20-08-2012, 12:29 PM
PROBLEMS AND PROSPECTS OF BANK COMPUTERISATION – A STUDY
OF SELECTED CO-OPERATIVE BANKS IN PUNE
1PROBLEMS AND PROSPECTS.doc (Size: 82.5 KB / Downloads: 38)
INTRODUCTION
For the past three decades India’s banking system has several outstanding achievements
to its credit. The banks are the main participants of the financial system in India. The
banking sector offers several facilities and opportunities to their customers. The bank also
offers investment and insurance products. As a variety of models for cooperation and
integration among financial industries have emerged, some of the traditional distinctions
between banks, insurance companies, and security firms have diminished.
Before the establishment of banks, the financial activities were handled by money lenders
and individuals. At that time the interest rates were very high. Again there were no
security for public savings and no uniformity regarding loans. So as to overcome such
problems the organized banking sector was established, which was fully regulated by the
government.
Indian banking sector is divided into different components from which co-operative
banking sector is one. Co-operative banking is retail and commercial banking organized
on a co-operative basis. Co-operative banking institutions take deposits and lend money
in most parts of the world. Co-operative banks have completed 100 years of existence in
India. They play a very important role in the financial system.
Importance of the study
The Financial Institutions are the backbone of the Indian economy. Today Indian banking
industry is in the midst of an IT revolution. Nowadays nearly all nationalized banks have
implemented IT based solutions for their day to day transactions. The applications of IT
in banks have reduced the scope of traditional or conventional banking with manual
operations. IT and the communication networking systems have revolutionised the
functioning of the banks and other financial institutions all over the world. The Banks
are using new tools and techniques to find out the needs of the customer and accordingly
offering tailor made products and services. IT has enabled the banking industry to not
only come out with new products and services but also enhanced the turn around time by
bringing efficiencies in the backend processes. The impact of automation in the banking
sector is difficult to measure.
Bank Computerisation
Chapter 4 covers the important aspects related to computerisation process of banking
sector. This chapter covers introduction about computerisation, IT and banks, types of
bank computerisation, and also covers the computerised services provided by banking
organizations.
Nowadays, Banks are increasingly adopting IT based solutions, for providing better
services to their customers at a minimal cost. The role of IT has become so integrated and
pervasive with banking that it is impossible to think of banking processes without an
effective IT system in place.
Views of the co-operative banks customers regarding
computerised banking services
Discusses the views of customers regarding bank computerisation. Bank has
adopted computerised system for the reason that it is economical and it is labour saving
device. The researcher has classified the customers of the bank in 5 categories.
Considering 18 co-operative banks the researcher has selected sample of 40 respondents
from each category on the basis of purposive sampling method.
Out of 200 customers total 111 male customers as against 89 female customers.
Maximum numbers of 86 bank customers are in the age group of 26 – 50. Further, 63
customers are in the age group of below 25, and other 51 customers are above 50.
The customer visits a bank for depositing his/her savings or withdraws or enquiry about
balance. The researcher has made an attempt to analyze the transactions of the customers
of selected banks. These transactions are either traditional transactions or computerised
transactions. In this section researcher studied that how many customers visit their banks
for banking transactions (i.e. how many customers are using traditional way of banking)
and how many customers use computerised services for their banking transactions?
This section also discusses the e-banking services used by customers and the transaction
wise convenience to customers with e-banking services. The researcher also covers the
reactions of the bank customers regarding bank computerisation. To study this, researcher
has considered three aspects namely reduction in waiting time for any transaction,
security about computerised transactions and increased service efficiency.
Finally this section also covers the problems faced by customers regarding e-banking
services. This research highlights mainly on the problems faced by the banks, its
employees and the customers regarding bank computerisation. These problems are listed
below.