Technological Reforms and Mobile Banking in India

Abstract

Corporations, the world over are adapting quality banking practices and opting for latest advancements in banking technology. All banks including those, which were cautious in past intended to offer access to their banking products and services via Internet with the major distribution and communication channel. The fundamental objective of efficient banking is customer satisfaction. In today’s highly competitive environment, where time is considered as valuable as other factors of production only speedy and cheapest medium of communication is internet. E-Banking is introduced as a vague desktop access to bank but now it has tremendous applications and mode of transactions for banking sector. Global economic slowdown has an impact on work force recruitment and deployment of staff to render basic routine tasks does not make economic sense. A global economic pressure, competition and technological reforms are forcing economies to introduce E banking: web based corporate/retail banking, m-banking, e-money, electronic transfer of funds, e-billing, e-payments, ATMs, smart cards, even debit and credit cards. On the contrary, e-security of funds with the help of passwords, PIN, TIN, firewall system, and detection of transaction are other important aspects of e-banking. As a sequel, cash management and e-banking today is not what it used to be in 80’s. E-banking began as a passive computer access to bank balances, transactions and easy statement enquiries. Presently e-banking and m-banking is emerging into complex processes of liquidity management through numerous advanced techniques. Today we have access to mobile banking, m-payments, sms banking, net-banking. Banks are using their websites and portals for ease and efficient CRM practices. Commercial banks in the Western countries realised the tremendous potential in providing cash management services to improve their profitability and quality. In a report titled ‘The Future of Wholesale E-Banking: The Portal’ which was published by Celent Communications it was projected that by 2003, 40 per cent of the top 100 US banks will be offering ‘Advanced Internet Portals’ to their business customers. Indian banking sector displays wider scope for bankers as the number of persons who use online banking, ATMs, mobile banking, net banking is still not more than 50% of the total population.