Later on, banking will be driven more of telecommunication and technologies systems. Founded by advanced technology and telecommunication, Public sector banks have made strides in delivery and product creation. Technological changes have brought from the banking could be surpassed as of the process today Banking anytime everywhere, anyway banking .Internet banking will enable 3 profit centers treasurybanking and retail banking, to establish new products and provide quality service. With the aid of info technology that is innovative, banks are able manage a lot of transaction in no time and to reduce the transaction cost. Banks may provide products and providers could be accessed by customers by sitting at home.
To provide improved services Client Relationship Management facilitated by the availability of technology is being embraced by banks. Innovation is engineering is helping banks to cross sell securities and insurance firms merchandise, which are swelling their fee. Sophisticated technology brings advantages, but risks. Important impediments and hazards linked to the implementation of advanced technology are, oCost connected with adoption of new technologies may not bring money flows needed to cover that cost.oIncreased capacity due to a brand-new technology could result excess capacity from the financial institution.oAnother dilemma banks face with implementation of newest technologies is integration of current system with the new one.oBanks may face price payable or cost control problems.oInnovative technologies has brought new risks such as overdraft riskINNOVATIONS IN HOUSING LOANSHousing loans are among the products that banks are focusing more.
The flourishing housing loans market positively affects many industries. So to provide impetus to any economics, flourishing housing market is vital. Banks benefit from greater security ,low risk weights and reasonable margins. RISK MANAGEMENTGlobalisation and liberalization are forcing banks to take more risk to compete efficiently within the global marketplace. Among the important risks is compliance risk. It’s the risk to adhere to laws, rules and standards like market conduct, treating clients fairly, etc. To mitigate this risk, banks should develop compliance culture from their organization. It isn’t just those duty of compliance specialists, but banks may also manage compliance risk by putting from place compliance functions which are in consistence with compliance principles. Liquidity risk arises when banks unable to meet their obligations when they become due. To manage those mismatch of assets and liabilities, banks should analyze those accounting data both on static as well as dynamic basis. Deposits of higher value are those most crucial item to be monitored on a regular basis, as sudden withdrawal of those deposits might cause liquidity dilemma for the bank.