Rexjournal ISSN Renewable Research Journal BANKING WITH TECHNOLOGY GREEN BANKING

Transcription

1 BANKING WITH TECHNOLOGY GREEN BANKING By Mrs. Pratiksha C. Khedekar INTRODUCTION: India s banking sector has made rapid strides in reforming and aligning itself to the new competitive business environment. Indian banking industry is in the midst of an It revolution. Technology infrastructure has become an indispensable part of the reforms process in the banking system, with the gradual development of sophisticated instruments and innovations in market practices. The last decade has witnessed a drastic change in the economic and banking environment all over the world.with the economic and financial sector reforms introduced in the country since early 1990 s, the operating environment for banks in India has also undergone a rapid change. Increasingly, more and more people are switching to electronic platforms for executing financial transactions. Internet banking, E- banking, M-banking has brought about 360 degree change in the entire banking industry. The wider usage of cell phone and internet certainly seems to be playing a role in blurring physical boundaries, and unlocking a whole new world of opportunities for banks in tapping newer customer segments and in recording greater volume of transactions. For the banks, technology has emerged as a strategic resource for achieving higher efficiency, control op operations, productivity and profitability. For customers, it is the realization of their anywhere, anytime, anyway banking dream. This had prompted the banks to embrace technology to meet the increasing customer expectation and face the tough competition. The disastrous impact of recent floods, droughts, storms and excessive heat around the world, motivate us to think seriously and to do whatever we can do address the problem of Global Warming. The world is very much concerned about the environmental issues in the global economy. Man made gases like hydro-fluro carbon, nitrous oxide, carbon dioxide and methane are found responsible for the distortion of climate. It has made a significant impact on biodiversity, forestry, agriculture, water resources, dry land and human health. Green Banking is making technology improvements, operational improvements and changing client habits in the banking sector. It means to promote environment friendly practices and to reduce the carbon foot print from baking operations. It is a smart and proactive way of thinking with a vision of future sustainability. The Financial Times and International Finance Corporation a member of the world Bank Group had launched the Sustainable Finance Awards for the institutions that are integrating social, environmental and corporate governance consideration in to their business operations. The awards highlight the partnership between financial and non financial companies that are finding Rexjournal Volume 3 Issue 1 Page 167

2 commercially viable and innovative solutions to sustainability challenges. Their is only one Indian organistaion Infrastructure Development Finance Company ltd which has signed equators Principles for determining assessing and managing the environment risks in the projects. OBJECTIVES OF THE STUDY: 1. To study the concept of Banking with Technology Green banking. 2. To highlight few issues, challenges and suggestion of E-Banking. 3. To highlight Green banking practices by some of the Indian banks. LITERATURE REVIEW: Suganthi et al. (2001) conducted the review of Malaysian banking sites and revealed that all domestic banks were having a web presence. Only of the ten major banks had transactional sites. The remaining sites were at informational level. There are various psychological and behavioral issues such as trust, security of Internet transaction, reluctance to change and preference for human interface which appear to impede the growth of Internet banking. Corrocher (2002) investigated the determinants of the Internet technology adoption for the provision of banking services in the italian context and also studied the relationship between the internet banking and the traditional banking activity, in order to understand if these two system of Financial services delivery are perceived as substitutes or complements by the banks. Devlin and Young (2003) report factors such as convenience, flexibility, security concern, complexity and responsiveness being associated with a higher propensity to use internet banking. Vikas Nath et al.(2014) had an international experience,review about Green Banking Practices and concluded that the banks should change their routine operations through the adoption of paperless banking, online banking, mobile banking, mass transportation system, green cards made up of recycled plastic and efficient use of resources. Banks should start investigate in low carbon technologies and develop new sustainable products and services that will mitigate the risk of climate change. Dr.Nishikant Jha et al. had conducted research on A study of Green Banking Trends in India and highlighted some steps for going green banking such as go online, use green checking accounts, use green loans for home improvements, use power saving equipments, use green credit cards, mobile banking. FINDINGS: 1. State Bank Of India (SBI) had launched Green Channel counter facility at their branches in 2010 to change the traditional way of paper based banking (SBI, 2014) Rexjournal Volume 3 Issue 1 Page 168

