BANKING AND FINANCE SYSTEM- FIELD STUDY (Team-45)

Here is my Article "Banking and Finance"?Research and?Field Study Part of the Skill Development Project-2

Our Team:

2100031587 -- S.Hemanth Reddy

2100032035 -- T.Ravindra

2100032045 -- V.Sri Niteesh Kumar

INTRODUCTION:-

The banking management system is an application for maintaining a persona's account in a bank .The system provides the access to the customer to create an account, deposit/withdraw the cash from his account, also to view reports of all accounts present.?

Finance is a system that involves the exchange of funds between the borrowers and the lenders and investors. it operates at various levels from firms to global to national levels.

Finance is defined as the management of money and includes activities such as investing,borrowing,lending,budget,saving,and forecasting. and it is defined as the provision of money at the time it is required.

There are three main types of finance:

1.Personal

2.Corporate

3.Public

ADVANTAGES:

1.Safety of Public Wealth

2.Availability of Cheap Loans

3.Propellant of Economy

4.Development in Rural Areas

5.Economies of Large Scale

DISADVANTAGES :

1.Chances of Banking going Bankrupt

2.Risk of Fraud and Robberies

3.Risk of Public Debt

OBJECTIVE:

±Safeguard Deposits

Bank serves the main purpose of accepting deposits from public and safeguarding it. It guarantees the safety of funds to customers for depositing their money in their accounts.

±Provide Loans

It advances loan to customers at both short-term and long-term basis as per their needs. Bank provides loans out of the deposit that they receive and charges interest on the amount from customers.??

±Encourage Savings

Banking institutions have an efficient role in encouraging saving habits among people. It motivates people for saving and depositing their earnings in bank accounts by paying them a fixed rate of interest on their deposited amount regularly.

±?Capital Formation

Banking accelerates the capital formation rate within the country. It extends credit to various sectors of the economy from time to time which helps in uninterrupted continuation of all growth and development activities.?

Currency Issue like Banking organizations does the purpose of issuing currency which is served as a legal tender in country.?

Link for our Survey:

Survey Results:

Modules finalized for our Business System:

?Login Process: This module helps legitimate customers to access the functions offered by the bank.

?Balance Enquiry: This module preserves the knowledge of the balance of a given account.

?Upgrade Profile: This module helps the user to update their account profile.

?Movement of Money: This module enables consumers to transfer funds from one account to another within the same bank.

?Password update: This module helps consumers to change the passwords.

?Feedback: This module helps consumers to access descriptions of their purchases.

?Future Scope of the Project: The new framework is being developed as a software application in the future, we would like to improve it for handheld devices such as phones or GPRS links.

USE CASES FOR EACH MODULE:

• Login Process:

Virtual account holders can login in into the system using this module. Thus this is the secured login page for the customers in the website.

Balance Enquiry:

This module preserves the knowledge of the balance of a given account.

Upgrade Profile:

This module helps the user to update their account profile.

Movement of Money:

This module enables consumers to transfer funds from one account to another within the same bank or different banks. This process is also known as Transaction.

HOW IS CUSTOMER EXPERIENCE IN BANKING CHANGING?

Digital transformation is affecting all industries and banking is not excluded. In recent years we have seen fintech providers embracing technology in ways that provide novel and innovative customer experiences that confront traditional modes of banking.

Digital banking and changing customer experiences go hand in hand. Neobanks (digital-only banks) such as Revolut, N26, and Monzo are all offering banking solutions that are driven by technology and customer experience.

These digital disruptors are providing banking services for a new generation of customers that values polished UX, accessible ways to manage their money, and increasingly personalized experiences.

Neobanks are considering the journey of the customer and how they interact with banking services. By providing seamless interfaces they are enabling their users to quickly manipulate money the way they need to - in real-time, through this clever use of available technology they are able to provide convenient and enjoyable solutions to user needs.

Take for example a large group of 10 people who have just had a meal together at a restaurant. When It comes to payment it may be time-consuming and difficult for a restaurant to split the bill with such a high number of patrons. The burden then falls on the customer to organize and arrange how the money will flow to the appropriate person when the bill is paid.

Innovative companies such as Tikkie in the Netherlands are facilitating payments through quick and easy Whatsapp payments that people can access and share with large groups. Meaning that one person can cover the bill and receive payments from other members of the group in a fast and simple manner by simply sharing a payment link. Innovations such as this are changing the landscape of possibility within personal finances.

Whether or not digital-only banks are considered a threat to traditional banks, the innovations they provide are enough to draw significant numbers of new and existing customers by shifting people's expectations of how banking services can be delivered.

Traditional banks, as well as neobanks benefit from putting an emphasis on their customer's journey so that they are able to adapt and innovate their service delivery to accurately meet people's needs.

