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ROLE OF TECHNOLOGY IN BANKING
ROLE OF TECHNOLOGY IN BANKING
INTRODUCTION
THE term “Banking Technology” refers to the use of sophisticated information and
communication technologies together with computer science to enable banks to offer better
services to its customers in a secure, reliable and affordable manner and sustain competitive
advantage over other banks. Banking Technology also subsumes the activity of using
advanced computer algorithms in unraveling the patterns of customer behavior by sifting
through customer details such as demographic, psychographic and transactional data. This
activity also known data mining, helps banks achieve their business objectives by solving
various marketing problems such as customer segmentation, customer scoring, target
marketing, market-basket analysis, cross-sell, up-sell, customer retention by modeling churn
etc. Successful use of data mining helps banks achieve significant increase in profits and
thereby retain sustainable advantage over their competitors. From theoretical perspective,
Banking Technology is not a single, stand-alone discipline, but a confluence of several
disparate fields such as finance, information technology, communication technology,
computer science and marketing science. Banking Technology has three important
dimensions. They are as follows: (i) The use of appropriate hardware for conducting business
geassociated software constitutes one dimension of Banking Technology. The use of
computer networks, security algorithms in its transactions, use of ATM and credit cards,
Internet banking, telebanking and mobile banking are all covered by this dimension. The
advances made in information and communication technologies take care of this dimension.
(ii) On the other hand, the use of advanced computer science algorithms to solve several
interesting marketing related problems such as customer segmentation, customer scoring,
target marketing, market-basket analysis, cross-sell, up-sell and customer retention etc. faced
by thebanks to reap profits and outperform their competitors constitutes the second dimension
of Banking Technology. This dimension covers the implementation of a data warehouse for
banks and conducting data mining studies on customer data. (iii) Moreover, banks cannot
ignore the risks that arise in conducting business with other banks and servicing their
Collage Name :-Laxmichand Golwala collage of Commerce and Economics

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customers, for otherwise, their very existence would be at stake. Thus, the quantification,
measurement, mitigation and management of all the kinds of risks that banks face constitutes
the third important dimension of Banking Technology. This dimension covers the process of
measuring and managing credit risk, market risk and operational risk. Thus, in a nutshell, in
the word ‘Banking Technology’, ‘banking’ refers to the economic, financial, commercial and
management aspects of banking while ‘technology’ refers to the information and
communication technologies, computer science and risk quantification and communication
technologies, computer science and risk quantification and measurement aspects.

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EVALUTION OF TECHNOLOGY IN BABKING
The Despite enormous changes the banking industry has undergone through
during the past 20years let alone since 1943 one factor has remained the same: the
fundamental nature of the needcustomers have for banking services. However, the
framework and paradigm within which theseservices are delivered has changed out of
recognition. It is clear that people’s needs have notchanged, and neither has the
basic nature of banking services people require. But the way banksmeet those needs is
completely different today. They are simply striving to provide a service at a profit. Banking
had to adjust to the changing needs of societies, where people not only regard a bank
account as a right rather than a privilege, but also are aware that their business is valuableto
the bank, and if the bank does not look after them, they can take their business
elsewhere.Indeed, technological and regulatory changes have influenced the
banking industry during the p a s t 2 0 y e a r s s o m u c h s o t h a t t h e y a r e t h e
m o s t i m p o r t a n t c h a n g e s t o h a v e o c c u r r e d i n t h e banking industry, apart from
the ones directly caused by the changing nature of the society
itself.I n t h i s b o o k , t e c h n o l o g y i s u s e d i n t e r c h a n g e a b l y w i t h i n f o r
m a t i o n a n d c o m m u n i c a t i o n technologies together with computer science. The
relationship between banking and
technologyi s s u c h t h a t n o w a d a y s i t i s a l m o s t i m p o s s i b l e t o t h i n k O
F t h e f o r m e r w i t h o u t t h e l a t t e r . Technology is as much part of the
banking industry today as a ship’s engine is part of the ship.Thus, like a ship’s
engine, technology drives the whole thing forward.Technology in banking ceased being
simply a convenient tool for automating processes. Today banks use technology as
a revolutionary means of delivering services to customers by designingnew delivery
channels and payment systems. For example, in the case of ATMs, people realizedthat it was
a wrong approach to provide the service as an additional convenience for privilegedand
wealthy customers. It should be offered to the people who find it difficult to
visit the bank branch. Further, the cost of delivering the services through these channels
is also less. Banks thenwent on to create collaborative ATM networks to cut the

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Role of Technology in Banking
Technology is no longer being used simply as a means for automating processes.

Instead it
is b e i n g u s e d a s a r e v o l u t i o n a r y m e a n s o f d e l i v e r i n g s e r v i c e s t o c u s t o m
e r s . T h e a d o p t i o n o f technology has led to the following benefits: greater productivity,
profitability, and efficiency;faster service and customer satisfaction; convenience and
flexibility; 24x7 operations; and spaceand cost savings. Harrison Jr., chairman and chief
executive officer of Chase Manhattan, which pioneered many innovative applications
of ICT in banking industry, observed that the Internetcaused a technology
revolution and it could have greater impact on change than the
industrialrevolution.Technology has been used to offer banking services in the following
ways :•
ATMs
are the cash dispensing machines that can be seen at banks and other locations
wherec r o w d p r o x i m i t y i s m o r e . A T M s s t a r t e d a s a s u b s t i t u t e t o a b a n k
t o a l l o w i t s c u s t o m e r s t o withdraw cash at anytime and to provide services
where it would not be viable to open another physical branch. The ATM is the most
visited delivery channel in retail banking, with more than40 billion transactions annually
worldwide. In fact, the delivery channel revolution is said tohave begun with the
ATM. It was indeed a pleasant change for customers to be in charge of their transaction, as
no longer would they need to depend on an indifferent bank employee.
ATMshave made banks realize that they could divert the huge branch traffic to the ATM.
The benefitshence were mutual. Once banks realized the convenience of ATMs,
new services started to beadded.• T h e p h e n o m e n a l s u c c e s s o f A T M s h a d
made the banking sector develop more innovativedelivery channels to
build on cost and service efficiencies. As a consequence, banks
h a v e introduced telebanking, call centers, Internet banking, and mobile banking.
Telebanking
is agood medium for customers to make routine queries and also an efficient tool
for banks to cutd o w n o n t h e i r m a n p o w e r r e s o u r c e s . T h e
call center
i s a n o t h e r c h a n n e l t h a t c a p t u r e d t h e imagination of banks as well as customers. At
these centers, enormous amount of information
isa t t h e f i n g e r t i p s o f t r a i n e d c u s t o m e r s e r v i c e r e p r e s e n t a t i v e s . A c a l l c e
n t e r m e e t s a b a n k ’ s infrastructural, as well as customer service requirements. Not only
does a call center cut down oncosts, it also results in customer satisfaction. Moreover, it

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facilitates 24x7 working and offers the“human touch” that customers seek. The call
center has large potential dividends by way of improved customer relationship
management (CRM) and return on investment (ROI).
• With the Internet boom, banks realized that

Internet banking
would be a good way to reach outto customers. Currently, some banks are attempting to
harness the benefits of Internet banking,while others have already made Internet
banking an important and popular payment system.Internet banking is on the rise, as
is evident from the statistics. Predictions of Internet banking togo the ATM way have not
materialized as much as anticipated; many reasons can be cited for this. During
2003, the usage of the Internet as a banking channel accounted for 8.5%. But
thiswas due to the false, unrealistic expectations tied to it. Some of the factors that were
detrimentalin bringing down, or rather, not being supportive, are low Internet
penetration, high telecomtariffs, slow Internet speed and inadequate bandwidth
availability, lack of extended applications,And lack of a trusted environment
Mobile banking
however is being regarded in the industry as “the delivery channel of
t h e future” for various reasons. First and foremost is the convenience and portability
afforded. It is just like having a bank in the pocket. Other key reasons include the
higher level of security incomparison to the Internet and relatively low costs involved.
The possibility that customers

willa d o p t m o b i l e b a n k i n g i s h i g h , c o n s i d e r i n g t h e e x p o n e n t i a l g r o w t h o f
m o b i l e p h o n e u s e r s worldwide. Mobile banking typically provides services such as the
latest information on account balances, previous transactions, bank account debits
and credits, and credit card balance and payment status. They also provide their online
share trading customers with alerts for pre-marketmovements and post-market information
and stock price movements based on triggers. Fallout of the ICT-driven revolution in the
banking industry is the Centralized Banking Solution (CBS). ACBS can be defined as a
solution that enables banks to offer a multitude of customer-centricservices on a
24x7 basis from a single location, supporting retail as well as corporate
bankingactivities, as well as all possible delivery channels existing and proposed. The
centralization thusafforded makes a “one-stop” shop for financial services a reality.
Using CBS, customers canaccess their accounts from any branch, anywhere, irrespective
of where they physically openedtheir accounts.Information technology has not only helped

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banks to deliver robust and reliable services to their customers at a lower cost, but also
helped banks make better decisions. Here a data warehouse plays an extremely
important role. It essentially involves collecting data from several disparatesources to build
a central data warehouse to store and analyze the data. A data warehouse in
a bank typically stores both internal data and data pertaining to its competitors.
Data miningtechniques can then be applied on a data warehouse for knowledge discovery
(Hwang, Ku, Yen,& Cheng, 2004). Data warehousing also allows banks to perform time
series analysis and onlineanalytical processing (OLAP) to answer various business
questions that would put the banksahead of their competitors.

