digital banking paper ifim 05022016.pptx
TRANSCRIPT
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Digital Banking A New Frontier in Indian BusinessPresented at
CONVERGENCE !"t#International Con$eren%e on
&Digital Business: New Frontiers in Management'
Prof Chowdari Prasad
AndDr KS Srinivasa Rao
"(t#Fe)ruar* +"!,
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Flow o$ 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 $or 6 *ea+"!(
C*)er Risks- Finan%ial In%lusion- P35D
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Introdu%tion to Banking- In$or.ation /e%#noRe$or.s
!ndian Baning S"st#$ % Co$$#rial' D#v#lo($#ntal' #t
)rganisational hang#s' )(#rations and *#ogra(hial S(rand ,#hnologial int#rv#ntions and )-#ring of vario.s t"(rod.ts
.ntioning of ans an # divid#d into thr## (has#s vi 3i4 (rior to 16 % rst nationalisation'
3ii4 #tw##n 16 to 10 % growth (#riod and
3iii4 aft#r 11 % onsolidation with th# introd.tion of 7ono$ithro.gh +i#ralisation' Privatisation and *loalisation 3+P*4
8s# of o$(.t#rs for a%o9# r#oniliation #:t#nd#d to9# o(#rations in d.# o.rs# l#ading to introd.tion of )Baning
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1. Retail
Banking
2. WealthManagement /
Growth trend
3.Demand for Low
Cost Banking
Solutions
4.Branches
s. !"Ms to
increase#. Mo$ile
Banking and
%nternet
&enetration
'. CRM and
Data
warehousing
(.Generatemore fee)
$ased income
*. %m&ortanceof SM+
segment
,. %nestment
Banking and
1-. %nfrastruc)
ture inancing
%ndian
Banking
0&&ortunities
Challenges
2/8/16 4
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2/8/16 Digital Banking 5
Fo%us as2e%ts o$ Co..er%ialBanking
Core
Banking 2CBS3
!"Ms
CardManagement
!n4 Branch
Banking DocumentManagement
Risk
Management
Resource
Management
M%S
%ntranet
CRM
Cor&orate
5etwork
+lectronic
Banking
60S "erminalsand Cashdis&enser
B!578S B9S%5+SS
B!578S B9S%5+SS
R!%S%5
GD
+60S%"S
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Co..ittees o$ RBI $or /e%#nolog* in Banks 0Various De1elo2.ents
RB! for$#d 12
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RB!
> 1>> Co$$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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5/2/2016 Digital Baning in !ndia
? !@@@ Co..ittee on INFINE/ 8ri= Vas
E2ert 2001 Co$$itt## on +#gal As(#ts of Ban ra.ds Dr=itra
@ 2002
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2/8/16 Digital Banking 9
BAGK!G* & !,
A4P3s
C4EARING O8E
CAR-CRR-84R-P8-NPAs
CREDI/DEBI/ CARD8
NICNE/-INE/- RAB3N
INFINE/- RBINE/
BANNE/- ND8- 8F38
3ICR- A/3s- 8IF/ DE3A/- I/ AC/+"""
IN/ERNE/ BANING
EC8- EF/- 8EF/- R/G8
CRO88 8E44ING
A43 0 R3- 3I8
CR3-
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Digital Banking 3eaning
!nt#rn#t has ro.ght in th# igg#st hang# in th#hav# ##n aning for #nt.ri#s
Digital aning is th# (r#s#nt tr#nd in aning .sint#rn#t and $.h $or#' as#d on S=AC $od#l' w.sto$#r rst and .ts osts
S=AC stands for Soial' =oil#' Anal"tis and Clo
S=AC $a#s aning .sin#ss $or# agil# and .#ntri whih ontri.t#s to th# .ilding of th# DBaning
)th#r #l#$#nts ar# Data and J8s#r%#:(#ri#n#ontri.t# to th# on#(t
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Re1iew o$ 4iterature- !, Arti%les in Resear%# 50 !6 Re2orts
16 Artil#s #tw##n 1> and 2016 on !,' G#tworing' A,=Cards' D#it Cards' !nt#rn#t Baning' =oil# Baning' 7CS=oil#
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O)7e%ti1es o$ t#e 8tud*& Resear%# 3et#o
O)7e%ti1es o$ t#e 8tud*9
1 ,o .nd#rstand th# i$(ortan# of Digital Baning in !ndian Ba
2 ,o anal"s# th# advantag#s in .sin#ss thro.gh Digital BaninSta#hold#rs inl.ding int#r$#diari#s 3!BA' Pa"$#nt ans4
; ,o .nd#rstand th# i$(ortan# of S=AC as a o$(#titiv# Stra3
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RBI Guidelines- Pa*.ent 8ettle.ents 9 Visioand IDRB/
Cor2orate Go1ernan%e o$ Banks in India !, *ov#rnan# is an int#gral (art of th# Cor(orat# *ov#rnan#
!, s.stains and #:t#nds .sin#ss strat#gi#s and o?#tiv#s
R#s(onsiilit" of th# Board of Dir#tors and 7:#.tiv# =anag#$#nt
7v#r" o$$#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
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+
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#$ittan#5/2/2016 Digital Baning in !ndia
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, Pu)li%
8e%tor
And#ra Bank Digital allet- 82eed Pa*- et%
?
P.li S#tor 8nion Ban of !ndia
1 !=PS thro.gh ranh#s for R#ta
Cor(orat# .sto$#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$at#d
3Iirt.al R#lationshi( )9#r4' #%Pa5/2/2016 Digital Baning in !ndia
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!" New
Pri1ate
8e%tor
Bank
ICICI Bank Rail /i%ket Booking on
KIRC/CL- et%
!! G#w
Privat#S#tor
Ban
DC Ban Cli2Prot#tPl.s and oth#rs
!+ or#ign
Ban
Citi Ban #%Cor# Baning thro.gh A,=s
!6 or#ign
Ban
Standard Chart#r#d
Ban
Standard Chart#r#d Br
Baning
!> R#gional
R.ral Bans
3RRBs4
66 *ra$##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%
!?
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Stat.s of ASCBs in D#(osits for2012%2015
5/2/2016 Digital Baning in !ndia
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
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Stat.s of ASCBs in Advan#s fo2012%2015
5/2/2016 Digital Baning in !ndia
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
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Stat.s of ASCBs in !nv#st$#nts2012%2015
5/2/2016 Digital Baning in !ndia
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
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Stat.s of ASCBs in ,otal Ass#ts 2012%2015
5/2/2016 Digital Baning in !ndia
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
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Stat.s of ASCBs in G#t GPAs for2012%2015
5/2/2016 Digital Baning in !ndia
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
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Stat.s of ASCBs in G#t Prot for2012%2015
5/2/2016 Digital Baning in !ndia
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
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Stat.s of ASCBs in ,otal !no$#2012%2015
5/2/2016 Digital Baning in !ndia
201; 201E 20150
200'000
E00'000
600'000
>00'000
1'000'000
1'200'000
,otal !no$# 3Rs Cror#s4
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Stat.s of ASCBs in ,otal 7:(#ndit2012%2015
5/2/2016 Digital Baning in !ndia
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
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C*)er Risks- Finan%ial In%lusion- P
5/2/2016 Digital Baning in !ndia
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;
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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"$#nts ans
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11 Pa"$#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
5/2/2016 Digital Baning in !ndia
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5/2/2016 Digital Baning in !ndia
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$#rs4
5 loating A,=s 3SB!4
6 =oil# A,=s 3Ian4
F =iro A,=s
>
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Conl.sions Prognosis for !ndian ans is (ositiv# with Do$#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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