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Study the Latest Trends in Banking Technology & Assess the

Employees' & Customers' Awareness about Them


at
Bank of Baroda
(Summer Internship Project Report)

Submitted in partial fulfilment of the requirement for the award


of
MASTERS IN MANAGEMENT STUDIES (MMS)

Submitted to

SIES COLLEGE OF MANAGEMENT STUDIES


NERUL, NAVI MUMBAI

Submitted by
Iyer Krishnaswamy
MMS 76
SpecializationInformation Technology
2014-16

Declaration

I, Mr. Iyer Krishnaswamy, studying in the second year of MASTERS OF MANAGEMENT


STUDIES (MMS) at SIES College of Management Studies, Nerul, Navi Mumbai, hereby
declare that I have completed the Summer Internship Project titled Study the Latest Trends
in Banking Technology & Assess the Employees' & Customers' Awareness about Them
as a part of the course requirements for Masters Of Management Studies (MMS) Program.

I also declare that the work undertaken by me is original and has not been copied from any
sources. I further declare that the information presented in this project is true and original
knowledge and has not been submitted to SIESCOMS or any other Institute for any other
examination.

Signature of the Student

Date:

Name of the Student: Iyer Krishnaswamy


Roll No.: 76

Certificate by Project Guide

ii

Certificate by Project Guide

This is to certify that Mr. Iyer Krishnaswamy, studying in the second year of Master of
Management Studies (MMS) at SIES College of Management Studies, Nerul, Navi Mumbai,
has completed the Summer Internship Project titled Study the Latest Trends in Banking
Technology & Assess the Employees' & Customers' Awareness about Them with genuine
surveys of customers at various branches of Bank of Baroda as a part of the course
requirements for MASTER OF MANAGEMENT STUDIES (MMS) Program.

Signature of the Faculty Guide

Name: Mrs. Ela Goyal

Date:

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Acknowledgements
I, the student of SIES College of Management Studies would like to thank my project guide,
Mr. Swarnendu Tripathy (I.T. Officer), Mr. Rajender Gandham (I.T. Officer), for their
involvement in my project work and timely assessment that provided me inspiration and valued
guidance throughout my study.

I would like to thank our Systems & I.T. Dean and my Mentor Mrs. Ela Goyal for her timely
guidance and evaluation of my on-going project work which helped me in making my project
brief and knowledgeable.

I am also indebted to Mr. Dhirendra Singh Sodha (Chief Manager RBDM), Mr. Pavan
Puligedda (Financial Inclusion Officer), Mr. Vishal Trivedi (Marketing Manager), for
sustaining my interest in the present work and helping me in several ways.

I would like to specially thank Mr. Rakesh Bhatia (DGM MMSR), Mr. Ziyad Rehuman (Chief
Manager HR), Mr. Prasad Parshuram Halbe, Mr. Chetan Diwate, Mr. Devendra Pujari,
Mrs. Ankita Upddhyaya for encouraging me and guiding me in various ways during my
project.

I also take this opportunity to express my sincere gratitude to all the staff at Regional Office for
helping me in various ways.

I express my deep gratitude to all my college friends and family members whose efforts and
creativity has helped me in giving the final shape and structure to the project. I am also thankful
to all seen and unseen hands and heads, which have been direct or indirect help, in the
completion of this project.

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Table of Contents
1) Introduction ..................................................................................... 1
1.1) Company Overview:- ................................................................. 1
1.2) Introduction to I.T. Department ............................................... 5
1.3) Background of The Project:- ..................................................... 6
2) Literature Review :- ........................................................................ 7
3) Research Objectives and Methodology ........................................ 12
3.1) Objectives:- ............................................................................... 12
3.2) Research Methodology :- ......................................................... 13
4) Scope and Limitation of the Project:- .......................................... 14
4.1) Scope of the Project:- ............................................................... 14
4.2) Limitations of the Project:- ..................................................... 15
5) The Latest Trends In Banking Technology :-.............................. 16
6) Data Analysis:-............................................................................... 25
7) Suggestions and Conclusions:-...................................................... 37
7.1) Suggestions:- ............................................................................. 37
7.2) Conclusion:- .............................................................................. 38
7.3) Learnings:-................................................................................ 39
Annexure I (Pilot Questionnaire)................................................... 40
Annexure II (Main Questionnaire) ................................................ 42
Bibliography ........................................................................................ 44

List of Figures
Figure 1: Bank of Baroda Logo .................................................. 3
Figure 2: I.T. Department Chart ................................................. 5
Figure 3: CBS System .............................................................. 17
Figure 4: Security ..................................................................... 19
Figure 5: Cloud Computing ...................................................... 20
Figure 6: NFC Payment System ............................................... 21
Figure 7: Mobile Banking......................................................... 22
Figure 8: Outsourcing Financial Services ................................. 23
Figure 9: Data Analysis ............................................................ 24
Figure 10: Gender ..................................................................... 25
Figure 11: Age Group ............................................................... 26
Figure 12: Qualification............................................................ 26
Figure 13: Profession ................................................................ 27
Figure 14: Usage of Bank Account........................................... 28
Figure 15: Attribute of the Bank value the most ....................... 29
Figure 16: Computer Usage Level ............................................ 29
Figure 17: Have you heard about E-banking ............................ 30
Figure 18: Internet Banking / Month ........................................ 31
Figure 19: Mobile Banking / Month ......................................... 32
Figure 20: ATM Banking / Month ............................................ 33
Figure 21: Branch Banking / Month ......................................... 34
Figure 22: Reason for not doing Internet Banking.................... 35
Figure 23: Reason for not doing Mobile Banking .................... 36

