Branch Computerisation

We have seen the significant role played by Reserve Bank of India in ushering the era technology upgradation of banking in India. But for the efficient computerised service to reach the customer, the initiatives rests with the individual banks. They have to computerise the critical, but recurring functions of head office, zonal and other administrative offices, effect connectivity of the branches mutually with head office/administrative office, and finally computerise internal operations of the branches. With this task does not end, since customners have to be provided anytime and any place banking service, as also 24 hours a day and seven days a week banking service.

ATMs have to be set up and credit card service introduced, along with provision of e-banking or Internet-banking to the customers. How to plan and execute this momentous task over vast number of branches geographically spread representing varying size, and type of functions? A broad outline of considerations that should weigh in designing such a system are provided here.

The software for branch computerisation should provide for core modules representing the common features of all branches with special add-ons for specific branches handling additional/special functions. The module should provide for both operation on the stand-alone compouters loading department-wise/function-wise packages or for integrated functioning on the network system. It should be a multi user product enabling different persons operating the same package for a particular function, or each person using different packages. The basic core modules should cover the general ledger, transaction processing, security access and authorisation, customer information, and customer services covering each and every banking service provided to the customer (either credit or deposit). Services provided at specific branches like foreign exchange transactions and letters of credit can be optionally provided by way of add-ons. It should provide for generation of MIS reports, and for capturing and retrieval of specimen signatures of customers whenever needed for comparison.

1. Computerisation of In-house accounts: This should start with computerised generation of vouchers from control records, followed by automation of other process, like cash book, transfer scroll, day book, General Ledger, subsidiary General Ledger, sectional ledgers etc. The data input will be done only at the stage of vouching. All other process will be automated.

2. As it is computerisation has not significantly come to the level of customer service, but accuracy and speed in maintenance of basic records improves the overall efficiency. However functional services have already been computerised in these branches with stand alone P.Cs.

3. These services should now be upgraded to full computerisation setting up a single connected network, which should also be connected with the controlling office RO or ZO as the case may. The program should include automatic generation of MIS and control returns and such returns for each branch should be possible to be generated directly at the controlling office. When this stage is completed we may state that we have completed computerisation of back-office functions.

Internet banking is used in our country only by selected members of the educated customers. This is because that despite India being one of leading IT service providers in the world, there is a huge digital divide in our country. Percentage of P.C. using population is very small. Hence the branches where this facility should be introduced should be carefully selected.

Next consideration that should weigh is the implementation of security protection. Internet banking is prone to computer crimes and computer frauds, as discussed earlier in the chapter on computer crimes, a full-proof security system should be provided that protects the Bank from attempts of vile hackers on the one hand and also the secrecy of customers data.

There are two class of customers that would avail e-banking service. Individual customers and corporate customers. In India a variety of Internet Banking service to both types of customers are provided by Citibank, HSBC and ICICI Banks. The service brings anytime anywhere banking to the doorsteps of the customers and against one-time initial investment, recurring expenses would be minimal.