It was originally introduced in the UK, in the year 1983. 93% of Brits were using online banking in 2022.

Chaalis saal the unke pas……………..

According to industry experts, a bank spends an average of Rs 40 for each transaction conducted at a branch. If a customer uses the ATM
facility, the cost drops to Rs 18-20 per transaction, but it is still much higher than the cost involved in online banking. “In order to promote Net
banking, the financial institutions offer certain services for free or charge a nominal amount,” says Sangapure.

Digitization in banking can affect jobs in several ways. On the one hand, it can lead to the creation of new jobs
in areas such as digital marketing, data analytics, and cybersecurity. On the other hand, it can also lead to job
displacement and automation of certain roles. Here are some ways digitization in banking can affect jobs:

1. Automation of routine tasks: Digitization in banking can automate routine tasks such as data entry,
account opening, and transaction processing. This can lead to the displacement of some jobs,
particularly in areas such as back-office operations.
2. Increase in digital marketing and sales: Digitization can also lead to an increase in digital marketing
and sales, which can create new job opportunities in these areas.
3. Data analytics: Digitization in banking generates vast amounts of data, which can be analyzed to
improve business operations and customer experience. This can create job opportunities for data
scientists, data analysts, and other related roles.
4. Cybersecurity: With the increasing reliance on digital systems, cybersecurity becomes even more
critical. Banks will need to invest in cybersecurity to protect their systems and customers' data,
leading to new job opportunities in this field.
Overall, digitization in banking can lead to both job displacement and job creation. However, it is essential to
note that the job market is constantly evolving, and banks must adapt to changing technology and customer
needs. Therefore, banks should focus on upskilling their employees to prepare them for the changing job
market and providing support for those whose jobs may be at risk due to digitization.

Digitization has also created new roles such as data analysts, cybersecurity experts, and digital marketing
specialists, which require specialized skills in areas such as data science, programming, and online marketing.
As an aspirant, it is important to keep abreast of the latest technological developments and be
willing to adapt to changing roles and skill requirements. Developing skills in areas such as data
analysis, programming, and digital marketing can help you stay relevant in the industry.

IMPORTANT
Banking sector has been 1st sector to try and to implement technology since its inception. Banking is mostly
service and human beings get bored by doing repeated steps and there is a drop in services quality.

There hangs a story what I must tell. All Public Sector Banks approached Reserve Bank of India in 1992-1993 to
seek how to fix service quality issues for retail customers. These were times when customer had to visit branch and
he could have withdrawn money only from 10 AM to 2 PM on working days. There were no ATMs, no internet
banking but only cheque services and zero digitization and absolutely no automation.

Customer can only approach his branch (and can't visit any other branch). Forget about loans. Getting a loan from
Public Sector Bank was like manna from god. You can't get a car loan, a 2 wheeler loans or housing loan. Only
HDFC Limited provided home loans to customers wherever it was present.

Enter ICICI Bank who approached RBI for retail banking license. RBI granted banking license to ICICI Bank
wondering what ICICI Bank will do in retail space where Public Sector Banks (of 100+ years of legacy) are
struggling.

ICICI Bank implemented Technology for all its stakeholders. It achieved volumes and equally good customer
service through Technology. You can look at ICICI Bank progress how it leveraged Technology to become number
3 largest bank in India.

ICICI Bank is a success story on Technology, Technology and Technology.

Let me answer your question:

1st, Automation and Digitization liberate customers and provide self servicing platforms to customers which is the
best way to provide customer service.

2nd, Not only it liberates customer but self servicing customers' transactions are low value transactions for a bank.
For example, if you withdraw INR 3000 by visiting bank, this transaction will cost around INR 200/- for a bank. If
you withdraw INR 3000/- from an ATM, this transaction will cost around INR 50/- for a bank. If you do a fund
transfer using Internet Banking to another bank account, this cost is nil for the bank.

3rd, Technology uniformly serves all customers equally (I mean Mr. X, customer of Bank A can't complaint to RBI
that Bank A has services Mr. Y better then him).

4th, The bank reduces cost by implementing Technology. So, it adds to bottom line of the bank (more profits) and
Bank can pass benefits to customers in lower pricing.

At present, Technology driven automation and digitization makes only difference for a bank [Check products,
services, presence, offerings of top 10 banks in India and you will find little or no difference].
  Improved customer experience as Mobile banking , online banking,UPI can be used 24×7.
 Reduction of costs for banks and customers as well by using ATMs, cashless transactions etc.
 With more digital data available with banks, they can take data-driven dynamic decisions by using
digital analytics. This benefits both customers and banks.
 Technology is non-discriminatory. Everyone will be treated same at banks.
 Number of customers will be increased for banks because of the increased convenience of banking.
 Digitization reduces human error.
 Opening and maintaining bank accounts are easier now
 Rural and urban gap has been eliminated.
 Productivity has been increased as more tasks can be accomplished within less time.

Safety vs savings

The benefits of Net banking notwithstanding, a lot of people balk at availing of this option because of the concerns
about the security of online transactions, especially in an age where phishing and online fraud is on the rise.

Raj, however, counters this, saying that Internet banking is probably safer than physical transactions. “Banks have
introduced a double authentication system, which makes Net banking much safer,” he says. According to him, each
customer is given a unique password to log into his account.

To complete any transaction, he needs to key in an ID sent via SMS to his registered mobile number. “So it is not possible to go wrong. It’s
highly unlikely that any other person, even a fraudster, could have both the unique log in/password and the registered mobile number,” he
adds. Incidentally, you don’t get any security assurances while transacting physically at the bank.
..
Rajiv Raj, co-founder and director at CreditVidya.com

They can't help but worry about this aspect what with news on fraudulent bank transactions that pop up
every now and then. However, this should not be a problem as banks that provide internet banking
services prioritize security above anything else.Since they value their customers, they always use the
most advanced security technology in protecting their websites. Internet banking makes it possible for
banks and their customers to do business from anywhere in the world.T
Covid 19 eye opener:The Covid pandemic made the world more aware of the importance of contactless payment and digital banking.

Fear factors creating resistance:Lack of education and awareness is creating fear of online
fraud and cybercrimes. Banks should adopt measures to improve customer awareness.

Online banking also called as internet banking, allows the customers to use all the banking services from
a computer which has internet acess.The customer can perform financial transactions on a secure
website operated by the bank. Online banking offers features such as bank statements, loan
applications, funds transfer, e-bill payments and account aggregation allows customers to monitor all
their accounts in one place
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