Net Banking: It is done through the internet by individuals and firms for transfer of funds, booking rail tickets, shopping, purchasing cinema tickets, purchasing shares, etc.

Mobile Banking: Mobile banking?is a service provided by a?bank?or other financial institution that allows its customers to conduct a range of financial transactions remotely using a mobile?device such as a?mobile?phone or tablet, and using software, usually called an app, provided by the financial institution for the purpose.

The amalgamation of Banks: The consolidation of banks is known as an amalgamation of banks. Recently the?Union Cabinet on 15-02-2017 approved the merger of State Bank of India with five of its associate banks for efficient enhanced operational efficiency and reduced cost of funds.

Implications: The banks were quickly responded to the changes in the industry; especially the new generation banks.?The continuance of the trend has re-defined and re-engineered the banking operations as a whole with more customization through leveraging technology. As technology makes banking convenient, customers can access banking services and do banking transactions at any time and from any ware.?The importance of physical branches is going down.?

?Challenges: The major challenges faced by banks today are:

Non – Performing Assets (NPAs): Today, in the era of globalization banks have to cope with the competitive forces and strengthen their balance sheet. Nowadays, banks are groaning with the burden of NPAs. If NPAs are not recovered, they will destroy the very vitals of the banks. Another major concern before the banking industry is the high transaction cost of carrying Non Performing Assets in their books. The resolution of the NPA problem requires greater accountability on the part of the corporate, greater disclosure in the case of defaults, an efficient credit information sharing system, and an appropriate legal framework pertaining to the banking system so that court procedures can be streamlined and actual recoveries made within an acceptable time frame. The banking industry cannot afford to sustain itself with such high levels of NPA’s thus, “lend, but lent for a purpose and with a purpose ought to be the slogan for salvation”.

Information technology (IT) in Banking: Indian banking industry, today is in the midst of an IT revolution. A combination of regulatory and competitive reasons has led to the increasing importance of total banking automation in the Indian Banking Industry. Information Technology has basically been used under two different avenues in Banking. One is Communication and Connectivity and the other is Business Process Reengineering. Information technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks, and helps the financial intermediaries to reach geographically distant and diversified markets.?The Indian banks today are subject to tremendous pressures to perform or perish as otherwise, their very survival would be at stake.?The application of IT and e-banking is becoming the order of the day with the banking system heading towards virtual banking. Training the banking staff with the latest software skills is also a challenge.

World Wide Banking (WWB): As an extreme case of e-banking World Wide Banking (WWB) on the pattern of World Wide Web (WWW) can be visualized. That means all banks would be interlinked and individual bank identity, as far as the customer is concerned, does not exist. There is no need to have a large number of physical bank branches, extension counters. There is no need for person-to-person physical interaction or dealings. Customers would be able to do all their banking operations sitting in their offices or homes and operating through the internet. This would be the case of banking reaching the customers. This is also another challenge for our banking system.

Cyber Crimes: Today, the major?cybercrimes?which plague the?banking sector?are ATM frauds, hacking of bank accounts, Denial of Service, Credit Card frauds, phishing, etc.?are challenged to the banking industry. The rapid growth of global electronic crime and the complexity of its investigation requires a global presence.

WHY ARE SOME PEOPLE STILL NOT USING BANKS?

"Globally, about 1.7 billion adults remain unbanked—without an account at a financial institution or through a mobile money provider."

Of course, the world has changed a lot since 2017, however, the fact remains that a large number of people exist in the world without a bank account represents a large market for banks that can be explored. The majority of these people live in developing countries or locations where banking is simply impossible, or affordable. However, the constraints experienced by these countries and "unbanked" markets are driving innovations in banking technology.

Banking Technology Trends

The future of banking technology is driven by consumers, especially Gen Zers, who see technology as something that enhances their lives. A common trend in banking technology is using an application programming interface (API) to make proprietary data available to anyone who has the consumer's permission to access it.

Banks are using AI to smooth customer identification and authentication, while also mimicking live employees through chatbots and voice assistants.?Android Community

APIs could be used to enable a bank's mobile app to pull down customer account information. Fintechs have also used API technology to enable their businesses to work, and their success is encouraging competitors to develop their own APIs.

Additionally, Insider Intelligence reported that 48% of banking executives believe new technologies like blockchain and artificial intelligence (AI) will have the greatest impact on banking through 2020. According to Insider Intelligence,?banks are exploring blockchain technology?in hopes of streamlining processes and cutting costs.

Consumers can already see AI being used by most banks through chatbots in the front office.?Banks are using AI to smooth customer identification and authentication, while also mimicking live employees through chatbots and voice assistants.

Conclusion:

So after conducting lots of user research we understood what we have to build to satisfy and meet the trust of all the users and stakeholders and we are ready to build online banking and finance systems with the help of modern technologies and frameworks.