology (IT) has transformed the business environment all over the world. It had a major impact in helping banking services and their customers with the introduction of number of e-channels like ATMs, EFTs, Credit Cards, Internet banking, Mobile banking, Tele banking etc. It has bridged the gap in terms of the reach and the coverage of systems and enabled better management of banking business. Developments in information technology and telecommunications have set in motion an electronic revolution in today’s banking industry. The present study shows the level of satisfaction of bank employees in bankingtechnology which remains low amongst people. This study also noticed the effect of performance and productivity of bank on employees. The data has been tabulated and suitable statistical tools such as percentages and averages were used for the analysis of data. Also some advance statistical tools such as mean, chi square (at 0.05 and 0.01 level), skewness and kurtosis were used to find the relationship between various variables and to make the study more result oriented.
Ever since the beginning of time, people have been trying to simplify uncertainty of various institutions by finding better-advanced alternatives. One such breakthrough was banking system which revamped the contours of informal economy and blockchain is expected to be another such path breaker. The technique was originally described in 1991 by a group of researchers and was initially intended to timestamp digital documents in order to ensure that they stay untampered. However, the idea went mostly unused until it was adopted by Satoshi Nakamoto in 2008 to create a digital crypto-currency Bitcoin. And ever since there has been a global upheaval exploring its potential avenues.
Electronic Payment and Settlement System- The most common media of receipts and payment through banks are negotiable instruments like cheques. These instruments could be used in place of cash. The inter bank cheques could be realized through clearing house systems. Initially there was a manual system of clearing but the growing volume of banking transaction emerged into the necessity of automating the clearing process. Use Of MICR Technology- Among the most important improvement in paper based clearing system was the introduction of MICR (Magnetic Ink Character Recognition) in the mid 1980s. MICR overcomes the limitation of clearing the cheques within banking hours and thus enables the customer to get the credit quickly. These are machine-readable codes added at the bottom of every cheque leaf which helped in bank and branch-wise sorting of cheques for smooth delivery to the respective banks on whom they are drawn. This no doubt helped in speeding up the clearing process, but physical delivery of cheques continued even under this partial automaton. CTS (Cheque Truncation System)- The CTS was launched on pilot basis in new Delhi in 2008 with the participation of 10 Banks. Truncation means stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc.
After an extensive review of the information systems literature, Davis (1989) developed the Technology Acceptance Model (TAM). TAM as it is commonly known was adapted from the theory of reasoned action (Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975). The original TAM consisted of perceived ease of use (PEOU), perceived usefulness (PU), attitude toward using (ATU), behavioral intention to use (BI), and actual system use (AU). PU and PEOU are the two most important determinants for system use. The ATU directly predicts users’ BI which determines AU and has been the most influential theoretical tool for explaining the user acceptance of technology in terms of numbers of the citations it has received (Venkatesh, Davis & Morris, 2007). In fact, TAM has been claimed to have become so influential. TAM’s pre-eminence has led scholars to discuss whether it has reached an exemplary position (Benbasat & Barki, Quo Vadis, 2007). At the same time, TAM led to other important aspects of technology acceptance behavior being neglected or unnoticed (Lee, Kozar & Larsen, 2003). TAM views perceived usefulness and perceived ease of use as the most salient beliefs influence an individual’s decision to adopt new technology. The study showed that social influence processes and cognitive instrumental processes significantly influenced user acceptance and that PU and PEOU indirectly influenced AU through BI.
The increased focus on IT infrastructure development led to the lack of customer contact. The main problem is that the processes used in the multi-channel banking lack communication in terms of exchanging customer data timely. Many a times a customer has to fill out a form online and when he reaches the agent, the agent will not have the details filled online. Along with that Banks also have to face the Financial regulations like anti-money laundering controls, which require IT systems to sync the data. IT managers have to continuously focus on developing efficient systems which eats up the budget without reducing the transaction costs. This complexity forced various banks to close their operations.
Agrawal&Rastogi (2009)revealed and determined “factors affecting customer perception and attitude towards and satisfaction with e-banking is an essential part of a banks strategy formulation process in an emerging economy like India”. To gain this understanding in respect of Indian customers, the study was conducted on respondents taken from the northern part of India. The major findings depict that customers are influenced in their usage of e-banking services by the kind of account they hold, their age and profession, attach highest degree of usefulness to balance enquiry service among e-banking services, consider security & trust most important in affecting their satisfaction level and find slow transaction speed the most frequently faced problem while using e-banking.
