Analysis on changing scenario in retail banking

1. ANALYSIS ON
CHANGING SCENARIO IN
RETAIL BANKING
Abhishek jain
MBA(Sync)
127604

2. Retail Banking
• Typical mass-market banking in which individual
customers use local branches of larger commercial
banks.
• Retail banking aims to be the one-stop shop for as many
financial services as possible on behalf of retail clients.
Some retail banks have even made a push into
investment services such as wealth management,
brokerage accounts, private banking and retirement
planning.

3. Today’s retail banking sector is characterized by three basic
characteristics:
• Multiple products (deposits, credit cards, insurance,
investments and securities)
• Multiple channels of distribution (call center, branch,
internet)
• Multiple customer groups (consumer, small business, and
corporate).

4. Benefits of retail banking
• Retail Banking is an attractive market segment having a
large number of the varied classes of customers.
• Retail Banking focuses on individual and small units.
Customize and wide ranging products are available
• The risk is spread and the recovery is good.

5. Advantage’s of Retail Banking
• Retail deposits are stable and constitute core deposits.
• They are interest insensitive and less bargaining for
additional interest.
• They constitute low cost funds for the banks.
• Effective customer relationship management with the
retail customers built a strong customer base.
• Retail banking increases the subsidiary business of the
banks.

6. Disadvantages
• Designing own and new financial products is very costly
and time consuming for the bank.
• Customers now-a-days prefer net banking to branch
banking. The banks that are slow in introducing
technology-based products, are finding it difficult to retain
the customers who wish to opt for net banking.
• Customers are attracted towards other financial products
like mutual funds etc.
• Though banks are investing heavily in technology, they
are not able to exploit the same to the full extent.

7. Products
Product
Deposits
Demat
Card
Loans Investments

8. Six Primary Drivers of Retail Banking
• Improved customer access
• Facilitate the offering of more services.
• Increase customer loyalty
• Attract new customers
• Provide services offered by peers
• Reduce customer Dissatisfaction.

9. MAJOR BANKS IN RETAIL BANKING
• Axis Bank
• State Bank of Bikaner & Jaipur
• Bank of Baroda
• Punjab National Bank
• HDFC Bank Ltd.

10. Objective’s
• To Observe present trends in Retail Banking.
• To highlight the regulatory factor’s.
• To highlight the various issues and challenges before
industry.
• To observe the process of retail banking.

11. Research Methodology
Type of research
Research is done through questionnaire’s.
Sampling Design
Convenience Sampling.
Methods of data collection
Primary- Questionnaire's
Secondary- Through Print media

12. SWOT ANALYSIS
• RETAIL BANKING

13. Strengths
• large database of customer information, with which to
develop their revised marketing strategies.
• merchandise new banking services

14. Weakness
• Existing investment in staff and branch networks makes it
difficult to introduce changes quickly.
• Union resistance to staff reduction poses a major
problem.
• Management immerged in many years of traditional
banking practice is slow to adopt to new ideas.

15. Opportunities
• The use of new technology to improve customer
interference
• Retail banking under the new diverse pattern, is a
relatively new market, with many opportunities for
innovation
• There are opportunities of home banking via digital
television.

16. Threat
• Banks burdened by heavy overheads
• There are likely to be increasing competition from large
overseas banking corporations.
• There will be continued government pressure to provide
free or low cost banking services to customers.

17. Conclusion
Retail Banking is growing at rapid Pace.
People Prefer Govt. Banks.
Due to the benefits provided by Govt. people opt new
Account in Govt. Bank’s.

18. Suggestion’s
• Govt. Bank’s should increase their working process.
• Private Bank’s should give assurance to the customers
regarding their services.
• Private Bank’s should provide more security to their
customer in order to increase their customer base.

19. Thank You