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MICR (magnetic ink character recognition ) & Imaging technology for cheque clearing
E-BANKING Offers the following services to its customers: Credit Cards/Debit Cards ATM E-Cheques EFT (Electronic Funds Transfer) DeMAT Accounts Mobile Banking Telephone Banking Internet Banking EDI (Electronic Data Interchange)
COST REDUCTION
Technology in banking leads to cost reduction in processing as well as in human resources.
Less manual intervention Revenue increase Less investment to bring new products to market
Prior to ATMs, funds withdrawals, accounts enquiries and funds transfers required face to face interactions between bank staff and customers, a process which was slow and subject to costly human errors and large costs of labour. cell phone banking, no costs of travelling to the bank and the convenience of cell phone banking (customers can do their transaction anywhere and anytime)
RISK MANAGEMENT
Technology is an important tool for the risk manager, delivering the benefits of control and traceability of events and data, as well as efficiency gains. use of technology are playing an important role in reducing risk, as well as increasing efficiency and cost effectiveness. For technology risk - A comprehensive IT security strategy is a vital component of an effective risk management process
cryptographic technologies play an important role in ensuring confidentiality, authenticity and integrity. Customers are required to provide their User ID and PIN combination and a one-time password (OTP), dynamic access code or digital signature so that their identity and authenticity could be verified before access to their accounts is permitted. Credit risk - After 90 days of non payment of loan amount it automatically transfers in NonPerforming loans. Helps banks to recognise it at early stage.