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List of Tables
Table 1: Subsidiaries of Bank of Baroda .................................... 4
Table 2: Gender ........................................................................ 25
Table 3: Age Group .................................................................. 26
Table 4: Qualification ............................................................... 27
Table 5: Profession ................................................................... 27
Table 6: Usage of Bank Account .............................................. 28
Table 7: Attribute of the Bank value the most .......................... 29
Table 8: Computer Usage Level ............................................... 30
Table 9: Have you heard about E-banking................................ 30
Table 10: Internet Banking / Month.......................................... 31
Table 11: Mobile Banking / Month .......................................... 32
Table 12: ATM Banking / Month ............................................. 33
Table 13: Branch Banking / Month .......................................... 34
Table 14: Reason for not doing Internet Banking ..................... 35
Table 15: Reason for not doing Mobile Banking ...................... 36

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Executive Summary

A healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Indian banking system has
witnessed a series of reforms in the past, like CBS (Core Banking Solution), ADC (Alternate
Delivery Channels) like ATMs, E-Lobby, Digital Banking (Branchless Banking), dilution of
government stake in PSBs, and increased participation of private sector banks. Technology has
made tremendous impact in banking. Anywhere banking and Anytime banking have
become a reality. It has also undergone rapid changes, reflecting a number of underlying
developments. This trend has created new competitive threats as well as new opportunities.
Also the future of banking would be in terms of integration. This is already becoming a reality
with some of the new-age private banks and others too adopting it. Geography will no longer be
an inhibitor. Technology will prove to be the differentiator in the short-term but the dynamic
environment will soon lead to its saturation and what will ultimately be the key to success will
be a better relationship management.

If one were to say that the future of banking in India is bright, it would be a gross
Understatement. With the growing competition and convergence of services, the customers
(you and I) stand only to benefit more. The success (or failure) of any bank would depend not
only on customer base but also on the services and type of services provided to these customers
base. Given the competitive market, banking will (and to a great extent already has) become a
process of choice and convenience. This paper aims to foresee major banking technology
trends, based on these current movements in the market.

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1) Introduction

1.1) Company Overview:-

Introduction
Bank of Baroda (BoB) is an Indian state-owned banking and financial services company
headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second-largest
bank in India, after State Bank of India, and offers a range of banking products and financial
services to corporate and retail customers through its branches and through its specialized
subsidiaries and affiliates. During FY 2014-15, its total business was

Rs.10, 45,625crores

which reflected a growth of 8.25% (y-o-y). In addition to its headquarters in its home state of
Gujarat, it has a corporate headquarters in Bandra - Kurla Complex in Mumbai. BoB has a
network of 5300 branches (out of which 5197 branches are in India) and offices, and over 8000
ATMs.

History
The bank was founded by the Maharaja of Baroda, Sir Sayajirao Gaekwad III, one of the
knights of the Maratha Kingdom with other stalwarts of industry such as Sampatrao Gaekwad,
Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi on 20 July 1908
in the Princely State of Baroda, in Gujarat. Bank of Baroda Ltd. was registered under the
Baroda Companies Act of 1897, with a paid up capital of Rs.10 lakhs. Two years later, BOB
established its first branch in Ahmedabad. The bank grew domestically until after World War
II. Then in 1953 it crossed the Indian Ocean to serve the communities of Indians in Kenya and
Indians in Uganda by establishing a branch each in Mombasa and Kampala. Then in 1957 BOB
took a giant step abroad by establishing a branch in London. London was the centre of the
British Commonwealth and the most important international banking centre. In 1958 BOB
acquired Hind Bank (Calcutta; est. 1943), which became BOB's first domestic acquisition. The
bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969,
by the Government of India and has been designated as a profit-making public sector
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undertaking (PSU).Bank of Baroda now is one of the Big Four banks of India, along with State
Bank of India, ICICI Bank and HDFC.

Mission
To be a top ranking National Bank of International Standards committed to augmenting stake
holders value through concern, care and competence.

International Presence
In its international expansion, the Bank of Baroda followed the Indian Diaspora, especially that
of Gujaratis. The Bank has 103 branches/offices in 24 countries including 60 branches/offices
of the bank, 43 branches of its 8 subsidiaries and 1 representative office in Thailand. The Bank
of Baroda has a joint venture in Zambia with 16 branches.
Among the Bank of Barodas overseas branches are ones in the worlds major financial centres
(e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a number in
other countries. The bank is engaged in retail banking via the branches of subsidiaries in
Botswana, Guyana, Kenya, Tanzania, and Uganda. It has a large presence in Mauritius with
about nine branches spread out in the country.
The Bank of Baroda has received permission or in-principle approval from host country
regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish
joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open
offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain,
South Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New
Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing
operations in the United Kingdom, the United Arab Emirates, and Botswana.

The tagline of Bank of Baroda is "India's International Bank".

Baroda Logo
Logo is a unique representation of a universal symbol. It comprises dual B letterforms that
hold the rays of the rising sun and is called as Baroda Sun. the single-colour, compelling
vermillion palette stands for hope and energy. The Baroda Sun is a symbol of dynamism and
optimism.

