BANKING TECHNOLOGY,functions,advantages,objectives of banking technology

BANKING TECHNOLOGY:-

Introduction:- 

banks are investing heavily in digital banking technology. Information technology has increased the financial control and has made collation of information much easier. Not only banks need greatly enhanced use of technology to the customer friendly, efficient and competitive existing services and business, they also need technology for providing newer products and newer forms of services in an increasingly dynamic and globalize environment. Internet banking has come to be recognized as a virtual necessity to face the imminent challenge that is growing felt in modern days, owing to globalization and liberalization of the Indian economy. Information technology is becoming a key business enabler and is being positioned as a key differentiation. The banks have achieved significant success in leveraging IT through the implementation of core business solutions and it has helped them in streamlining, standardizing, and expanding their services portfolio.

Objectives of bank technology:-

The competitive advantage of banks will rely heavily on the capability of technology to implement business process, manage risks, and provide excellent customer service.

•     Application standards to reduce need for additional hardware and software,
•    Shorten time to develop new applications,
•        Improve ability to distribute information,
•         Reduce cost of system support and maintenance and Systems that can perform under heavy network traffic.
•   Systems that can perform under heavy network traffic.

Advantage of technology:-

Technology is used by financial system every day to obtain the necessary technology needed to ensure maximum productivity and success. The advantages of technology are as follows:-

• Helps financial system to think beyond present.
• Financial system can update and set plans in light with the latest world finance scenario.
• Getting connected with the changing business and the customer pool.
• Survival and sustainable growth with positive performance are indicators of successful financial system. 
• Excel in true professionalism with right predication or forecast instead of being word of mouth marketers.

FUNCTIONS OF BANK TECHNOLOGY:-

Technology is the biggest force for change in banks. Technology has helped to speed-up the efficiency  banking system, simplified the development of budgets and the analysis of performance to plan, streamlined the cash cycle, and enhanced its communication network. Technology has also enabled the globalization of finance.

Main functions of technology are as follows:-

• To raise the productivity of the financial system.
• To assist financial system with graphics and multimedia projects.
• To make system more effective and efficient when performing daily activities.
• To facilitate communications.

TECHNOLOGICAL CHALLENGES IN BANKING SYSTEM:-

These are some critical challenges which are faced by the banking system:-

• Cost involved in technology implementation

• Need to ensure appropriate security and integrity of the system

• Disaster recovery management plans

• To develop its own communications network