TECHNOLOGICAL INNOVATIONS

IN INDIAN BANKING SECTOR

ABSTRACT:

 The goal of the paper is to identify ten important innovative solutions in the banking sector and analyze
them in the context of assumptions of the paradigm of relationships and features of product orientation
with related to technology. Banking is a rapidly changing industry. The biggest paradigm shift that has
occurred is the digitalization of banks which aim at providing customers with a broad scope of benefits.
Technology based innovations will be the key determinant in offering diversified and customized banking
services to their varied customer portfolios, at a reduced cost. Even if it is convergent with the
assumptions of the paradigm of relationships, it should be indicated that some banking products are based
on advanced solutions that may surpass real market demands. We examine the development of technology
in the banking sector.
 Index Terms:
Technology.
Innovations.
Banking Sector.
India.
 Introduction:

 Today Indian banking Sector is a flourishing Industry; it‘s mainly focused on new Banking
technological innovations. Banks created to use technology to provide effective quality and
services to the customer and get high speed. In the recent scenario has been changed, there are
around 340 banks are working in India, in which are public and private banks. Today all the
banks started with the different channels, like ATM, Credit Cards, Debit Cards, Mobile
Banking, Internet Banking, etc. But Net Banking made it an easy way for customers to do their
banking transaction from various places. In 2020 India's banking sector is a fifth largest
banking sector and 2025 the banking system was a third largest banking sector in the world.
The Indian Banking System cannot ignore the new technological challenges and banks are also
facing great challenges, that the innovations policy and strategy. This paper examines with all
the innovations and new technological changes in the banking sector.

 Smart Card
• Chip Based Card
• PIN
• Powerful Cards like ATM, Credit Card, Debit Card
 REVIEW OF LITERATURE:

Financial innovation is helpful in ensuring smooth functioning and improves the overall efficiency of the
system by minimizing cost and reducing risk. In India particularly public sector banks will need to use
technology to improve operating efficiency and customer services. The focus on technology will increase like
never before to add value to customer services, develop new products, strengthen risk management etc. the
study concludes that technology is the only tool to achieve their goals. Technological change and the advent of
the internet are among the most dramatic and challenging areas of change for the sector. Technological
innovations have shown the increased productivity as stated .

OBJECTIVES:
This paper aims to examine the various innovative instruments introduced by banks in
recent times.
To study how innovations have contributed to the development of Indian banking.
To study the challenges faced by Indian banks in the changing scenario.
To study the emerging technology in Indian Banking Sector
To study the challenges posed by ICT innovation in near future
Scope:
 To study covers the technological developments in Indian banking sector only.
 Blockchain technology offers identity authentication through a visible ledger and has potential to
reduce cyber risks.

Methodology:
 The study is descriptive in nature and is based on secondary data. The data are collected from
various reports, journals, news articles, various bank portals, RBI portal and internet sources.
Analysis:
1. Robotic Process Automation
The managing an account industry is confronting extensive dangers, inside and
remotely, prompting weight on both the best and base lines. As banks confront the risk of disturbance,
there has been an expanding center around changing their inward frameworks to remain at pace with
outer difficulties, be that as it may, the many-sided quality associated with inheritance change is
compelling banks to investigate imaginative approaches to drive interior efficiencies. RPA is a product
based way to deal with organizing exercises among existing applications by using existing business
principles and logic. When executed in banks, RPA can decrease manual procedures, robotize rules-based
higher proficiency RPA gives huge esteem add to different ranges of the client lifecycle, particularly
credit preparing, installments, operations, and accumulations. APIs to Monetize the Digital Assets and
Data.
2. APIs to Monetize the Digital Assets and Data:
Application Program Interface (API) is an innovation convention that enables
different programming segments to impart in banks it would enable them to bundle their
business resources and information, making them available both inside and outside an
organization. API innovation empowers saves money with the adaptability they have to give
the sort of item customization and experience that clients expect through outsider applications
in this developing advanced age. API it enable banks to address their shortcomings in a
specific territory Activities.
5. Biometric Authentication Tool:
biometric validation techniques utilize special organic or behavioural
attributes to check a client's personality. given the uniqueness of biometrics, it can give
included security and lessen chances superior to anything ordinary security frameworks:
be that as it may, this technique for recognizable proof has been always fashioned by
fraudsters as it is anything but difficult to print archives and cards as amazing printing is
effectively accessible to everybody with biometrics, be that as it may, it winds up
noticeably close difficult to utilize another person's character.
 .