Figure 1: Bank of Baroda Logo

Branch Network
At present, the Bank is having more than 5197 branches, 65 Regional Offices and 13 Zonal
Offices scattered all over the length and breadth of the country. The Bank has opened
specialized Branches/ offices such as Retail Loan Factory, SME Loan Factory and for Treasury
Operations, Asset Recovery, Small Scale Industries, Agricultural Finance, etc. Majority of the
branches would be converted into Sales and Service Units with an attractive lay-out and
ambience and are being christened as Baroda-NEXT branches. Bank has its presence in 25
countries. The Bank has sponsored 5 Regional Rural Banks, which are as under:
Baroda Uttar Pradesh Gramin Bank, Head Office, Rae Bareilly.
Baroda Rajasthan Gramin Bank, Head Office, Ajmer
Baroda Gujarat Gramin Bank, Head Office, Bharuch
Nainital-AlmoraKshetriyaGramin Bank, Head Office, Haldwani
Jhabua-DharKshetriya Gramin Bank, Head Office, Jhabua

Subsidiaries

Domestic

Overseas

BOBCARDS Ltd.

Bank of Baroda (Botswana) Ltd.

BOB Capital Markets Ltd

Bank of Baroda (Kenya) Ltd.

Nainital Bank Ltd.

Bank of Baroda (Uganda) Ltd.


Bank of Baroda (Trinidad & Tobago) Ltd.
Bank of Baroda (Tanzania) Ltd
Bank of Baroda (Ghana) Ltd.
Bank of Baroda (New Zealand) Ltd
Bank of Baroda (Guyana) Ltd.

Table 1: Subsidiaries of Bank of Baroda

1.2) Introduction to I.T. Department:In MMER (Mumbai Metro East Region) there are various departments like Advances, P&E, Legal, Audit,
Marketing, RBDM, HR, Recovery, Vigilance, Credit etc.
As my study area is in IT department here is how the department is structured in Bank of Baroda
MMER Region
The philosophy behind introduction of Information Technology has always been to provide better,
efficient and effective customer service, to protect Banks assets, and ensure timely and accurate
generation of MIS reports. It is always recognized that computerization involves huge outlays in the
form of investment in hardware, software, networks, training of manpower, providing for
obsolescence and replacement. Hence, ensuring that the systems installed in the branches and
administrative offices are effectively and optimally utilized deriving maximum return out of them are
very important factors to be borne in mind when any technology introduction is contemplated

Figure 2: I.T. Department Chart

1.3) Background of The Project:The Primary Focus of the project is to find the latest trends in the banking sector especially in
the public sector banks in India and to make sure it matches with the current trend which is
carried out across the globe.

The key reason of the project is to find the latest trends in banking Sector and to make sure they
are matching with the trends carried out by the public sector banks in India. If they are not
matching with the current trends then what all steps needs to be taken to make sure it matches
with the current trends so as to compete with the global players.

Also the project is to find the customers behavior towards the latest trends and to find how
much they are aware and if aware how much they make use of these upcoming and emerging
trends in the banking sector

There are many reasons to carry out this project because in the beginning of the 21st century,
the biggest banks in the industrial world became complex financial organizations that offered a
wide variety of services to international which was supported by the latest technology. Banks
were working to identify new business niches, to develop customized services, to implement
innovative strategies and to capture new market opportunities. Due to these reasons the banking
sector was becoming even more complex and so some new technological trends were
introduced for the banks so as to make sure they have an upper hand over there competitors
across globe.

These are some of the latest and most important technological trends in banking sector:
Core Banking System
Security
Cloud Based System
Payment System
Most of the Services To Mobile
Outsourcing Services
Data Analytics For Better Service To Customers
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2) Literature Review :Innovation is the key to change The Hindu business line February 29th 2008

The article focuses on innovation being the key to change and continuous improvement. It
highlights how this concept applies to banking in the new era. The need for cash is disappearing
and customers are facilitated to operate by the touch of a button even staying at home. The
change could not have been imagined 20 years ago but is a happening thing today due to
innovation in adopting the emerging technologies. It also Traces the evolutionary process of the
banking system in which the initial barter mode gave way to the basics of banking based on trust
as the society turned from nomadic ways to a social life process, and how continuous innovation
saw the emergence of new modes of fulfilling the needs with metallic and paper currency
coming into focus. At the same time, adoption of software computer technology for banking in
particular and the financial sector in general has brought about a sea-change in the system.
Connectivity has widened the activities and shortened the time in transactions. Earlier banks
were known only as custodians of deposites and lenders of credit. Customers were visiting the
banks. Today, segmentation and focus in activities have gained attention as partners in the
development process. Adoption of technology has facilitated a milieu of activities and given new
instruments in ATM, debit cards, phone banking etc. the volume of business has multiplied and
transaction of funds has been made easier within and outside the country. A customer is to a
bank and not tied to a branch anymore, with core banking system in operation.

Technology plays a very significant role on vital components of banking systems. Technology
upgradation has helped the banks to strategically look at customer needs to offer newer &
efficient banking services at the same time gearing its staff to cope with stresses of technology.
New technology is needed in banking sector to raise productivity, profitability, efficiently & to
enable the banks to cope with changing complexities. Technology has been introduced not only
to provide better customer services but banks are also using technologies for their internal use
like for ensuring quicker availability of information, managing performance, internal planning
etc. Information technology has allowed banks to wipe out differences in time as well as

distances. For an underdeveloped country like India these developments are of real interest. With
the economy in overdrive and buoyancy in consumption and investment demand, nine Indian
banks, led by HDFC Bank and ICICI Bank, have made it to the top fifty Asian banks list in the
Asian Bankers-300 report. Simultaneously, the State Bank of India has become the top loan
manager in the Asia-Pacific region in 2007, according to UK-based Project Finance International
(PFI).

