INTRODUCTIONTypical mass market banking in whichindividual customers use local branches oflarger commercial banks.Aims to be the one-stop shop for as manyfinancial services as possible on behalf ofretail clients
Retail banking sector is characterized bythree basic characteristics : Multiple products Multiple channels of distribution Multiple customer groups
WHY RETAIL BANKING?Changing customer demographic demands.Higher penetration of technology.Reduction of cost.Market demands and challenges.Needs of individual customers.
ADVANTAGESRetail deposits are stable and constitutecore deposits.They are interest insensitive and lessbargaining for additional interest.Retail banking increases the subsidiarybusiness of the banks.Retailbanking results in better yield andimproved bottom line for a bank.Retailsegment is a good avenue for fundsdeployment.
DISADVANTAGESDesigning own and new financial products isvery costly and time consuming for the bank.This does not allow banks to exploit theadvantage of earning huge profits from singlecustomer as in case of wholesale banking.Though banks are investing heavily intechnology, they are not able to exploit thesame to the full extent.
CHALLENGES OF RETAILBANKINGThe issue of money laundering is veryimportant in retail banking. This forces allthe banks to consider seriously all thedocuments which they accept whileapproving the loans.Banks are expected to take utmost careto retain the on going trust of the public.
Customer service should be at the end all inretail banking.Innovative strategies to meet customer’sneeds and requirements in terms of services,products etc.Dependency on technology has brought ITdepartments additional responsibilities Security Level
The efficiency of operations would providethe competitive edge for the success inretail banking in coming years.The customer retention is of supremeimportant for the profitability in retailbanking businessAcute shortage of manpower talent of thisspecific nature, modern banking professional,for a modern banking sector.
LIST OF BANKSState Bank of IndiaHDFCICICI BankPunjab National BankHongkong & Shanghai Banking Corp(HSBC)Kotak Mahindra BankSundaram BankOriental Bank of CommerceUTI Bank (AXIS Bank)Punjab National bank(PNB)