Financial Reporting

New Technology Adopted by Indian Financial Institution

In today’s competitive world technology is the dynamic force behind every industry. The banking sector is not an exception. Foreign Banks has pioneered technology adoption in Indian Financial Reporting sector. They have inspired domestic private sector banks to adopt the technology-driven environment. In this article know about New Technology Adopted by Indian Financial Institution.

Adoption of technology has made easy computerization of branches as well as automation of operations to reduce the manual effort which represents significant examples of technology adoption in India

The adoption of electronic breakers rule which is also termed as new age banking has provided the Indian Financial sector with lots of benefits as follows:

• Automated Teller Machines (ATM): ATM’s has given significant motivation to the technology adoption^[1] in the Indian Banking sector. ATM’s have become an alternate channel for delivery of services such as deposit and withdrawal of cash, cheque drop facility without personally visiting the branches. Many people are now going towards using ATM’s facility for their banking needs. According to a survey by Banknet India, 95% people now prefer this modern channel to the traditional mode of banking. Almost 60% people use an ATM at least once a week.
• Telebanking: Telebanking also called telephone banking are the services provided by the banks or other financial services which provides services over the telephone without personally visiting the branch or the ATM’s. These services include obtaining an account balance, a summary of latest transactions, electronic bill payments, funds transfers between the customers and other accounts.
• Internet Banking: Internet Banking is the most convenient technology-driven facility provides mostly by all the banks. It enables to carry on the transactions anytime, any place as per your convenience. The following services are provided through internet banking :
  • Account Summary such as the current available balance under Savings, Current, Overdraft account, Term Deposit, Loan account
  • Overdraft details such as drawing power limit for OD accounts, repayment schedule in case of Loans can be viewed
  •  Transaction details which enable to view and download latest 10 to 15 transactions for a specified period
  • Online services such as stop payment for the particular cheque, change in contact information such as a change in mobile no. and email ID
  • Fund Transfer: User can transfer funds from one account to other from his/her account to the extent of the fund transfer limit fixed by the banks subject to the balance available in the account. The transfer of funds requires to add and manage the beneficiary to transfer the funds.
  • E Tax Payment facilities: User can use this internet banking facility to make payment of Direct Taxes and Indirect Taxes by debiting the account and the user can also print the receipt and challan generated by initiating the payment
  • Other miscellaneous services include Change in Login and Transaction Login Credentials, Login history etc.
• Mobile Banking: Mobile Banking is the service provided mostly by all the banks that allow its customers to conduct the financial transactions remotely using mobile devices such as smartphone or tabs. This facility is available 24 hours. The user can access the internet banking facilities mentioned above remotely

Conclusion:

These services have reduced the need to personally visit the bank branched and carry out the transactions manually. After adoption of technology-driven environment by the Banking sector now following service sectors are also focusing towards adoption of dynamic technology-driven environment

• Insurance companies are now launching online platforms to sell, renew and provide insurance services online. These services are now also available on the mobile platform. E.g. Life Insurance Corporation of India, Tata AIG etc.
• Capital Market players such as brokerage houses are also employing services over the internet and mobile platforms. Customers can now access stock market quotes, live updates as well as tips and trends of the stock market through mobile and computers.e.g. Share Khan.

Read our article:Impact of Financial Technology Companies on Indian Economy