Impact of New Trends in Banking from Consumer Perspective

1. IMPACT OF NEW TRENDS IN
BANKING
FROM CONSUMER PRESPECTIVE

2. THE INDIAN
BANKING SECTOR
The history of Indian banking can be divided into
three main phases.
Phase I (1786- 1969) - Initial phase of banking in
India when many small banks were set up
Phase II (1969- 1991) - Nationalization,
regularization and growth
Phase III (1991 onwards) - Liberalization and its
aftermath
Banking has changed from mere being a middle
agency in currency handling to a service provider
for financial as well as non financial requirements.
We would be looking at changes that have come in
banking services from consumer perspective and
management outlook of banking after Phase III.

3. FIVE BASIC BUT MAJOR CHANGES TO BE REFERRED HERE:
1. ATMs
2. BANKING MOBILE APPLICATIONS
3. MULTIPLE SUPPORT SERVICES AT BANK BRANCH
4. DIGITAL TRANSFERS (NEFT & RTGS)
5. UPI PAYMENTS
These new trends in banking have changed the view of a consumer requirement
from banks and other hand has given banks a new era in finance sector.
Technology and banking to gather has increased majorly ways of currency related
transactions, security of transactions, speed of transactions etc
Let us see what these changes are and how they have impacted the consumers.

4. ATMs (automated teller machines)
The various services available at ATMs:
#Cash Withdrawal & Deposit.
#Balance Enquiry.
#Statement Request
#ATM CARD PIN Change.
#Cheque Deposit.
#Credit Card Payment
Located at not only near to banks but also in market places like shopping
complexes, Government offices, education campuses and other prominent places
in the cities, small and big.
The main activity of a consumer at bank is cash deposit or withdrawal, which can
be managed by ATM
The ATMs have made a new punch line “bank in my pocket“
It has reduced footfalls at banks and allows bank officials on other transactions and
complete at a faster speed.

5. BANKING MOBILE APPLICATIONS
Different services available on mobile apps
#Banking Monetary Transactions
#Account Statement
#Fund Transfers
#Bills Payments
#Branch & ATM Locator
#various banking related requests
The major advantage here is that these applications can be easily downloaded in
the smart mobile phones, which are handily available with the banking consumers.
It has made possible for 24x7 banking transactions at the convenience of the
consumers.
The punch line has changed to “bank in my hands”
This has also given banks new avenues of business like tying up with Government
agencies for direct payments, small businesses for their day to day small amounts
transactions.

6. MULTIPLE SERVICES AT BANK BRANCHES
As we see that basic services of banks as now provided through ATMs and Mobile
apps, banks are taking advantage of their network of branches have started
providing multiple services from there branches like:
# Aadhar Card issue and updation of its information
#Sale of National level competitive exams application forms like NEET, JEE etc.
#Sale of authentic Gold coins
#Information about investment in Government bonds like Infra bonds, NPS etc
#Investments in Mutual funds, Insurance
#Different investments related advice
These services have given consumers a choice for relevant financial investment
guidance from banks, which manage their efficiently earned money.
It has also provided banks with new avenues to manage their operating costs on
day to day basis.

7. DIGITAL TRANSFERS (NEFT & RTGS)
This is mainly related to speed and accuracy.
This has given businesses a new arm to progress as the worries related to
monetary transactions are no more existing.
More importantly this can be done even without visiting bank branches
This has saved lot of time of banking consumers, business entities, agencies etc
This is the beginning of digitalization of currency and its transactions
It has solved emergencies for many, problems at large in day to day fast moving
life.
Here we can say technology has managed transactions is solving physical but also
catered to emotional attributes linked to a monetary transaction.

8. UPI (Unified Payments Interface)
Unified Payments Interface (UPI) is an instant payment system developed by the
National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built
over the IMPS infrastructure and allows you to instantly transfer money between
any two parties' bank accounts.
Money can be sent or requested with the following methods:
Virtual Payment Address (VPA) or UPI ID: Send or request money from/to bank
account mapped using VPA.
Mobile number: Send or request money from/to the bank account mapped using
mobile number.
Account number & IFSC: Send money to the bank account.
Aadhaar: Send money to the bank account mapped using Aadhaar number.
QR code: Send money by QR code which has enclosed VPA, Account number and
IFSC or Mobile number.

9. CHANGES FOR CONSUMERS
Banking made simple
Banking at any time
Technology supported transactions, which assures security in fullest
Changed the definition of bank, it once had
Reduced visits to bank for every required transaction
Due to bank account possibility of making daily direct small payments at various
outlets
Receiving funds directly in once bank account from any agency or patner
Due to the above changes in consumer life the mentioned five banking trends have
merged technology and banking to change consumer life.

10. THANK YOU FOR YOUR VALUABLE TIME