[ronnierules]

Role and Significance: -

Computers were originally destined for a minor role in banks, primarily intended to facilitate accounting transactions. Subsequently, once its superiority was firmly established, it grew in status as a tool for management information and a host of other inventions. Although the accounting aspect is still quite important and relevant, IT has a far greater role to play to day to day banking operations, especially in decision making process. Further, facilities like ATM, Anywhere Banking, Internet as well as Mobile Banking have been increasing their presence. It has, to be conceded that ‘Information Technology’ is not the end in itself, but is useful tool in the hands of the management to leverage business prospects in its favour and enhance efficiency.

Banks now have come under great pressure to reduce operational costs to safeguard their bottom lines. With banking tuning more and more customer-centric with every passing day, technology as an enabler has helped banks to launch a whole array of customer-centric products such as ATMs, Debit Cards, 24 hour Anywhere Banking. Customer Relations Management is now a very potential concept. Internet Banking also has a role to play in ensuring a fair return to shareholders, by facilitating in ensuring greater profits to the banking sector. The recent emerging trends in self-service channels, namely ATM,s, Call-centers, Internet and Mobile Banking would increase the use of E-banking as this offer the twin benefit i.e. convenience to the customers and reduction and cost of operation to the banks. The popularity of internet banking likely depends upon inculcating in customers about their security and personal privacy of their money and assets.