How is IT and the networking technology helping the banking sector improve productivity?
Till recently, banking was looked at as a Brick and Mortar activity. In other words, people always associated the business with a particular building or location, popularly known as the ‘Branch’. As technology developed, particularly in communication and networking, it became possible for people to transact business from any location. It will not be out of place to say that our country picked up the benefits of technology much later than the advanced countries where technology adoption in banking was quite rapid. In India also, technology adoption by foreign banks and new generation private sector banks has happened at a much faster pace than the public sector banks. Technology helped banks cut down transaction processing time and also, they are now able to offer front-end self-service delivery channels to their customers. And, front-end delivery channels help reduce infrastructure cost for banks. According to a research, if the cost of transacting in a ‘brick and mortar structure’ is