“IMPACT OF TECHNOLOGY

ON SERVICE SECTOR”
PRESENTATION BY:-
Radhika Diwale
Sweta Sawant
Siddhi Paun
Soniya Chattiyar
Falguni Mistry
Objectives:
•To know about the service sectors in India
•Impact of Technology on service Sector.
•Impact of technology In Banking Industry.
Service Sector:
This sector India today accounts for more
than half of India's GDP. Services or the
"tertiary sector" of the economy covers a
wide gamut of activities like trading,
banking & finance, infotainment, real
estate, transportation, security,
management & technical consultancy
among several others
Different Types of Service Sector In India:

Insurance
Sector

Banking
Sector Financial
Services
Service
sector

Information
Technology Retailing
Industry
Service sector in India:
The various sectors that combine together to constitute
service industry in India are:
 While almost all service sectors participated in
this boom, growth was fastest in
communications, banking, hotels and
restaurants, community services, trade and
business services
One of the reasons for the sudden growth in the
services sector in India in the nineties was the
liberalization in the regulatory framework that gave
rise to innovation and higher exports from the
services sector.

It is today the largest and fastest growing sector

globally contributing more to the global output and
employing more people than any other sector
Indian Service Sector
One of the key service industry in India would be health and
education. They are vital for the country’s economic stability. A robust
healthcare system helps to create a strong and diligent human capital,
who in turn can contribute productively to the nation’s growth
Post Liberalization :
The Indian economy has moved from agriculture based
economy to a knowledge based economy.
Today the IT industry and ITE'S industry are the
dominant industry in the service sector
Media and entertainment have also seen tremendous
growth in the past few years.
Information Technology Industry
The Information Technology Being knowledge based industry;
industry has achieved India has been able to leverage the
phenomenal growth after global markets, because of the huge
liberalization pool of engineering talent available
and the proficiency in English
language among the middle class.
Retailing:
Organized retailing with
prominence on self service
and chain stores has changed
the dynamics of retailing.

In most of the tier I and tier

II cities supermarket chains
mushroomed, catering to the
needs of vibrant middle class

This indirectly contributed

to the growth of the
packaged food industry and
other consumer goods.
 Financial Services-Banking And Insurance:
Prior to liberalization these
two sectors were controlled After liberalization the
and regulated by the banking and insurance
government. domain opened up for
Nationalized banks and private participation
insurance companies had a
firm grip over the market.
Banking Sector:
The three major changes in the banking sector after
liberalization are:
Step to increase the cash outflow through reduction in the
statutory liquidity and cash reserve ratio
Nationalized banks including SBI were allowed to sell stakes to
private sector and private investors were allowed to enter the
banking domain. Foreign banks were given greater access to the
domestic market
Banks were given greater freedom to leverage the capital markets
and determine their asset portfolios The banks were allowed to
provide advances against equity provided as collateral and
provide bank guarantees to the broking community.
Insurance Sector:

The Insurance Regulatory

and Development Authority
Act 1999 (IRDA Act) allowed
the participation of private
insurance companies in the
insurance sector.
The primary role of IRDA
was to safeguard the interest
of insurance policy holders,
to regulate, promote and
ensure orderly growth of the
insurance industry.
The insurance sector could invest in the capital markets and
other than traditional insurance products, various market
link insurance products were available to the end customer to
choose from.
Some of the prominent insurance companies are:
ICICI Prudential Insurance Co Ltd
Bajaj Allianz Insurance Corporation
Birla Sun Insurance Co Ltd
HDFC Standard Insurance Co Ltd
Max New York Insurance Co Ltd
Tata AIG Insurance Co Ltd
Future Trends:
Globally outsourcing industry would continue to grow.
Following the success of US and UK, more countries
in the European Union would outsource their
business.
Technological power shift from the West to the East as
India and China emerge as major players.
Political backlash over outsourcing would come down
as companies reap the benefit of outsourcing
Technology Products:

Net Ticket
Booking
Banking

Credit Online
Phone Banking Banking
Card Payment Shopping
Banking products products
Online of tax

