1. Impact of technology in financial sector Group 5: Adityabhutani ShubhaSmar AkshitaPachauri Tanesh Kothari PeeyushPareek Jatinder Singh Sandhu PriyankaGoyal

2. Impact of IT in banking sector In general, existing studies have concluded two positive effects regarding the relation between IT and banks’ performance. 1. IT can reduce banks’ operational costs For example, internet helps banks to conduct standardized, low value-added transactions (e.g. bill payments, balance inquiries, account transfer) through the online channel, while focusing their resources into specialized, high-value added transactions (e.g. small business lending, personal trust services, investment banking) through branches. 2. IT can facilitate transactions among customers within the same network (e.g. automated teller machines (ATMs) by banks)

3. Impact of IT in banking sector On-Line Return Filing System-which as a sub-set of the CDBMS, will act as a one stop shop for banks to submit all the regulatory returns. This system which has commenced in a small way is being expanded to cover all the returns furnished by commercial banks to the Reserve Bank. On-line Complaint Tracking System-The software, developed at the request of the Ministry of Finance, enables the office of the Banking Ombudsmen to track disposal of complaints; access is also available to the Rural Planning and Credit Department (RPCD) and the Ministry of Finance for monitoring the position on a real time basis Enterprise Wide Knowledge Management System (EKMS)- which would provide organic linkages across various sets of information available across different functional units of the Reserve Bank which could be used for better analysis and obtaining a holistic picture across different segments of the markets

4. Impact of IT in banking sector Centralised Data Base Management System (CDBMS)-the Data Warehouse of the Reserve Bank, by providing for access to general users as well, and accessible through the Internet, called the CDBMS. The IDRBT physically hosts the Secured Web Site of the Reserve Bank which enable users to have electronic access to the Reserve Bank’s offerings using the Internet Multi Protocol Layer Switching (MPLS)-technology for the INFINET so as to take advantage of lesser costs and widely available technologies has begun at IDRBT which would usher in more benefits to users Structured Financial Messaging System (SFMS)-which is akin to S.W.I.F.T. for exchange of financial messages across member banks has become the widely used inter-bank messaging system.

5. Impact of technology in stock market There has been a migration from a Screen based trading system for Government Securities to an Order Matching System so as to result in better price discovery and more transparency in the market related transactions in Government securities Negotiated Dealing System (NDS)-which has been in use for many years now, has been enhanced to provide for changing market and regulatory requirements. Clearing Corporation of India Ltd., (CCIL) as a fully IT enabled entity providing for electronic transaction processing as well as reporting has enabled the market to grow in depth and coverage as well.

6. Impact of IT in stock market The Internet makes them accessible in the global market. Being more accessible will give them the opportunity to pick up a bigger market share, and give them a greater market value. Ultimately, it will give them the ability to compete with the larger corporations. It is also predicted that information technology based companies will drive growth in the Stock Market. Information technology enhances investor growth. The Internet has created global availability of information. “Although there are the ‘Have’s and the Have Not’s’ regarding technology and technical know how, the Internet and the World Wide Web, the global open market and pop culture, and the Information Age economy is quickly spreading throughout the world.”

7. Impact of IT in stock market Use of the Multi-Lateral Net Settlement Batch facility for effecting the settlements arrived at by various clearing systems (such as the Stock Exchanges), through the RTGS mode Pilot projects entailing the use of Multi Application Smart cards have not only yielded satisfactory results; their usage for Financial Inclusion has opened up new vistas for their wide spread use across the country Use of credit transfer based RTGS transactions by brokers, constituents etc. pertaining to the funds leg of secondary market transactions

8. Disadvantage: Distorted facts are possible with such a plethora of information. Investors looking for information may find the wrong information or information that has been cooked, changed, or distorted in the corporations’ favor. Also, the more information there is out there, the harder it is to find the information you need because you have to trudge through all the excessive information

9. Impact of technology in insurance sector The impact of Information Technology in Insurance business is being felt at an accelerating pace In the initial years IT was used more to execute back office functions like maintenance of accounts, reconciling broker accounts, client processing etc. With the advent of "database concepts", these functions are better integrated in an administrative efficiency. The real evolution is however emerged out of Internet boom. The Internet has provided brand new distribution channels to the Insurers. The technology has enabled the Insurer to innovate new products, provide better customer service and deeper and wider insurance coverage to them.

10. Impact of technology in insurance sector At present, Insurance companies are giving customers a distinct claim id – to track claims on-line, entertaining on-line enrolment, eligibility review, financial reporting, and billing and electronic fund transfer to its benefit clan customers. Also calculating the EMI’s amount & related calculations.

11. Merits and demerits of IT Globalization Communication Cost effectiveness - Bridging the cultural gap More time Creation of new jobs Unemployment Lack of job security Privacy Dominant culture Merits Demerits

12. Conclusion To provide a interactive and user friendly service, banks and financial institutions have adopted the most recent technological trends. Queuing at banks is a thing of the past; nowadays customers can enjoy various facilities at the doorstep of their banks and at other locations. Phone banking and SMS banking services can also keep customers updated with the status of their money, investments and offer an array of additional services. Stock or share trading is also not spared with the changes in technology Stock brokers or even everyday normal buyers can have an almost instant up-to-date update and status of the market status of stocks of their interest. They no longer need to wait for newspaper, news channel or need some fancy program. You can transfer funds, pay utility bills, deposit your insurance premiums, and shop online with the assistance of online payment facilities and technology to access these services.

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