Retail banking is generally refers to offering financial services, products related to deposits and assets to individual customers for personal consumption. Banks concentrate on various segments like professional, housewives, pensioner, children, salaried class etc. Different types of product like recurring deposit, saving bank deposits, F.D, credit cards, housing & consumer loans are offered by bands of the above mentioned market segments.
Retail banking offers opportunities to banks to cross sell various other retail products like credit card, insurance, mutual fund product and demat facilities to the depositor. Before the reforms, most of the products offered by banks were multiple, which the customer had no option except to accept or leave them.
Retail banking has become the buzzword in banking. It is the flavor of the year. A critical assessment of the foregoing scenario indicates that retail banking is, at present, the only shortcoming left with banks is to survive in this era of falling interest.
Banking is undergoing rapid changes worldwide and India is no exception. The financial sector reforms aimed at deregulation, liberalization and globalization of Indian banking has changed the entire scenario of Indian banking. Satisfaction to customers in banking has given way to innovative.