Banking Services and Information Technology

The banking sector in India has been a major beneficiary of the inroads made by information technology (IT). Many new processes, products, and services offered by banks and other financial intermediaries are now IT-centered. Technology is also playing a key role in the banks' strategy for gaining a competitive edge. Another major development witnessed in recent years is the growth in multiple delivery channels to customers, such as internet-based banking, mobile banking, and anywhere banking. Banks have been able to reduce costs which have had a positive impact on their profitability. These developments have, however, also posed certain challenges. In a world where geographical barriers are losing significance, it is essential that security is given prime importance in a transnational scenario where large sums of money are at stake. While the challenges relating to physical security can be confronted with relative ease, the position is much more complicated in respect of IT security. This book examines how IT has benefited and challenged the Indian banking system.