Role of Technology in Financial Services of Commercial Banks in Visakhapatnam

Abstract

Liberalization and data generation has attracted many overseas banks to India, thereby establishing supermarkets, new merchandise and green transport channels for the banking industry. within the improvement of Indian financial system, Banking sector performs a completely essential and vital position. With the usage of era there have been an boom in penetration, productiveness and performance. It has no longer only multiplied the value effectiveness however additionally has helped in making small cost transactions feasible. It additionally complements alternatives, creates new markets, and improves productiveness and performance. it has been observed that monetary markets have changed into a purchaser's markets in India. Industrial Banks in India at the moment are turning into a one-forestall grocery store. the point of interest is transferring from mass banking to magnificence banking with the advent of fee added and custom designed products. generation allows banks to create what looks like a branch in a business constructing's foyer while not having to lease manpower for manual operations. The branches are walking ion the concept of 24 X 7 operating, made feasible by using the usage of Tele banking, ATMs, internet banking, cell banking and E- banking. those technology pushed shipping channels are getting used to attain outto the greatest number of customers at decrease fee and in maximum green manner. The splendor of those banking improvements is that it places both banker and customer in a win- win state of affairs. effective use of era has a multiplier impact ion increase and development. For the reason that technological improvements in the banking area in industrialized nations were proven to boom productivity of this enterprise around the sector, then why did India pull away from adopting this technology until the Nineteen Nineties. Why has India been a overdue adopter of generation in the banking enterprise while it could have reaped the advantages from the existing R&D information developed by way of innovators and early adopters. this newsletter charts out the direction of technological innovation in the Indian banking enterprise submit-economic liberalization (1991-2) and identifies initial conditions in phrases of competitive environment and regulatory pressures that have contributed to the diffusion of those improvements. the thing highlights the function of labor unions in public quarter banks and their preliminary competition to technological adoption. The empirical evaluation demonstrates the superior overall performance of the early adopters of technology (private area and foreign banks) as measured with the aid of productivity, returns on equity, and marketplace proportion, in comparison to the late or passive adopters (public sector banks).