A more competitive banking environment has gradually been achieved through the deregulation
measures and permission granted too many private and foreign banks into the Indian banking
industry. These changes have also caused a compression of profits and a reorientation of banking
strategy towards quality service provision. The introduction of new private sector banks and
foreign banks has decreased margins and revenues to banks. As a result of the heightened
competition, bank service quality has become an increasingly important factor in determining
market shares and profitability in banking sector. With a high potential in the Indian banking
industry, all leading banks are differentiating themselves based on service quality offering

Computerization in Indian Banking

In todays changing environment changes are taking place in scientific, social & economic
conditions which require managers to read just their plans. In banking sector more competition is
increasing because of these technological developments. Banks are using computer technologies
keeping following objectives in mind i.e. to improve customer services, to help them in decision
making to improve efficiency etc. mangers have to keep themselves in touch with external
environment if they want their bank to grow. For this they require information of external
environment & without computers it is impossible to cope with external environment. Nowadays
in Indian banking sphere it has been seen that private sector banks are making more use of
computers than public sector banks are trying to make maximum use of computers to eliminate
the difficulties of manual procedures. Many new facilities have been introduced in banking
system like ATMs electronic fund transfer etc. which clearly shows that banks are adopting new
technologies. Main advantage of computerization over manual banking system is that computers

are more speedy & accurate. But with this we must remember the adverse effects of
computerization that may take place if proper care is not taken.

Impact of It
Under the impact of technology, the organization structure of banks, the role of various
functionaries & approach of banks to customer needs undergo a perceptible change. Information
technology is being used as a mean of increasing organization productivity. It brings a new
concept of self-regulating system in the organization. The need for faster information better
control has reduced the hierarchical system in banks. This has resulted in establishing liaison
between top management & workers at lower levels information technology helps in collection,
processing, interpretation & transmission of information. It is a means for increasing
organizational productivity computers also help in dissemination of information, therefore
compartmentalization of departments responsible for different function undergo changes. The
emphasis shifts to disperse decision making. Managerial attitudes also undergo a change. This is
reflected by the way the top executives look at IT as a functional requirement & apply it to
improve organizational efficiency. In addition to change in organization structure & orientation,
the procedures also witness direct impact of IT. The systems & procedures within banks have to
adopt themselves in accordance with IT needs without sacrificing secrecy & security. The
technology has made it possible for the banks to come to terms with customer aspirations. This
has given rise to the concept of anywhere banking which offers access to banking services at a
place & time convenient to customers.

New Technology in Banking Services


The growth of technology has changed the banking systems world over during the past two
decades. More & more innovations are being introduced in both cash systems & non-cash
systems like cash in the form of notes & coins was principal method of payment systems before
the introduction of banking paper instruments such as cheques & credits transfers now have
become the part of payment system. Thus technology allows banks to increase the range of their
products & market them more effectively. The main aim of introduction of IT is to reduce cost
with the coming of new technologies: traditional banking systems have been completely
eliminated.

Virtual Banking: handles all transactions via the Web, e-mail, mobile check deposit and ATM
machines.

Advantages of Internet Banking:


(i) Round the clock banking
(ii) Convenient Banking
(iii) Low Cost Banking
(iv) Profitable Banking
(v) Quality Banking
(vi) Speed Banking
(vii) Service Banking

Internet Banking: Internet Banking refers to the banking services provided by the banks over
the internet. Some of these services include paying of bills, funds transfer, viewing account
statement, etc. The system that allows you to put in or take out money from a bank account by
using the internet
ATM Banking: Automated teller machine Authentication is provided by the customer entering
a personal identification number (PIN). Using an ATM, customers can access their bank deposit
or credit accounts in order to make a variety of transactions such as cash withdrawals, check
balances, or credit mobile phones.

Branch Banking: A branch, banking center or financial center is a retail location where a bank,
credit union or other financial institution (and by extension, brokerage firms) offers a wide array
of face to face service to its customers.

Tele Banking: is a service provided by a financial institution which allows its customers to
perform transactions over the telephone.

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Reasons for the Emergence of New Channels of Delivery


1) Demographic transformation of India
2) Increasing consumption mind set in India
3) Growth to information technology
4) Higher adaptability to technology
The newer channels of delivery are more cost effective than the traditional system.

Other Services Provided By The Banks Are As Follows:


Electronic Fund Transfer
Smart Cards
Remote Banking
Home Banking
Internet Banking
Bank Internet payment System (BIPS)
Electronic Cheques

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3) Research Objectives and Methodology

3.1) Objectives:-

i. To seek in-depth knowledge of various technologies used in the Banking Sectors like
Security, Cloud Based System, Payment System etc.

ii. To understand how these technologies help in proper functioning of the bank both for the
employees as well as customers as both are valuable assets to the organization.

iii. To get theoretical as well as practical knowledge about each and every aspects mentioned
in the project.

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3.2) Research Methodology : Sources of Data Collection


For the purpose of conducting this project work primary data was
Primary data was in the form of factual information which had been collected from field for
this purpose I had prepared a questionnaire & collect the basic informations relating to
things & behaviour of Bank of Barodas staff, customers opinion about technology in
banking services.
Sample Study
Under the study work of particular branch of Bank of Baroda a pilot questionnaire samples
were taken & from them information was collected in the form of Main Questionnaires. For
quantitative study I had use questionnaire method which was prepared from which
information which was collected in the pilot survey from customers regarding personal
banking, computerization in banks, new trends in banking services, etc.

After data collection, editing was done of all the schedules on the basis of customers
Questionnaire Answers & then coding was transformed into Bar Method by counting it.
Then on the basis of similarity & dissimilarity, data was classified. Then this classified data
was given the shape by putting into rows & columns. For this simple table was used.

