digital banking paper ifim 05022016.pptx

7/25/2019 Digital Banking Paper IFIM 05022016.pptx

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Digital Banking A New Frontier in Indian BusinessPresented at

CONVERGENCE !"t#International Con$eren%e on

&Digital Business: New Frontiers in Management'

Prof Chowdari Prasad

AndDr KS Srinivasa Rao

"(t#Fe)ruar* +"!,


2/36

Flow o$ Presentation Introdu%tion to Banking- In$or.ation /e%#nolog*- Re$or.

Co..ittees o$ RBI $or /e%#nolog* in Banks 0 Various De Digital Banking 3eaning

Re1iew o$ 4iterature- !, Arti%les in Resear%# 5ournals 0

O)7e%ti1es o$ t#e 8tud*& Resear%# 3et#odolog*

RBI Guidelines- Pa*.ent 8ettle.ents 9 Vision +"!( and

Digital Banking Produ%ts 0 8er1i%es o:ered )* 1arious o 8tatus o$ aggregate )usiness o$ )anks in India $or 6 *ea+"!(

C*)er Risks- Finan%ial In%lusion- P35D


3/36

Introdu%tion to Banking- In$or.ation /e%#noRe$or.s

!ndian Baning S"st#$ % Co$$#rial' D#v#lo($#ntal' #t

)rganisational hang#s' )(#rations and *#ogra(hial S(rand ,#hnologial int#rv#ntions and )-#ring of vario.s t"(rod.ts

.ntioning of ans an # divid#d into thr## (has#s vi 3i4 (rior to 16 % rst nationalisation'

3ii4 #tw##n 16 to 10 % growth (#riod and

3iii4 aft#r 11 % onsolidation with th# introd.tion of 7ono$ithro.gh +i#ralisation' Privatisation and *loalisation 3+P*4

8s# of o$(.t#rs for a%o9# r#oniliation #:t#nd#d to9# o(#rations in d.# o.rs# l#ading to introd.tion of )Baning

5/2/2016 Digital Baning in !ndia


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1. Retail

Banking

2. WealthManagement /

Growth trend

3.Demand for Low

Cost Banking

Solutions

4.Branches

s. !"Ms to

increase#. Mo$ile

Banking and

%nternet

&enetration

'. CRM and

Data

warehousing

(.Generatemore fee)

$ased income

*. %m&ortanceof SM+

segment

,. %nestment

Banking and

1-. %nfrastruc)

ture inancing

%ndian

Banking

0&&ortunities

Challenges

2/8/16 4


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2/8/16 Digital Banking 5

Fo%us as2e%ts o$ Co..er%ialBanking

Core

Banking 2CBS3

!"Ms

CardManagement

!n4 Branch

Banking DocumentManagement

Risk

Management

Resource

Management

M%S

%ntranet

CRM

Cor&orate

5etwork

+lectronic

Banking

60S "erminalsand Cashdis&enser

B!578S B9S%5+SS

B!578S B9S%5+SS

R!%S%5

GD

+60S%"S


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Co..ittees o$ RBI $or /e%#nolog* in Banks 0Various De1elo2.ents

RB! for$#d 12


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RB!

> 1>> Co$$itt## on Co$(.t#risation in Bans Dr C D#(.t" *o

( 1E Co$$itt## on ,#hnolog" !ss.#s r#lating

to Pa"$#nts S"st#$s' Ch#@.# Cl#aring

and S#.riti#s s"st#$ in th# Baning

ind.str"

Sri <

7:#.tiv#

, 15 Co$$itt## on Pro(osing 7l#troni .nds

,ransf#r and 7l#troni Pa"$#nts

S$t K

Prini(al +5/2/2016 Digital Baning in !ndia


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? !@@@ Co..ittee on INFINE/ 8ri= Vas

E2ert 2001 Co$$itt## on +#gal As(#ts of Ban ra.ds Dr=itra

@ 2002


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2/8/16 Digital Banking 9

BAGK!G* & !,

A4P3s

C4EARING O8E

CAR-CRR-84R-P8-NPAs

CREDI/DEBI/ CARD8

NICNE/-INE/- RAB3N

INFINE/- RBINE/

BANNE/- ND8- 8F38

3ICR- A/3s- 8IF/ DE3A/- I/ AC/+"""

