Role of Information Technology in Banking Sector

Liberalization and Information technology has attracted many foreign banks to 
India, thereby opening up new market s, new products and efcient delivery channels 
for the banking industry. In the development of Indian economy. Banking sector
plays a very important and crucial  role. With the use  of technology there had been 
an increase in penetration, productivity  and efciency. It has not only increased the
cost effectiveness but also has helped in making small value transactionsviable.
Commercial Banks in India are  now becoming a one-stop Supermarket. The focus 
is shifting from mass banking to class banking with the introduction of value added
and customized products. Technologyal lows banks to create  what looks like a
branch in a business building’s lobby  without having to hire  manpower for manual 
operations. The branches are running on the concept of  24 X 7 working, made
possible by the use  of  Telebanking, ATMs, Internet banking, Mobile banking and
E – banking technology driven delivery channels are  being used to reach out  to 
maximum number of customers at lower cost and in more efcient  manner. The
beauty of these banking innovations is that it puts both banker and customer in a
win- win situation. Effective use of technology has a multiplier effect on growth and 
development.