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FUTURE OF BANKING TECHNOLOGY
The Bank of Hindustan and the General Bank of India were established in the late
18th century but did not survive for very long. The British presidency government then
established the Bank of Calcutta, Bank of Bombay, and Bank of Madras which were merged
in 1921 to form the Imperial Bank of India. In 1955 it became the State Bank of India and is
the oldest surviving bank in India. A number of banks have been established pre and post
independence. In 1935 the Reserve Bank of India was established and it was nationalized in
1949. That same year the Banking Regulation Act was passed, which authorized the Reserve
Bank of India to regulate, control and inspect all banks in India. It also stipulated that RBI
will have to authorize the establishment of any new banks.
Technological innovation began in the Banking sector back in the 1980s. Since the
establishment of the ICICI Bank, digitization in banking industry has been commendably
fast. Banks offering a number of services over the internet has resulted in the growth of
banking sector in India. Banks have been able to expand their customer base, provide
additional services, and ensure that customers are able to handle a number of banking tasks
over the internet in the comfort of their homes or offices.
The rapid changes that the banking sector in India has experienced are indicative of the future
of banking in India. We can expect further rapid technological changes that would
revolutionize customer experience regarding Banking. The future of banking technology will
indeed be beyond expectations.
1. Machine Learning:
Data science can be used to predict the needs of customers and provide them with customized
products that suit their needs.
2. Artificial Intelligence:
artificial intelligence in banking
With AI making inroads in digital banking in India, there will be changes to banking
processes. We can expect to see smarter operations as backend processes are streamlined.

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3. Personalized Service:
Digital banking will help customize the screens for customers based on their usage history. It
will also allow for automatically filling in certain information required on online forms. This
will ensure a much better user experience.
4. Security:
While passwords and OTPs are already in use, we can look forward to advanced biometric
authentication, voice recognition and face recognition in the near future. ATMs will become
contactless, and the mobile phone would be used to operate it.
5. Blockchain Technology:
More and more banks will adopt blockchain technology which means that the account details
of a customer will be maintained in real-time across banks while eliminating the risk of
hacking by criminals. Financial transactions become encrypted packets called blocks and get
added to an encrypted chain, much like an email chain.
Future of Banking in India

Banking in India is at the crossroads now. They are under intense pressure to accept and
evolve with digitization. Their very existence is at stake. They need to adopt a holistic
approach to digitization. It is not just a customer relation tool, neither is it just something that
speeds up a banking process. It is changing the entire concept of banking. Product innovation
and development according to the needs of individual customers is the current buzzword. The
agility that banks in India have displayed during the past couple of decades demonstrates that
they will continue to evolve. The Indian banking sector will continue to grow, and
digitization will continue. Banking will be an important aspect of economic growth. The
future of banking technology is e-banking or digital banking

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DIGITIZATION IN BANKING INDUSTRY
Digitization in banking industry basically refers to the different services rendered by the bank
being available online. It is also called internet banking, or online banking. Mobile banking,
telephone banking, use of ATMs, et al are all aspects of digitization in banking industry.
Banking Industry Analysis

A banking industry analysis provides some keen insights into the working and growth of
banking sector in India. Let us consider some factors that are involved.
1. Robust Economy:
With liberalization in the 1990s, the Indian economy grew rapidly. Many multinationals have
their operations in India. Outsourcing jobs from developed countries has created an additional
job market in India. Our GDP percentage has continued to increase. A growing economy
would require good banking services and would automatically contribute to the positive
future of banking industry.
2. Education:
With education being stressed so much, Gen Y is not satisfied with just basic education. Most
of them take on higher education, as well as go for specialized courses. Education helps them
take on specialized jobs which also pay more. Increasing financial capabilities of individuals
creates a demand for good banking services and thus contributes to the growth of banking
sector.
3. Population:

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The increase in working population has meant that more individuals have additional
disposable income, resulting in the need for banking services. This is true not only with
regard to cities but also with regard to rural population.
4. Operational Efficiency:Technology has drastically improved the operational efficiency of

the banking industry. This has made it possible for more individuals to open and operate bank
accounts much more easily and has led to the growth of the banking sector in India.
5. Digitization:
Digitization has lowered operating costs and increased the profitability of the banks. This in
turn has made it possible for banks to offer a higher rate of interest, which attracts customers.
The socio-economic trends we see in India today only indicate a steady growth of the
banking sector in India. This growth will also be the fuel for further development of banking
technology, thus brightening the future of Indian banking sector.

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RECENT DEVELOPMENTS IN BANKING TECHNOLOGY
Like any other industry, computerization and new technology is very rapidly changing the
face of banking. Or perhaps it can be said that in recent times the entire concept of banking
has undergone a change, and it is not over yet. Consider some recent developments in
banking sector:
1. Electronic Cheques:
The Negotiable Instruments Act has undergone a number of amendments and now includes
the provision of truncated cheques and e-cheque instruments. Soon we can expect e-cheques
to replace paper cheques in the banking process.
2. Fund Transfers:
India has introduced a number of options to make fund transfers easy. Using Real Time Gross
Settlement (RTGS), electronic instructions can be given to banks to transfer funds to another
bank account. This is done on a ‘real time’ basis, which means that the receiving bank has the
money instantly and the beneficiary has the money in their account within two hours. RBI
provides the Electronic Funds Transfer (EFT) facility wherein funds could be transferred to
the account of another person or company. Large companies or government organizations can
use Electronic Clearing Service (ECS) whereby they can make bulk payments or receipts of a
similar nature from/to multiple parties. Individuals and organizations can also use the
National Electronic Fund Transfer (NEFT) to make one to one payments.
3. Tele Banking:
Banks have started providing a number of services over the telephone. Chatbots are used for a
number of queries and phone banking executives handle the rest of the queries.

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4. Mobile Banking:Mobile banking service

A number of banks have developed applications providing different banking services. We can
expect to have more services provided through these applications and we will see the user
interface becoming more user friendly.
5. Purchases:
Point of Sale (POS) terminals scan a magnetically encoded card (debit/credit card) to enable a
fund transfer from the customer to the business. A number of digital wallets are also now
available. These enable a customer to electronically debit a certain amount from his account
and credit it to the business’ account. PayPal, PayTM, MobiKwik, PhonePe, and other such
e-wallets are becoming increasingly common, especially as the government is encouraging
cashless transactions.
6. Automatic Teller Machines:

ATMs are perhaps the most widely used aspect of digital banking. Today however, ATMs
not only allow a person to withdraw cash at any time of the day, but also allow an individual
to pay their utility bills, and even transfer funds between accounts, besides offering other
services.

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SCOPE OF BANKING TECHNOLOGY
The banking sector has embraced the use of technology to serve its client’s faster and also to
do more with less. Emerging technologies have changed the banking industry from paper and
branch based banks to ”digitized and networked banking services. Unlike before, broadband
internet is cheap and it makes the transfer of data easy and first. Technology has changed the
accounting and management system of all banks. And it is now changing the way how banks
are delivering services to their customers. However this technology comes at a cost,
implementing all this technology has been expensive but the rewards are limitless. Below I
have listed some of the roles of technology in the banking industry.
E-banking: This enables the bank to deliver its services easily to its high end customers. To
make the system user friendly to all clients, banks have used a Graphical User Interface
(GUI) , with this software , customers can access their bank details on their own computers,
make money transfers from one account to another, print bank statements and inquire about
their financial transactions. Another technology used by banks to exchange data between the
bank and clients is called Electronic Date Interchange (EDI); this software can be used to
transmit business transaction in a computer-readable form. So the client on the other end will
be in position to read the information clearly.
NRI Banking Services: This technology has been embraced in countries like India, USA,
UAE, just to mention but a few. Since many people go abroad to work, they have a need of
supporting their families. So technology has made it simple for them to send money to their
loved ones easily.
RURAL Banking: Unlike in the past when banking was centralized in urban areas, now
day’s technology has made it simple to set up banking facilities in rural areas. For example:
In Africa, they have introduced Mobile money banking facilities. In this case a user in a rural
area will have an account with a mobile company which is opened for free. They can then

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deposit money on that account via a near by mobile money operating center. This money can
be withdrawn at any time any were in that area and they can also receive or send money using
the same system.
Plastic money: Credit cards or smart cards like ‘’VISA ELECTRON’’ have made the
banking industry more flexible than before. With a credit card , a customer can borrow a
specific amount of money from the bank to purchase any thing and the bank bills them later.
In this case, they don’t have to go through the hassle of borrowing small money. Then with
‘’Smart Cards’’ like visa electron ,a customer can pay for any thing using that card and that
money is deducted from their bank accounts automatically, they can also use the same card to
deposit or withdraw money from their accounts using an ATM machine.
Self-inquiry facility: Instead of customers lining up or going to the help desk, banks have
provided simple self inquiry systems on all branches. A customer can use their ATM card to
know their account balance, or to get their bank statement. This saves time on both sides.
Remote banking: Banks have installed ATM machines in various areas; this means a
customer does not have to go to the main branch to make transactions. This facility has also
enabled anytime banking, because customers can use ATM machines to deposit money on
their accounts. Remote banking has helped people in rural areas improve on their culture of
saving money.
Centralized Information results to quick services: This enables banks to transfer information
from one branch to another at ease. For example, if a customer registered their account with
a rural branch, they can still get details of their account while at the main bran in an urban a
Signature retrieval facilities: Technology has played a big role in reducing fraud in banks
which protects its clients. For example, banks use a technology which verifies signatures
before a customers withdraws large sums of money on a specific account and this reduces on
the errors or risks which might arise due to forgery.

