A Study On Impact Of Innovative Banking Services Rendered By Nationalized Banks

Abstract

Today banking is known as innovative banking. Information technology has given rise to new innovations in the product designing and their delivery in the banking and finance industries. The tremendous advances in technology and the aggressive infusion of information technology had brought in a paradigm shift in banking operations. The banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the E-Banking i.e. though Electronic channels, such as the telephone, the internet, the cell phone, etc. The concept and scope of E-banking is still evolving. It facilitates an effective payment and accounting system thereby enhancing the speed of delivery of banking services considerably. Due to E-Banking there is increase in customer satisfaction level, reduction in cost of banking operations, increased productivity and as such there is a tremendous scope for Indian banks to enlarge their E-banking services which could enhance their competitiveness. While E-banking has improved efficiency and convenience; it has also posed several challenges to the regulators and supervisors. The shift from traditional banking to online banking or digital banking has been gradual and should be rather described in degrees of digitalization services. It involves high levels of automation and web-based services. The paper suggests some measures to tackle the challenges faced by the banks particularly public sector banks.