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Sunil
Sunil
Sunil
TECHNOLOGY
AND BANKING
CONTENTS
CONTENT
1. INTRODUCTION: WHAT IS INFORMATION
TECHNOLOGY?
2. OBJECTIVE
3. HISTORY
4. HOW INFORMATION TECHNOLOGY HELP
IN BANKING SECTOR?
5. CURRENT SCENERIO
6. CASE STUDY
. PROBLEM
. SOLUTION
. FINDINGS
7. BIBILOGRAPHY
WHAT IS
INFORMATION
TECHNOLOGY?
Information technology (IT) is "the study, design,
development, application, implementation, support
or management of computer-based information
systems, particularly software applications and
computer hardware", according to the Information
Technology Association of America (ITAA).[1] IT
deals with the use of electronic computers and
computer software to securely convert, store,
protect, process, transmit, input, output, and retrieve
information.
it pertains to organizations within enterprises, IT
represents an operational group that helps solve
such problems as those related to data, information
and knowledge capture, persistence, processing,
brokering, discovery and rendering. Such
organizations can be as small as one or two people
that can be shared between multiple small business
and as large as multi-billion dollar structures that are
common in all Fortune 500 enterprises. Today, the
term information has ballooned to encompass many
aspects of computing and technology, and the term
has become very recognizable. IT professionals
perform a variety of functions (IT
Disciplines/Competencies) that range from installing
applications to designing complex computer
networks and information databases. A few of the
duties that ITIt is important to consider the overall
value chain in technology development projects, as
the challenge for the value creation is increasing
with the growing competitiveness between
organizations. The concept of value creation
through technology is heavily dependent upon the
alignment of technology and business strategies.
While the value creation for an organization is a
network of relationships between internal and
external environments, technology plays a role in
improving the overall value chain of an
organization. However, this increase requires
business and technology management to work as a
creative, synergistic, and collaborative team instead
of a purely mechanistic span of control. Technology
can help an organization improve its competitive
advantage within the industry in which it resides
and generate superior performance at a greater
value
OBJECTIVE
The objective of study is to see that with the
fast growing world there is also a vast change in
the technology in the work. Indian banking
industry, today is in the midst of an IT revolution
so banking industry are not far behind from the
technology, they also use information technology
to provide their customer more services. With
the use of it fast application processing, better
services to consumer, mass consumer client
record handling, reduce calculation errors is
possible. A combination of regulatory and
competitive reasons have led to increasing
importance of total banking automation in the
Indian Banking Industry.
HISTORY
In the five decades since independence, banking in
India has evolved through four distinct phases.
During Fourth phase, also called as Reform Phase,
Recommendations of the Narasimham Committee
(1991) paved the way for the reform phase in the
banking. Important initiatives with regard to the
reform of the banking system were taken in this
phase. Important among these have been
introduction of new accounting and prudential norms
relating to income recognition, provisioning and
capital adequacy, deregulation of interest rates &
easing of norms for entry in the field of banking.
.
Business Situation:
The client is a pioneer in offering online banking to
its customers. However, as competitors started
catching up, the client wanted to completely
transform the way in which it provided these
services. The
client wanted to leverage its strong customer base
to create an additional revenue stream, while
offering customers extended services. With the
availability of multiple channels for interaction with
customers, it was necessary to have a common
platform for seamless flow of information. All this
was becoming increasingly difficult, as the client’s
existing system was based on legacy technology
and architecture.
SOLUTION
Approach
Cognizant was introduced to restructure and
revamp the existing application architecture and
develop applications on a Multi-Channel
infrastructure, which would cater to several
channels, including the Internet. A phased approach
was decided upon and the Online Banking service
was to be introduced in a set of multiple releases.
With ready access to a huge customer base, the
client was in an ideal situation to introduce the
Electronic Bill Presentment and Payment Services
– the first release taken up by Cognizant.
Subsequent releases included Safekeeping,
Portfolio Management, Payments, File Transfer
and Security Trading functionalities.
As this was a huge business transformation exercise,
functional experts (business analysts) from
Cognizant worked with the client’s business team
early in the engagement, to elicit and define
requirements.
Cognizant undertook an extensive analysis to
understand the client’s functional, non-functional, and
technical requirements. It also mapped the project
implementation and management processes
followed by the client to its CMMI Level 5 processes,
to develop a client-specific customized process
framework.
On the technology front, architecture teams decided to
use the industry standard advanced J2EE
Framework, which is a component-based,
service-oriented, layered architecture approach
suiting middleware-based applications
development. In all the architecture and design-
related decisions, the primary focus was to add
maximum value by using a mix of best-of-breed
solutions, while ensuring seamless integration
with existing client systems.
TECHNOLOGY USED:
• Solaris, Windows (Development)
• Java, JSP, Servlet, EJB, XML
• Weblogic 6.1
• Eclipse version 1.5.0, PMD and Checkstyle for
adherence to coding conventions
FINDINGS
• Creation of an additional revenue stream: The
Electronic Bill Presentment and Payment
(EBPP) functionality was introduced, which
provided the bank’s customers with new services
and helped the client derive significant revenues
from the same.
• Service-oriented architecturE: The client could
expose individual business processes across
multiple channels, as per business demands, to their
customers.
• File transfer: With the removal of the system of
direct delivery of files to the clearing house, file
transfer to banks assumed even more importance.
Online Banking further facilitated corporate
customers by enabling them to deal with thousands
of payments together and route them online
to the bank.
• Time to market: There was a significant reduction
in the time required to extend new services
and functionalities to customers.
• Payments: An improved version of the Payments
functionality, the backbone of any European
financial institution, made online payments faster
and more convenient for the customers.
• Portfolio and wealth management: Customers
could have a cross-sectional view (based on
geography, currency and maturity) of their assets
CONCLUSION
Consumer banking plays a vital role in
economical growth of any country. The Housing
schemes create job opportunities not only for banks
itself but almost 20 industries including cement, steel,
paints, and most importantly unskilled labor
employment. For consumer banking products, by the
increasing of number of consumer clients, it becomes
almost impossible to manage the data without
proper information technology support.
BIBLIOGRAPHY
WORLD
WIDE WEB
1.www.banknetindia.com
2.http://www.cognizant.com
3.www.wikipedia.com