Study on the Changing landscape of financial Services in Indian Banking System- Opportunities and Challenges

Abstract

Financial institutions are the backbone of the Indian economy. Since economic liberalizationafter 1990, the Indian banking sector has witnessed growth along with remarkable improvementin its quality of assets and efficiency. Information Technology has become one's way of life intoday's world that, it is difficult to imagine a world without IT. Technology which facilitateshandling increased volumes at higher levels of efficiency. Hence, there is an imperative need fornot mere technology up gradation but also integration of technology with the general way offunctioning of banks. The Banking sector is no exception to this changing scenario which issweeping across the world. Technology has given birth to a new era in banking. Indian banks arecontinuously encouraging the investment in information technology through ATMs, Netbanking, Mobile and Tele-banking, Automation of the banks, increasing use of plastic money,and the establishment of call centers. Nowadays banks are moving from disbursed operations toa centralized environment, powered by Information Technology. Banks are using new tools andtechniques to reach better to its customers by offering tailor made products and Services. Thechanges in the banking landscape facilitated banks to compete in the new environment. Banks ofthe future will be a user friendly enterprise with technology aiming to achieve sustainable andvalued business status. Information Technology has been imbibed in the banking operationswith a vision to provide “Anytime Anywhere Banking” with customized services. In this paperwe have discussed and analyzed the Changing landscape of financial Services in Indian BankingSystem in terms opportunities and challenges of technological developments, legal regulatoryframework, and risk management