The Recent Technological Developments in the Financial Sector

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The importance of the technology cannot be undermined in the financial sector like Banking in India. Banking in India is greatly looked upon and is a flourishing industry. It lays great emphasis on the technological innovation as life now without technology in it cannot be imagined. The biggest turnover in the financial sector is the Internet Banking which has turned the banking experience all over. The concept of the Internet Banking has emerged to be the biggest focus area in the “Digital Transformation” under the “Digital India” scheme launched by the Prime Minister, Mr. Narendra Modi.

As the banks have deployed the digitalization during this recent era, it has provided intensive solutions to create an increase in the revenue, enhance the customer experience, management of the enterprise risks and optimization of the cost structure. With the vast variation in the technological agendas and the implementation of the same in the financial industry, the basic advantages offered by the technological advancements include:

  • Enhancement of the core banking value
  • Empowerment of the employees
  • Revamping the digital agenda
  • Dealing with a changing risk regime
  • Acceleration of the innovation
  • Transformation from the cash to electronic modes of payment
  • Grappling with financial and banking inclusion

Salient Features Offered by the Technological Advancement in the Financial Sector:

The technological development in the financial sector in the current era offers several salient features including the following:

  • Internet Banking: The shift of the methods of banking from the traditional to the modern digital methods has been fuelled by the changing dynamics of India. The year 2020 is presumably going to be marked as the complete digitalization of the financial sector of India, wherein all the transactions will take place in the cashless mode. The recent demonetization is the most famous example of the same. As the younger generation is striving to be more tech savvy, they would be well adjusted with the modernized and the technical scenario of the financial sector. The urban areas have particularly shown an increase in the number of users of the Internet Banking.
  • Business Intelligence: The financial sector of India is on the verge of a maximum transformation. As more new banking licenses are expected to increase the competition among the financial participants. In such a competitive environment, the banks and the financial sectors of India are adopting the concept of the Business Intelligence (BI) to enhance the transparency and control over the banking and the financial process. The use of the BI is presumed to be a major technological advancement in the financial sector and drive their profits analytically.
  • Customer Management: The major role of the banking and the financial sectors is to satisfy the needs of the customers. It calls for proper management and articulate measures to impart greater benefits to the customers. These might include customer segmentation, CRM to customer experience, co-creation, use of alternative channels and effective cross. With the technological advancements, the financial sector is bound to take an upward scale to heights of development.

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