ving in poor conditions, technology plays an importantrole. Technology to the extent that it helps to reduce costs is a welcome I India. This could be explained by the fact that toprocess a banking transaction manually it costs around Rs30-40 where as the same transaction on the Internet would costRs.7-8. In countries like India technology acts as a leveler that removes inequality between people of different income groups. Forexample poorer people who visit banks for their regular banking activities feel that an unequal treatment is meted out towardsthem as against their richer counterparts, especially with the insignificant sums of tier transactions; while the same people feelmore at ease with an ATM that shows no emotion and all clients are treated alike. Internet hits the Indian banking sectorToday you send an email or pick up a telephone and your banker lands at your doorstep. Welcome to the new invasion oftechnology in the Indian banking system! The liberalization and the technology-invasion have worked wonders for the bankingsector, say bankers. If ICICI has shown what technology can do for banks, others have quickly realized the potential and arefast trying to catch up with it. Is technology then the new driver in the Indian financial system? When all the banks andfinancial institutions are offering the vanilla product, the differentiation had to come from service. This automatically putpressure on the institutions to adopt technology as their USP. According to industry estimates, some of these new banks onan average send out 500 emails on a daily basis regarding new products, services, or other routine matters.Internet banking is fast catching up. Banking will never be the same again in India. Welcome to the new invasion of technology in the Indian banking system. ICICI on Thursday,27th January announced a tie-up with a Compaq-led consortium for setting up the country's first paymentsgateway to facilitate secured on-line B2B a...
