Retail banking in India today is getting re-defined and re-engineered with the use of IT and it is sure that the future of banking will offer more sophisticated services to the customers with the continuous product and process innovations, with the change from ‘conventional banking to convenience banking’ and ‘mass banking to class banking.’ All these changes are really influenced by the changes in the political, economical, social, cultural changes of the country but above all, the business scenario is highly influenced by the changes in the needs and aspirations of the people. But today, the degree of such changes is so fast and more frequently experienced by them. Even the consumer status is changing from isolated to connected, unaware to well-informed, passive to active.
As the outreach is enlarged in the banking industry in India with the increased number of banks and wider network, the customer demands convenience, comfort, speed, cost-effective and quality services in the banking operations. In the recent years, the Indian banking industry saw a host of new generation banks entering the market with their innovative strategies. All these bankers are generally slim in structure but heavily use technology and multi-channel facilities to reach out to a large section of the customers. Technology has played a definitive role in facilitating transactions in the banking sector and the impact of technology implementation has resulted in the introduction of new products and services by various banks in India and enhanced the reach of banks from metros to tier 2/3 cities and rural areas.
At the same time, the payment services offered by banks to the common persons as well as the corporate bodies have improved substantially. This too is partly due to increased use of technology in service delivery and partly due to procedural changes necessitated in the wake of competition amongst the banks. With the introduction of electronic banking, banks are moving their focus of payments from the physical presence of money to the use of electronic money.
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Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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