A

SYNOPSIS

ON

IMPACT OF TECHNOLOGY ON FINANCIAL SERVICES

Submitted to RTM Nagpur University, Nagpur in the partial

fulfillment of requirement of the degree of MBA.

SUBMITTED BY

SANTOSH MALAIAH RALABANDI

UNDER THE GUIDANCE OF

Prof. AMOL NARAYANE

DEPARTMENT OF BUSINESS MANAGEMENT

Datta Meghe Institute of Engineering Technology and Research,

Salod (Hirapur), Wardha: 442 001

Session 2013-2014

DATTA MEGHE INSTITUTE OF ENGINEERING, TECHNOLOGY & RESEARCH

Sawangi (Meghe), Wardha.

Off: 07152-287893, 287894, Principal Office: 07152-287891. Fax 07152-287892

E-mail : principal _dmietr@yahoo.com, Web site : www.dmietr.edu.in

CERTIFICATE

This is to certify that Mr. SANTOSH MALAIAH RALABANDI of our institute has successfully prepared this synopsis as per standard guidelines. The title of the synopsis is “Impact of Technology on Financial Service “under the specialization Finance.

Prof.Amol Narayane Dr. Shailesh Kediya Dr. Sachin Untawale

(Project guide) (HOD MBA) (Principal)

INDEX

Sr. No. Particulars Page. no.

1 Introduction

2 Objective of Study

3 Scope of Study

4 Research methodology

5 References

Introduction:

This report focuses on the relationship between technology and change, both past and future, in the financial service industry .Technology in today’s modern environment plays a major role in all aspects of society, with widespread use in a majority of industry and business sectors. In today’s global economy many industries have to invest heavily in Information technology in order to keep its competitive advantage and to ensure they will be able to compete with competitors who now operate within a global economy. It can be said that there is an established trend within the financial services sector of increasingly heavy dependence on technology for delivering services and that this will continue in the future. The reliance on technology comes from the enablement, as a result of its use, to provide services and process tasks which would not otherwise be provided.The financial service industry could not provide the level of service it does without the support of advanced information processing and telecommunication technologies. The numbers of checks (over 37 billion annually), credit card drafts (over 3.5 billion annually), and securities trades (over 30 billion shares traded annually) would swamp any manual system that tried to handle them.

The impact of technology that is information technology on the financial services sector can be seen in areas such as

1. On a wider view:-Technology is influencing competition and the degree of contestability in banking and financial services.

2. Delivery of service:-traditionally, the provision of financial services was very much dependent on the branch networks of financial institutions. But now, information and communications technology has enabled the more diversified and convenient provision of financial services, including via the Internet and unmanned ATM networks.

LITERATURE REVIEW:

1. Dr. Meeta Nihalani, Head, Department of Management Studies, Jai Narain Vyas University,

Jodhpur,” THE IMPACT OF TECHNOLOGY ON THE MARKETING OF FINANCIAL

SERVICES” at Annals of Management Research, Volume 1, Number 1, and September –

October 2011.as stated that, Technological progress may have increased scale economies in

producing financial services, creating opportunities to improve efficiency and increase value

through consolidation.

2. Allen N. Berger, Board of Governors of the Federal Reserve System, Washington, DC 20551

U.S.A.“ THE ECONOMIC EFFECTS OF TECHNOLOGICAL PROGRESS: EVIDENCE

FROM THE BANKING INDUSTRY” at Forthcoming, Journal of Money, Credit, and Banking,

Volume 35, 2003.According to his view,” Research on the banking industry provides a wealth of

information about technological progress. Banks intensively use modern technologies and the

detailed data on this industry allow for investigations of the effects of advances in both IT and

financial technologies and in both “front-office” and “back-office “technologies.”

3. William J. Wilhelm, Jr., Boston College, “INTERNET INVESTMENT BANKING: THE

IMPACT OF INFORMATION TECHNOLOGY ON RELATIONSHIP BANKING” at Journal

of Applied Corporate Finance, spring 1999. Provide an economic perspective on how recent

advances in information technology have begun to lay siege to the relationship-based

technology. Most of the discussion takes place in the context of recent applications of Internet

technology to the pricing and distribution of securities.