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4) Scope and Limitation of the Project:-

4.1) Scope of the Project:-

a. The study was conducted in Regional Office- Mumbai Metro East Region.

b. The technology used is good enough which gives a wide scope for the study.

c. The time frame for the project lasted for two months i.e. May & June 2015.

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4.2) Limitations of the Project:-

a) There were only 2 months at my disposal to cover all Technological Trends used by Bank
of Baroda.

b) The concerned project was done from a single office so it was very hard to benchmark all
the trends used across different parts of the country.

c) The project was done at the regional office (Bhandup) & hence the latest trends which
were used and were under implementation remained uncovered as they were done only at
the corporate office.

d) Some of the trends, techniques and implementations are not disclosed due to various
reasons like security, privacy etc.

e) The sample size of 100 is too small to understand the overall usage of latest trends by the
customers.

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5) The Latest Trends In Banking Technology: Core Banking System (Transition in System Infrastructure)

What is Core Banking Solution?


Core Banking Solution (CBS) is networking of branches, which enables Customers to
operate their accounts, and avail banking services from any branch of the Bank on CBS
network, regardless of where he maintains his account. The customer is no more the
customer of a Branch. He becomes the Banks Customer. Thus CBS is a step towards
enhancing customer convenience through anywhere and anytime banking.

How shall CBS help Customers?


All CBS branches are inter-connected with each other. Therefore, Customers of CBS
branches can avail various banking facilities from any other CBS branch located
anywhere in the world. These services* are:

To make enquiries about the balance; debit or credit entries in the account.

To obtain cash payment out of his account by tendering a cheque.

To deposit a cheque for credit into his account.

To deposit cash into the account.

To deposit cheques / cash into account of some other person who has account in a CBS
branch.

To get statement of account.

To transfer funds from his account to some other account he own or of third party,
provided both accounts are in CBS branches.

To obtain Demand Drafts or Bankers Cheques from any branch on CBS amount shall be
online debited to his account.

Customers can continue to use ATMs and other Delivery Channels, which are also
interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc.

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shall also continue to be available. Bank is in the process of launching Internet-banking


facility shortly.
All these aim to provide convenient, efficient, and high quality banking experience to the
customers, comparable to world class standards.
What are other benefits to the Customers?
A CBS branch is like a Sales & Service Delivery Center. Back office processes/activities
are handled through technology at some other site, called Data Center. Branch, therefore,
has more time for serving customers. This improves the quality and efficiency of the
services rendered and the customer is directly benefited by way of satisfying and happy
banking experience.
Since a CBS branch is essentially designed to focus on customer-interface and customer
service, the special lay-out and ambience of the branch is made to provide a convenient
and delightful banking experience. The Customer Service Representatives / Executives at
the branch are specially trained to understand, facilitate and deliver banking services
efficiently and effectively.

Figure 3: CBS System

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Security
Banking has long been making strides in the most visible security challenge: how to
protect their information and transactions from unauthorized access. Now they are
aggressively tackling the second: how to make sure that security measures do not prevent
the right users from getting swift access to the right data. Mobile identity authentication
has become more important for financial institutions as consumers migrate away from
online banking to Smartphones and tablet. Consumers changing preferences, combined
with emerging technology, has forced financial institutions to take a closer look at how
they identify and authenticate mobile banking users when they log into their account.
Report about cybercrime revealed inefficient authentication methods are among the
primary reason for mobile fraud incidents. And consumers are not doing their part to
safeguard their information on those devices. The One-size-fits-all securities measures
can drive up costs, frustrate employees & customers by slowing down their access, &
prevent users from choosing their own risk variables.

High-profile data breaches in the past year, including at JP Morgan Chase and Home
Depot, have made cybersecurity an even hotter topic in banking, especially when it
comes to payments.

EMV chips, which protect card data by encrypting it, will become standard in U.S. cards
in October. Named for its developers (Euro Pay, MasterCard and Visa), EMV technology
offers greater security than the vulnerable magnetic stripe and is already widely used
outside the United States.

Through tokenization, an additional security feature that substitutes a code for your card
data, you can also now pay a merchant without sharing your account number, if the store
has the appropriate technology. Some near-field communication (NFC) wireless systems,
like Apple Pay, use both EMV circuits and tokens to keep consumer information private.

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Figure 4: Security

Cloud Based System


A digital bank has the internet at its core and, today, that means the cloud-based net.
Cloud allows mainframe services through the network such that security, change, agility
and control are all in the hands of the network management and cloud-based software.
For the past seven years, most banks have been content to ignore cloud because they
believed, wrongly, that it means open systems, insecurity and unreliability, loss of control
and potential risk. These perceptions are all wrong, as I mentioned last year, as cloud has
matured and covers a panacea of software-as-a-service, infrastructure-as-a-service,
platform-as-a-service and more. This is where banks must invest in their agile service
structures to offer banking-as-a-service (did I really start saying this six years ago?
YES!).

Banks have to move to a component based model to deliver agile services and plug-andplay the best of breed into their operations. Where banks can fulfil all the components,
great. Where they cannot, they need fast fixes by buying in services from those who do
these things well.

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This is why banks will move to cloud, as their competitive services will be maintained
through internal control in a private cloud whilst shared services and components that
have little competitive differentiation can be leveraged through public or hybrid cloud.

This is the future re-engineered financial model, as Ive explained many times here, and
banks get that this year as they move to digitalization and core digital platforms.

