Key Future Challenges of Indian Banking Information System: A Qualitative Investigation

Key Future Challenges of Indian Banking Information System: A Qualitative Investigation

Sarika Kaushal (Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India) and Dilwar Hussain (Department of Humanities and Social Sciences, Indian Institute of Technology Guwahati, Assam, India)
Copyright: © 2018 |Pages: 10
DOI: 10.4018/IJVCSN.2018010105

Abstract

Indian banks spend heavily to procuring banking information systems (BIS) in order to achieve positive benefits to the bank and to its customers. They are under increasing pressure to justify its value. However, the evaluation of success of the BIS is generally ignored by banks especially at the post-implementation stage. One of the main reasons for the lack of evaluation of BIS is the dearth of proper measurement models and parameters. Furthermore, there are many key challenges that impede the widespread use of banking information systems especially in India. This article explores some of the major future challenges of BIS in India by using qualitative research designs. The data was collected from 100 respondents at the level of bank manager or higher officials. The data was analyzed using thematic analysis (Braun and Clarke, 2006). The thematic analysis revealed three themes associated with future of BIS: the technological challenges, human factor related challenges, and the business related challenges. This study indicates that it is imperative to address these challenges in order to gain optimum benefits out of BIS. The results also indicates that banks need to frame policies for training programs, and implementing adequate restructuring mechanism and change management programs and expand business initiatives.
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2. Literature Review

Technology is very much integrated and pervasive with banking that it is impossible to think of banking operation without an effective IT system in place. Banks are one of the largest investors in information system (IS) infrastructures like core banking solution, mobile banking solutions, client relationship management solutions and so on. The Centralized banking system (CBS) is one such technological advancement that has revolutionized the banking sector. CBS are organization-wide information systems that bring substantial changes to a bank’s methods of working and information flows. It contains record of all customer transactions and the processing of those transactions. It enables banks to offer a multitude of customer-centric services from a single location (Chakrabarty, 2010). It enables customers to access their accounts from any branch, anywhere, irrespective of where they have physically opened their accounts. Gradually, majority of the branches of the commercial banks including Regional Rural Banks are progressively bought into the core-banking net. Today, all the public sector banks have completed 100 per cent computerization of their branches with CBS. The banks in general have implemented Finacle, Bancs 24, Finware, Crown, Flexcube, and I-flex information systems as CBS solutions (Chakrabarty, 2010).

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