Title LG-DBAC INSB 2024 M8.pdf ✅

Nitte Education International Post Graduate Diploma (Banking & Finance) Digital Banking & Alternate Channels Module 8
P a g e | 1 Post Graduate Diploma (Banking & Finance) Introduction This module on Digital Banking & Alternate Channels carries three credits and has eight units. It is very important for the present-day banker to be aware of technological advancements in the banking industry and be comfortable with the use of digital banking. This module deals extensively with Digital banking and Alternate Channels. The module has been designed keeping in mind learner requirements and from the learners’ perspective. This reading material is part of the courseware provided by Nitte Education International Private Limited (hereinafter referred to as “NEIPL”) to students of the PGD(B&F) course. The proprietary rights to the material rest with “NEIPL”. No part of the reading material may be reproduced, photocopied or transmitted in any form without prior written permission of “NEIPL”. All efforts have been made to ensure the correctness of information in the reading material and to provide the latest information. However, there are bound to be changes in the industry, and NEIPL reserves the right to change and update information from time to time. NEIPL is not liable for any loss or damage arising from the use of the information provided. Reference: NEI/PGD(B&F)/2024/DBAC/INSB2.1V1
P a g e | 2 Post Graduate Diploma (Banking & Finance) Module 8 This module deals with: Digital Disruptions, New Technologies • Digital Disruptions and their concepts, transformation in Banking, creation of new business models. Open banking/account aggregator. Digital Lending. Introduction Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services. The rapid increase in the use of mobile devices for personal use and work, a shift sometimes referred to as the consumerization of IT, has increased the potential for digital disruption across many industries. History and Development With the introduction of the World Wide Web, the scope, dimension, scale, speed and effects of digitization fundamentally changed, resulting in increased pressure on the societal transformation process. Companies including Dell were quick to take advantage of the World Wide Web around 1996-1997, disrupting traditional PC manufacturing companies like IBM by selling direct to consumers rather than through dealer networks or hobby shops, and gaining valuable insights into consumer behaviour as they navigated the website. In 2000, digitization began to be used more widely as a concept and an overall governmental introduction of IT, increased usage of internet and IT on all levels. A similar development began in the general business climate in order to raise awareness regarding the issue and opportunity. In the EU, for instance, an initiative called the Digital Single Market was developed, with recommendations for national digital agendas in the EU, which gradually and positively should contribute to the future societal transformation, with more modern development of communities, structures and to create a basis for e-governance and information society. Digitization Digitization can be defined as the conversion of signals and media objects (documents, images or sounds) into digital form that are processed, stored and transmitted via digital devices and networks due to the adoption of digital technologies and the use of systems built on them. The process of digitization is all about converting information from analogue to digital. Now, important documents could be printed, signed, scanned and saved on a hard drive. It is the foundation for any significant digital changes. For example, digitization was introduced in telecommunication networks from the 1970s, with a view to improve the phone call sound quality, response time, network capacity, cost-effectiveness and sustainability.
P a g e | 3 Post Graduate Diploma (Banking & Finance) Digitalization Digitalisation is the process of leveraging digitisation to improve business processes. Digitalization is the 'organizational process' or 'business process' of the technologically- induced change within industries, organizations, markets and branches. Digitalization of business and organizations has induced new business models, new e-Government services, electronic payment, office automation and paperless office processes, using technologies such as smart phones, web applications, cloud services, electronic identification, block-chain, smart contracts and cryptocurrencies, and also business intelligence using Big Data. The business starts to apply digital technologies to change, streamline a workflow. For example, sharing a Microsoft Word document with a colleague using OneDrive, editing the document together, and sending it by email is a simple digitalization example. Digital Transformation Digital transformation is described as "the total and overall societal effect of digitalization". Digitization has enabled the process of digitalization, which resulted in opportunities to transform and change existing business models, consumption patterns, socio-economic structures, legal and policy measures, organizational patterns, cultural barriers, and the digitality of society itself. Digital transformation is the transformation of business activities, processes, products, and models to fully leverage the opportunities of digital technologies. The main goal is to improve efficiency, manage risk or discover new monetisation opportunities. Digital Disruption Digital disruption describes the change that happens when new digital technologies, services, capabilities, and business models affect and change the value of the industry's existing services and goods. These new elements change or disrupt the status quo, forcing businesses to re-evaluate the current market regarding goods and services and possibly adjust.