Wall and Koch (2000) state that these differences in findings between studies are due to different sample selections and the use of different time periods being examined. They conclude though that the available evidence clearly suggests that banks have an incentive to use loan loss accounting to help manage reported earnings (Wall and Koch, 2000, p. 12). Anandarajan et al. (2005, p. 58) note that some of the studies mentioned here, besides checking for earnings management using just LLPs, also examined whether banks used other components of financial statements together with LLPs. Examples of these are Beatty et al. (1995) and Collins et al. (1995), which also studied whether strategic timing of realized gains and losses were used as tools for earnings management. Overall,
The term “BankingTechnology” refers to the use of sophisticated information and communication technologies together with computers to enable banks to offer better services to its customers in a secure, reliable, affordable manner and sustain competitive advantage over other banks. In the competitive financial market, the banks with the latest technology and techniques are more successful in the modern civilization. Through this banking, business can generate more and more profitability thus retaining customers. Now a day’s Banks are not following the traditional or conventional banking with manual operations. Banks have moved from disbursed to a centralised environment, which shows the impact of technology on banks. Banks are using new tools and techniques to find out their customers’ needs and satisfaction and offer them tailor made products and services to make it convenient. Through this people are benefitted and are comfortable to operate the nearer branch for all payments and transactions. People can take advantage in saving time and distance which was inconvenient in early days. Banks provide a lot of products and services combined with technology are of great use today.
(10.) 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. Now 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.
Banking in India has been through a long journey. Banking industry in India has also achieved a new height with the changing times. The use of technology has brought a revolution in the working style of the banks. Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the people on the institution remain the same. The majority of the banks are still successful in keeping with the confidence of the shareholders as well as other stakeholders. However, with the changing dynamics of banking business brings new kind of risk exposure. In this paper an attempt has been made to identify the general sentiments, challenges and opportunities for the Indian Banking Industry and the role of technological innovation which could be the change agent in the coming years. This paper is an attempt to provide a brief overview of the major technological developments in the field of banking
E lectronic banking (E-Banking) is the provision of banking services through electronic and the customer can access the data without any time and geographical limitation (Sagar, 2014)  and (Abu-Shanab and Matalqa, 2015) . E-Banking provides easy access to banking services to customers. Since the late 1980s digitalization in communication and information technology has triggered significant social and economic changes worldwide. It has created a situation in which information, communication and commerce are no longer subject to the constraints of time and geographical space. They can be accessed 24/7, instantaneously and at the global level. To distinguish the concepts, products and services related to digital communication and information technology from their non-digital counterparts, prefixes and adjectives, such as “e” (e.g. e-mail, e-commerce, e- book, e-banking, e-crimes), “ i ” (e.g. iPhone, iTunes, iPad), virtual (e.g. virtual reality, virtual currency, virtual banking) are being used. We are living in an age of rapid change and that change is driven mostly if not entirely by technology. The world today is virtually unrecognizable from the world of even 25 years ago. The internet has changed the way we communicate, the way we shop, the way we learn, the way we bank, the way we market goods, the way we buy, the way we do business, the way we listen to music, the way we store information – in short the way we live. It has become possible to exchange information instantaneously with almost anyone, anywhere, anytime. In response to this level and speed of change, standing still is not an option. We have seen the impact on businesses that adapt and those which don’t. For example, the technical revolution hit the taxi industry when mobile app technology allowed people with a vehicle and free time to offer taxi services. Technical disruption is also changing the car industry as IT
Regulation may be a particularly important determinant of entry in the case of banking, as banking is a particularly highly regulated market. In Europe, banking entry was being deregulated in the late 1970s and the process continued through the early 1990s, although there were differences in the timing and speed of the process across countries (Canals ). With few exceptions, regulations on banks’ competitive conduct have largely been eliminated by the beginning of our sample in 1995. These regulations included controls on banks’ deposit and lending rates, fees and commissions, as well as direct credit quotas and branching limitations. Functional separation of financial institutions, if it existed, has generally ceased. European Community legislation, primarily since the White Paper of 1985 “Completing the Internal Market”, has significantly contributed to this process and has provided incentives for national legislators to deregulate and streamline banking legislation. The most important piece of Community legislation was the 2 nd Banking Co-ordination Directive (89/646/EEC) leading to unification of the regulatory framework for “entry control” and cancelling the major elements of national separation of markets in legal/regulatory terms. 13 Nevertheless, some cross-country differences in the implementation of regulations may remain and, hence, results are also presented including a full set of country dummy variables (Models 11 and 14 below). Table 5 gives summary statistics for all variables used in the empirical analysis.
