Trends in Banking
Banking in India: evolution in technology
Thought Paper
www.infosys.com/finacle
Universal Banking Solution | Systems Integration | Consulting | Business Process Outsourcing
Origins of banking
The origins of banking can be traced to ancient times, starting with rudimentary money lending and bartering practices for agricultural and other commodities. But it gained great momentum only after the industrial revolution which commenced in Europe in the 17th century, when Europeans started establishing colonies around the world and the need for credit for trade was felt like never before.
until late into 20th century. But the arrival of the Internet in the 1990s changed all that.
A plethora of possibilities emerged for worldwide commerce, which naturally impacted the functioning of banks as well. Even now, technology evolution shapes the nature and extent of global economic activity and continues to fundamentally alter the global banking landscape.
Ever since banks started operating, their essential mode of operations remained much the same
The Indian banking scene
In India, banking as an institution originated in the late 18th century and primarily catered to the needs of the British. Post-independence, the nationalization of major private sector banks in 1969 – an important milestone in the Indian banking system – made banking accessible to the unbanked population in India.
The economic liberalization in the early 1990s ushered in the era of privatization wherein many new private banks – the ‘new generation
02
Thought Paper
tech-savvy banks’ – were launched. A few foreign banks commenced their India operations as well. All these banks were quick to leverage emerging technology, were competitive in wooing customers and winning them over by providing professional services. This helped infuse a sense of urgency in public sector banks and older private sector banks to mend their ways, which in turn completely
Thought Paper
www.infosys.com/finacle
Universal Banking Solution | Systems Integration | Consulting | Business Process Outsourcing
Origins of banking
The origins of banking can be traced to ancient times, starting with rudimentary money lending and bartering practices for agricultural and other commodities. But it gained great momentum only after the industrial revolution which commenced in Europe in the 17th century, when Europeans started establishing colonies around the world and the need for credit for trade was felt like never before.
until late into 20th century. But the arrival of the Internet in the 1990s changed all that.
A plethora of possibilities emerged for worldwide commerce, which naturally impacted the functioning of banks as well. Even now, technology evolution shapes the nature and extent of global economic activity and continues to fundamentally alter the global banking landscape.
Ever since banks started operating, their essential mode of operations remained much the same
The Indian banking scene
In India, banking as an institution originated in the late 18th century and primarily catered to the needs of the British. Post-independence, the nationalization of major private sector banks in 1969 – an important milestone in the Indian banking system – made banking accessible to the unbanked population in India.
The economic liberalization in the early 1990s ushered in the era of privatization wherein many new private banks – the ‘new generation
02
Thought Paper
tech-savvy banks’ – were launched. A few foreign banks commenced their India operations as well. All these banks were quick to leverage emerging technology, were competitive in wooing customers and winning them over by providing professional services. This helped infuse a sense of urgency in public sector banks and older private sector banks to mend their ways, which in turn completely