IN/ERNE/ BANING

EC8- EF/- 8EF/- R/G8

CRO88 8E44ING

A43 0 R3- 3I8

CR3-


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Digital Banking 3eaning

!nt#rn#t has ro.ght in th# igg#st hang# in th#hav# ##n aning for #nt.ri#s

Digital aning is th# (r#s#nt tr#nd in aning .sint#rn#t and $.h $or#' as#d on S=AC $od#l' w.sto$#r rst and .ts osts

S=AC stands for Soial' =oil#' Anal"tis and Clo

S=AC $a#s aning .sin#ss $or# agil# and .#ntri whih ontri.t#s to th# .ilding of th# DBaning

)th#r #l#$#nts ar# Data and J8s#r%#:(#ri#n#ontri.t# to th# on#(t



11/36

Re1iew o$ 4iterature- !, Arti%les in Resear%# 50 !6 Re2orts

16 Artil#s #tw##n 1> and 2016 on !,' G#tworing' A,=Cards' D#it Cards' !nt#rn#t Baning' =oil# Baning' 7CS=oil#


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O)7e%ti1es o$ t#e 8tud*& Resear%# 3et#o

O)7e%ti1es o$ t#e 8tud*9

1 ,o .nd#rstand th# i$(ortan# of Digital Baning in !ndian Ba

2 ,o anal"s# th# advantag#s in .sin#ss thro.gh Digital BaninSta#hold#rs inl.ding int#r$#diari#s 3!BA' Pa"$#nt ans4

; ,o .nd#rstand th# i$(ortan# of S=AC as a o$(#titiv# Stra3


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RBI Guidelines- Pa*.ent 8ettle.ents 9 Visioand IDRB/

Cor2orate Go1ernan%e o$ Banks in India !, *ov#rnan# is an int#gral (art of th# Cor(orat# *ov#rnan#

!, s.stains and #:t#nds .sin#ss strat#gi#s and o?#tiv#s

R#s(onsiilit" of th# Board of Dir#tors and 7:#.tiv# =anag#$#nt

7v#r" o$$#rial an ranh is at so$# stag# of t#hnolog" ado(tion li# Cor# Baninalt#rnat# d#liv#r" hann#ls s.h as int#rn#t aning' $oil# aning' (hon# aning an

Pa*.ent 8ettle.ents in India Vision +"!+!( Vision Statement: To proactively encourage electronic payment systems for us

cash society in India and to ensure payment and settlement systems in the couecient, interoperable, authorised, accessible, inclusive and compliant with instandards=

IDRB/- *dera)ad !t is a ,hin%,an for (ro$otion of t#hnologial r#s#arh and ons.ltan" !DR

(lans to la.nh a Digital Baning ra$#wor in 2016 ai$#d at $aing Digital B" inor(orating n#w hann#ls of (a"$#nts



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Digital Banking Produ%ts 0 8er1i%es o:ered 1arious out;ts

8=

No=

/*2e o$

Bank

Na.e o$ t#e Bank /e%#nologi%al 0Inno

Digital Banking Produ%ts

!

P.li

S#tor

Stat# Ban of !ndia

3;F lah to.h

(oints' 16'E15

ranh#s' 56';0

gro.( A,=s

inl.ding =.lti%.ntion and S#lf%

S#rvi# Kioss and

Cash D#(osit

=ahin#s' 2E +ah

P)S ,#r$inals and

5>'5F1 C.sto$#rS#rvi# Points4

!n%to.h' !nC.# 3Start%

7:l.si 3


15/36

+

Pu)li%

8e%tor

8BB5

3o)ile A/3s- Green

Banking- 8BB5

Internet and 3o)ile B

/rade- e/a Pa*.