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BENEFITS OF TECHNOLOGY IN BANKING
The banking industry is one that has always relied heavily on computerized records and the
ability to access crucial information quickly and easily. However the benefits of technology
in banking have become even more apparent in recent years, as phone, online and mobile
banking has revolutionized the way we take care of our finances. In fact, one might argue that
the impact of technology in the banking sector has meant that we now have no excuse for
being overdrawn or not paying credit card bills on time!
In previous generations, the only way to find out how much money you had in the bank
was to keep a detailed log book or pay a visit to your local branch and ask the teller to check
the ledger for you. Then along came the innovation known as the ATM machine, which
allowed us to withdraw cash from hundreds of convenient locations and check our balance
while we were at it. Nowadays, with mobile banking apps it’s possible to check your balance
any time any place. So before you splash out on a new stereo or home entertainment system
you can check your account then and there just to be sure you can afford it.
Another one of the key benefits of technology in banking is that it allows us to pay bills
quickly and without fuss. We can arrange to have them paid by direct debit every month at a
time that suits us, or we can make one off transfers as and when the bills come in. This means
that there’s no longer any need to pay a physical visit to your branch to pay bills and it also
means we are more likely to pay them on time. People who find it more difficult to manage
their money can arrange for as many bills as possible to be paid just after their salary clears
their account so that they know the essentials are covered before they can spend on luxuries.
But perhaps one of the most exciting benefits of technology in banking is that cash is slowly
but surely being phased out and in the not too distant future there may be no need to carry
around a wallet full of notes and coins. The role of technology will be crucial in the cashless
society as all our financial information will be stored on swipe cards and key fobs. Already

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many retail outlets are offering Smartpay solutions which allow you to make payments of up
to £20 simply by holding your card over a reader. No more rummaging around in your pocket
for crumpled notes and clunky change, and if developments continue in this vein your
Smartpay card may double up as a travel card or other some other useful tool. But more than
this, our smartphones are going to play a bigger role
in the cashless transactions. Apple, Samsung have already launched their payment systems.
You just need to use your phone to pay anywhere.
Competition —
Studies show that competitive pressure is the chief driving force behin
d increasing use of Internet banking technology, ranking ahead of cost reduction
and revenueenhancement, in second and third place respectively. Banks see
Internet banking as a way tokeep existing customers and attract new ones to the bank.
Cost Efficiencies —
National banks can deliver banking services on the Internet
at transactionc o s t s f a r l o w e r t h a n t r a d i t i o n a l b r i c k - a n d -
m o r t a r b r a n c h e s . T h e a c t u a l c o s t s t o e x e c u t e a transaction will vary
depending on the delivery channel used. For example, according to Booz,Allen &
Hamilton, as of mid- 1999, the cost to deliver manual transactions at a branch
wastypically more than a dollar, ATM and call center transactions cost about 25 cents, and
Internettransactions cost about a penny. These costs are expected to continue to decline.
National bankshave significant reasons to develop the technologies that will help them
deliver banking productsand services by the most cost-effective channels. Many bankers
believe that shifting only a small portion of the estimated 19-billion payments mailed
annually in the U.S. to electronic deliverychannels could save banks and other
businesses substantial sums of money. However, national banks should use care in
making product decisions. Management should include in their decisionmaking the
development and ongoing costs associated with a new product or service,
includingt h e t e c h n o l o g y , m a r k e t i n g , m a i n t e n a n c e , a n d c u s t o m e r s u p p o r t f
u n c t i o n s . T h i s w i l l h e l p management exercise due diligence, make more informed
decisions, and measure the success of their business venture.
Geographical Reach —
Internet banking allows expanded customer contact through increasedgeographical reach
and lower cost delivery channels. In fact some banks are doing

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businessexclusively via the Internet — they do not have traditional banking offices and only
reach their customers online. Other financial institutions are using the Internet as
an alternative deliverychannel to reach existing customers and attract new customers.
Branding —
Relationship building is a strategic priority for many national banks.
Internet b a n k i n g t e c h n o l o g y a n d p r o d u c t s c a n p r o v i d e a m e a n s f o r
n a t i o n a l b a n k s t o d e v e l o p a n d maintain an ongoing relationship with their customers
by offering easy access to a broad array of products and services. Internet Banking 4
Comptroller’s Handbook By capitalizing on brandidentification and by providing a
broad array of financial services, banks hope to build customer loyalty, cross-sell, and
enhance repeat business.
Customer Demographics
— Internet banking allows national banks to offer a wide array of options to their
banking customers. Some customers will rely on traditional branches to conducttheir
banking business. For many, this is the most comfortable way for them to
transact
their b a n k i n g b u s i n e s s . T h o s e c u s t o m e r s p l a c e a p r e m i u m o n p e r s o n - t o -
p e r s o n c o n t a c t . O t h e r customers are early adopters of new technologies that arrive in
the marketplace. These customerswere the first to obtain PCs and the first to employ
them in conducting their banking business.The demographics of banking
customers will continue to change. The challenge to national banks is to understand
their customer base and find the right mix of delivery channels to deliver products and
services profitably to their various market segments.

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IMPACT OF TECHNOLOGY IN BANKING
India has around 470 million banking customers. Among this demographic, 60 million of
them, amounting to 13% of the total users, use online banking.
With the financial technology companies, e-commerce names, big data firms, and cloud
based software and service, the digital element is truly revolutionizing things, quite quickly
and effectively. And it becomes even more relevant to take a moment to contemplate where
the banking sector figures in the midst of all these changes. According to a report by the
Boston Consulting Group in collaboration with FICCI and the Indian Banks’ Association
(IBA), India has around 470 million banking customers. Among this demographic, 60 million
of them, amounting to 13% of the total users, use online banking. And within this category,
10% prefer the hybrid model of regular online and online banking. About 1% of users
primarily prefer the online channels for all their banking needs. In comparison, online
banking is the primary channel of interaction for around 20% of customers in economies like
the UK
As banks need to make numerous transactions every day, Blockchain technology could be
of enormous significance by bringing in security and genuineness in transactions. Endorsing
an idea of trust economy, Blockchain can give financial institutions an opportunity to win the
faith and confidence of their customers. Not to ignore are the potential savings that it could
bring in terms of cost and labor for the banking sector. There’s no doubt why banks and
major financial institutions are investing in resources to research how to implement the
technology for best practices. Blockchain is a technological advancement that will transform
the financial services provided by banks.
The global financial system serves billions of individuals and businesses, bringing in trillions
of dollars in circulation every day. Although maintaining a digital façade, they are still
heavily reliant on paper. With such a system, there are many issues that shoots up the
expenses, causes lags, and operates amidst the fear of security breaches. However, bringing
Blockchain Technology in banking will transform the way the industry operates.

