Reading Comprehension for SBI PO Mains 2015 – 1

A sound and effective banking
system is the backbone of an
economy. The economy of a country can function smoothly and without many hassles if the banking system backing
it is not only flexible but also capable of meeting the new challenges posed by
the technology and other external as well as internal factors. The importance
and role of information technology for achieving this benign objective cannot be undermined. There is an urgent need for
not only technology up gradation but also its integration with the general way
of functioning of banks to give them an edge in respect of services provided to
the customers, better housekeeping, optimizing
the use of funds and building up of management informationsystem for decision making. The technology has the potential to change methods of marketing, advertising, designing,
pricing and distributing financial products and services and cost savings in
the form of an electronic, self-service product delivery channel. The
technology holds the key to the future success of Indian Banks. Thus,
“Electronic Banking” is the need of the hour, which cannot be lost sight of
except at the cost of elimination from the competition.

The existence of Electronic
banking also becomes inevitable due
to the standards required to be matched at the international level. Thus, the domestic
as well as the international standards mandates the adoption of Electronic
banking at the earliest possible moment.

In India, from the early I990’s, electronic banking is gaining in popularity as an important distribution channel to provide
banking services. This direction is being taken by the batiks to differentiate
their services to the consumers to gain their loyalty. The strategies adopted
by the Indian banks to survive the increased competition are the focus of this
study. Technology is enabling banks to provide the convenience of
anytime-anywhere-banking. Banks are now reengineering
the way in which their services can be reached to their customers by bringing
in flexibility in their “distribution channels”. The earlier brick-and-mortar
branch is no longer sufficient; technology is now taking banks to the homes or
offices, 24 hours a day, 365 days a year through ATMs, phone banking and PC
banking. The financial supply chain is undergoing a fundamental strategic
change.