3 2. Punjab National Bank (PNB) is conducting electricity audit of offices as an energy conservation and maintained a separate audit sheet for assessing the impact of green initiative taken by them. 3. Bank of Baroda (BOB) had taken several technological initiatives such as compliances with e-business guidelines, use of internet banking, mobile banking to promote paperless banking and also increasing the installations of ATM s in most of uncovered areas to reduce the petrol or diesel consumption in travelling and helps in maintaining a clean environment. 4. Canara Bank had set up lounge for high-tech banking facilities like internet banking, pass book printing kiosk, ATM, online trading, Tele-banking and cash/cheque acceptor, solar powered biometric operations. 5. ICICI Bank had adopted Go Green initiative, which involves activities such as Green Products/offerings (Instabanking, vehicle finance, Home finance),green engagement (plantation and distribution of saplings) and Green communication(online bill payment, online fund transfer),green Partner (BHNS). 6. HDFC Bank Ltd is taking up various measures in reducing their carbon footprint in the area of waste management, paper use and energy efficiencies. 7. Axis bank Ltd had intaited Independent ATM Deployment model in which ten solar based ATM has been set up in Coimbatore circle. Annual reports are send through mails. 8. Kotak Mahindra Bank had established the Social,Environmental Management System Plan(SEMSP) to evaluate the environmental and social risk of borrowers which is based on ani FC sustainable framework and performance standers..to reduce paper consumption the bank has encourage their customers to sign of e-statement and also they have become partners with Grow Tree.com to plant one sapling for every e-statement on behalf of its customers 16,623 saplings were planted FY SUGGESTIONS: 1. Customers have some rational reasons for staying off line.some of these reasons include usability feature of the site, concerns about security and frequent complaints that sining up is complicated and time consuming. Banks can solve these problems by refocusing investment on improving the sites s basic functionality and user friendly, and avoiding advanced features that most customers neither understand nor value. 2. Need high level of security 3. Need for business process re-engineering Rexjournal Volume 3 Issue 1 Page 169

4 4. BASIC Internet Banking is has three core services i.e. balance enquiry, funds transfer and bill payment. Banks should provide BASIC+PREMIUM internet banking products such as opening accounts, cash management online, Insurance, Brokerages, Demat Holdings, E-shopping, standing Instructions, Tax advisory services, Investments. 5. Bank has to purchase appropriate hardware, system software and networking infrastructure. 6. Banks should organize seminar and conference to educate the customer regarding uses of online banking as well as security and privacy of their customers. 7. Improve Tele-Banking services as it function on the voice processing facility with the bank computers. 8. Improve Tele-Banking services as it function on the voice processing facility with the bank computers. 9. Virtual Banking will create 3D environment on a computer that is similar to that bank. It is a remote place away from actual branch location say railway station, airport, customer place or home only the customer cant deal in cash. 10. If Indian Banks want to penetrate western markets or global economy, It is important for them to recognize their responsibilities as global corporate citizen. CONCLUSION: Indian Banks should expand the use of environmental information in their business operations, credit extension and investment decisions. The endeavor will help them to proactively improve their environmental performance and creating long term values for their business. REFERNCES: 1. Corrocher, N. (2002),Does Internet Banking substitute Traditional Banking? Empirical Evidence from Italy, Working paper,cespri,no.134, November. 2. Devlin J.F & Young Matthew (2003),Insight in to customer motivation for switching to Internet Banking, Int. Rev. of Retail, Distribution& Consumer Research,13-4,Oct, Suganthi Balachander and Balachandran (2001),Internet Banking Patronage: An Empirical Investigation of Malaysia, Journal Of Internet banking and commerce, Vol 6, No.1 May. 4. Vikas Nath et al.(2014),green Banking Practices A Review, Impact Journals International Journal of Research in Business Management, ISSN(E): X,ISSN9P): ,Vol.2,Issue 4,Year-April2014, 5. Dr. Nishikant Jha et al., A Study of Green Banking Trends In India, ABHINAV International monthly Referred Journal of Research in Management and technology. Rexjournal Volume 3 Issue 1 Page 170

5 6. Axis Bank. (2013). Annual Report Mumbai: Axis Bank. 7. Bank of Baroda. (2013) Annual Report. Vadodara: Bank of Baroda 8. Canara Bank (2013) Annual Report. Bangalore: Canara Bank. 9. Financial Times. (2014, 03 4). About Us: ft.com. Retrieved from Financial Times: 10. HDFC Bank. (2013). Annual Business Responsibility Report Mumbai: HDFC Bank. 11. ICICI Bank. (2014, 03 10). Go Green: ICICI Bank. Retrieved from ICICI Bank: 12. Indian Banks Association. (2014, 03 3). Green Banking Innovations; Indian Banks 13. Kotal Mahindra Bank. (2013). Annual Report Mumbai: Kotak Mahindra Bank. 14. Punjab National Bank. (2011) Corporate Social Responsibility Report. New Delhi: Punjab National Bank. Retrieved from PNB-India 15. State Bank of India. (2014, 03 07). Web files: State Bank of India. Retrieved from SBI: Rexjournal Volume 3 Issue 1 Page 171