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NEGETIVE EFFECTS OF TECHNOLOGY IN BANKING AND

SOLUTIONS
While ICT provides so many advantages to the banking industry

, i t a l s o p o s e s s e c u r i t y challenges to banks and their customers. Even
though Internet banking provides ease andconvenience, it is most
v u l n e r a b l e t o h a c k e r s a n d c yb e r c r i m i n a l s . O n l i n e f r a u d i s s t i l l
b i g business around the world. Even though surveillance cameras, guards, alarms, security
screens,dye packs, and law enforcement efforts have reduced the chances of a
criminal stealing cashfrom a bank branch, criminals can still penetrate the formidable
edifice like the banking industrythrough other means. Using Internet banking and high tech
credit card fraud, it is now possible tosteal large amounts of money anonymously from
financial institutions from the comfort of your own home, and it is happening all over the
world.F u r t h e r , i d e n t i t y t h e f t , a l s o k n o w n a s p h i s h i n g , i s o n e o f t h e
f a s t e s t g r o w i n g e p i d e m i c s i n electronic fraud in the world. Identity theft
occurs when “fraudsters” gain access to
personald e t a i l s o f u n s u s p e c t i n g v i c t i m s t h r o u g h v a r i o u s e l e c t r o n i c a n d n
o n - e l e c t r o n i c m e a n s . T h i s information is then used to open accounts (usually
credit card), or initialize loans and mobile phone accounts or anything else
involving a line of credit. Account theft, which is commonlymistaken for
identity theft, occurs when existing credit or debit cards or financial records
areused to steal from existing accounts. Although account theft is a more common
occurrence thanidentity theft, financial losses caused by identity theft are on average greater
and usually requirea longer period of time to resolve.Spam scams involve fraudsters
sending spam e-mails informing customers of some seeminglylegitimate reason to
login to their accounts. A link is provided in the e-mail to take the user to alogin screen at
their bank site; however the link that is provided actually takes the user to a ghostsite,
where the fraudster can record the login details. This information is then used to
pay billsand or transfer balances for the fraudster’s financial reward.Card skimming refers
to the use of portable swiping devices to obtain credit card and EFT carddata. This data is
rewritten to a dummy card, which is then usually taken on elaborate shoppings p r e e s . A s
the fraudster can sign the back of the card himself or herself, the
merchant wil1

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usually be unaware that they have fallen victim to the fraud. One can curb these hi-tech
frauds byusing equally hi-tech security mechanisms such as biometrics and smart cards. The
key focus inm i n i m i z i n g c r e d i t c a r d a n d e l e c t r o n i c f r a u d i s t o e n a b l e t h e
actual user of the account to becorrectly identified. The notion of
a l l o w i n g a c a r d t o p r o v e yo u r i d e n t i t y i s f a s t b e c o m i n g a n t i q u a t e d a n d
unreliable. With this in mind, using biometrics to develop a more
accurateidentification process could greatly reduce fraud and increase c
o n v e n i e n c e b y a l l o w i n g consumers to move closer to a “no wallet” society.
The main forms of biometrics available arefingerprint identification, palm print
identification, facial recognition, iris recognition, voicerecognition, and computer-
recognized handwriting analysis.Many industry analysts such as the American Bankers
Association are proposing that the smart payment cards are finally poised to change
the future of electronic payments. The smart
cardc o m b i n e s a s e c u r e p o r t a b l e p a ym e n t p l a t f o r m w i t h a s e l e c t i o n o f p a
y m e n t , f i n a n c i a l , a n d nonfinancial applications. The reach of the smart card
potentially goes beyond the debit andcredit card model. Instead of a smart card,
ISO uses the term ‘integrated circuit card’ (ICC),which includes all devices where an
integrated circuit is contained within the card. The
benefits p r o v i d e d b y s m a r t c a r d s t o c o n s u m e r s i n c l u d e : c o n v e n i e n c e ( e a s
y a c c e s s t o s e r v i c e s w i t h multiple loading points), flexibility (high/low value
payments with faster transaction times), andincreased security. The benefits offered to
merchants include: immediate guaranteed cash flow,lower processing costs, and operational
convenience.

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DIGITAL BANKING
• The biggest revolution came in banks is Digitization.

• Banking process is faster than before and more reliable. Maintenance and retrieval of
documents and records have become much faster and easier.
• Computerized banking also improves the core banking system. With CBS (core banking
system) all branches have access to common centralized data and are interconnected.
• With the innovation of MICR cheque processing system, the processing of cheques becomes
more faster and efficient h than before.
• USSD (Unstructured supplementary service data) was launched by Government, so people
with no internet-connectivity too can access their bank accounts without visiting the branch.
• With increasing internet reach, Internet Banking was developed and now offered by almost
every bank. Through this, every transaction details and inquiries can be performed online
without visiting the bank.
Banking industry is a backbone of Indian financial system and it is afflicted by

many challenging forces. One such force is revolution of information technology. In today’s
era, technology support is very important for the successful functioning of the banking sector.
Without IT and communication we cannot think about the success of banking industry, it has
enlarged the role of banking sector in Indian economy. For creating an efficient banking
system, which can respond adequately to the needs of growing economy, technology has a
key role to play. In past 10 years, banks in India have invested heavily in the technology such
as Tele banking, mobile banking, net banking, ATMs, credit cards, debit cards, electronic
payment systems and data warehousing and data mining solutions, to bring improvements in
quality of customer services and the fast processing of banking operation. Heavy investments
in IT have been made by the banks in the expectation of improvement in their performance.
But important in the performance depends upon, differences in the deployment, use and
effectiveness of IT.
Information technology in banking sector refers to the use of sophisticated information and
communication technologies together with computer science to enable banks to offer better
services to its customers in a secure, reliable and affordable manner and sustain competitive
advantage over other banks. The significance of technology is greatly felt in the financial
sector in view of the competitive advantage for banks resulting in the efficient customer
service.

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In the development of Indian Economy, Banking sector plays a very important and crucial
role. With the use of technology there had been an increase in penetration, productivity and
efficiency. It has not only increased the cost effectiveness but also has helped in making
small value transactions viable. Electronic delivery channels, ATMs, variety of cards, web
based banking, and mobile banking are the names of few outcomes of the process of
automation and computerization in Indian banking sector.
Transformation of Indian Banking:-
Indian banking has undergone a total transformation over the last decade. Moving seamlessly
from a manual, scale-constrained environment to a technological leading position, it has been
a miracle. Such a transformation takes place in such a short span of time with such a low cost.
Entry of technology in Indian banking industry can be traced back during the 1990s, the
banking sector witnessed various liberalization measure. One of the major objectives of
Indian banking sector reforms was to encourage operational self-sufficiency, flexibility and
competition in the system and to increase the banking standards in India to the international
best practises. With the ease of licensing norms, new private and foreign banks emerged-
equipped with latest technology. Deregulation has opened up new opportunities to banks to
increase revenues by diversifying into investment banking, insurance, credit cards, mortgage
financing, depository services etc. The role of banking is redefined from a mere intermediary
to service provider of various financial services under one roof acting like a financial
supermar

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CHAPTER 02
LITERATURE REVIEW
A literature review is a scholarly paper, which includes the current knowledge including
substantive findings, as well as theoretical and methodological contributions to a particular
topic. Literature reviews are secondary sources, and do not report new or original
experimental work. Most often associated with academic-oriented literature, such reviews are
found in academic journals, and are not to be confused with book reviews that may also
appear in the same publication. Literature reviews are a basis for research in nearly every
academic field.[1] A narrow-scope literature review may be included as part of a peer-
reviewed journal article presenting new research, serving to situate the current study within
the body of the relevant literature and to provide context for the reader. In such a case, the
review usually precedes the methodology and results sections of the work.
Producing a literature review may also be part of graduate and post-graduate student work,
including in the preparation of a thesis, dissertation, or a journal article. Literature reviews
are also common in a research proposal or prospectus (the document that is approved before a
student formally begins a dissertation or thesis).[2]
main types of literature reviews are: evaluative, exploratory, and instrumental.[3]

A fourth type, the systematic review, is often classified separately, but is essentially a
literature review focused on a research question, trying to identify, appraise, select and
synthesize all high-quality research evidence and arguments relevant to that question.
A meta-analysis is typically a systematic review using statistical methods to effectively
combine the data used on all selected studies to produce a more The reliable result.[4]
Shields and Rangarajan (2013) distinguish between the process of reviewing the literature
and a finished work or product known as a literature review.[5]:193–229 The process of
reviewing the literature is often ongoing and informs many aspects of the empirical
research project.
The process of reviewing the literature requires different kinds of activities and ways of
thinking.[6] Shields and Rangarajan (2013) and Granello (2001) link the activities of doing a

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literature review with Benjamin Bloom’s revised taxonomy of the cognitive domain (ways of
thinking: remembering, understanding, applying, analyzing, evaluating, and creating).
The study was conducted to understand the behavioural intention of mobile banking usage of
Indian customers. Research methods like the Factor analysis and a multiple regression
analysis were done in order to determine the extent of impact the antecedents have over the
behavioural intentions of mobile banking usage. The results of the study showed that other
than the traditional variables like Perceived Usefulness and Perceived Ease of Use, factors
like Perceived Image, Perceived Value, Self Efficacy, Perceived Credibility and Tradition all
significantly affects Behavioural Intentions towards mobile banking usage The research paper
is focused on customer’s perceptions on mobile banking offered by Indian Overseas Bank
and it also focuses on the various drivers that drive mobile banking consumers.. The results
of this study showed that gender, education and income of the consumers play an important
role in usage of mobile banking. Most of the researches are focused on the acceptance of the
mobile banking technology due to which not much research has been conducted on people.
The research reveals that if skills can be upgraded among the consumers there will be greater
willingness on the part of consumers toward the use of Mobile banking. Some the factors like
security trust, gender, education, religion, and price can have minimal effect on consumer
mindset towards Mobile banking compared to the other factors.
The paper studies the factors influencing the adoption intention of mobile commerce.
Perceived usefulness, perceived ease of use and social influence are found to be significant
dimensions of technology adoption readiness to use mobile commerce while facilitating
conditions were not found to be significant. The results of the research study also indicate the
perceived credibility risk defined by security risk and privacy risk are significantly associated
with behavioural intention in negative relation, which indicates that security and privacy
concerns are important in deterring customers from using mobile commerce. This research
study developed an integrated model for behavioural intention towards financial innovations.
Practical implications of this study is one of the few empirical studies which have
investigated the adoption of mobile commerce in India, which is considered one of the fastest
growing countries in terms of mobile usage The. The study relates to inclusion of both
utilitarian and credibility aspect of adoption intention. It gives an empirical basis on which
mobile and banking companies can base their mobile payments marketing strategy.
This research paper examines the factors influencing the continuance decisions of the early
adopters of m-banking services in Kerala, India. The study used constructs adopted from
Technology Acceptance Model along with constructs of perceived service quality, perceived

