E-FINANCE: OPPORTUNITIES & CHALLENGES TO INDIA'S FINANCIAL LANDSCAPE
Electronic finance scenarios in India, opportunities and challenges of e-finance for a developing countries like India are analyzed and their implications for consumers are reviewed.
Abstract
During 21 st century India and other developing countries has witnessed a huge change in their landscape of finance. Revolution in telecommunication especially internet and globalisation are the main factor of this change. Because of that revolution a new form of finance came into existence, known as e-finance. Electronic finance, especially online banking and brokerage service has reshaped the financial landscape around the world. This paper reviews these developments and analyzes their implications for consumers. Internet and related technologies are more than just new distribution channels as they are a different way of providing financial services. New software tools and safer architecture with multiple security and access control structures have enabled banks to take advantage of Internet Technology and software protocols for devising a host of products and services which could be distributed and made available through the Internet. It permits the personalization of information and services; it also allows much more personalized pricing of financial services and much more effective identification of credit risks. At the same time, the Internet allows new financial service providers to compete more effectively for customers. This paper analyses e-finance scenarios in India, opportunities and challenges of e-finance for a developing countries like India.