Diffusion of Electronic Banking Solutions for Financial Inclusion

A major pain point of the banking industry is the challenge of how to penetrate the Bottom of the Pyramid (BoP), a concept which was popularized by Prahlad [3]. This indeed is a sizeable market, consisting of 2.5 billion people who live on less than US$2.50 per day. Technology is being heralded as a major enabler for the diffusion of banking solutions in this segment, and the same is being brought about by different types of electronic payment systems.

It is interesting to note how in emerging economies, diffusion of these technologies are creating benefits for this segment [4]. No wonder technology vendors and service providers are rallying to get a big pie of this cake and research in this topic has increased significantly [1,2]. However, the risks of fraud and perceived usefulness of these technology are slowing down the diffusion of the same in these economies. Another major barrier is internet penetration, which is significantly low, in developing economies, especially in the rural segments.

However, the development of banking solutions which can be used through Mobile based technologies, can significantly eradicate these problems. The adoption and penetration of mobile phones is significantly larger than internet based technologies. Hence technology giants like IBM and Microsoft are investigating significantly on research, so that mobile payment solutions can be made available to this segment. Some of the major technological advancements which are attempting to address this gap are speech technologies like the spoken web. It would indeed be interesting to see how such technologies can bring about inclusive development in the banking and financial services industry. Indeed the adoption of these technologies can bring about financial inclusion for the general masses by enabling banking solutions for this segment.

References

  1. Kar, A. (2009). eBusiness Enablement: Implications for Business Strategy. Available at SSRN 1432433.
  2. Kar, A. (2009). The Past, Present and Future of Information Systems Research. Available at SSRN 1366962
  3. Prahalad, C. K., & Hart, S. L. (2002). The Fortune at the Bottom of the Pyramid. Strategy and Business, 54-54.
  4. Simpson, J. (2002). The impact of the Internet in banking: observations and evidence from developed and emerging markets. Telematics and Informatics, 19(4), 315-330.
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Cryptography in the Banking Industry

Business Frontiers, Vol. 1, No. 1.

Title: Cryptography in the Banking Industry.

Publication date: Oct, 2012.

Authored by Arpan K Kar, Supriya K Dey

This paper can be cited as follows: Kar, A.K., Dey, S.K. (2012). Cryptography in the Banking Industry. Business Frontiers, 1(1), 1-7.

Abstract: The development of cryptographic techniques has seen a lot of applications in the banking industry. This whitepaper focuses on the review of the major cryptographic techniques which has been used extensively in the banking industry, for the implementation of data security norms and the fulfillment of compliance requirements. While techniques have not been described in details, the focus has been on exploring the business implications of these developments.

To download the whitepaper, please visit this link: Cryptography in the Banking Industry

Keywords: Cryptography, Banking, Security, Finance industry

Business Frontiers is a premium series of refereed open source white-papers on critical emergent issues and classic topics in business and management including but not limited to marketing management, technology management, e-business, finance, economics, human resources, organizational behavior and general management. Articles published as open source white-papers in Business Frontiers are copyrighted using a Creative Commons Attribution 3.0 Unported License. Please visit the publication page for more details on Business Frontiers. For submission of original articles for publication, please read the Guide for Authors and the Call for Papers.

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A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain

Ever heard of private banks financing the needs of the really needy? They don’t. That’s because the really needy customers will never have the monetary disposition to pay off the interest which is applicable for their risk profile. Isn’t that a tragedy of errors for these financial institutions?

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Negative Elasticity of Money

Most people are aware of Price Elasticity of Demand, even if they don’t know the term. The logic is simple, if you raise the price of your product I won’t buy your product. This is however not the case with some special kinds of products. I will classify these products whose consumption increase in case of price hike into three categories. Continue reading “Negative Elasticity of Money”

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How was data security in the banking industry implemented

Data security is a major concern in the banking industry where over the years technology has been used to implement various standards to facilitate the implementation of security in the various transactions and internal processes in the industry. Post 1996, banks started implementing data security in transactions using EDI or Electronic data Interchange standards. Financial EDI standards were developed to cater to the requirements of financial institutions like banks.

Continue reading “How was data security in the banking industry implemented”

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