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credibility and perceived risk to empirically establish the influence on satisfaction and
continuance usage intentions. The study confirmed that after adoption of the technology, the
customer finds satisfaction in the quality parameters of the service. Perceptions about the
risks involved in m-banking had adverse impact on service quality and satisfaction.
Mobile banking as a new channel to the existing banking channels provides convenient and
cost efficient banking services anytime anywhere. It is observed that, though India has strong
potential for mobile banking only 5% of mobile subscribers are registered users of mobile
banking. Attracting the new customers may not be easy than retaining the existing mobile
banking customers 2009). Hence the current research focuses on the factors influencing
actual usage of mobile banking services. The results shows that, Indians mobile banking
usage is influenced by ease of mobile banking technology, its suitability to the user’s lifestyle
and the benefits like mobility and mobile transactions. However customer’s perception
towards security of mobile transactions and privacy fears demotivates actual usage.
Banking system is the backbone of the economy and Information Technology (IT) in turn has
become the backbone of banking activities. Technology, which was playing a supportive role
in banking, has come to the forefront with the ever-increasing challenges and requirements.
Technology to start with was a business enabler and now has become a business driver. The
Banks cannot think of introducing a financial product without IT support. Be it customer
service, transactions, remittances, audit, marketing, pricing or any other activity in the Banks,
IT plays an important role not to complete the activity with high efficiency but also has the
potential to innovate and meet the future requirements. The Banking Sector was early adopter
of technology and in that way set an example to the other industries the need to opt for
automation for taking full advantage in operational efficiency.
The aim of the paper is to explore and compare customer value perceptions in internet and
mobile banking. The results indicate that customer value perceptions in banking actions differ
between internet and mobile channels. The findings suggest that efficiency, convenience and
safety are salient in determining the differences in customer value perceptions between
internet and mobile banking. By understanding how and what kind of value different service
channels provide for customers service providers are better enabled to create actions to
enhance internet and mobile banking adoption. The contribution of the paper lies in achieving
a more profound understanding on consumer value perceptions to internet and mobile
banking.
The research is conducted to determine the potential that mobile banking provides for both
the banks and the mobile carriers. After the secondary research the report gives an insight

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into the best-practices based on a critical evaluation of partnership models. Banks and mobile
carriers have tested these waters timidly, and many of the resulting offerings were expensive
to the banks and mobile carriers and less than enticing to their customers. This report weeds
out ineffective partnering models that companies stumble into on their way to developing
mobile-banking and identifies the keys to successful partnerships.
This research paper try s to identify and investigate the various factors which influence the
customer’s decision to use a specific form of mobile banking and specially focus on the
evaluation of SMS-based mobile banking in India. The study also plans to connect the gap of
research in the acceptance of mobile banking among the customers. The main challenges
involved in the adoption of mobile banking are related to the Positive and Negative factors
which influence the adoption of SMS-based mobile banking .Second challenge is Focused on
the adoption of mobile banking services by customers and usage of mobile banking in India.
Third is related to the different Technologies behind Mobile Banking. The study has its own
limitations but the implications and conclusion from the results can provide practical
recommendations to the banking areas and banking industries. It can also provide directions
for further work
The study was conducted to identify certain issues relating to banks, mobile handsets and
telecom operators, mobile handset operability, security/privacy, standardization of services,
customization, Downloading & installing application software and Telecom services quality.
For this purpose a descriptive design was adopted to empirically explore the selected issues.
Study suggested that from consumers ‘perspective mobile handset operability security or
privacy and standardization of services are the critical issues. The objective of the research is
to study the selected issues in mobile banking form urban customers’ perspective and to
explore the perceived utility of mobile banking in comparison to retail banking and online
banking among the mobile banking users and non-users. The study is aimed to evaluate
perceptions and opinions of urban mobile banking users. For this purpose a cross sectional
descriptive design was adopted with ad-hoc quota sampling. Sample for the study comprised
of 50 mobile banking users and 50 non-users in Indore city, India.
This paper examines consumer adopting mobile banking as a new electronic payment service
.It also focuses on the various factors influencing the adoption of mobile banking in India.
When it comes to the research methodology used in the study, data collected has been
grouped into two main categories – primary and secondary data. The secondary data have
been collected from the newspapers, journals, magazines, internet and also various other
research papers..In case of questionnaires the has been targeted on user and non user of
mobile banking which included the Businessmen, servicemen, professionals, students etc.

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The primary data for the study is extracted from a survey conducted in Ghaziabad in U.P,
India. The research had a total of 100 respondents participating in the data collection for
understanding the use of Mobile banking. From the data collected it was possible to make
projections in the research
Customer satisfaction is one of the fundamental marketing constrain in the last three decades.
This research is focused to those respondents who are using the mobile banking services by
their service provider. For the research100 respondents are identified. The respondents
belong from both private and public sector banks of Udaipur, Rajasthan. The opinions of the
respondents were collected using structured questionnaire. Data collected were analysed
using tools like factor analysis, chi-square and correlation analysis. In factor analysis varimax
rotation is used and correlation matrix is used for identifying the relationship between the
service quality, perceived value , flexibility, technological innovation, brand perception,
strategic endorsement and functional performance of mobile banking service with customer
satisfaction.

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CHAPTER 03
OBJECTIVES OF THE STUDY

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors [18]. The
information system is paramount concern to the banks in today’s business environment. The
business of cooperative bank has increased phenomenally in recent years due to the sharp
increase in numbers of urban co-operative banks. This exponential growth of Co operative
Banks in India is attributed mainly to their much better local reach, personal interaction with
customers, and their ability to catch the nerve of the local clientele. A software development
methodology refers to the framework that is used to structure, plan, and control the process of
developing an information system. Each of the available methodologies and techniques are
best suited to specific kinds of projects, based on various technical, organizational and
available resources. With reference to above relevant information the main objective is to
study the induction of IT tools in urban cooperative bank in light of software engineering
concept. With the help of this initial information the followings are some of the objective of
the study
1.To study the changes between the oldest banking system & the today’s modernized banking
system of India.
2.To know in detail about the new invented technologies for banking in India.
3.To know how the new banking technologies are helping the customers for their easier and
convenient banking.
4.To ascertain the development in the banking system of India because of the modernized
technologies & strategies used by banks for their growth.
5.To understand the level of satisfaction & convenience of those customers who had used the
services provided by the bank.
6.To study the Information Technology in view of research study
7.To study the use of Information technological means in the system
8.To study the feedback of the past transaction system

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CHAPTER 04
RESARCH METHEDOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical
model, phases and quantitative or qualitative techniques.[1]
A methodology does not set out to provide solutions—it is therefore, not the same as a
method. Instead, a methodology offers the theoretical underpinning for understanding which
method, set of methods, or best practices can be applied to a specific case, for example, to
calculate a specific result.
It has been defined also as follows:
1. "the analysis of the principles of methods, rules, and postulates employed by a

discipline";[2]
2. "the systematic study of methods that are, can be, or have been applied within a
discipline";[2]
3. "the study or description of methods".[3]
The methodology is the general research strategy that outlines the way in which research is to
be undertaken and, among other things, identifies the methods to be used in it.
These methods, described in the methodology, define the means or modes of data collection
or, sometimes, how a specific result is to be calculated.[4] Methodology does not define
specific methods, even though much attention is given to the nature and kinds of processes to
be followed in a particular procedure or to attain an objective.
When proper to a study of methodology, such processes constitute a constructive generic
framework, and may therefore be broken down into sub-processes, combined, or their
sequence changed.[5]
A paradigm is similar to a methodology in that it is also a constructive framework. In
theoretical work, the development of paradigms satisfies most or all of the criteria for
methodology.[6] An algorithm, like a paradigm, is also a type of constructive framework,
meaning that the construction is a logical, rather than a physical, array of connected elements.