The combination of high speeding of digital technology and free adaption of technological adoption have helped the banking and other financial institutions able to offer better financial products/services at lower costs to the customers in the market. Unbanked population in India has 230 million that still speaks about bare necessity of technological advancements in rendering the financial services. Technology as a biggest enabler and equalizer today, one-on-one connection in real time and creates massive new trend flows for the underserved or overlooked markets. Reserve Bank India equally has shown enthusiasm about promoting innovation and technology by continuance of the efforts to build up robust and secure digital payments and settlement system to achieve a less-cash society. A key interface issue of technology coupled with other technological advances merely made enablers but not drivers for shifting to the digital payment potentially.
The average age of a state’s banks is significantly related to both Website adop- tion and asset size. The positive coeﬃcient on lnAGEAVE in the Website adoption equation implies that as the average age of a state’s banks rises then the adoption rate falls. This results is consistent with previous findings that denovo banks were more likely to adopt Internet Banking than other banks (Furst, Lang, and Nolle (2000); Sullivan (2000)). New banks may find it cheaper to install Internet Banking technol- ogy in a package with other computer facilities compared to older banks who must add Internet Banking to legacy computer system. Many new banks may also pur- sue consumers with demographics that favor Internet Banking and therefore adopt appropriate technology.
the best performances( WAP Forum, 2005). In addition, the GPRS technology could be a likely choice providing that its Cost for Customer can be formed. It is imperative to note that the present results cannot be perfectly applied to the business environment over the mobile Internet Even though is found that the SMS technology is the least favorable choice among the three technologies considered, is predicted that its capability will be much deployed over mobile broadband services.. In this sense, telecommunication operators acting as the access provider are better positioned than content providers or banks to command the m-payment scheme they prefer. Because the SIM card is preinstalled in almost every handset, the telecommunication operator can easily trace transaction records. Moreover, the wireless payment technology is capable of handling a large number of small transactions. The benefit for customers in adopting the wireless payment technology is that there would be no extra installment costs if it were to become the de facto payment instrument over the mobile payment. The wireless payment technology should become a far more popular payment instrument providing mobile commerce develops to a large extent (Standage, 2001). Nevertheless, SMS technology may still compromise its competitiveness. In addition, the most important alternative is security in technology quality between mobile payment operators and contents users, and the understandability of contents is also important for users to understand and use contents without difficulty. In addition, transaction in usability and the lateness of contents in contents quality are important, and privacy supported by network and flexibility of system integration in system quality are also important factors.
informational requirements in each of these markets. Small and young businesses often lack publicly accessible accounting statements, an observable repayment track record, or assets that can serve as acceptable collateral (called “hard” information in Petersen (2002) and Stein (2002)). Hence the assessment by the lending bank’s loan officer of the skills and character of the firm’s management and the quality of the firm’s business vision (called “soft” information) will play a key role in the lending decision. “Handshakes”, in situ monitoring, and repeated interaction will create trust in the borrowing firm and foster a bank-firm relationship, but may require physical proximity to be economically viable. In contrast, corporate bond issuers are mostly large and well-known international firms that can easily be assessed by many investors and banks located across Europe on the basis of accounting statements and public track record. Hence corporate bond markets integrated rather rapidly as regulatory impediments dissolved and a common currency was introduced. Credit cards are intermediate in this regard. Consumers can be readily scored on the basis of observable characteristics such as age, income, and marital status and card balances can be pooled and securitized, making distance within each country increasingly irrelevant. However consumer characteristics, preferences, and regulatory protection still differs substantially across European countries making cross-border bank forays more complex. What are the consequences of a geographical scope determined by both distance and borders for the conditions and structure in the retail banking markets in Europe? Previewing the main lessons we draw in this paper, recent work suggests that: