Retail banking in India has experienced high growth in the past decade but now faces challenges constraining further growth. Key issues include declining net interest margins and fees as well as rising operating costs. Additional bottlenecks are customer saturation in urban areas, high numbers of inactive accounts, low customer loyalty leading to switching between banks, and competition from non-banking entities. To address these, banks need to improve delivery and experience through initiatives like relationship-based pricing and response times, 24/7 service availability, faster complaint resolution, and loyalty programs rewarding long-term customers. Banks should also explore new business models to profitably serve rural markets and redefine investment advisory services to directly advise customers.
Retail banking refers to banking services offered directly to consumers rather than other banks or corporations. It is characterized by multiple products, distribution channels, and customer groups. Common retail banking products in India include loans for housing, vehicles, education, and consumption. Growth in the Indian retail banking sector is supported by factors such as rising incomes, changing demographics, and technological advancement.
The document analyzes the CASA ratio of IDBI Bank in Sitabuldi, Nagpur and provides solutions to increase it. It discusses the meaning of CASA, current network of IDBI Bank, objectives of analyzing the CASA ratio, and marketing strategies used by the bank. Research methodology involved collecting primary data through surveys and secondary data from sources like the bank's website. Suggestions to increase CASA ratio included opening more savings/current accounts, expanding branches/ATMs, installing cash deposit machines, and launching new e-services. The study aimed to understand customer banking habits and issues to help the bank improve its CASA ratio.
Retail banking provides basic banking services like checking and savings accounts, CDs, mortgages, and loans directly to consumers rather than large corporations. Today, retail banking is characterized by offering multiple products through multiple channels to serve various customer groups. While retail banking deals with individual customers through branches, corporate banking serves business clients and investment banking handles complex financial deals between large entities.
Project on retail banking with reference to syndicate bank.Mayanksng07
This document provides an overview of retail banking in India. It discusses the growth of retail lending in India since liberalization in 1991. Retail lending has grown significantly over the past decade due to increasing disposable income, a growing middle class, and changing attitudes towards loans. However, retail loan growth has not been uniform and banks need appropriate strategies like inclusive and responsible banking to ensure sustainable growth. The document also discusses major players in retail banking in India like SBI and HDFC Bank and examines challenges for foreign banks in expanding retail operations in India like regulatory restrictions and lack of strong credit information infrastructure. It analyzes strategies for banks like focusing on customer service, risk management, and fee-based income from third party products.
This document provides an overview of innovations in retail banking. It discusses the differences between core banking and retail banking. It also outlines some of the key services offered in retail banks like ATMs, internet banking, mobile banking, and more. The document uses ICICI Bank in India as a case study to illustrate retail banking concepts. It provides details on ICICI Bank's history and an overview of its marketing mix including products, price, place, promotion, processes, physical evidence, and people.
The document is a project report submitted by Rajesh Kumar to the National Institute of Technology on retail banking with reference to Allahabad Bank. It includes an executive summary, introduction, company and industry profiles, data collection methodology, findings, suggestions and conclusions. The report analyzes various aspects of Allahabad Bank's retail banking operations including its products and services, workflow, McKinsey's 7S framework, research methodology and customer feedback.
Retail banking provides banking services to individuals through local branches of large commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards, and credit cards. Retail banks deal with individual customers and small businesses by handling deposits, loans, and other transactions.
Mobile banking allows users to perform banking transactions through mobile devices like phones and PDAs. It began with SMS banking and expanded to include WAP banking and STK banking as technology advanced. Mobile banking provides benefits to banks like lower costs and increased customer satisfaction, benefits to businesses like lower costs, and benefits to customers like convenience. However, security, fraud, and lack of infrastructure in some areas are challenges. Reserve Bank of India established a group to address technology, business, and regulatory issues regarding mobile banking. Major banks in India offer mobile banking services through SMS, apps, and other mobile platforms.
Retail banking refers to banking services offered directly to consumers rather than other banks or corporations. It is characterized by multiple products, distribution channels, and customer groups. Common retail banking products in India include loans for housing, vehicles, education, and consumption. Growth in the Indian retail banking sector is supported by factors such as rising incomes, changing demographics, and technological advancement.
The document analyzes the CASA ratio of IDBI Bank in Sitabuldi, Nagpur and provides solutions to increase it. It discusses the meaning of CASA, current network of IDBI Bank, objectives of analyzing the CASA ratio, and marketing strategies used by the bank. Research methodology involved collecting primary data through surveys and secondary data from sources like the bank's website. Suggestions to increase CASA ratio included opening more savings/current accounts, expanding branches/ATMs, installing cash deposit machines, and launching new e-services. The study aimed to understand customer banking habits and issues to help the bank improve its CASA ratio.
Retail banking provides basic banking services like checking and savings accounts, CDs, mortgages, and loans directly to consumers rather than large corporations. Today, retail banking is characterized by offering multiple products through multiple channels to serve various customer groups. While retail banking deals with individual customers through branches, corporate banking serves business clients and investment banking handles complex financial deals between large entities.
Project on retail banking with reference to syndicate bank.Mayanksng07
This document provides an overview of retail banking in India. It discusses the growth of retail lending in India since liberalization in 1991. Retail lending has grown significantly over the past decade due to increasing disposable income, a growing middle class, and changing attitudes towards loans. However, retail loan growth has not been uniform and banks need appropriate strategies like inclusive and responsible banking to ensure sustainable growth. The document also discusses major players in retail banking in India like SBI and HDFC Bank and examines challenges for foreign banks in expanding retail operations in India like regulatory restrictions and lack of strong credit information infrastructure. It analyzes strategies for banks like focusing on customer service, risk management, and fee-based income from third party products.
This document provides an overview of innovations in retail banking. It discusses the differences between core banking and retail banking. It also outlines some of the key services offered in retail banks like ATMs, internet banking, mobile banking, and more. The document uses ICICI Bank in India as a case study to illustrate retail banking concepts. It provides details on ICICI Bank's history and an overview of its marketing mix including products, price, place, promotion, processes, physical evidence, and people.
The document is a project report submitted by Rajesh Kumar to the National Institute of Technology on retail banking with reference to Allahabad Bank. It includes an executive summary, introduction, company and industry profiles, data collection methodology, findings, suggestions and conclusions. The report analyzes various aspects of Allahabad Bank's retail banking operations including its products and services, workflow, McKinsey's 7S framework, research methodology and customer feedback.
Retail banking provides banking services to individuals through local branches of large commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards, and credit cards. Retail banks deal with individual customers and small businesses by handling deposits, loans, and other transactions.
Mobile banking allows users to perform banking transactions through mobile devices like phones and PDAs. It began with SMS banking and expanded to include WAP banking and STK banking as technology advanced. Mobile banking provides benefits to banks like lower costs and increased customer satisfaction, benefits to businesses like lower costs, and benefits to customers like convenience. However, security, fraud, and lack of infrastructure in some areas are challenges. Reserve Bank of India established a group to address technology, business, and regulatory issues regarding mobile banking. Major banks in India offer mobile banking services through SMS, apps, and other mobile platforms.
Retail Banking India 2015 - Now and PredictionsMayur Nanotkar
The document highlights
- the Retail Banking Industry in India using the stats
- future predictions for the retail banks in India in terms of Technological advancement and Customer Engagement
- Top 10 Predictions from the World of Retail Banking.
The document provides background information on e-banking in India. It discusses:
1) The evolution of e-banking, from early distance banking services in the 1980s to the first online internet banking services in 1994.
2) The pre-e-banking scenario in India, where traditional banking involved limited information available only at physical branches.
3) How increased competition from private banks in the 1990s forced public sector banks to adopt technology and computerize operations.
This document analyzes the scope and growth of payment banks in India following demonetization in 2016. It discusses how payment banks can accept small deposits and facilitate money transfers, bill payments, and fund remittances. Data on transaction volumes from two payment banks shows exponential growth. Allowing payment banks to issue debit cards, offer internet banking, and set up more branches and ATMs could help them penetrate unbanked rural areas. If deposit limits increase over time, payment banks may replace some roles of commercial banks and deepen financial inclusion across India.
Banking services can be divided into retail banking and wholesale banking. Retail banking involves transactions directly with consumers and offers services like savings accounts, loans, credit/debit cards. Wholesale banking provides services to larger organizations and other financial institutions. Common retail banking products are transaction accounts, savings accounts, loans, credit/debit cards, and certificates of deposit.
Mobile banking allows customers to conduct banking transactions through their mobile phones. It offers conveniences like funds transfers, bill payments, and account access anywhere, anytime. Banks have adopted mobile banking to reduce infrastructure costs and provide modern services to their growing customer bases. Customers can use mobile banking through SMS, mobile applications, or phone calls to banks' customer service lines. While convenient, mobile banking also raises security and reliability concerns that banks must address.
Electronic banking, also known as e-banking, allows customers to conduct financial transactions without visiting a brick-and-mortar bank. It includes services like internet banking, phone banking, ATM banking, and mobile banking. E-banking provides services like viewing account balances, paying bills, transferring funds between accounts, and more. While banks were initially reluctant due to security concerns, improved encryption methods and the desire to remain competitive have led to a rise in e-banking offerings in recent years.
retail banking an over view of hdfc bankumesh yadav
This document is a project report on retail banking at HDFC Bank. It includes an executive summary that provides an overview of retail banking in India and why banks are shifting focus to retail banking. It also discusses characteristics of retail banking like multiple products, channels and customer groups. The document contains chapters on rationale for the study, objectives, HDFC Bank profile, theoretical perspective, research methodology, data analysis, findings, limitations and expected contributions. It includes certificates, indexes and references. The key information is that this appears to be a student project report analyzing retail banking services at HDFC Bank in India.
The document discusses the history and types of e-banking and online banking services. It defines e-banking as the automated delivery of traditional banking products and services through electronic channels. It describes different types of online banking websites and services, from informational sites to fully transactional sites that allow funds transfers. The document also discusses debit cards, credit cards, smart cards, and ATM cards as payment methods. It provides an overview of the growth of internet banking in India and reviews literature on evaluations of major bank websites and the history of online banking services.
This document provides an overview of banking services available for small businesses. It discusses choosing the right bank, common banking services like checking and savings accounts, additional services like loans and merchant processing, and tips for improving chances of getting a loan. The objectives are to explain small business banking services and how to evaluate options. Key advice includes separating business and personal banking, building relationships with bankers, and taking steps to protect the business from online fraud.
E banking, internet banking and all servicesJomy Mathew
Computers are widely used in banks to help staff operate more efficiently and effectively. They track transactions, process customer information, and allow banks to offer good customer service daily. Key computer applications used in banks include automated teller machines (ATMs), cash deposit machines, mobile banking, internet banking, and core banking systems. These applications provide customers with convenient access to their accounts and allow banks to save time and costs.
Evolution of banks & phases of developmentsankrityayan
The document discusses the evolution of banks in India from ancient times to the present. It outlines the major phases of development: 1) In ancient India, the Vedas first mentioned usury. 2) In the medieval era, loan deeds called dastawez were used. 3) Under British rule, the Union Bank of Calcutta was established in 1829 as the first joint stock bank. 4) After independence, most banks were nationalized in 1969. 5) Today, banking in India includes both nationalized banks and new private banks, with over 100,000 branches serving customers across the country.
This document discusses retail banking in India. It provides an overview of retail banking, best practices, and the significance of product innovation. It then discusses the drivers of retail business in India, including economic growth, demographics, technology, and declining interest rates. Specific areas of retail lending discussed are credit cards and housing loans. The opportunities for retail banking in India are significant due to economic and demographic factors. However, challenges include customer retention, rising indebtedness, and managing information technology risks.
Technology and the Changing face of Banking SectorHirni Mewada
Presentation on Subject Management Information Systems MMS Semester 1 with Team Members-Neha Rewale,Neha Aranha,Hirni Mewada,Pooja Lotanakar,Pooja Kadam.
This document discusses retail loans offered by Bank of India. It provides an overview of the loan application and sanctioning process, including how credit scores are analyzed using CIBIL, Equinox and Equifax software. Key steps in the process include submitting a loan application, credit analysis, preparing loan documents, verifying documents, updating the loan system and disbursing funds to the customer. Factors that positively and negatively affect credit scores are also outlined.
The document provides a history of banking in India from the 1800s onwards in three phases. It discusses the key events like the establishment of presidency banks, creation of the Imperial Bank of India, nationalization of SBI and other banks. It also explains the basic functions of a bank like accepting deposits, lending money through various loan products, and services like letters of credit. The functions of current, savings and term deposits are described.
Mobile banking and tele-banking allow customers to conduct financial transactions remotely using mobile devices or over the telephone. Mobile banking services include checking balances, transferring funds between accounts, and paying bills. It works through SMS messaging, mobile web, or dedicated applications. Tele-banking enables financial transactions like obtaining account information and transferring funds over the phone without visiting a branch. Both provide convenience but come with security risks if devices or login credentials are compromised.
Public sector banks are owned by the government, while private sector banks are owned by private individuals or groups. Interest rates are typically lower for public sector banks compared to private sector banks. Public sector banks are considered more secure since they are run by the government of India, while there is a higher risk of fraud with private banks. Private banks can make business decisions and launch new products/services more quickly than public sector banks which require government approval.
customer satisfaction of internet banking of union bank of indiaShrey Saxena
This document is a primary project report submitted by Shrey Saxena to their professor, Mr. Manoj Saxena, as a requirement for their post-graduation diploma in management from the International Institute for Special Education in Lucknow. The report studies customer satisfaction with internet banking services from Union Bank of India. It includes an acknowledgements section, declaration, table of contents, and sections on the research design, data collection, data analysis, findings, conclusions, and recommendations. It also includes a questionnaire used in the study. The report provides an in-depth analysis of customer perceptions and satisfaction with Union Bank of India's e-banking services.
Wholesale banking refers to providing banking services to large corporate clients, multinational firms, and other financial institutions rather than individual consumers. It involves borrowing and lending large sums of money. Services offered include savings and checking accounts, loans, underwriting, market making, and mergers and acquisitions advice. Wholesale banks deal primarily with large businesses, real estate developers, mortgage brokers, and other institutional customers.
Retail banking provides banking services to individual customers through local branches. It offers savings and checking accounts, mortgages, loans, debit/credit cards. Retail banking started in 15th century Europe and expanded through branch networks in the 19th century. Today it is characterized by multiple products and distribution channels for different customer groups. In India, retail banking has grown over 35% in the last 5 years and offers potential in rural areas. It provides secure money management and access to accounts/services through various channels like ATMs, internet and mobile banking.
Retail Banking India 2015 - Now and PredictionsMayur Nanotkar
The document highlights
- the Retail Banking Industry in India using the stats
- future predictions for the retail banks in India in terms of Technological advancement and Customer Engagement
- Top 10 Predictions from the World of Retail Banking.
The document provides background information on e-banking in India. It discusses:
1) The evolution of e-banking, from early distance banking services in the 1980s to the first online internet banking services in 1994.
2) The pre-e-banking scenario in India, where traditional banking involved limited information available only at physical branches.
3) How increased competition from private banks in the 1990s forced public sector banks to adopt technology and computerize operations.
This document analyzes the scope and growth of payment banks in India following demonetization in 2016. It discusses how payment banks can accept small deposits and facilitate money transfers, bill payments, and fund remittances. Data on transaction volumes from two payment banks shows exponential growth. Allowing payment banks to issue debit cards, offer internet banking, and set up more branches and ATMs could help them penetrate unbanked rural areas. If deposit limits increase over time, payment banks may replace some roles of commercial banks and deepen financial inclusion across India.
Banking services can be divided into retail banking and wholesale banking. Retail banking involves transactions directly with consumers and offers services like savings accounts, loans, credit/debit cards. Wholesale banking provides services to larger organizations and other financial institutions. Common retail banking products are transaction accounts, savings accounts, loans, credit/debit cards, and certificates of deposit.
Mobile banking allows customers to conduct banking transactions through their mobile phones. It offers conveniences like funds transfers, bill payments, and account access anywhere, anytime. Banks have adopted mobile banking to reduce infrastructure costs and provide modern services to their growing customer bases. Customers can use mobile banking through SMS, mobile applications, or phone calls to banks' customer service lines. While convenient, mobile banking also raises security and reliability concerns that banks must address.
Electronic banking, also known as e-banking, allows customers to conduct financial transactions without visiting a brick-and-mortar bank. It includes services like internet banking, phone banking, ATM banking, and mobile banking. E-banking provides services like viewing account balances, paying bills, transferring funds between accounts, and more. While banks were initially reluctant due to security concerns, improved encryption methods and the desire to remain competitive have led to a rise in e-banking offerings in recent years.
retail banking an over view of hdfc bankumesh yadav
This document is a project report on retail banking at HDFC Bank. It includes an executive summary that provides an overview of retail banking in India and why banks are shifting focus to retail banking. It also discusses characteristics of retail banking like multiple products, channels and customer groups. The document contains chapters on rationale for the study, objectives, HDFC Bank profile, theoretical perspective, research methodology, data analysis, findings, limitations and expected contributions. It includes certificates, indexes and references. The key information is that this appears to be a student project report analyzing retail banking services at HDFC Bank in India.
The document discusses the history and types of e-banking and online banking services. It defines e-banking as the automated delivery of traditional banking products and services through electronic channels. It describes different types of online banking websites and services, from informational sites to fully transactional sites that allow funds transfers. The document also discusses debit cards, credit cards, smart cards, and ATM cards as payment methods. It provides an overview of the growth of internet banking in India and reviews literature on evaluations of major bank websites and the history of online banking services.
This document provides an overview of banking services available for small businesses. It discusses choosing the right bank, common banking services like checking and savings accounts, additional services like loans and merchant processing, and tips for improving chances of getting a loan. The objectives are to explain small business banking services and how to evaluate options. Key advice includes separating business and personal banking, building relationships with bankers, and taking steps to protect the business from online fraud.
E banking, internet banking and all servicesJomy Mathew
Computers are widely used in banks to help staff operate more efficiently and effectively. They track transactions, process customer information, and allow banks to offer good customer service daily. Key computer applications used in banks include automated teller machines (ATMs), cash deposit machines, mobile banking, internet banking, and core banking systems. These applications provide customers with convenient access to their accounts and allow banks to save time and costs.
Evolution of banks & phases of developmentsankrityayan
The document discusses the evolution of banks in India from ancient times to the present. It outlines the major phases of development: 1) In ancient India, the Vedas first mentioned usury. 2) In the medieval era, loan deeds called dastawez were used. 3) Under British rule, the Union Bank of Calcutta was established in 1829 as the first joint stock bank. 4) After independence, most banks were nationalized in 1969. 5) Today, banking in India includes both nationalized banks and new private banks, with over 100,000 branches serving customers across the country.
This document discusses retail banking in India. It provides an overview of retail banking, best practices, and the significance of product innovation. It then discusses the drivers of retail business in India, including economic growth, demographics, technology, and declining interest rates. Specific areas of retail lending discussed are credit cards and housing loans. The opportunities for retail banking in India are significant due to economic and demographic factors. However, challenges include customer retention, rising indebtedness, and managing information technology risks.
Technology and the Changing face of Banking SectorHirni Mewada
Presentation on Subject Management Information Systems MMS Semester 1 with Team Members-Neha Rewale,Neha Aranha,Hirni Mewada,Pooja Lotanakar,Pooja Kadam.
This document discusses retail loans offered by Bank of India. It provides an overview of the loan application and sanctioning process, including how credit scores are analyzed using CIBIL, Equinox and Equifax software. Key steps in the process include submitting a loan application, credit analysis, preparing loan documents, verifying documents, updating the loan system and disbursing funds to the customer. Factors that positively and negatively affect credit scores are also outlined.
The document provides a history of banking in India from the 1800s onwards in three phases. It discusses the key events like the establishment of presidency banks, creation of the Imperial Bank of India, nationalization of SBI and other banks. It also explains the basic functions of a bank like accepting deposits, lending money through various loan products, and services like letters of credit. The functions of current, savings and term deposits are described.
Mobile banking and tele-banking allow customers to conduct financial transactions remotely using mobile devices or over the telephone. Mobile banking services include checking balances, transferring funds between accounts, and paying bills. It works through SMS messaging, mobile web, or dedicated applications. Tele-banking enables financial transactions like obtaining account information and transferring funds over the phone without visiting a branch. Both provide convenience but come with security risks if devices or login credentials are compromised.
Public sector banks are owned by the government, while private sector banks are owned by private individuals or groups. Interest rates are typically lower for public sector banks compared to private sector banks. Public sector banks are considered more secure since they are run by the government of India, while there is a higher risk of fraud with private banks. Private banks can make business decisions and launch new products/services more quickly than public sector banks which require government approval.
customer satisfaction of internet banking of union bank of indiaShrey Saxena
This document is a primary project report submitted by Shrey Saxena to their professor, Mr. Manoj Saxena, as a requirement for their post-graduation diploma in management from the International Institute for Special Education in Lucknow. The report studies customer satisfaction with internet banking services from Union Bank of India. It includes an acknowledgements section, declaration, table of contents, and sections on the research design, data collection, data analysis, findings, conclusions, and recommendations. It also includes a questionnaire used in the study. The report provides an in-depth analysis of customer perceptions and satisfaction with Union Bank of India's e-banking services.
Wholesale banking refers to providing banking services to large corporate clients, multinational firms, and other financial institutions rather than individual consumers. It involves borrowing and lending large sums of money. Services offered include savings and checking accounts, loans, underwriting, market making, and mergers and acquisitions advice. Wholesale banks deal primarily with large businesses, real estate developers, mortgage brokers, and other institutional customers.
Retail banking provides banking services to individual customers through local branches. It offers savings and checking accounts, mortgages, loans, debit/credit cards. Retail banking started in 15th century Europe and expanded through branch networks in the 19th century. Today it is characterized by multiple products and distribution channels for different customer groups. In India, retail banking has grown over 35% in the last 5 years and offers potential in rural areas. It provides secure money management and access to accounts/services through various channels like ATMs, internet and mobile banking.
The document summarizes the retail banking system in India as presented by Varsha Golekar. It discusses how retail banking has shifted from being credit and risk focused to being more customer centric. It provides an overview of the products, services, and processes involved in retail banking. Specifically, it describes TJSB Sahakari Bank Ltd's centralized retail banking cell and its processing of retail loans. It discusses the key risks in retail banking and the general documents required for loan applications and recovery processes.
The document discusses retail banking in India. It notes that retail banking refers to banking services offered directly to individual consumers rather than corporations, including savings accounts, loans, credit/debit cards. Indian retail banking is growing rapidly due to increasing consumerism, internet usage, and new banking companies/technology. Banks are adopting strategies from retail stores, such as improved customer service, customized products, and using data to better understand customer needs.
A concise overview of the retail banking business in the United States. Part of a continuing series of presentations on the financial services industry.
This document provides an overview of the banking system in India. It defines banking and outlines the key laws and institutions that govern banking operations, including the Reserve Bank of India Act and the Banking Regulation Act. It describes the structure of banks in India, categorizing them as commercial banks, cooperative banks, and development banks. It provides details on the various types of commercial banks, cooperative banks, and development banks in India. It also summarizes the major functions and roles of the Reserve Bank of India in regulating the banking system.
Payments banks will change India's financial services landscape by promoting financial inclusion. They can help underserved populations gain access to services like domestic remittances and microinsurance at lower costs than informal options. Payments banks face challenges like developing sustainable revenue models with narrow interest margins and competing with established banks and fintech firms. However, they may impact the industry by widening access through partnerships and mobile technology, helping transition India to a less-cash economy with benefits like reduced printing costs. Their success could demonstrate profitable rural banking through lower fees and transformed the underbanked segments.
Role of New Payment banks and Small banks - Part - 6Resurgent India
RBI as a part of its push for financial inclusion, recently granted ‘in-principle’ licenses for 11 payment banks and 10 small finance banks. Apart from this, the two new universal banks- Bandhan Bank Ltd and IDFC Bank Ltd which were awarded banking licenses by the RBI recently have already begun commercial operations.
Retail banking refers to banking services provided to individual customers rather than businesses. It focuses on mass-producing banking products and services to cater to large numbers of customers. Retail banking offers products like savings and checking accounts, mortgages, personal loans, credit cards, and more. It provides diversification for banks' asset portfolios and opportunities for economic and lifestyle growth through affordable credit. The growth of India's middle class and rising incomes are driving increased opportunities in retail banking.
This document discusses how technology-led innovation can drive growth for non-banking financial companies (NBFCs) in India. It notes that NBFCs have experienced significant growth but also face challenges from increased competition and regulatory changes. To remain competitive, the document argues that NBFCs must deliver innovative products and services more quickly through new channels using technologies like mobile and internet. This will allow them to improve customer experience while developing new offerings and distributing them across multiple channels. The document suggests that technology can help NBFCs enhance business agility and adapt to regulatory and competitive pressures, positioning them for continued growth.
First ever holistic survey of Indian Banks with respect to their perspectives on Payments as a business. 29 private sector and public sector banks were surveyed.
The document discusses and compares the services provided by public sector banks and private sector banks in India. It summarizes that private sector banks are offering more innovative services like internet banking, credit cards, and cash delivery. According to respondents, private sector banks provide better quality services and are more user-friendly, though some services have additional costs. Most private bank customers rate transactions and cash remittance times with their banks as excellent. Therefore, private sector banks are generally seen as providing higher quality services to customers in India compared to public sector banks.
The document discusses potential market expansion and growth opportunities for ICICI Bank in emerging markets like India. It notes that ICICI Bank has opportunities in rural areas of tier 1, 2, and 3 cities that still rely on traditional banking. ICICI Bank is well positioned to capitalize on this due to its innovative services like electronic branches, tablet banking, and customer service solutions. The document also outlines ICICI Bank's past strategies around segmentation, targeting, positioning, product differentiation, and distribution that have made it a leader in retail banking in India.
This document provides information on banking in India, including definitions, functions of commercial banks, and the evolving banking environment. It summarizes the introduction of banking regulations in India in 1949, the key functions of commercial banks, and how the banking sector has undergone structural changes due to financial reforms, increased competition, and technological advances. The emerging environment for banking is described as involving greater capital flow mobility, policy coordination, and financial market integration.
This document provides an overview of corporate/wholesale banking and retail banking. Wholesale banking involves providing banking services to large corporations and institutions, including term loans, working capital financing, and advisory services. Retail banking focuses on individual customers and small businesses through products like savings accounts, loans, credit cards, and investment services provided at local bank branches. Factors that contributed to the growth of retail banking include increasing economic activity and purchasing power as well as technological advances. Both wholesale and retail banking play important roles in commercial banking and facilitating the flow of funds between savers and borrowers.
PROJECT-Impact of Internet banking services on customer loyaltyNabarun Paul
1. The document discusses the impact of effective internet banking services on customer loyalty. It begins by providing background on the banking industry, describing the various activities banks perform and channels through which they provide services to customers, including ATMs, mail, mobile and online banking.
2. It then discusses commercial business models for banks, which typically generate revenue through interest on loans, transaction fees, and financial advising. Various types of banks are also outlined such as retail, business, private, and investment banks.
3. Online banking is said to provide customers with a convenient way to conduct banking from home and check accounts anytime. It has changed transactional business and affects many industries.
This document provides an introduction to a course on retail banking practices in India. It discusses the history and definition of retail banking, distinguishing it from corporate or wholesale banking. It outlines the objectives and outcomes of the course, which will help students understand the components, opportunities, and challenges of the retail banking sector in India. Key driving forces like customer behavior, digital innovation, regulatory compliance, and the macroeconomic environment are also summarized. The document provides an overview of the topics that will be covered in the course.
This document provides an overview of careers in the fintech space in India with a global view. It discusses the speaker's background and experience in fields including IT engineering, banking, FMCG sales, and fintech. It then covers several topics within fintech including banking evolution, top banks in India, key fintech trends and sectors, lending, neo-banking, emerging roles in areas like sales, product, and data/operations. For each section, it provides brief descriptions and references for further reading. The goal is to give the audience a high-level perspective on opportunities within the growing fintech industry in India.
This PPT gives the Introduction to the financial services, their strengths, weakness, opportunities as well as Trends in Banking & Financial Services.
This presentation also includes the Recent developments in the finance field and the strategies to manage demand and capacity within the Financial Service Industry. It also presents the information about the major types of financial services and 7Ps of the same.
State Bank of India (SBI) is India's largest bank with over 16,000 branches. It offers a wide range of banking products and services including deposits, investments, loans, cards, demat services, and mobile banking. SBI has a long history dating back to 1806 and was formed through the amalgamation of Bank of Bengal, Bank of Bombay, and Bank of Madras in 1921. It follows standard processes but also allows for some customization. Physical evidence includes its logo, financial reports, employee dress code and other tangible materials.
0601035 retail banking front office management activitySupa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Agent banking is a model that allows banks to extend their services through authorized third-party agents. It has grown in popularity globally as a way to improve access to financial services, especially in areas with low inclusion rates. In Nigeria, agent banking has expanded rapidly since 2013 when regulations were introduced and has helped increase inclusion from 63% in 2018 to 64.1% in 2020, though more progress is still needed. Statistics show agent banking has grown transactions significantly and provides convenient services to both customers and agents. While challenges remain, agent banking appears poised to continue playing a major role in the future of banking in Nigeria by extending access in currently underserved rural and urban areas.
Banking redefined: disruption, transformation and the next generation bankPauline Mura
To succeed in today’s environment, businesses need to
lead through increased complexity and volatility, drive
operational excellence and enable collaboration across
enterprise functions, develop higher quality leadership and
talent, manage amidst constant change and unlock new
possibilities grounded in data.
The document provides an overview of the banking, financial services and insurance (BFSI) sector in India. It discusses that BFSI comprises commercial banks, insurance companies, banking financial companies, cooperatives, pensions funds and other smaller financial entities. It also notes that the banking part of BFSI includes core banking, retail, corporate, investment and cards services, while financial services include broking, payment gateways and mutual funds. Insurance covers life and general insurance. The term BFSI is commonly used by IT and BPO companies that manage data processing and software development for the banking and financial sector.
This document summarizes an article titled "Banking the Bottom of the Pyramid". It discusses the opportunity for banks in emerging markets to target the large unbanked population at the bottom of the economic pyramid.
The summary outlines that a successful service proposition for lower-income customers requires new products/services, distribution channels, and business processes. It proposes using mobile phones and retailers as new distribution channels to reach more customers. It also discusses the need for new lending models and risk/compliance processes tailored for lower-income markets.
The document then provides context on banking the poor in Bangladesh, noting nearly half the population remains unbanked. It summarizes data on bank branch penetration, deposit accounts, microfinance members
Similar to Retail banking – challenges & way forward (India) (20)
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
1. Retail Banking – Challenges & Way forward (India)
Retail Banking has been the prime contributor to the high growth (CAGR of 30% +) for last
decade or so for most of the Big names in the Indian Banking industry, but post 2008 financial
crisis Banks in India are also showing signs of tiring down and many analysts are casting serious
doubts on Banks ability to showcase similar growth in the coming years. In this context it is
important to analyse and discuss various factors plaguing the growth along with few solutions
that can bring back Indian Banks back to the high growth trajectory. Below article is an attempt
at identifying the challenges & bottlenecks along with few solutions.
Retail Banking – Meaning
Retail Banking denotes banking products and services for Individuals and includes segments like
Associations, Trust, Clubs, Foundations, Small business with Proprietary / Partnership
Constitutions. Broadly all the non corporate segments (Non Manufacturers and non limited
companies) come under Retail Banking.
India -Experience
Retail banking came in to focus around last few years of 19th
century , where every bank started
to feel the importance of diversifying their business from few big corporate to mass retail
segment and as a result post liberalization the biggest reforms on ground happened in the Retail
Banking segment , which has grown at a fast pace over the years, where major brands have been
delivering a CAGR in excess of 30 % over a decade along with diversifying risks.
Retail Banking in India has been focused on 2 major activities; 1.Transaction banking 2.Credit
Products and Banks have improved their capabilities by leaps & bounds in ensuring the best
possible products with respect to both the activities. If you click through any product details of
banks like Wells Fargo or Citi Bank, you will realize that in India we have not just similar
products but even better products.
Seeing the success of new generation Banks, even the State Banks and Nationalized banks too
chipped in and now offers best in class Retail Banking services across their branches and this has
helped Retail Banking to grow geographically from Metros to Tier 1, 2, 3 cities and Towns
2. successfully and now it will be hard to find an individual at these markets without a Debit Card
of Bank or a Bank account. Thus in the last decade or so India has truly been a major success
story in Retail Banking.
Challenges:-
Retail Banking Business model implementation meant higher number of human resource, higher
investments in technology, Infrastructure and ultimately higher costs. Against these high costs
the Income streams primarily came from NIM (Difference between Interest charged and given),
Fees & Charges. Let’s analyze both in detail.
NIM ( Net Interest Margin):-
NIMs ( Difference between Interest earned & paid) has been under pressure for each and every
bank in the last few years, specifically after 2008 global financial crisis, and in India Interest
rates have increased as RBI has been tightening the interest regime for controlling ever growing
inflation worries. Higher interests have impacted cost of borrowing heavily and it has adversely
impacted the credit off take and higher interest rates with slowing down of business meant rising
NPAs and adding to the pressure, high interest on deposits and de regulation of savings interest
rates has increased the cost of borrowing for all the banks and resulted in shrinking of NIMs
across the board and thus affecting profitability.
Commissions & Charges: - Commissions are earned on sales of third party products and
on activities like Issuance of BG /LC, Discounting of Bills etc and Charges are applied on
non maintenance of requisite balances (AMB/AQB etc) and on maintenance of accounts,
high cash transactions, high ATM usage, branch visits etc and these varies from Bank to
Bank and customer to customer.
Over all slow down in business and investments have impacted the revenue streams of the banks
and in order to retain good customers in the fold most of the banks are now offering most of the
products and services free of charges. As a result revenues from Commission & Charges are now
moving southwards impacting the profitability.
Ever growing Operating Cost: - Against the shrinking NIMs and Commission &
Charges, Operating cost has been rising alarmingly, whether it’s the compensation,
Infrastructure or the technological investments and maintenance cost which are fixed in
nature and are hard to control.
All the above parameters have led to a situation where cost to income ratio is all set to drain
banks profitability in the short – term and sustainability in the long term.
Bottle-necks:-
Now along with the above parameters let’s analyze the bottle necks, which are impacting the
profitability of banks.
3. Saturation at Urban & Semi-Urban centers on acquisition of new customers and low
profitability of customers in the Rural markets:-
Most of the individuals in urban and Semi-Urban centers now have at least one bank account and
it will be hard to find a person without a debit card in his pocket. Hence acquisition of new
customers at Urban and semi urban centers is all about switching customers from one bank to
another than acquiring and this has impacted the free flow on Casa float by way of large
acquisition for banks over the last few years. And most of the banks are not keen on going to
rural markets as the scope of business not justifying the cost of operation.
Large chunk of inoperative accounts:-
On one side the acquisition numbers have dropped drastically and on the other side large chunk
of data base is filled with in operative accounts, who are either dormant or once in a blue moon
customer and majority of customers preferring multiple accounts.
For each bank this is a big loss on their investments as every customer acquired has been an
investment for banks and when say more than 50 % of customers remain non productive it means
an investment loss to the tune of respective percentages, which is huge. And banks have been
taking solace in management mantras like 20:80, whereby 20 % provides business of 80% and
vice a versa. But that logic no more looks practical as free flow of casa from new acquisition is
drying up every day and no new customer is willing to open an account at an additional cost for
them rather new accounts which are switch from other banks are acquired at a higher cost now
by adding many free bees.
Hence every inoperative account is eating in to banks investments and thus profitability.
Low levels of customer loyalty resulting in switching of banks:-
Customer loyalty is something Banks in India has failed to attract, notwithstanding the higher
acquisition and maintenance cost compared to pre globalization era. Reason can be attributed to
availability of same set of product and services across banks with no difference whats so ever
and inability of the banks to differentiate and highlight their service standards which means
customers generally rate services of banks based on the staff at each branch and there is no
guarantee of certain level of service with X brand or Y brand. Hence customer doesn’t feel any
loyalty to any banks and wherever they see lower charges and fees or lower interest rates, prefer
to switch their account. The logic of hooking the customer with multiple products will act as
forced loyalty for the bank but with concepts like account portability coming in, Banks will find
it difficult to retain their customers resulting high volatility of portfolios and impacting
profitability.
Competition from non banking entities:-
Nowadays NBFCs , Mobile operators and Retail chains like Wall mart are providing various
payment products like Credit Cards , Mobile payment services etc to customers with little
requirements compared to Banks and similarly Investment advisory services offered by various
4. NBFCs have diminished Banks role as the IAS provider and further Gold Loan NBFCs , Micro
finance companies and other NBFCs providing credit have succeeded in providing easy and
quick finances to customers compared to the Banks resulting in erosion of potential business for
Banks and if the trend continues, banks will struggle to retain customers and loose them to other
businesses offering banking products & services at a better price and pace.
Even the White label ATMS (Private ATMs) around, will attract many customers to use non
Bank ATMS which will further add the cost of running Banks and dent their profitability.
Way forward:-
Keeping these risks as the base, one needs to explore future opportunities in Retail Banking,
which shall help Banks to attract more and more customers along with an active existing
customer base who will stick with Banks with high level of loyalty.
Let us explore opportunities available and draw way forward plan for Retail Banking in India.
Primary Function of Banks:-
While analyzing opportunities, it is important to analyze the roots and understand how Banks
makes money and what is the primary role that Banks are expected to do.
Banks deals in money and money is something which grows by circulation and the channel
enabling the circulation is Banks.
And primary function of Banks has been accepting deposits from the suppliers of money and
lending money to the buyers of money.
The Gap between money bought and sold is the bread and butter revenue for the Banks.
Along with the primary function banks have been specializing in distribution of own products as
well as third party products and bank earns on these services by ways of fees and commissions.
Opportunities & New business initiatives
Keeping these basics in mind, let us explore opportunities & new business initiatives to address
various challenges & bottle-necks discussed above.
Transaction Banking Products & Credit Products has been the highlight of Retail Banking in
India and presently products & services available in India are as good or even better compared to
Global Banks.
Hence first opportunity is identified in improving the delivery and experience of Transaction
Banking Products & Services and Credit Products, let’s discuss various means by which we can
bring in improvements and make Bank more relevant to customers.
5. Improving the Delivery & Experience
Various surveys conducted on Customers, have pointed to the fact that Customer is interested to
conduct his or her basic requirements at their convenience than testing various techno savvy and
complexed products.
Hence in order to improve the delivery & experience, Banks are suggested to implement few
initiatives as mentioned below:-
1. Relationship Pricing & TAT for all products based on Relationship value
Even though few banks have grouped their customers, based on account level profitability and
has been offering priority services to better set of customers. But going forward Banks needs to
come out with a transparent method of account level profitability and offer products and services
at better price and at pre-defined TAT ( Turn round time).
As various surveys points out, Customer is more interested in being serviced fast and not
essentially serviced lot.
Customers should be classified in to Tier one, two, three etc and Best customers of the bank
should be able to access entire Products & Services of the Bank within ½ hrs TAT.
Similarly Tier Two customers should be able to access 80 % of Products & Services within ½ hrs
and remaining 20 % say within a TAT of 2 hrs etc and so on.
Such an initiative will add a purpose in customer with respect to deal with a single Bank where
he can get the best Banding and thus products & services at best prices and within a pre-defined
TAT unlike the present situation where everybody gets everything everywhere, impacting the
logic of customer loyalty.
2. 24*7 Services, whereby Customer can avail any product & services of the Bank at
any time.
Banking cannot afford to remain within 9 am to 4 pm service any more, as competition provide
services similar to Banks provide and customer doesn’t have any incentive in buying Bank
products compared to products offered by NBFCs and others, hence Banks needs to have
technological platforms which will enable 24*7 services for all products and not just Transaction
banking products or few other products.
Banks can upgrade phone banking, Mobile banking, Internet banking products & services to
include all kinds of Banking Products & Services to be available 24*7 and 365 days.
24*7 Initiatives will give an advantage to Banks over non banking competition and unlike Banks
non banking entities will always have restrictions in offering Banking products & services with
respect to Products & Services as well as time, which will give an edge for Banks over these non
banking competitions.
6. 3.Solution Provider services to Complaint resolution services.
As an extension to the above Initiatives, one major area of concern for customers is the
Complaint resolution by Banks, many times customer doesn’t get instant solutions due to one
reason or the other. For example customer fails to complete ATM transactions but account shows
debit and customer rings up Complaint cell numbers where answer is not immediate but we shall
get back to you. For a customer it is a big nuisance and he has to wait for his complaint to be
resolved and next time around customer doesn’t take ATM granted as any time money.
Similarly many complaints take its sweet time in getting resolved, testing patience and anxiety of
customers.
Hence Banks needs to take up another initiative of Solution provider services to Complaint
management services. Whereby customer’s problems are addressed with immediate solutions
and not by lengthy process of existing complaint management.
Such initiatives are practiced by NBFC & Others where customer is still the King and Banks
needs to follow the suit to win over large number of potential customers from non banking
competition.
4.Loyalty programs for Customers based on their relationship years with the Bank.
As discussed earlier many survey points out to low levels of loyalty compared to the satisfaction
with respect to products & services. And we have identified the reason as lack of differentiation
in products & services offered by various banks in India.
Now even though various banks have been offering various free bees to customers as part of
Loyalty programs , none of it seems adding any loyalty factor for customers , there has been
Monsoon offers where Banks have been offering Umbrellas , offering Movie Tickets , Foreign
trips etc , which are free bees without adding any improvement to the goal of developing
customer loyalty.
Hence banks need to undertake loyalty programs, which will directly influence customer’s
loyalty towards the bank.
Initiative like rewarding customer for the long number of years of relationship with Bank by way
of Banding him higher ,allowing him or her access to Best products & services at best prices and
having programs availing which a customer feel privileged not just in the Bank branch premises
but even outside, like an access to executive launches like some credit cards offers in India ,
Immediate appointments at designated hospitals , special bookings , discounts , preference in
delivery of products & services at designated Multiplexes , Hotels, Restaurants , Giant retail
shops etc.
Loyalty programs should reward the number of years of relationship and it should also act as a
privilege not just within Banks but to the outside world. This will influence and improve
customer’s loyalty towards the bank.
7. 5.Branch less banking business model for taping large rural markets profitably.
Since urban and Semi-urban centers are well banked in India, the next stage of growth prospects
lies in rural India but Banks are finding it difficult to operate in rural markets due to adverse cost
to income ratio.
Here Banks needs to introduce cost effective banking model than sticking to the traditional
branch banking model. As business prospects at rural centers are in low volumes and it will not
add sense in servicing these low value customers incurring the same high value business model.
Hence Banks will have to develop a branch less business model, which can be a combination of
BC
( Banking Correspondence & work from home concepts of IT industry) where transactions
banking products should be made available through setting up more and more solar based ATMs
as well as implementing latest technologies like instant credit of cash & cheque in to account via
ATM as launched internationally by Common wealth Bank of Australia.
Mobile banking services should be used extensively in this initiative and payments, ATM
withdrawals should be possible even without issuance of dr-cards.
Similarly Banks will have to explore the possibility of tie ups with Post offices, Village offices,
Primary health centers etc to offer various Deposit, Credit, Investment products to the rural
customers.
A system where one officer for few villages and 1 BC per village kind of business model should
be worked out to service the mass low volume market in India. And banks should explore the
opportunity of earning commission by way of selling GOI products as well as various schemes
and services.