A bank cannot have a digital core without the use of cloud to componentize the systems
architecture and business model. Not to gainsay most bankers mistrust of public cloud
(a recent survey says 52% use no cloud at all because of security concerns), but theres a
difference between this year and last. The debate is not if but how they will eventually
embrace cloud if not public cloud, then private cloud or hybrid cloud -- and which
version for which function. And there is a powerful side benefit of the debate: crystal
clarity about what really qualifies as an asset that requires top-level protection and what
does not and is therefore a cloud candidate. No cloud is being replaced by nuanced
cloud strategies that address security, speed, and savings in incremental ways

Figure 5: Cloud Computing

20

Payment System
When we look out to the horizon, we think that technology is going to advance based on
time facilitating speedier branch meetings, allowing for real-time payments, providing
for faster security alerts and resolution, creating more responsive pricing and product
recommendations. We must all give props to Mitek Systems for revolutionizing the most
painful of banking chores: the lowly check deposit. Now, we are not going to wade into
the question of whether perpetuating checks is good or bad for banking. More
importantly, RDC revealed that banking could and should be executed by image. With
QR codes at the ready, we see image banking as becoming a major channel for financial
services in 2014 and beyond Look at RDC (Remote Deposit Capture). RDC grew
exponentially in 2014 because it offers speedier deposits. In other words, speed will rule.
And that means one thing for bankers: core banking and faster payment system will better
be up to the task. Because of Apple Pay and Google Wallet, we seem to have reached the
tipping point that will finally revolutionize our payments. Also hacking headlines have
pushed retailers into long-awaited chip and PIN, NFC, and wireless POS device rollouts.
This is a kind of high pressure environment in which exciting innovation long awaited in
our payment system.

Figure 6: NFC Payment System

21

Most of the Services To Mobile


A few years ago, the overriding directive was simply to get mobile. That directive is only
more acute today. A new study sponsored by Fico, for example, found that nearly 8 out of
every 10 consumers want more banking interactions via mobile. Yes, more
interactions which means that consumers are well aware that banks could provide more
and better mobile services, even though many banks have relatively robust mobile apps.
But For most banks, the technology menu is relatively complete.
Mobile banking offers many advantages, such as good security, easy access and plentiful
applications for smart phones. "The biggest benefit is that you have more control of your
money
With mobile banking, users of mobile phones can perform several financial functions
conveniently and securely from their mobile. You can check your account balance,
review recent transaction, transfer funds, pay bills, locate ATMs, deposit cheques,
manage investments, etc. Mobile banking is available round the clock 24/7/365, it is easy
and convenient and an ideal choice for accessing financial services for most mobile
phone owners in the rural areas. Mobile banking is said to be even more secure than
online/internet banking.

Figure 7: Mobile Banking

22

Outsourcing Services
Just a decade or so ago, the public face of many bank outsourcing initiatives often wore
an apologetic look, as though a decision to hire specialists in this or that function
represented a bank management failure. Today banking, like most industries, forthrightly
engages in almost constant assessment of potential outsourcing of non-core activities,
business processes, IT, technology support, maintenance, and more. As outsourcing
providers improve the quality of their services and reporting, this trend will continue and
serve its intended purposes like lowering bank costs, improving the functions involved,
and permitting bank management to concentrate on banking.

If a bank want to reduce its overhead costs, increase profits, and meet regulatory
requirements at the same time then take advantage of some expertise in finance &
accounting services and benefit from an increase in your return on investment By using
expert accountants and book-keepers to handle the company's financial documentation,
the bank can focus on core competencies, target specific markets and increase
profitability.
When your organization outsources accounting, tax preparation, bookkeeping or other
finance and accounting services, it can expect manifold benefits, such as the following:
a. Significant cost savings
b. Take advantage of our domain expertise
c. Get our technology to work for you etc.

Figure 8: Outsourcing Financial Services

23

Data Analytics for Better Service to Customers


Banks have the opportunity to leverage their data. All banks talk about Big Data, but its

not the big data that counts but the small moments. In other words, cleansing and
creating the enterprise data store is a huge challenge in itself but that is not the end game.
The end game is to use that data, which is where the rubber hits the road. Therefore, data
analytics is the competitive battleground in banking and, now that banks recognize they
have to digitize, they also see that the data analytics opportunity of their new core will be
a big strategic focus.

What this really means is not just customer propensity modelling for share of wallet, but
using data intelligently to create opportunity and improve service. Some Companies are
using data analytics to give customers great offers that are personalized at the point of
relevance. Some make mobile app offers based upon the stores you are nearby that they
know you shop at and some make personalized tweets to people who are near a branch
for an account opening opportunity
Expect more and more of this sort of data analytics competitive affray over the coming
year, as this is the space thats really hot, once the bank has digitized its core. Banks that
digitize will differentiate with data and the royalty of analytics will reign supreme.

Figure 9: Data Analysis

24

6) Data Analysis: From the analysis that has been done with the help of the customers in the bank it has been seen that
most of them are male i.e. more than 75% are male visit the bank and rest i.e. hardly more than 20%
females tend to visit the bank. The below graph will give you a better idea about the analysis.

Figure 10: Gender

Gender
Male

Female

76

24
Table 2: Gender

When the survey was carried out to get an approximation about which age group prefers to go to
the bank it was seen that 50% of the people come in the age bracket of 26 to 30. Rest 38% are in
the age group of 30 to 60.Also around 4% of people come in the age group of 60 & above. The
below graph will give you a better idea about the analysis

25

Figure 11: Age Group

Age
18 to
25
8

26 to
30
50

31 to
40
14

41 to
50
10

51 to
60
14

60
Above
4

Table 3: Age Group

Also in the analysis it has been seen that around 60% are graduate and out of 60% graduates, 20%
are post graduates so this says that most of them are literate and well educated. The below graph
will give you a better idea about the analysis.