4. Rajnish Tiwari, Stephan Buse, Cornelius Herstatt,”MOBILE BANKING AS BUSINESS

STRATEGY: IMPACT OF MOBILE TECHNOLOGIES ON CUSTOMER BEHAVIOR AND

ITS IMPLICATIONS FOR BANKS” at “Portland International Conference on Management of

Engineering and Technology” (PICMET) 2006,8 – 13 July 2006, Istanbul (Turkey). he stated

that increased competition on account of technological developments coupled with the process of

globalization have produced new challenges for banks. Mobile Banking presents an opportunity

for banks to retain their existing, technology-savvy customer base by offering value-added,

innovative services.

Above research conducted to know the technology involvement in the financial services, but my

study will go with respect to know the involvement of technology gap between various banking

Financial services.

OBJECTIVES OF STUDY

TO KNOW THE NEED OF TECHNOLOGY IN BANKING FINANCIAL SECTOR.

TO HELP IN INCREASING THE TECHNOLOGY AIDS IN FINANCIAL SERVICES.

TO KNOW THE IMPORTANCE OF TECHNOLOGY IN FINANCIAL SECTOR.

SCOPE OF STUDY

In the present scenario major economical and technical changes are undergoing in

Industrial and financial revolution through the new information-processing technology.

Especially in finance sector it has a significant role for overall development. After identifying the

subject (research area) and referring the relevant literatures, it has been found that in most of the

literature, the information technologies have a wide application area. However, in finance sector

major changes have been made. Due to these drastic changes we have chosen to do the study on

urban cooperative bank system. After completing step by step procedure for automation process,

now it is required to take the review of the system.People used information technological tools to

manage and process the information. Atomization process use in the financial sector for

transaction system. This type of working methodology is used in the financial Institute since

long years. The Urban Co-operative bank sector is mostly related to all classes of people like

businessmen, industry, agriculture, labor, Small entrepreneurs, workers etc. It has been changing

complete culture and working methodology. Therefore, it has a wide scope to study the existing

modern transaction system in the financial sector mainly in urban cooperative bank system. For

that purpose we are going to utilize software engineering model based techniques for theoretical

evaluation of atomization process.

RESEARCH METHODOLOGY

A) DATA COLLECTION:

1. PRIMARY DATA:-

The primary data will be collected through questionnaire and observation method will be

adopted

2. SECONDARY DATA :-

The secondary data will be collected from websites, journals, magazines and books.

B) DATA ANALYSIS & DATA INTERPRETATION:

After collecting the data various analysis techniques like bar chart, pie chart, Tabulation method

& various statistical tools will be used the interpretation for same.

References:-

1. 1. Dr. Meeta Nihalani, Head, Department of Management Studies, Jai Narain Vyas

University, Jodhpur,” THE IMPACT OF TECHNOLOGY ON THE MARKETING OF

FINANCIAL SERVICES” at Annals of Management Research, Volume 1, Number 1,

and September – October 2011.

2. 2. Allen N. Berger, Board of Governors of the Federal Reserve System, Washington,

DC 20551 U.S.A. “The Economic Effects of Technological Progress: Evidence from the

Banking Industry” at Forthcoming, Journal of Money, Credit, and Banking, Volume 35,

2003.”

3. William J. Wilhelm, Jr., Boston College, “INTERNET INVESTMENT BANKING:

THE IMPACT OF INFORMATION TECHNOLOGY ON RELATIONSHIP

BANKING” at Journal of Applied Corporate Finance, spring 1999.

4. Rajnish Tiwari, Stephan Buse, Cornelius Herstatt,”Mobile Banking As Business

Strategy: Impact Of Mobile Technologies On Customer Behavior And Its Implications

For Banks” at “Portland International Conference on Management of Engineering and

Technology” (PICMET) 2006, 8 – 13 July 2006, Istanbul (Turkey).