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Banking, Financial Services and Insurance (BFSI) is anindustry name.
Banking Core Banking, Electronic payment ,Internet banking, Mobile
banking ,Information exchange
Financial Services Stock-broking, Payment gateways, Mutual funds etc.
Insurance Covers both life and non-life .
Data processing, application testing and software developmentactivities are outsourced to companies that specialize in thisdomain.
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Need FOR IT ADOPTION INBFSI SECTOR
Provide real time availability of transaction processing. Ensure security and safety of funds as well as confidential. Minimize transaction cost.
Enhance ability to conduct in depth financial analysis. Online bill payments, mobile banking as well as e-commerce.
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Evolution of IT in Banking
In early 1980s the first step towards computerization of bankswas taken.'Total Bank Automation.
In the early 1990s banks started thinking about tying-up disparate
branches together to facilitate information sharing.
Private banks hastened the adoption of technology.
Earlier banking used to be decentralized.
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Kanbay acquired Accurum, another IT firm servicing thesame segment.
Tata Consultancy Services acquired Phoenix Global Solution tostrengthen its offering for the insurance sector.
Cognizant acquired Infoplus, a Netherlands based IT servicesfirm specializing in banking and financial services.
Global Scenario
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IT in BANKING
Core Banking Internet Banking Electronic Payment Mobile Banking
Information Exchange
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CORE Banking
Core banking is a general term used to describe theservices provided by a group of networked bank branches.
Bank customers may access their funds and other simple transactions from any of the member branchoffices.
The platform where communication technology andinformation technology are merged to suit core needs of banking is known as Core Banking Solutions
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Contd
Here computer software is developed to performcore operations of banking like recording of transactions, passbook maintenance, interestcalculations on loans and deposits, customer records,
balance of payments and withdrawal. This software is installed at different branches of
bank and then interconnected by means of
communication lines
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Package Provider
Alnova Financial Solutions Accenture
Bancs TCS
Finacle Infosys
Intellect Core Polaris software Labs Ltd
Bankway Metavante
Core Banking Solutions and their providers
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Electronic bill presentment and payment Funds transfer
Investment Loan
Bank statements
:Features
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INTERNET BANKING
Internet banking is the latest technology involving useof internet to deliver banking products and services. Transactions are processed online without any
reference to the branch (anywhere banking) at any time. It is the cheapest way of providing banking services.
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MOBILE BANKING
Mobile Banking refers to provision of banking- andfinancial services with the help of mobiletelecommunication devices.
Mobile Banking Services
Account Information Payments, Deposits, Withdrawals, Transfers Investments
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ELECTRONIC PAYEMENT
It actually comprises two distinct mechanisms:
Debit-card transactions Credit-card transactions
Direct data entry transactions
Direct credit
Direct debit
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INFORMATION EXCHANGE
/ -The Internet World Wide Web is a low cost
-communication channel that support self service banking by enabling customer access to.information
Automation of standard services reduce the
.need for financial intermediaries( - ):Financial electronic data interchange F EDI
Involves the transmission of payment
,transaction data and associated remittance
,advice data from a payee to their bank
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How IT can improve bank s performance
IT reduces banks operational costs (cost effect).
It facilitates transactions among customers withinthe same network (network effect).
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IT IN FINANCIAL SERVICES
Information processing and communicationtechnologies are being used to enhance existing services,to implement new ones, and to make them available innew ways. Banks, credit unions, savings and loan associations joinnetworks of ATMs to obtain cash 24 hours a day
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HOW DOESIT AFFECT FINANCIAL SERVICES ? ?
Affordability of information processing for firms of allsize. Ability to move information quickly and accurately. Facilitating flow of information nation wide. Helped to overcome some limitations, such as, restrictionson inter-state banking, imposed by law.
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!!SAFETY CONCERN
The online transaction fraudulent use may not bediscovered until a statement is received. System failures can threaten the existence of financialinstitutions. Service providers hesitant to report incidents of theftsdue to their fear of loosing customer confidence or revealing their vulnerabilities.
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POPULAR SOFTWARES USED
GAS (Generalized Audit Software) CDC (Customer Driven Company) Oracle Financial Services Software IBM Rationale Policy Tester Software
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Characteristics of Insurance
Sharing of risk Co-operative device Evaluation of risk Payment on happening of special event The amount of payment depends on the nature of losses incurred
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:BENEFITS
It is superior to traditional saving machine It encourages saving and forces thrift It provides easy settlement and protection againstcreditors It can be enchased and facilities borrowing
Tax relief
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Technology in INSURANCE sector
GIS Geographic Information Systems
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Applications Of IT in INSURANCE sector
Online Payments GIS Share Price listing
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Conclusion