Globalization In Banking

In today’s era, when there is tough competition, globalization and deregulation have forced banks to deliver all-time services to its customers. The IT revolution in the banking industry has made the banks more responsive to the customers’ needs. IT revolution in the banking sector has had a significant impact on the performance of the banks and also in customer service delivery.

Globalization has helped to connect all the nations all the nations together without leaving them isolated. IT has benefitted all the sectors, including the financial sector, especially banking industry. Increasing competition has affected the banking environment too. Banks have to face a tough competition with other banking industry participants and competitors

Banking operations have become easy and flexible with the development of technology. Thus huge account registers and paper bank accounts are no longer used. Emerging trends include IT implementation and management, IT for business innovation, Managing IT risks and IT for internal effectiveness.

E-banking includes services like credit and debit cards, e-cheque, and DMAT accounts, telephone banking, ATM, EFT (electronic funds transfer), ECS (electronic clearing services), EDI (Electronic Data Interchange), mobile banking and internet banking. RTGS (in March 2004) and National Electronic Fund Transfer i.e. NEFT (in March 2005-’06) which replaced EFT and special EFT have been a great satisfaction to the customers. Hence, the role of IT in the growth, development, efficient working, and increasing popularity and customer dependence on the banks can’t be denied (Mittal and Gupta,

It makes it easy to keep a watch on money and financial transactions irrespective of one’s location. Online banking makes it easy to instantly log in to the online bank and deal with online transactions in case of emergency, beyond normal working hours and even when one is not in the hometown. In addition, it is easy to confirm and execute transactions at a speed equal to or greater than ATM processing (Anonymous, 2013).

E-banking has increased the efficiency with which all the bank accounts can be accessed and managed. It is possible to manage securities, CDs and IRAs from one secure site. It is also easy to maintain and update direct accounts (Aliyu and Tasmin, 2012). To help to manage all assets effectively, many tools like portfolio managing programs, rate alerts, account aggregation and stock quotes are made available by online banking sites. For this, quicken and Microsoft money managing programs have been