JETIR2012274
JETIR2012274
JETIR2012274
org (ISSN-2349-5162)
Kathiriya Priyanka
Research Scholar
Bhakta Kavi Narsinh Mehta University, Junagadh
ABSTRACT
The Financial sector, of which Banking sector is the largest player, plays a dominant role in building the
economy of an individual as well as a nation. Banks have control over a large part of the supply of money in
circulation. They are the main stimulus for the economic progress of a country. Indian banking system touches
the lives of millions of people and it is growing at a fast pace. Banking industry in India is facing number of
challenges like changing needs and perceptions of customers, new regulations from time to time and great
advances in technologies. The pressure of meeting these challenges have compelled banks to change the old
ways of doing business. With the emergence of Privatisation, Globalisation and Liberalisation in India, Banks
are focusing on Research and Development and applying various innovative ideas and technology. There is a
close relationship between the development of banking sector and the new innovations in technology and
Electronic data processing. The present paper focuses on major technology trends and innovation in banking.
INTRODUCTION
Today Indian banking Sector is a flourishing Industry; it‘s mainly focused on new Banking technological
innovations. Banks created to use technology to provide effective quality and services to the customer and get
high speed. Innovation in banking technology is driven by the constantly evolving customer expectations and
internal business mandates. Customer behavior patterns have shifted over the last couple of years and the
focus now is on instant fulfillment – be it for account opening, transactions (financial/nonfinancial) or
problem resolution. Customers today demand a 24×7 consistent access to systems and services, with the
fastest transaction processing possible. In the recent scenario has been changed, there are around 340 banks
are working in India, in which are public and private banks. Today all the banks started with the different
channels, like ATM, Credit Cards, Debit Cards, Mobile Banking, Internet Banking, etc. But Net Banking
made it an easy way for customers to do their banking transaction from various places. In 2020 India's
banking sector is a fifth largest banking sector.
DATA COLLECTION
The study is descriptive in nature and is based on secondary data. The data are collected from various reports,
journals, news articles, various bank portals, RBI portal and internet sources.
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Innovation Labs:
Many banks have adopted proactive strategy by establishing their own internal innovation labs.
Innovation labs operate with the primary objective of evaluating and adopting emerging technologies and
contribute to bank‟s motive of digitalization.
Eg: AXIS Bank has set up its Innovation Lab named Thought Factory
UPI :
National Payments Corporation of India (NPCI) launched Unified Payments Interface (UPI) in 2016 with
21 member banks. UPI is a system that powers multiple bank accounts into a single mobile application,
merging several banking features and seamless fund routing. UPI has been considered as the revolutionary
product in payment system.
Example : BHIM app,Google Tez,Paytm,SBI Pay,BOB UPI,Axis Pay
Digital Wallets :
Digital Wallets allow an individual to make electronic transactions using a smartphone. Awareness and
use of e-wallets increased post demonitisation in India. It is indeed one step towards “less cash” economy.
Example : mRupee, ICICI Pockets,HDFC PayZapp,Citi MasterPass,YONO SBI
Wearable Technology :
“To wear your bank on your wrist” is a reality today. Smart watch banking helps the customers check their
balance, get fraud alerts, carry out both financial and information transactions and offers many more
services, all on their wrist.
In India, ICICI has launched an app named iWear for all smart watches. ICICI is among few global
players allowing transactions using this app on both Apple and Android platforms. As technology is
redefining banking, wearable banking and transactions via smart watches and smart glasses is gearing up
as a key trend.
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2) Blockchain:-
A blockchain is a data structure that is used to create a digital ledger of transactions and share it among a
distributed network of computers. The underlying principle used is cryptography, wherein each participant
on the network is allowed to manipulate the ledger in a secure way without the need for a central
authority.
Present day applications in India
In October 2016, ICICI Bank carried out India‟s first international trade transaction and overseas
remittances using blockchain technology. ICICI partnered with Dubai‟s largest bank Emirates NBD for
this project. AXIS Bank and YES Bank too are working on blockchain technology.
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CHALLENGES
Automation and AI may lead to unemployment
AI and automation are the major breakthroughs of today‟s innovation era. Although the benefits are
promising, technology revolution poses a great threat to many of the jobs which will be completely
automated and opportunities for job seekers will shrink. Banking is no exception to this fact.
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Security issues
In its note on 'Digital Payments - Analysing the cyber landscape', KPMG mentioned, cybersecurity is one
of the most critical challenges faced by stakeholders of the digital payment ecosystem. With more and
more users preferring digital payments, the chances of getting exposed to cybersecurity risks like online
fraud, information theft, and malware or virus attacks are also increasing. Lack of awareness and poor
digital payment ecosystem are some of the primary reasons that have led to increase in these attacks.
CONCLUSION
An upgradation of technology banks are playing vital role in economic development. Banking sector in
India is resulting with increased growth in customers. By providing innovative facilities of banks. The
changes made by banks are mostly focused on financial inclusion for expansion into rural areas and
bringing stability by boosting credit growth making banking services near to the customer directly and
reducing customer valuable time.
The current trends in banking are building blocks of the “Cashless Economy”. Though there are few
challenges, technology will keep evolving and with collaborative efforts of Banks, Government and end
users, overcoming these challenges will certainly be possible. The initiative of Government of India will
very soon achieve its mission and rural India too would be “digitally literate”. Banks will have to develop
a strategy to bridge the gap of technology in rural banks and urban banks. Today, Indian banking industry
is on the threshold of “next generation banking”. ICT innovation clubbed with dream of “cashless
economy” will certainly bring about metamorphosis in the banking sector.
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