Disruptions in Banking Sector in the Current Scenario 28th February 2018 Chief Editors Dr.K.VANAJA Organized by Department of Commerce (PA) Dr.N.G.P. Arts and Science College (Autonomous) (Affiliated to Bharathiar University & Re-accredited by NAAC with ‘A’ Grade) Dr.N.G.P. - Kalapatti Road, Coimbatore – 641048, Tamilnadu, India. One Day National Level Seminar on Disruptions in Banking Sector in the Current Scenario 28th February 2018 Published By Non Olympic Times, Coimbatore, Tamilnadu, India http://www.nonolympictimes.org Chief Editor Dr.K.Vanaja HOD – Commerce (PA) Editorial Board members Ms.N.Ramya Ms.D.Sivasakthi Mr.P.Kanagaraj Ms.P.Dhanya Dr.M.Kalimuthu Mr.S. Muruganantham Mr.A.David First Edition- 2018 ISBN No. 978-81-935722-5-2 Disclaimer: The views expressed in this Edited ISBN Book are those of the author(s) and do not necessarily reflect those of publishers or Editorial Board. Reproduction of any material published herein requires prior written permission of the Editor or the organizations to which the contributors belong. Errors if any are purely unintentional and Readers are requested to communicate such errors to the editors or publishers to avoid discrepancies in future. ACKNOWLEDGEMENT We deem it a great pleasure to express our gratitude to our visionary leader Dr. Nalla G. Palaniswami, Chairman, Kovai Medical Center Research and Educational Trust, Coimbatore and Dr. Thavamani D. Palaniswami, Secretary, Dr.N.G.P. Educational Institutions, Coimbatore for providing us the necessary facilities and permitting us to carry out this seminar successfully and also we are very much obliged for the freedom they had given us in bringing out this publication on Disruptions in Banking Sector in the Current Scenario. We wish to express our profound sense of gratitude to Dr.O.T.Buvaneswaran, Chief Executive Officer, Kovai Medical Center Research and Educational Trust, Coimbatore for his valuable guidance, innovative ideas and immense help rendered at various stages of this Seminar. Our sincere thanks to Dr.P.R.Muthuswamy, Principal, Dr.N.G.P. Arts and Science College & Dr.K.Durairaj, Vice- Principal, Dr.N.G.P. Arts and Science College, for his constant encouragement, pragmatic suggestions, constructive comments, ingenious commitment and the benevolence that rejuvenated this virtue. We would like to express our sincere thanks to the External Editors and Reviewers for their valuable suggestions to enrich the contents of this ISBN Edited Book. We also thank all the Delegates for their rich collection of papers contributed to this seminar which helped us in publishing this ISBN Edited Book. We are highly indebted to all the Students of the Department of Commerce with Professional Accounting, Dr. N.G.P. Arts and Science College, Coimbatore for their understanding and palatable cooperation throughout this Seminar. Last but not least, we thank the almighty for being with us in each and every activity and make the things always CONTENTS Sl.No. Contents Page No. Artificial Intelligence in Banking 01 P.Jim Linda, 001-003 Artificial Intelligence in Banking 02 Kaviya. R.J , Karthika. S 004-008 Artificial Intelligence 03 Ramya.D, Kirthika.C, 009-010 Bancassurance 04 Sumithra.A Lavanya.S 011-013 Digital Transformation in Banking – The Future of Banking 05 X.Daniel Arul Leo S.Divya Bala 014-017 Disruptions in Banking Sector in the Current Scenario – Payment Innovation 06 Saileshwaran.N ,Ramya Prabha.M, Pooja Sree .K 018-021 E-Banking 07 Varchana.K, Dharshitha .S 022-024 Electronic Payment System 08 Dr. S.Kalaiyarasi 025-028 Expanded ATM Capabilities 09 R. Arthi , P.Saranya 029-030 Expanded ATM Capabilities 10 S.Ramyabharathi 031-034 Green Banking: An Innovative Initiative for Indian Commercial Banks. 11 Dr.S.Raja, V.Sakthikumaran, 035-037 Internet Banking 12 Ms. Savitha. B Vaishnavi, Thasleema.N 038-040 New Payment Technologies 13 Mr.Manikandan.C 041-046 New Payment Technologies in Banking Sector 14 J. Saravanakumar P. Kavikumar , S. Thamaraikannan 047-049 New Payment Technology 15 Thowfik.S 050-053 New Payment Technology 16 P. Vijayalakshmi ,PL. Valliyamai , P. Hemrutha 054-057 Sl.No. Contents Page No. New Payment Technologies 17 Sree Devi ,Karthick V, Shreyas Sumesh Menon 058-060 A Study on New Payment Technologies in Banking 18 Kavya.S, Shruthee.K, Narendra srinivasan.U 061-064 Payments Innovations 19 M.A.Arifa , A.Afroona 065-068 Future Prospects and Challenges of Retail Banking in India 20 Dr.R.Perumalsamy , Mr.K.Karuppusamy, 069-072 Transformation in Banking 21 Ramani.P, G.Raghunath 073-075 Types of New Payment System & Instruments 22 A. Shanofer Nisha, S. Benazir Begum 076-079 ISBN: 978-81-935722-5-2 | First Edition | Feb-2018 Artificial Intelligence in Banking P.Jim Linda, M.Com., M.Phil Assistant Professor, Department