Re.ittan%e- Jui%k 3

Banking

6

P.li

S#tor

Pan?a Gational

Ban

G7,' R,*S' Cash D#(

S=S Baning' !=PS' #%

7CS' ## Portal' =oil

!nt#rn#t Baning' 7=I D

,aling A,=s' Doorst#(Cr#dit Cards

>

P.li

S#tor

Ban of Baroda

Ra(id .nds2!ndia' Ba

R#$it 3with 8A7 7:han

R#$ittan# 3with

Ansari 7:hang#4' =,SS

R#$ittan#5/2/2016 Digital Baning in !ndia


16/36

, Pu)li%

8e%tor

And#ra Bank Digital allet- 82eed Pa*- et%

?

P.li S#tor 8nion Ban of !ndia

1 !=PS thro.gh ranh#s for R#ta

Cor(orat# .sto$#rs

2 =oil# Passoo 3 = Passoo4

; =iss#d Call failit" for =oil# B

Ao.nt alan#E S=S as#d val.# add#d s#rvi#

Bloing D#it Card

Balan# #[email protected]" of vario.s a

Aadhar !D s##ding

7nal#/Disal# .s#r id of int#r

A,= and Branh +oator

)ld Privat#

S#tor Ban

Karnataa Ban

Cor# Baning' !nt#rn#t Baning'

3A,=s4' L.i R#$it 3for GR!s4' =

A(naA(( and KB+ $%PassBoo@ )ld Privat#

S#tor Ban

#d#ral Ban

#dBoo 3$oil# a((4' Co%rand#

Card 3with SB!4' A.to$at#d

3Iirt.al R#lationshi( )9#r4' #%Pa5/2/2016 Digital Baning in !ndia


17/36

!" New

Pri1ate

8e%tor

Bank

ICICI Bank Rail /i%ket Booking on

KIRC/CL- et%

!! G#w

Privat#S#tor

Ban

DC Ban Cli2Prot#tPl.s and oth#rs

!+ or#ign

Ban

Citi Ban #%Cor# Baning thro.gh A,=s

!6 or#ign

Ban

Standard Chart#r#d

Ban

Standard Chart#r#d Br

Baning

!> R#gional

R.ral Bans

3RRBs4

66 *ra$##n Bans

s(onsor#d "

Co$$#rial Bans

)nlin# ,ransation s#rvi#s fro

R.ral Bans' !nt#rn#t Ban

transational s#rvi#s vi#w

w#a Bans!( Coo(#rativ

# Ban

Saraswat

Coo(#rativ# Ban

+td

A,=s' GS G#twor' 7%(a"$#

Pa"$#nt' *o%R#harg#' R,

=iss#d Call S#rvi#' *5/2/2016 Digital Baning in !ndia


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!, allet

Banking

K+"">L

Oigen

Instant 3one* /rans$er

an*w#ere using I3P8- re%

P#one or )ook a 3o1ie ti%

!?


