Digital Banking book by Indian Institute of Banking & Finance

This book provides a seminal guide that charts the transformative journey of the banking sector in the digital age. It discusses the rise of digital banking, innovative financial products like UPI BHIM, and the role of Fintechs and NBFCs in enhancing financial inclusion and accessibility. The book provides in-depth insights into new banking trends like Blockchain and AI and offers practical knowledge for banking professionals to adapt to this evolving digital landscape.

It serves as an essential resource, covering the following broad topics:

Digital Banking Products
Digital Banking & Financial Inclusion (FI)
Marketing of Digital Banking Products
Payment Systems
Future Trends in Digital Banking
An invaluable resource for students, professionals, and anyone keen on understanding the digital banking revolution.

The Present Publication is the 2024 Edition, updated by Mr Burra Butchi Babu | Former General Manager – Bank of India and vetted by Mr V.A. Prasanth | Former General Manager & Chief Information Officer – Indian Bank. Taxmann exclusively publishes this book for the Indian Institute of Banking and Finance with the following coverage:

Module A – Digital Banking Products
Digital Delivery Channels
Introduction and need for digital channels in banking
Analyzing the cost of transactions and customer preferences
The role of technology in enhancing user-friendliness and customer interaction
Emphasizing security as a crucial aspect of digital banking, including information security
Overview of the Integrated Ombudsman Scheme, 2021 by RBI
Discussion on customer protection and limiting liability in unauthorized transactions
RBI's directions on digital payment security controls
Challenges faced in digital banking and the concept of e-KYC
Cards
History and overview of plastic payment cards
Features and benefits of cards for customers
Understanding the Payment Card Industry-Data Security Standard
Comparison between Magnetic Strip Cards and EMV Cards, including NFC-based Tap & Go technology
The approval process for card schemes and profitability aspects
Insight into backend operations, recovery, follow-up, and information security issues
Automated Teller Machines (ATMs)
History and product features of ATMs
Types of ATMs, including White Label and Brown Label
The functioning of ATM networks and Instant Money Transfer (IMT) systems
Discussing profitability, risk management, and frauds in ATM operations
Backend operations and technology in ATMs
Overview of the Dispute Management System (DMS)
Mobile Banking
Introduction and diverse features of mobile banking
Description of IMPS and its benefits
Discussion on risk management, frauds, backend operations, and information security tips in mobile banking
Internet or Online Banking
History, working, and features of Internet banking
Analysis of the profitability and risks associated with Internet banking
POS Terminals
Background and features of Point of Sale (POS) systems
Benefits of POS systems to merchants and customers
Different types of transactions and the cash withdrawal process at POS
Merchant onboarding, approval process, and the parties involved in a POS setup
Profitability analysis and risk management in POS operations
Module B – Digital Banking & Financial Inclusion (FI)
Introduction to financial inclusion and its strategies
Approaches to accelerate financial inclusion and the role of technologies
Digital banking services in financial inclusion and factors beyond technology
Information security issues in financial inclusion and new developments
Understanding how banks earn money using digital delivery channels
Module C – Marketing of Digital Banking Products
Concept and channels for marketing digital banking products
Product planning and marketing structure in banks
Sales delivery, e-galleries, and after-sales service to customers
Marketing strategies for financial inclusion and the dangers of mis-selling
Use of analytics in marketing and customer education and protection
Module D – Payment Systems
Overview of global and domestic payment systems
Introduction to new domestic payment vehicles and platforms
Detailed analysis of various systems like Cheque Truncation System (CTS), RTGS, NEFT, NETC, Bharat QR, UPI QR, BBPS, and SWIFT
Forex and securities settlements
Innovative banking and payment systems, including digital banking super apps
Module E – Future Trends in Digital Banking
Background and future trends in digital banking
The impact of fintech, business ecosystem, and blockchain technology
Discussion on cryptocurrencies, peer financing, cloud computing, and virtualization
Data analytics, artificial intelligence (AI), machine learning (ML), deep learning (DL), robotic process automation (RPA), and the Internet of Things (IoT)
Central Bank Digital Currency (CBDC) and digital transformation of banks in India