With more than 70 percent of financial system assets owned by the banks, the banking sector continues to be the most dominant force in the Indian financial system. However, with the growth in the economy being sluggish, banks can no longer afford to rely on ‘corporate banking' to ‘retail banking', this move has given an impetus to the performance of practically all the banks, and it has also increased their market capitalization to a large extent. The trend in market capitalization reveals that, the banks that have placed greater thrust on retail banking activities have gained. From the staid to the savvy, each and every bank is singing the retail tune, and with a gusto. Even the laggards are reaping the benefits of the retail revolution. So, boon time for consumers also means boon time for banks. It has been observed that banks, which provide the entire product suite of liability, asset and wealth management products, have been successful in retaining their customers. In today's scenario, though the competition fro garnering a sizeable share in retail market is intensifying it's a win-win situation for the customer. Another key driver in creating this retail thrust is technology, while the differentiating factor being how well banks can use it to meet their customer's needs. Today in addition to private and public sector banks, co-operative banks have also resorted to technology-driven banking and are offering services like ‘Anywhere Banking', ‘24/7 banking', ‘One-stop financial solution' and so on. As a result customer have benefited immensely due to availability of world class banking services, lower interest rates on loans and array of electronic banking channels. With the entry of multiple banking channels over the last three to four years, retail banking has taken off. Multiple channels have enabled banks to goon with the entry of multiple banking channels over the last three to four years; retail banking per say has taken off. Multiple channels have enabled banks to gain massive customer acquisition modes, since the transaction volumes spread over multiple channels lessens the load on the branches.
[...] Most banks have clear strategy- to educate their customers about the benefits of this delivery channels and hope that they adopt it over time. Though Internet banking does not require physical infrastructure. Thus saving on prohibitive real estate costs. Private Banks like ICICI Bank, HDFC Bank, Axis Bank and ABN AMBRO Bank have seen steady surge in the number of users registered for Internet banking. Currently ICICI bank has 1.8 million registered users, and 10 percent of the total number of transactions takes place through the Net. [...]
[...] The bank has to bring awareness to the customers regarding the non Branch Delivery Channels and educate them about the benefits got from the same. The bank should give live demonstrations to various customers both at customers place and also within the bank premises. Promoting net banking service by sending brochures and necessary information to the customers. Educating the customers about the benefits got by using the Non Branch Delivery Channels in comparison to the regular banking methods. The customers need to be educated on how to exploit the features of the website for internet banking transactions. [...]
[...] There is no direct income that is received from this channels .Here the income received is calculated as marketing of accounts(savings bank account) from the place where this services are offered .Here opportunities are changed to income Payback period The term payback or payout refers to the period in which the project will generate the necessary cash to recoup the initial investment. Payback method is the traditional method of capital budgeting .It is the simplest and most widely employed quantitative method for appraising capital expenditure decisions. [...]
[...] NON BRANCH DELIVERY CHANNELS Interactive Voice Response Unit Bank By Phone Automated Teller Machine (ATM) Drop Box Facility Couriers Net Banking Interactive Voice Response Unit (IRV) The 24-hour IVR is an automated response unit which provides information about the various products and services offered by the bank and specific account details to the customer. It also allows him to conduct certain transactions from the comfort of his office or house itself This facility is available in all our branches at: Delhi and Noida Mumbai Kolkata Chennai Hyderabad Baroda Puna Bangalore The IRV facilitates the following banking transactions for the customer General Information Information about products and services offered Savings a/c Current a/c Time deposits Investment service Auto loans Loans against shares Personal loans During bank hours, the customer has an option of speaking to a bank officer for additional information about the products. [...]
[...] The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products Including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
