Housing loans: The longer the payback period, the better

Up to a decade ago, most people believed in saving up to buy a house of their dreams. After most of the money for the house was collected, the shortfall would be met by borrowing from relatives or taking a housing loan from a bank. Today, however, the situation has reversed completely.

Real estate is extremely expensive in India today, and as gross incomes rise, more and more people are choosing to take home loans to fund the major part of the house purchase. Younger age groups, too, are opting to buy homes in their 20s so as to create a valuable asset for the future. Responding to the need for housing in the country’s metros, Tier II and III cities and upcoming towns, a multitude of Indian banks and financial institutions are offering home loans to suit customers’ needs. Continue reading “Housing loans: The longer the payback period, the better”

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.

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?

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.
Problems inherent in using the traditional paper check as payment which affect the payee include the regular occurrence of lost and mutilated checks, delayed mail delivery resulting in late payments, limited remittance information on check stubs, intensive labor required for receipting and depositing checks, keying payments to accounts receivable systems, and the potential for fraudulent check cashing. Problems affecting the financial institutions include the high cost of producing and distributing paper checks due to labor, material and equipment costs. Surprisingly these shortcomings were accepted for many years even after few electronic payment alternatives existed.
By improving accuracy and speed of accounting operations, financial electronic data interchange (EDI) can enhance a healthcare organization’s cash flow. Banks play a key role in implementing EDI for accounts receivable. Financial electronic data interchange (EDI) is poised to make significant advances in banking accounting operations. EDI offers significant improvements in speed and accuracy. Using EDI, transactions that originally requires hours, even days, can be processed instantly. In addition, EDI’s potential error rate is under 2 percent, compared to the previous accepted error rate of 12 percent in the financial industry. EDI also offers the potential for increased payment speed, reduced risk of data loss, and simplified reports that combine customer addenda and billing information. EDI even can be used to verify customers’ insurance eligibility.
Today electronic payments have now taken off and banks are gearing up to meet increasing corporate and government demands by implementing EDI technology.