19/36

Stat.s of ASCBs in D#(osits for2012%2015


201; 201E 20150

1'000'000

2'000'000

;'000'000

E'000'000

5'000'000

6'000'000

F'000'000

>'000'000

'000'000

10'000'000

D#(osits 3Rs Cror#s4


20/36

Stat.s of ASCBs in Advan#s fo2012%2015


201; 201E 20150

1'000'000

2'000'000

;'000'000

E'000'000

5'000'000

6'000'000

F'000'000

>'000'000

Advan#s 3Rs Cror#s4


21/36

Stat.s of ASCBs in !nv#st$#nts2012%2015


201; 201E 20150

500'000

1'000'000

1'500'000

2'000'000

2'500'000

;'000'000

;'500'000

!nv#st$#nts 3Rs Cror#s4


22/36

Stat.s of ASCBs in ,otal Ass#ts 2012%2015


201; 201E 20150

2'000'000

E'000'000

6'000'000

>'000'000

10'000'000

12'000'000

,otal Ass#ts 3Rs Cror#s4


23/36

Stat.s of ASCBs in G#t GPAs for2012%2015


201; 201E 20150

20'000

E0'000

60'000

>0'000

100'000

120'000

1E0'000

160'000

1>0'000

G#t GPA 3Rs Cror#s4


24/36

Stat.s of ASCBs in G#t Prot for2012%2015


201; 201E 20150

10'000

20'000

;0'000

E0'000

50'000

60'000

F0'000

>0'000

0'000

100'000

G#t Prot 3Rs Cror#s4


25/36

Stat.s of ASCBs in ,otal !no$#2012%2015


201; 201E 20150

200'000

E00'000

600'000

>00'000

1'000'000

1'200'000

,otal !no$# 3Rs Cror#s4


26/36

Stat.s of ASCBs in ,otal 7:(#ndit2012%2015


201; 201E 20150

100'000

200'000

;00'000

E00'000

500'000

600'000

F00'000

>00'000

00'000

,otal 7:(#ndit.r# 3Rs Cror#s4


27/36

C*)er Risks- Finan%ial In%lusion- P


Human risk is a big problem for Indian financial institutions. Bank

proactivel educating t!eir emploees and customers to prevent cImproving awarenessof t!e different t!reats t!at currentl e"ist# in

fraud# 6hishing; :ishing; Smishing; Skimming;


28/36

R.(a"' Pa"$#nt Bans and $Baning

R.Pa" is an !ndian do$#sti ard sh#$# on#iv#d and la.n

!t was r#at#d to f.ll th# RB!s d#sir# to hav# a do$#sti' o(

$.ltilat#ral s"st#$ of (a"$#nts in !ndia R.Pa" failitat#s #l#troni (a"$#nt at all !ndian ans and

instit.tions and o$(#t#s with =ast#rCard and Iisa in !ndia

,h# t#r$ JPa"$#nt Bans is n#w in !ndian ont#:t !n S#( 2JCo$$itt## on Co$(r#h#nsiv# inanial S#rvi#s for S$all B+ow !no$# o.s#holds' h#ad#d " Gahi#t =or' was for$#

B" Oan.ar" 201E' th# Gahi#t =or o$$itt## s.$itt#d its and on# of its r#o$$#ndations was th# for$ation of a n#w ans all#d (a"$#nts ans).t of E1 a((liants in th# ra#A.g.st 2015' RB! gav# Qin%(rini(l#Q li#n#s to #l#v#n #ntiti#(a"$#nts ans



29/36

11 Pa"$#nt Bans li#ns#d " Rin 2015! Adit*a Birla Nu1o

+ Airt#l = Co$$#r# S#rvi#s6 Chola$andala$ Distri.tion S#rvi#s

> D#(art$#nt of Posts

( !G) Pa",#h

, Gational S#.riti#s D#(ositor"

? R#lian# !nd.stri#s Dili(Shanghvi' 3fo.nd#r of S.n Phar$a#.tials4

@ Ii?a" Sh#har Shar$a' 3C7) of Pa"t$4

!" ,#h =ahindra

!! Iodafon# =%P#sa



30/36


i i i l ki $ ) i


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Big Data on Digital Banking $ro. RBI we)sitCon%lusion

RB!


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10 Iari#ti#s of A,=s in !ndia

1 )n%sit# A,=s

2 )-%sit# A,=s

; Solar as#d A,=s

E Bio%$#tri A,=s3for illit#rat#.sto$#rs4

5 loating A,=s 3SB!4

6 =oil# A,=s 3Ian4

F =iro A,=s

>


33/36

Conl.sions Prognosis for !ndian ans is (ositiv# with Do$#sti Cr#d

(#r#ntag# of *DP having grown s.stantiall" ov#r th# la

,#hnolog" has transfor$#d th# landsa(# of !ndian an

!$(l#$#ntation of or# aning has a.to$at#d asi (ro Cor# aning (latfor$ hav# also giv#n ans a strong la

o-#r digital hann#l a(ailiti#s .ilding o.t th#ir onlin# hann#l o-#rings

A,= d#(lo"$#nts and t#hnolog"%#nal#d B.sin#ss Corr3BC4 n#twor allow#d ans to s#rvi# larg# (arts of !ndi

hint#rland,ransfor$#d .sto$#r #:(#ri#n# and an o(ti$i#d ost

will s#(arat# th# l#ad#rs fro$ th# laggards in th# ind.str

=%Baning is now ord#r of th# da" $aing th# traditionalvirt.al



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digital banking paper ifim 05022016.pptx

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