Figure 12: Qualification

26

Qualification
Illiterate

10th

12

12th

Graduation

PG

Others

28

48

12

Table 4: Qualification

Talking about the profession, around 58% are private employee and only 6% are Government
employee and 8% have their own business. The below graph will give you a better idea about the
analysis.

Figure 13: Profession

Profession
Govt
Emp
6

Pvt
Emp
58

Business

Student

Housewife

Others

16

Table 5: Profession

In the analysis it has been seen that around 42% of the people are using the account for more than
5 years and around 44% are using it from 1 to 5years. This says that the customers are happy with
the services provided by the bank and are ready to stick to it rather than opting to move out of it.
The below graph will give you a better idea about the analysis.

27

Figure 14: Usage of Bank Account

Usage of this Bank Account


Less Than 1
Year

1 to 5
Years

5 to 10
Years

10 to 15
Years

Above 15
Years

44

18

26

12

Table 6: Usage of Bank Account

When asked the customers that what were the attributes they liked about the bank most of them
said that they liked the quality of service and had a trust in the services of the bank while many
also stated that the preferred the bank due to the location as it was near to their place. Hardly any
users were satisfied with the technology used in the bank which attracted them to use the services
of the bank. Also there was some other reason due to which they preferred the bank. The below
graph will give you a better idea about the analysis.

28

Figure 15: Attribute of the Bank value the most

Attribute of the bank you value the most


Quality of
Service

Technology
Used

Trust

Location

Type of the
Bank

Others

42

50

68

Table 7: Attribute of the Bank value the most

In the analysis done to know what was the computer usage level of the customers the results were
shocking as everybody had some knowledge about the computers while more than 65% had
average knowledge about the computer usage level. The below graph will give you a better idea
about the analysis.

Figure 16: Computer Usage Level

29

Familiar With Computer Usage Level


No Knowledge

Beginner

Average Knowledge

Advanced Knowledge

34

36

30

Table 8: Computer Usage Level

When customers were asked about how they came to know about the E-banking technology and
services provided by the bank most of the users said that they came to know it from the bank
officials and also via advertisements. The below graph will give you a better idea about the
analysis.

Figure 17: Have you heard about E-banking

Bank
Officials
60

How You Heard About E-Banking


TV &
Advt
Online
Family & Friends
Radio
48

14

Table 9: Have you heard about E-banking

Any
Other
0

30

When the Customers were asked about how frequently they do the internet banking the results
were not satisfactory i.e. 54% never do internet banking 34% do 1 to 5 times in a month rest 12%
do more than 5 times in a month. By looking at the level of computer knowledge and the usage
level, the results are very shocking as people still prefer branch banking over internet banking due
to various reasons. The below graph will give you a better idea about the analysis.

Figure 18: Internet Banking / Month

Nil
54

1 to 5
Times
34

Internet Banking
5 To 15
Times
6

More Than 15
Times
6

Table 10: Internet Banking / Month

When the Customers were asked about Mobile banking the results were even more shocking i.e.
92% never heard or done internet banking. In this era of M-commerce where everything can be
done with a help of a mobile this much percentage of people not doing mobile banking says that
either the awareness is not created by the bank that they have these kind of services or people are
not ready to accept these services i.e. (Mobile Banking) of this bank due to various reason. Rest
8% do Mobile Banking 1 to 5 times per month. The below graph will give you a better idea about
the analysis.

31

Figure 19: Mobile Banking / Month

Nil
92

1 to 5
Times
4

Mobile Banking
5 To 15
More Than 15 Times
Times
0
4
Table 11: Mobile Banking / Month

When the Customers were asked about how frequently they use the ATM the results were good
i.e. 90% use ATM at least more than 1 to 5 times, Out of the rest 10% who dont use have
corporate account due to which they cant use the ATM services. The results about the ATM
Services are pretty much satisfactory, the below graph will give you a better idea about the
analysis.

32

Figure 20: ATM Banking / Month

Nil
10

1 to 5
Times
54

ATM Banking
5 To 15
More Than 15 Times
Times
28
8
Table 12: ATM Banking / Month

Coming to the comparison between branch banking and Internet banking i.e. E-Banking when the
customers were asked about the reasons to prefer branch banking over e-banking, most of them
said that branch banking is more easy to use than e-banking also its more trustworthy, also there
were some other reasons like it helps to build relationship with the branch people its more
comfortable for them to do it than e-banking.

33

Figure 21: Branch Banking / Month

Ease of
Use
46

Reason For choosing Branch banking over E-Banking


Trustworthy

Lack of E-banking Knowledge

Others

20

54

Table 13: Branch Banking / Month

When the Customers were asked what was the reason for not doing internet banking most of them
said that they never tried these facilities which were provided by the bank. Also many people
were concerned about the security issues etc. due to which many people still preferred branch
banking over internet banking. The below graph will give you a better idea about the analysis.

34

Figure 22: Reason for not doing Internet Banking

Never
Tried
34

Reason For Not Doing Internet Banking


No Proper
No
No fast
Unfinished
Info
Security
Response
Operation
0
10
4
8

Others
40

Table 14: Reason for not doing Internet Banking

Also when the Customers were asked about mobile banking many of them are not aware of
such services, and those few people who know about these services have never tried these
services due to security issues and unfinished operations. Due to which many people still
preferred branch banking. The below graph will give you a better idea about the analysis.