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Any description of a means of calculation of a specific result is always a description of a

method and never a description of a methodology. It is thus important to avoid
using methodology as a synonym for method or body of methods. Doing this shifts it away
from its true epistemological meaning and reduces it to being the procedure itself, or the set
of tools, or the instruments that should have been its outcome. A methodology is the design
process for carrying out research or the development of a procedure and is not in itself an
instrument, or
Methodology and method are not interchangeable. In recent years, however, there has been a
tendency to use methodology as a "pretentious substitute for the
word method".[7]Using methodology as a synonym for method or set of methods leads to
confusi on and undermines the proper analysis that should go into designing research.

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CHAPTER 05
DATA ANALYSIS
analysis is a process of inspecting, cleansing, transforming, and modeling data with the goal
of discovering useful information, informing conclusions, and supporting decision-making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety
of names, and is used in different business, science, and social science domains. In today's
business world, data analysis plays a role in making decisions more scientific and helping
businesses operate more effectively.[1]
Data mining is a particular data analysis technique that focuses on modeling and knowledge
discovery for predictive rather than purely descriptive purposes, while business
intelligence covers data analysis that relies heavily on aggregation, focusing mainly on
business information.[2] In statistical applications, data analysis can be divided
into descriptive statistics, exploratory data analysis (EDA), and confirmatory data
analysis (CDA). EDA focuses on discovering new features in the data while CDA focuses on
confirming or falsifying existing hypotheses. Predictive analytics focuses on application of
statistical models for predictive forecasting or classification, while text analytics applies
statistical, linguistic, and structural techniques to extract and classify information from
textual sources, a species of unstructured data. All of the above are varieties of data analysis.
Data integration is a precursor to data analysis,[according to whom?] and data analysis is closely
linked[how?] to data visualization and data dissemination. The term data analysis is sometimes
used as a synonym for data modeling.

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Data science process flowchart from Doing Data Science, by Schutt & O'Neil (2013)
Analysis refers to breaking a whole into its separate components for individual examination.
Data analysis is a processfor obtaining raw data and converting it into information useful for
decision-making by users. Data are collected and analyzed to answer questions, test
hypotheses or disprove theories.[3]
Statistician John Tukey defined data analysis in 1961 as: "Procedures for analyzing data,
techniques for interpreting the results of such procedures, ways of planning the gathering of
data to make its analysis easier, more precise or more accurate, and all the machinery and
results of (mathematical) statistics which apply to analyzing data."[4]
There are several phases that can be distinguished, described below. The phases are iterative,
in that feedback from later phases may result in additional work in earlier phases.[5]
Data requirements[edit]
The data are necessary as inputs to the analysis, which is specified based upon the
requirements of those directing the analysis or customers (who will use the finished product
of the analysis). The general type of entity upon which the data will be collected is referred to
as an experimental unit (e.g., a person or population of people). Specific variables regarding a
population (e.g., age and income) may be specified and obtained. Data may be numerical or
categorical (i.e., a text label for numbers).[5]
Data collection[edit]
Data are collected from a variety of sources. The requirements may be communicated by
analysts to custodians of the data, such as information technology personnel within an

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organization. The data may also be collected from sensors in the environment, such as traffic
cameras, satellites, recording devices, etc. It may also be obtained through interviews,
downloads from online sources, or reading documentation.[5]
Data processing[edit]
The phases of the intelligence cycle used to convert raw information into actionable
intelligence or knowledge are conceptually similar to the phases in data analysis.
Data initially obtained must be processed or organised for analysis. For instance, these may
involve placing data into rows and columns in a table format (i.e., structured data) for further
analysis, such as within a spreadsheet or statistical software.[5]
Data cleaning[edit]
Once processed and organised, the data may be incomplete, contain duplicates, or contain
errors. The need for data cleaning will arise from problems in the way that data are entered
and stored. Data cleaning is the process of preventing and correcting these errors. Common
tasks include record matching, identifying inaccuracy of data, overall quality of existing
data,[6] deduplication, and column segmentation.[7] Such data problems can also be identified
through a variety of analytical techniques. For example, with financial information, the totals
for particular variables may be compared against separately published numbers believed to be
reliable.[8] Unusual amounts above or below pre-determined thresholds may also be reviewed.
There are several types of data cleaning that depend on the type of data such as phone
numbers, email addresses, employers etc. Quantitative data methods for outlier detection can
be used to get rid of likely incorrectly entered data. Textual data spell checkers can be used to

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lessen the amount of mistyped words, but it is harder to tell if the words themselves are
correct.[9]
Exploratory data analysis[edit]

Once the data are cleaned, it can be analyzed. Analysts may apply a variety of techniques
referred to as exploratory data analysis to begin understanding the messages contained in the
data.[10][11] The process of exploration may result in additional data cleaning or additional
requests for data, so these activities may be iterative in nature. Descriptive statistics, such as
the average or median, may be generated to help understand the data. Data visualization may
also be used to examine the data in graphical format, to obtain additional insight regarding
the messages within the data.[5]
Modeling and algorithms[edit]
Mathematical formulas or models called algorithms may be applied to the data to identify
relationships among the variables, such as correlation or causation. In general terms, models
may be developed to evaluate a particular variable in the data based on other variable(s) in
the data, with some residual error depending on model accuracy (i.e., Data = Model +
Error).[3]
Inferential statistics includes techniques to measure relationships between particular
variables. For example, regression analysis may be used to model whether a change in
advertising (independent variable X) explains the variation in sales (dependent variable Y). In
mathematical terms, Y (sales) is a function of X (advertising). It may be described
as Y = aX + b + error, where the model is designed such that a and b minimize the error when
the model predicts Y for a given range of values of X. Analysts may attempt to build models
that are descriptive of the data to simplify analysis and communicate results.[3]
Data product[edit]
A data product is a computer application that takes data inputs and generates outputs, feeding
them back into the environment. It may be based on a model or algorithm. An example is an
application that analyzes data about customer purchasing history and recommends other
purchases the customer might enjoy.[5]
Communication[edit]

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Data visualization to understand the results of a data analysis.[12]

Main article: Data visualization
Once the data are analyzed, it may be reported in many formats to the users of the analysis to
support their requirements. The users may have feedback, which results in additional
analysis.
As such much of the analytical cycle is literative.
When determining how to communicate the results, the analyst may consider data
visualization techniques to help clearly and efficiently communicate the message to the
audience. Data visualization uses information displays (such as tables and charts) to help
communicate key messages contained in the data. Tables are helpful to a user who might
lookup specific numbers, while charts (e.g., bar charts or line charts) may help explain the
quantitative messages contained in the data.
Quantitative messages[edit]
Main article: Data visualization
A time series illustrated with a line chart demonstrating trends in U.S. federal spending and
revenue over time.

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A scatterplot illustrating correlation between two variables (inflation and unemployment)

measured at points in time.
Stephen Few described eight types of quantitative messages that users may attempt to
understand or communicate from a set of data and the associated graphs used to help
communicate the message. Customers specifying requirements and analysts performing the
data analysis may consider these messages during the course of the process.
1. Time-series: A single variable is captured over a period of time, such as the

unemployment rate over a 10-year period. A line chart may be used to demonstrate
the trend.
2. Ranking: Categorical subdivisions are ranked in ascending or descending order, such
as a ranking of sales performance (the measure) by sales persons (the category, with
each sales person a categorical subdivision) during a single period. A bar chartmay
be used to show the comparison across the sales persons.
3. Part-to-whole: Categorical subdivisions are measured as a ratio to the whole (i.e., a
percentage out of 100%). A pie chart or bar chart can show the comparison of ratios,
such as the market share represented by competitors in a market.
4. Deviation: Categorical subdivisions are compared against a reference, such as a
comparison of actual vs. budget expenses for several departments of a business for a
given time period. A bar chart can show comparison of the actual versus the reference
amount.
5. Frequency distribution: Shows the number of observations of a particular variable for
given interval, such as the number of years in which the stock market return is
between intervals such as 0–10%, 11–20%, etc. A histogram, a type of bar chart, may
be used for this analysis.
6. Correlation: Comparison between observations represented by two variables (X,Y) to
determine if they tend to move in the same or opposite directions. For example,

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plotting unemployment (X) and inflation (Y) for a sample of months. A scatter plot is
typically used for this message.
7. Nominal comparison: Comparing categorical subdivisions in no particular order, such
as the sales volume by product code. A bar chart may be used for this comparison.
8. Geographic or geospatial: Comparison of a variable across a map or layout, such as
the unemployment rate by state or the number of persons on the various floors of a
building. A cartogram is a typical graphic used.[13][14]
Techniques for analyzing quantitative data[edit]

See also: Problem solving
Author Jonathan Koomey has recommended a series of best practices for understanding
quantitative data. These include:
• Check raw data for anomalies prior to performing your analysis;

• Re-perform important calculations, such as verifying columns of data that are formula
driven;
• Confirm main totals are the sum of subtotals;
• Check relationships between numbers that should be related in a predictable way, such as
ratios over time;
• Normalize numbers to make comparisons easier, such as analyzing amounts per person or
relative to GDP or as an index value relative to a base year;
• Break problems into component parts by analyzing factors that led to the results, such
as DuPont analysis of return on equity.[8]
For the variables under examination, analysts typically obtain descriptive statistics for them,
such as the mean (average), median, and standard deviation. They may also analyze
the distribution of the key variables to see how the individual values cluster around the mean.