of Commerce with Computer Applications, St.Josephs College for Women, Tirupur-4 Abstract Artificial Intelligence is the simulation of So there is a great demand for efficient intelligent human intelligence processes by machines especially information systems . Due particularly to deregulation, the computer system. It includes learning, reasoning and self banking world is especially a complex and changing correction of symbolic information. The revolution world. It generally requires qualified people and its brought by Artificial intelligence has been the biggest in competitive situation is directly affected by innovative some time. Our framework on it tells about the developments. sophisticated machine learning and the idea of transferring the intelligence from humans to machines SCOPE OF STUDY with supreme computational capabilities. Now the Artificial intelligence are woven into baking‟s fold and their potential is too vast to predict. Our framework helps to know a dive into the use of AI and MI in BFSI. Keywords:- Machines, capability, computational. PROLOGUE Since the development of the digital computers in 1940, it has been demonstrated that it can be programmed to carry out very complex tasks, but there‟s always a limit to the speed with which humans can perform the given task. Artificial Intelligence helps to overcome this very challenge as “Machine Intelligence is the priceless ARTIFICIAL INTELLIGENCE invention that humanity will ever need to make”. The Technology in banking has changed a lot over last few “Artificial Intelligence” which means making machines years from video displayed information to digital capable of performing intelligent tasks like human beings. information, from simple graphics to 3D images of the Artificial Intelligence performs automated tasks using behaviour of financial markets. Computers are now on intelligence. The term Artificial Intelligence has two key each desk with decentralisation and client – server components: technology. This is the way to provide software solution Automation and expertise in local banks branches to non – experts Intelligence people, to increase decision makers efficiency and to save time. Stages of Artificial Intelligence Level 1 – Machine Learning – It is a set of algorithms LITERATURE REVIEW used by intelligent systems to learn from experience. The development of these technologies is motivated Level 2 – Machine Intelligence – These are the advanced specially by two goals. First, to reduce the costs of set of algorithms used by machines to learn from automated tasks (for efficiency and cost consideration) experience. Eg – Deep Neural Networks. and secondly to increase efficiency and improve the consistency of decisions. We can note that for the first Artificial Intelligence technology is currently at this stage. one, this could not be the same as in manufacturing where there are a lot of automated tasks. Financial products are Level 3 – Machine Consciousness – It is self-learning mostly immaterial and need to be explained. Companies from experience without the need of external data. obtain their comparative advantages mainly from the provision, storage, and processing of information and knowledge with regard to their customers and competitors. Disruptions in Banking Sector in the Current Scenario 1 ISBN: 978-81-935722-5-2 | First Edition | Feb-2018 TYPES OF ARTIFICIAL INTELLIGENCE ANI – Artificial Narrow Intelligence – It comprise of basic/role tasks such as those performed by chatbots, personal assistants like SIRI by Apple and Alexa by Amazon. AGI – Artificial General Intelligence – Artificial General Intelligence comprises of human-level tasks such as perform by self-driving cars by Uber, Autopilot by Tesla. It involves continual learning by the machines. ASI – Artificial Super Intelligence – Artificial Super Intelligence refers to intelligence way smarter than humans. ARTIFICIAL INTELLIGENCE IN BANKING Government services and subsidy benefits are made In the field of technology based banking, Information available to citizens electronically by improving online Technology and Electronic Funds Transfer System have infrastructure and by increasing Internet connectivity will emerged as the twin pillars of modern banking pave way for technological reforms in India and make the development. Products offered by banks have moved way country digitally empowered. beyond conventional banking and access to these services have become round the clock. This, indeed, is a revolution The field of Artificial Intelligence has produced a number in Indian banking industry. of cognitive technologies. The individual technologies are getting better at performing specific tasks that only Payments of banks will open another alternative channel humans used to be able