Mobile
Banking Bill
Payment
CHANGING FACE OF BANKING SERVICES :
•Liberalization brought several changes •Technology is revolutionizing every field
to Indian service industry. Probably of human endeavor and activity. One of
Indian banking industry learnt a them is introduction of information
tremendous lesson. Pre-liberalization, technology into capital market
all we did at a bank was deposit and •The internet banking is changing the
withdraw money. Service standards banking industry and is having the major
were pathetic, but all we could do was effects on banking relationship. Web is
grin and bear it. Post-liberalization, the more important for retail financial
tables have turned. It's a consumer services than for many other industries
oriented market there
PLASTIC MONEY: Credit card is a financial instrument, which can
be used more than once to borrow money or buy
•Plastic money was a products and services on credit. Banks, retail
stores and other businesses generally issue these.
delicious gift to Indian On the basis of their credit limit, they are of
market. Giving respite different kinds like classic, gold or silver.
from carrying too much  Over the years, the banking sector in India has
cash. Now several new seen a no. of changes. Most of the banks have
features added to plastic begun to take an innovative approach towards
money to make it more banking with the objective of creating more value
attractive. It works on for customers and consequently, the banks.
formula purchase now  Debit cards-this card is may be characterized as
repay later. There are accountholder's mobile ATM, for this you have to
different facts of plastic have account with any bank offering credit card.
money credit card is
synonyms of all.
MOBILE BANKING :
•Taking advantages of the booming Business Benefits:
market for mobile phones and cellular •Greater Customer Convenience
services, several banks have introduced •Reduced Turnaround Time
mobile banking which allows customers •Cost Savings
to perform banking transactions using •Customer Delight
their mobile phones.
•Mobile banking has been especially
targeted at people who travel frequently
and to keep track of their banking
transaction.
RURAL BANKING :
• One of the innovative scheme to be
launched in rural banking was the  Rural banking is the process of conducting
KISAN CREDIT CARD (KCC) SCHMME banking transactions out in the country
started in fiscal 1998-1999 by NABARD where bank branches are too far away to be of
use. Rural banking is popular for very small
• KCC mode it easier for framers to
towns and farmers who live far away from
purchase important agricultural inputs. areas of larger population and cannot make
In addition to regular agricultural loans, the drive to these locations whenever they
banks to offer several other products need to use banking services. Typically, an
geared to the needs of the rural people agent of the bank will visit these rural
• Private sector Banks also realized the locations and offer to make transactions in an
official capacity
potential in rural market. In the early
2000's ICICI bank began setting up
internet kiosks in rural Tamilnadu
along with ATM machines.
E-BANKING :
 It generally implies a service that  Banks offer a variety of services.
allows customers to use some Typical online banking allows a
form of computer to access
user to check balances, transfer
account-specific information and
funds between accounts, pay
possibly conduct transactions
from a remote location - such as
bills and change personal
at home or at the workplace. The information. Some banks also
obvious advantage to the allow the customer to open and
consumer is convenience close accounts online, buy
 E-Banking is becoming stocks and order checks.
increasingly popular among retail
banking customers. E-Banking  Advantages of E-Banking:
helps in cutting costs by
Convenience
providing cheaper and faster ways
of delivering products to Speed
customers. Easy Access
CONCLUSION :
•Banking industry is fast growing with the use of technology in
the from of ATMs, on-line banking, Telephone banking, Mobile
banking etc., plastic card is one of the banking products that
cater to the needs of retail segment has seen its number grow in
geometric progression in recent years.

•Technology has opened up new markets, new products, new

services and efficient delivery channels for the banking
industry. Online electronics banking, mobile banking and
internet banking are just a few examples

•Information Technology has also provided banking industry

with the wherewithal to deal with the challenges the new
economy poses
•The IT revolution has set the stage for unprecedented increase in financial
activity across the globe.

•It is information technology which enables banks in meeting such high

expectations of the customers who are more demanding and are also more
techno-savvy compared to their counterparts of the yester years. They demand
instant, anytime and anywhere banking facilities

•IT has been providing solutions to banks to take care of their accounting and
back office requirements