==================================================================
An illustration of the MECE principle used for data analysis.

The consultants at McKinsey and Company named a technique for breaking a quantitative
problem down into its component parts called the MECE principle. Each layer can be broken
down into its components; each of the sub-components must be mutually exclusive of each
other and collectively add up to the layer above them. The relationship is referred to as
"Mutually Exclusive and Collectively Exhaustive" or MECE. For example, profit by
definition can be broken down into total revenue and total cost. In turn, total revenue can be
analyzed by its components, such as revenue of divisions A, B, and C (which are mutually
exclusive of each other) and should add to the total revenue (collectively exhaustive).
Analysts may use robust statistical measurements to solve certain analytical
problems. Hypothesis testing is used when a particular hypothesis about the true state of
affairs is made by the analyst and data is gathered to determine whether that state of affairs is
true or false. For example, the hypothesis might be that "Unemployment has no effect on
inflation", which relates to an economics concept called the Phillips Curve. Hypothesis
testing involves considering the likelihood of Type I and type II errors, which relate to
whether the data supports accepting or rejecting the hypothesis.
Regression analysis may be used when the analyst is trying to determine the extent to which
independent variable X affects dependent variable Y (e.g., "To what extent do changes in the
unemployment rate (X) affect the inflation rate (Y)?"). This is an attempt to model or fit an
equation line or curve to the data, such that Y is a function of X.
Necessary condition analysis (NCA) may be used when the analyst is trying to determine the
extent to which independent variable X allows variable Y (e.g., "To what extent is a certain
unemployment rate (X) necessary for a certain inflation rate (Y)?"). Whereas (multiple)
regression analysis uses additive logic where each X-variable can produce the outcome and
the X's can compensate for each other (they are sufficient but not necessary), necessary
condition analysis (NCA) uses necessity logic, where one or more X-variables allow the
outcome to exist, but may not produce it (they are necessary but not sufficient). Each single
necessary condition must be present and compensation is not possible.

==================================================================
Analytical activities of data users[edit]

Users may have particular data points of interest within a data set, as opposed to general
messaging outlined above. Such low-level user analytic activities are presented in the
following
table. The taxonomy can also be organized by three poles of activities: retrieving values,
finding data points, and arranging data points.[15][16][17][18]

==================================================================
CHAPTER 06
FINDING AND SUGGESTIONS
Suggestion is the psychological process by which one person guides the thoughts, feelings,
or 41ehaviour of another person.
Nineteenth-century writers on psychology such as William James used the words “suggest”
and “suggestion” in the context of a particular idea which was said to suggest another when it
brought that other idea to mind. Early scientific studies of hypnosis by Clark Leonard
Hull and others extended the meaning of these words in a special and technical sense (Hull,
1933).
The original neuropsychological theory of hypnotic suggestion was based upon the ideomotor
reflex response that William B. Carpenterdeclared, in 1852,[1] was the principle through
which James Braid’s
suggestion;[2] and, according to Cheek and LeCron, most of our current knowledge of
suggestion “stems from Coué” (1968, p.60). With the intention of “saturating the cognitive
microenvironment of the mind”, Coué’s therapeutic method approach was based on four non-
controversial principles:
(1) suggestion can produce somatic phenomena;
(2) specific suggestions generate specific somatic outcomes;
(3) suggestions are just as efficacious in the treatment of physical or organic
conditions as they are for functional or emotional conditions; and
(4) a successful suggestion-based intervention for a physical condition does not
indicate that the original complaint was in any way imaginary.[3]
Hypnosis[edit]
Trance and suggestion[edit]
Modern scientific study of hypnosis, which follows the pattern of Hull’s
work, separates two essential factors: “trance” and suggestion.[4] The state of
mind induced by “trance” is said to come about via the process of a hypnotic
induction—essentially instructing and suggesting to the subject that they will
enter a hypnotic state. Once a subject enters hypnosis, the hypnotist gives
suggestions that can produce sought effects. Commonly used suggestions on

==================================================================
measures of “suggestibility” or “susceptibility” (or for those with a different

theoretical orientation, “hypnotic talent”) include suggestions that one’s arm
is getting lighter and floating up in the air, or that a fly is buzzing around
one’s head. The “classic” response to an accepted suggestion that one’s arm
is beginning to float in the air is that the subject perceives the intended effect
as happening involuntarily.[5]
Scientific hypnotism[edit]
Consistent with the views of Pierre Janet—who noted (1920, pp.284–285)
that the critical feature is not the making of a ‘suggestion’, but, instead, is
the taking of the ‘suggestion’—Weitzenhoffer (2000, passim), argued
that scientific hypnotism centres on the delivery of “suggestions” to
hypnotized subjects; and, according to Yeates (2016b, p.35), these
suggestions are delivered with the intention of eliciting:
(1) the further stimulation of partially active mental states and/or physiological
processes;
(2) the awakening of dormant mental states and/or physiological processes;
(3) the activation of latent mental states and/or physiological processes;
(4) alterations in existing perceptions, thoughts, feelings, and/or behaviours; and/or
(5) entirely new perceptions, thoughts, feelings, and/or behaviours.
Temporal dimensions[edit]
Furthermore, according to Yeates (2016b, pp.35–36),
‘suggestions’ have four temporal dimensions:
(1) pre-hypnotic suggestions, delivered prior to the formal induction;
(2) suggestions for within-hypnotic influence, to elicit specific within-session
outcomes;
(3) suggestions for post-hypnotic influence, to elicit specific post-session outcomes:
(i) immediate influence (“and, on leaving here today, you’ll…”);
(ii) shorter-term influence (“and, each time you’re…”);
(iii) longer-term influence (“and, as time passes, you’ll increasingly…”); or
(iv) specific-moment influence (Bernheim’s suggestions à longue échéance,
‘suggestions to be realised after a long interval’), which are (i) intended “to produce a
particular effect at a designated later hour”, (ii) have “no influence before the
appointed hour”, (iii) nor “after it had expired” (Barrows, 1896, pp.22–23), or
(4) post-hypnotic suggestions, delivered to dehypnotised-but-not-yet-completely-
reoriented subjects.[6]

==================================================================

==================================================================
CHAPTER 07
CONCLUSION
In music, the conclusion is the ending of a composition and may take the form of
a coda or outro.
Pieces using sonata form typically use the recapitulation to conclude a piece, providing
closure through the repetition of thematic material from the exposition in the tonic key. In all
musical forms other techniques include "altogether unexpected digressions just as a work is
drawing to its close, followed by a return...to a consequently more emphatic confirmation of
the structural relations implied in the body of the work."[1]
For example:
• The slow movement of Bach's Brandenburg Concerto No. 2, where a "diminished-7th

chord progression interrupts the final cadence."[1]
• The slow movement of Symphony No. 5 by Beethoven, where, "echoing afterthoughts",
follow the initial statements of the first theme and only return expanded in the coda.[1]
• Varèse's Density 21.5, where partitioning of the chromatic scale into (two) whole tone
scales provides the missing tritone of b implied in the previously exclusive partitioning
by (three) diminished seventh chords.[1]
Repeat and fade is a musical direction used in sheet music when more than one repeat of the
last few measures or so of a piece is desired with a fade-out (like something traveling into the
distance and disappearing) as the manner in which to end the music. It originated as a sound
effect made possible by the volume controls on sound recording equipment and on the sound
controls for speaker output. No equivalent Italian term was in the standard lexicon of musical
terms, so it was written in English, the language of the musician(s) who developed the
technique. It is very difficult to approximate this effect on an instrument such as the piano,
but instrumentalists can simulate it by thinning the musical texture while applying
diminuendo within the limits of their instruments, and by taking advantage of the open-ended
feeling of an unresolved harmony or melodic tone at the end.
It is in the family of terms and signs that indicate repeated material, but it does not substitute
repeat signs (such as Dal segno).[2] The direction is to be taken literally: while repeating the
music contained within the section annotated "repeat and fade", the player(s) should continue

==================================================================
to play/repeat, and the mixer or player(s) should fade the volume while the player(s) repeat
the appropriate musical segments, until the song has been faded out (usually by faders on
the mixing board).

