Development of Banking Technology in India: The Impact of Globalisation

Banking in India has been transformed from ‘conventional banking’ to ‘convenience banking’. Now customers are demanding the convenience of ‘anytime banking’ and ‘anywhere banking’. Computerisation in banking sector was initiated in 1980s. But it gained momentum in 1990s as a result of LPG (Liberalization, Privatization and Globalization). After Globalization, banks in India faced many challenges like competition, capacity building and adoption of technologies. In order to survive and adapt to the changing environment the banks are putting more stress on the banking technology. The Reverse Bank of India, India’s Central Bank, set up a number of committees to define and co-ordinate banking technology. This paper describes the development of banking technology in India. This developmental process has been described under four heading namely, Mechanization, Automation, Internet and Mobile Banking and Digital Payment System. From computerization to networking to ATMs and now internet banking and mobile banking and a bouquet of digital payment systems, banks have moved up the value chain. Banks are facing new challenges to satisfy, retain and attract their customers. They will have to constantly upgrade their technology so that banking can be hassle free and a pleasurable experience for the users. Therefore, some future banking technologies like Artificial Intelligence, Embedded Banking, Biometric Technology, Cloud Computing, AR/VR , Wearable’s, Blockchain, Internet of Things and Quantum Technology have been discussed in this paper. Now banks in India have whole heartedly embraced the technology. They are trying to meet the global standards in this regard.