35

Figure 23: Reason for not doing Mobile Banking

Never
Tried
34

Reason For Not Doing Mobile Banking


No Proper
No
Unfinished
Info
Security
Operation
4
36
2

Others
20

Table 15: Reason for not doing Mobile Banking

36

7) Suggestions and Conclusions:7.1) Suggestions:i. Public sector banks are typically known to lag behind when it comes to I.T. Infrastructure
and Information Security and I.T. Policies. Most of the banks are still continuing with the
outdated operating system and hardware which are below par as compared to the private
sector banks. This has resulted in slow and improper outcome and many other problems.
ii. Hence, with the changing business scenario it has become of utmost importance for the
public sector banks to revamp their age old hardware and software with the new ones. It
will not only result in efficient growth and better results but it will also help them in their
business.
iii. A number of Various I.T. Related initiatives needs to be undertaken at Bank of Baroda
and they should be implemented through various re-engineering process.
iv. When the Banks training and development practices were compared with those of its
private competitors, it was found that the Bank doesnt satisfy the current standards of
training mechanism, a drastic change is required in their I.T. training mechanism for
making the employee more aware about the current trends and also to get better
productivity.
v. Awareness needs to be created among the employees of Bank of Baroda regarding the
current technological support provided to them.
vi. While conducting survey in the branches it has been observe that most of the customers
trust the bank and its services so by taking its advantage bank should keep various
campaign to create awareness about their various services like e-banking, mobile
banking, e-lobby etc.

37

7.2) Conclusion:-

i. The Technologies used in the bank are not up to the standard which is required in this
competitive market. It needs to revamp it in such a way that the younger generation
which is more tech savvy will adopt it.

ii. The technology used by the bank just satisfies the basic current need of the employees
and the customers but an advance user who is more into the core banking will face loads
of difficulty from the banks services
iii. Maximum customers of Bank of Baroda have much faith in its services this will help the
bank to achieve great heights and gain the maximum share in public sector banking.

38

7.3) Learnings:-

Types of Department In Banking Sectors and how they work


ERP Used By Banking Sector
Database Handling In Bank Of Baroda
Cost Effective Ways Of Communication
Setting Up A Branch, ATM & E-lobby
Troubleshooting ATM Machines
Controlling The Network And Managing The Bandwidth Accordingly
Installation Of Operating Systems & Banking Software's
Managing the Inventories and Ordering Accordingly

39

Annexure I
(Pilot Questionnaire)
Bank of Baroda
[Please put a ( ) mark to indicate your preference]

1. Name

- __________________________________________

2. Gender

- i) Male

ii) Female

3. Age
i) 18 to 25

ii) 26 to 30

iii) 31 to 40

iv) 41 to 50

v) 51 to 60

vi) 60 Above

i) Govt Employee

ii) Private Employee

iii) Business

iv) Student

v) Housewife

vi) Others

i) Less than 1 year

ii) 1 5 years

iii) 5 10 years

iv) 10 15 years

v) Above 15 years

4. Profession

5. Usage of this Bank Account

6. Which attribute of the bank do you value the most?


i) Quality of Service

ii) Technology used

iii) Trust

iv) Location

v) Type of the bank

vi) Others

7. Which factor promotes you to use the new techniques in banking?


i) Reduced time of transactions

ii) Cost effectiveness

iii) Ease of use

iv) Technology savvy

40

8. How familiar are you with computer usage level of your bank?
i) No knowledge of computer

ii) Beginner

iii) Average knowledge

iv) Advanced knowledge

9. How frequently do you use the following banking services per month?

Nil

1 to 5
Times

5 to 15 Times

More than 15
Times

Branch Banking
Internet Banking
Telephone Banking
Mobile Banking
ATM Banking

10. Any suggestions for the development of technology in our bank?


________________________________________________________________________
________________________________________________________________________

41

Annexure II
(Main Questionnaire)
Bank of Baroda

[Please put a ( ) mark to indicate your preference]

1. Name

___________________________________

2. Age
i) 18 to 25

ii) 26 to 30

iii) 31 to 40

iv) 41 to 50

v) 51 to 60

vi) 60 Above

i) Illiterate

ii) 10th

iii)12th

iv) Graduation

v)Post Graduation

vi)Others (_________)

i) Govt Employee

ii) Private Employee

iii) Business

iv) Student

v) Housewife

vi) Others

i) Less than 1 year

ii) 1 5 years

iii) 5 10 years

iv) 10 15 years

v) Above 15 years

3. Qualification

4. Profession

5. Usage of this Bank Account

6. Which attribute of the bank do you value the most?


i) Quality of Service

ii) Technology used

iii) Trust

iv) Location

7. How familiar are you with computer usage level of your bank?
i) No knowledge of computer

ii) Beginner
42

iii) Average knowledge

iv) Advanced knowledge

8. Have you ever heard about E-Banking services, if yes from where?
i) Bank officials

ii) Advertisement

iii) TV & Radio

iv) Online

v) Family & Friends

vi) Any other (_________)

9. How frequently do you use the following banking services per month?
(1) 1 to 5

(2) 5 to 15

Internet Banking

(3) 15 And Above

Mobile Banking

ATM Banking

10. Reason for Choosing Branch Banking Over E-Banking?


i) Ease of use

ii) Trustworthy

iii) Lack of e-banking knowledge

iv) Others

11. Reason for not doing Internet Banking?


i) Never tried

ii) No proper Information

iii) No security

iv) No fast response

v) Unfinished operation

vi) Others (_______________________)

12. Reason for not doing Mobile Banking?


i) Never tried

ii) No proper Information

iii) No security

iv) No fast response

v) Unfinished operation

vi) Lack of appropriate software

43

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