A profitable entry to rural markets will mean getting in to sea of opportunity for bankers where
criteria’s of business will be different along with style of business , hence bankers should
understand the difference and develop a new business model.
6. Improving the scope of Investment Advisory Services
Present scenario:-
Every bank has IAS ( Investment Advisory Services ) being offered to the customers and
products ranges from Mutual Funds (existing) , Insurance , E-Broking accounts , ETFs, Bonds ,
NFOs , General Insurance , Structured products specifically designed for Customer etc.
There are two channels through which Banks sells these products to customers; 1. Private
Banking Group (For HNW Customers) and Cross Sell Initiatives for ordinary customers.
8. Now Banks role in all these sales is that of a Distributor, who earns a commission on products
sold and Bank personnel’s provides advisory information on all these products to customers, so
as to enable them to make decision on investments.
Problem faced by customers:-
Now since it is a distribution process, once the selling is done the Risk of the investments
squarely falls on the customer. If product doesn’t yield the results expected customer got to
blame himself and not Bank’s advice. This is the main reason for many non banking private
players in Investment Advisory business and even though none of them owns up for the material
losses but yes owns up the quality of advice as well as they also promises a return based on their
past record to the clients.
Redefining scope of IAS
Banks needs to re work the entire IAS strategy. Objective of in house research should be direct
advice to the customers and show them specific products to be invested according to their risk
appetite and financial goals than showing them bouquet of products and putting the onus of
selection on themselves.
Banks research should highlight the success ratio of their predictions in the past, enabling
customers to take the decision on whether to buy an advice from X bank or Y bank than
following the present method of selecting products based on their understanding or
understanding of few individuals sitting in the branches.
Once Banks research ability becomes the center point in IAS, there will be more credibility to
the IAS services and thus more customers and business for the Banks.
Now under IAS, presently we are dealing only in financial products and Precious metal like
Gold, Silver and Art works.
Probably time has come for IAS to include Real estate, Entire gamut of precious metals and Art,
which may not be sold from Bank premises rather it can be done by way of referral model.
IAS should be known for its quality of advice and hence performance of IAS should be certified
with historical data. Customers should be able to decide whether X bank or Y bank is providing
better returns historically, before seeking advice and deciding on the product.
How it is going to help the Banks:-
Today very reason why various NBFCs has been doing extremely well on IAS business is based
on their quality of investment advisory services and Banks with their size and expertise are much
well prepared to offer quality IAS to its client base and since Banks are having their own
Treasury and Economic research cells along with in house investments research teams the
competency factor will always be better than small scale NBFCs. Hence banks should utilise
thier inherent strength in advising and attract all those potential customers now serviced by
9. NBFCs along with having 100% share of exisiting customers IAS requirements.This will help
banks in not just perking up fresh revenues but more hooks and loyalty on customer.
7. Introduction of Outflow Management Services
Outflow or Expenses is a subject which is important to all types of customers, hence in order to
be more relevant to customers, Banks needs to introduce a new set of services with respect to
management of outflows.
Let’s analyse various out flows or expenses that we incur in a month.
Expenses types: - Monthly grocery expenses / Utility Bills / EMIs on Loans / Children
Education / Magazines & News Papers / Entertainment expenses / Fuel / Payment to essential
services like monthly maintenance and other support activities /Payments done for parents up
keep / payments done for charity/Expenses on Garments and accessories /Expenses on vehicle
maintenance / Expenses on Purchase of vehicle / Expenses on purchase of luxury items /
Expenses on modification & repairing etc.
Bank’s role is, in between the customer and service provider, where Bank can help customer in
getting the best product and services at the best prices and at the right time.
Banks will have to work on tie-ups with various service providers and should be able to bargain
and get best products & services at best prices for its customers.
And for customer , Bank will the point of quality check and guarantor of services and thus
becoming more relevant in the customers day to day life.
And for Banks, it will be great opportunity to showcase their service quality and advertise it
along with acting as a linkage between consumer / buyer and the seller which further creates an
opportunity to earn commission, fees etc for the services from both the parties.
Hence such initiatives will be novel as well as more relevant to the customers along with it being
a win win situation for Banks, Customers and the various service providers. And every Bank
should do feasibility study on introduction of OMS (Outflow management services) and launch it
as an additional service.
8. Meaningful customer engagements, targeting customer education on new developments
in Banking and benefits.
Banks have been competing with each other, on introduction of various products and services for
servicing the ever growing customer requirements but seldom check whether customers are
aware of these launches and whether they are appreciating these efforts or not.
The answer is big NO.
10. Here is where, every Bank must work on setting up a dedicated Customer Experience research
team, who will not just do dip checks and run feedback campaigns but who will create various
interaction points between bankers and customers. It may be through social media, it may be
through door to door campaign model of FMCGs, it may be through advertisements or even
through customer meets.
But it is important that Banks must meaningfully engage with customers on educating about
Banks products & services , various way & means to bank , loyalty programs etc and these
efforts should be the PUSH efforts towards customers than the present trend of pushing products
at the customers and once knowledge is pushed through one way or the other , there will be an
understanding on products & services available with Banks and customer will be able to match
his requirements with the Bank and thus business will be more of a PULL nature to the present
PUSH.
Hence Customer Experience research teams envisage to bring in customers to the bank for
products & services than bank pushing around products & services at customers often creating
irritation than delight.
Conclusion:-
Retail banking has huge growth opportunities in India and it has to conquer many more heights
before getting exhausted like its counter parts in developed markets like US and Europe. Hence it
is important to understand challenges & bottlenecks faced, along with offering and implementing
right solutions. Above article is an attempt at highlighting the vast opportunities and various
available solutions that can be applied for reviving the animal spirits of Retail Banking in India.
Most valued comment I recieved on the above artilce is from Mr.Romesh Sobti ( MD &
CEO-INDUSIND BANK), who is considered amongst the best Bankers in India at present.
From: Romesh Sobti <Romesh.Sobti@indusind.com>
To: vijay menon <vijaymenon_2000@yahoo.com>
Sent: Friday, February 15, 2013 10:34 AM
Subject: RE: Article on " Retail Banking - Challenges & Wayforward "
Thank you ; interesting takes on retailing , especially on expense outgo management.
Regards,
Romesh Sobti
From: vijay menon [mailto:vijaymenon_2000@yahoo.com]
Sent: 15 February 2013 11:20
To: Romesh Sobti
Subject: Article on " Retail Banking - Challenges & Wayforward "