3.Cloud Services:
Major worldwide banks are expanding their cloud ventures, numerous enormous banks are presently
concentrating on open cloud deployments.
6. Distributed Ledger Technology:
The systems are costly and powerless because of the procedures that support resource possession and
resource transfer. Distributed record innovation works on a shared premise permitting appropriated record
administrators to take out supervision, IT framework, and their related costs.

7. Cognitive Banking to Provide an Edge over Competitors:

Banks are in the need of innovation that can help adapt to these information difficulties to keep pace
with contenders and satisfy client desires.
Present day applications in India:
Biometrics application in Indian banking sector

Biometrics type Example

Fingerprint UIDAI uses fingerprints to issue Aadhaar number.

DCB has set up ATMs in Bengaluru, Mumbai, and Chennai that require fingerprints to
withdraw money. The ATM operates using Aadhaar card data and links a customer‟s
fingerprint data with his Aadhaar biometric details.
HDFC is reaching out to rural areas with micro ATMs (handheld device). Fingerprints are
used for instant authentication
.SBI uses fingerprints to verify bank employee credentials

Voice Recognition ICICI Bank introduced voice recognition for its customers to transact smoothly through
the bank‟s call center. Voice of the customer acts as the password. The voice recognition
technology uses speed, accent and pronunciation for authentication, which are unique to
every individual

Face Recognition Federal bank has introduced zero balance selfie account which uses an app (Feedbook),
scanned PAN, Aadhaar details and a selfie to open an account instantly. App gets
converted into a passbook once the account is opened

Iris Scan UIDAI also uses Iris scan to issue Aadhar numbers
Big –data analysis application in Indian banking sector:

Bank name main focus of using analytics

HDFC To get a complete picture of the customer

ICICI bank To reduce credit losses

AXIS bank For customer intelligence and risk management

SBI Applying data models to education loans ,automotive loans housing loans, SME loans to try and
reduce the percentage of them going bad
Findings:
 When executed in banks, RPA can decrease manual procedures, robotize rules-based higher profiency.
 Expanding instances of money related extortion, wholesale fraud, and dangers from the internet have made
banks to rebuild their character practices and biometrics in keeping money and monetary administrations
offers the arrangement.
 Technological innovations have contributed to the development of Indian banking.
 To study the challenges faced by Indian banks in the changing scenario .
Suggestions:
 There is a manual record maintenance system by some bakes we suggest that they want to improve
data processing data management.
 We review studies from several disciplines including innovations strategies and information
technology with the help of ICT in India.
 There greater scope for research and its needed for greater understanding of the strategies issues and
for managing the collaborative process.
 The governments need to educate the customers in the new age technology on the problems and issues
with this kind of innovations and take precautions of strengthen the same.
Conclusion:
The banking sector in India has become tougher in term of development and economic growth the
number of customers in the financial sector. In the next generation will play a vital role in further strengthening the
banking sector. Nowadays, the new technology is sure that the future of banking will introduce more offers and
services to the customers with the bust banking product and innovations. Banking sector also increased the
accessibility of a common person to bank for his productivity and requirements. Nowadays, technology changing
reforms have changed the face of Indian banking and financial sector. The banking system has improve the manifolds
in terms of product and services, technology, banking system, trading facility etc. it is the evident that the banking
system has grown in India to compare with other country. Future, the banks comprehends their customer and bank
will be meeting their requirements. Indian Banking Sector provides better services with other developed banks.
Reference:-

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Thought, vol. 7, pp. 171– 185, 2016
 H. Gultekin, M. S. Akturk, and O. E. Karasan, “Scheduling in robotic cells: Process flexibility and cell
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 Cap Gemini, “Top 10 Trends in Banking – 2017 Table of Contents,” Capgemini, 2016.
 O. and W. Fargo, “Cyber Security,” 2016.