==================================================================
CHAPTER 08
BIBLIOGRAPHY
Bibliography (from Greek βιβλίον biblion, "book" and -γραφία -graphia, "writing"), as a
discipline, is traditionally the academic study of books as physical, cultural objects; in this
sense, it is also known as bibliology[1] (from Greek -λογία, -logia). Carter and Barker (2010)
describe bibliography as a twofold scholarly discipline—the organized listing of books
(enumerative bibliography) and the systematic description of books as objects (descriptive
bibliography).
The word bibliographia (βιβλιογραφία) was used by Greek writers in the first three centuries
AD to mean the copying of books by hand. In the 12th century, the word started being used
for "the intellectual activity of composing books". The 17th century then saw the emergence
of the modern meaning, that of description of books.[2] Currently, the field of bibliography
has expanded to include studies that consider the book as a material object.[3] Bibliography, in
its systematic pursuit of understanding the past and the present through written and printed
documents, describes a way and means of extracting information from this material.
Bibliographers are interested in comparing versions of texts to each other rather than in
interpreting their meaning or assessing their significance.[4]
Bibliography is a specialized aspect of library science (or library and information science,
LIS) and documentation science. It was established by a Belgian, named Paul Otlet (1868-
1944), who was the founder of the field of documentation, as a branch of the information
sciences, who wrote about "the science of bibliography."[5][6] However, there have recently
been voices claiming that "the bibliographical paradigm" is obsolete, and it is not today
common in LIS. A defense of the bibliographical paradigm was provided by Hjørland
(2007).[7]The quantitative study of bibliographies is known as bibliometrics, which is today
an influential subfield in LIS.[8][9]
Carter and Barker (2010) describe bibliography as a twofold scholarly discipline—the

organized listing of books (enumerative bibliography) and the systematic description of
books as physical objects (descriptive bibliography). These two distinct concepts and
practices have separate rationales and serve differing purposes. Innovators and originators in
the field include W. W. Greg, Fredson Bowers, Philip Gaskell, G. Thomas Tanselle.

==================================================================
Bowers (1949) refers to enumerative bibliography as a procedure that identifies books in

“specific collections or libraries,” in a specific discipline, by an author, printer, or period of
production (3). He refers to descriptive bibliography as the systematic description of a book
as a material or physical artifact. Analytical bibliography, the cornerstone of descriptive
bibliography, investigates the printing and all physical features of a book that yield evidence
establishing a book's history and transmission (Feather 10). It is the preliminary phase of
bibliographic description and provides the vocabulary, principles and techniques of analysis
that descriptive bibliographers apply and on which they base their descriptive practice.
Descriptive bibliographers follow specific conventions and associated classification in their
description. Titles and title pages are transcribed in a quasi-facsimile style and representation.
Illustration, typeface, binding, paper, and all physical elements related to identifying a book
follow formulaic conventions, as Bowers established in his foundational opus, The Principles
of Bibliographic Description. The thought expressed in this book expands substantively on
W. W. Greg's groundbreaking theory that argued for the adoption of formal bibliographic
principles (Greg 29). Fundamentally, analytical bibliography is concerned with objective,
physical analysis and history of a book while descriptive bibliography employs all data that
analytical bibliography furnishes and then codifies it with a view to identifying the ideal copy
or form of a book that most nearly represents the printer's initial conception and intention in
printing.
In addition to viewing bibliographic study as being composed of four interdependent
approaches (enumerative, descriptive, analytical, and textual), Bowers notes two further
subcategories of research, namely historical bibliography and aesthetic bibliography.[10] Both
historical bibliography, which involves the investigation of printing practices, tools, and
related documents, and aesthetic bibliography, which examines the art of designing type and
books, are often employed by analytical bibliographers.
D. F. McKenzie extended previous notions of bibliography as set forth by W. W. Greg,
Bowers, Gaskell and Tanselle. He describes the nature of bibliography as "the discipline that
studies texts as recorded forms, and the processes of their transmission, including their
production and reception" (1999 12). This concept broadens the scope of bibliography to
include "non-book texts" and an accounting for their material form and structure, as well as
textual variations, technical and production processes that bring sociocultural context and
effects into play. McKenzie's perspective contextualizes textual objects or artifacts with
sociological and technical factors that have an effect on production, transmission and,
ultimately, ideal copy (2002 14). Bibliography, generally, concerns the material conditions of
books [as well as other texts] how they are designed, edited, printed, circulated, reprinted,
collected.[11]

==================================================================
Bibliographic works differ in the amount of detail depending on the purpose and can
generally be divided into two categories: enumerative bibliography (also called compilative,
reference or systematic), which results in an overview of publications in a particular category
and analytical or critical bibliography, which studies the production of books.[12][13] In earlier
times, bibliography mostly focused on books. Now, both categories of bibliography cover
works in other media including audio recordings, motion pictures and videos, graphic objects,
databases, CD-ROMs[14] and websites.
Bibliographer workplace in Russia

An enumerative bibliography is a systematic list of books and other works such
as journal articles. Bibliographies range from "works cited" lists at the end of books and
articles, to complete and independent publications. A notable example of a complete,
independent publication is Gow's, A. E. Housman: A Sketch, Together with a List of His
Classical Papers (1936). As separate works, they may be in bound volumes such as those
shown on the right, or computerized bibliographic databases. A library catalog, while not
referred to as a "bibliography," is bibliographic in nature. Bibliographical works are almost
always considered to be tertiary sources.

==================================================================
CHAPTER 09
ANNEXURE
Annexation (Latin ad, to, and nexus, joining) is the administrative action[1] and concept
in international law relating to the forcible acquisition of one state's territory by another
state.[2] It is generally held to be an illegal act.[2] It is distinct from conquest, which refers to
the acquisition of control over a territory involving a change of sovereignty,[3][4] and differs
from cession, in which territory is given or sold through treaty, since annexation is a
unilateral act where territory is seized and held by one state.[5] It usually follows military
occupation of a territory.[1]
Annexation can be legitimized via general recognition by international bodies (i.e. other
countries and intergovernmental organisations).[5][6][1]
International law regarding the use of force by states has evolved significantly in the 20th
century.[7] Key agreements include the 1907 Porter Convention, the 1920 Covenant of the
League of Nations and the 1928 Kellogg–Briand Pact,[7] culminating in Article 2(4)
of Chapter I of the United Nations Charter, which is in force today: "All Members shall
refrain in their international relations from the threat or use of force against the territorial
integrity or political independence of any state, or in any other manner inconsistent with the
Purposes of the United Nations".[7] Since the use of force against territorial integrity or
political independence is illegal, the question as to whether title or sovereignty can be
transferred in such a situation has been the subject of legal debate.[8]
It is generally held that countries are under obligation to abide by the Stimson Doctrine that a
state: "cannot admit the legality of any situation de facto nor... recognize any treaty or
agreement entered into between those Governments... not... recognize any situation, treaty or
agreement which may be brought about by means contrary to the covenants and obligations
of the Pact of Paris of August 27, 1928".[9]
These principles were reconfirmed by the 1970 Friendly Relations Declaration.[10]
Protection of civilians[edit]
During World War II, the use of annexation deprived whole populations of the safeguards
provided by international laws governing military occupations.

==================================================================
The authors of the Fourth Geneva Convention made a point of giving the rules regarding
inviolability of rights "an absolute character",[12] thus making it much more difficult for a
state to bypass international law through the use of annexation.[12] GCIV Article 47, in the
first paragraph in Section III: Occupied territories, restricted the effects of annexation on the
rights of persons within those territories:
Protected persons who are in occupied territory shall not be deprived, in any case or in any
manner whatsoever, of the benefits of the present Convention by any change introduced, as
the result of the occupation of a territory, into the institutions or government of the said
territory,nor
any agreement concluded between the authorities of the occupied territories and the
Occupying Power, nor by any annexation by the latter of the whole or part of the occupied
territory.

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ROLE OF TECHNOLOGY IN BANKING

ROLE OF TECHNOLOGY IN BANKING

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

EVALUTION OF TECHNOLOGY IN BABKING

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Role of Technology in Banking

Technology is no longer being used simply as a means for automating processes.

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

• With the Internet boom, banks realized that

The possibility that customers

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

FUTURE OF BANKING TECHNOLOGY

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Future of Banking in India

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

DIGITIZATION IN BANKING INDUSTRY

Banking Industry Analysis

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

4. Operational Efficiency:Technology has drastically improved the operational efficiency of

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

RECENT DEVELOPMENTS IN BANKING TECHNOLOGY

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

4. Mobile Banking:Mobile banking service

6. Automatic Teller Machines:

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

SCOPE OF BANKING TECHNOLOGY

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

BENEFITS OF TECHNOLOGY IN BANKING

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

IMPACT OF TECHNOLOGY IN BANKING

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

NEGETIVE EFFECTS OF TECHNOLOGY IN BANKING AND

While ICT provides so many advantages to the banking industry

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

• The biggest revolution came in banks is Digitization.

Banking industry is a backbone of Indian financial system and it is afflicted by

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Transformation of Indian Banking:-

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

main types of literature reviews are: evaluative, exploratory, and instrumental.[3]

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

OBJECTIVES OF THE STUDY

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

1. "the analysis of the principles of methods, rules, and postulates employed by a

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Any description of a means of calculation of a specific result is always a description of a

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Collage Name :-Laxmichand Golwala collage of Commerce and Economics

Exploratory data analysis[edit]