ORGANIZATIONAL CHANGES IN INDIAN BANKING DUE TO TECHNOLOGICAL ADVANCEMENTS By

Joel .J 003 Krishna Sumanth 004

Krishna Vazrapu 005

Manasa 006 Solomon Victor 014 M.S.Tejaswee 015 Rajib 019

Ravi Teja Reddy. S 020

Contents

• Objective• Introduction• Archaic Banking• Current Banking• Organizational changes• Core solution• Implementation of resource planning• Changes in accounting process• Benefits• Future trend• Conclusion

Objective

• The objective of the study is to understand the organizational changes in banking due to the technological advancements and the current facilities that the customers are being offered.

Introduction

Technology is the key to the competitiveness of banking and finance system. Indian players will keep pace with global leaders in the use of banking technology. In such a scenario, on-line accessibility will be available to the customers from any part of the globe; ‘Anywhere’ and ‘Anytime’ banking will be realized truly and fully.

ARCHAIC INDIAN BANKING:

• Phase I• (1786-1965)• Phase II (1965-1991)• Phase III (1991-present)

CURRENT INDIAN BANKING INDUSTRY

Various developments, changes has been done in Indian economy and some new regulations came up such as

• Smoothen mergers and acquisitions of private banks

• Permit foreign banks to set up subsidiaries in India.

• A tentative nod to banks to permit trading in commodities .

CURRENT INDIAN BANKING INDUSTRY

Indian private banks have multiple entities, processes, and infrastructures for offering products and services like insurance, loans, investments, etc.

ORGANIZATIONAL CHANGES & TECHNOLOGICAL ADVANCEMENTS:

For extensive Business Process Re-Engineering and tackle issues like

• a) how best to deliver products and services to customers

• b) designing an appropriate organizational model to fully capture the benefits of technology and business process changes brought about.

• c) how to exploit technology for deriving economies of scale and how to create cost efficiencies,

• d) how to create a customer - centric operation model.

CORE BANKING SOLUTION

Services like• To make enquiries about the balance; debit or credit entries in the

account.• To obtain cash payment out of his account by tendering a cheque.• To deposit a cheque for credit into his account.• To deposit cash into the account.• To deposit cheques / cash into account of some other person who has

account in a CBS branch.• To get statement of account.• To transfer funds from his account to some other account – his own or

of third party, provided both accounts are in CBS branches.• To obtain Demand Drafts or Banker’s Cheques from any branch on CBS

– amount shall be online debited

ENTERPRISE RESOURCE PLANNING

• ERP is a software package developed for optimum use of resources of an enterprise in a planned manner. The evolution of ERP took place from the MRP (Material requirement planning).

• ERP system integrates all functional areas of the organization. These are the backbone systems for most of the organization that integrate back office applications like finance, purchasing, HR, inventory management, etc.

IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING AND SAP

• State Bank of India (SBI), India’s largest commercial bank, selected mySAP™ ERP to automate and seamlessly integrate its human capital management (HCM) processes across State Bank Group.

• Implementation of mySAP ERP will help State Bank Group drive advancement and innovation in areas of human capital management and enterprise resource planning such as e- learning, virtual classrooms, career development and succession planning, competency assessment, performance management and property management.

CHANGES IN ACCOUNTING PROCESS:

1. Electronic spreadsheet2. Accounting software

Benefits Improvement of organization’s

performance through increased efficiency, productivity, quality and innovation.

• Organizations that manage knowledge claim higher rates of productivity. By having greater access to their employees’ knowledge, organizations make better decisions, streamline processed, reduce re-work, increase innovation, have higher data integrity and greater collaboration.

Future landscape of Indian banking

Three trends change the banking industry world over, viz.

• 1) Consolidation of players through mergers and acquisitions,

• 2) Globalization of banking and its operations,

• 3) Development of new technology

Conclusion

• Modern banking systems are addressing the need to support multiple types of customer interaction, over multiple channels and across multiple applications. Mainly these systems decrease costs and improve customer retention for the bank.

Reference

• http://finance.indiamart.com• http://www.slideshare.net/prabhat1111/state

-bank-of-india-presentation• http://www.docstoc.com/docs