Risks increase as the products become more complex. Regulations become tighter and there is government pressure. Those companies that are able to turn these challenges into opportunities will succeed. The financial service sector is a strong economic force; they can influence other industries’ success and standard. This is because financial services are used for all purposes be it individual or institutions.
They function like a huge multinational corporation, having multiple arms or segments including bancassurance, investment and advisory services, wealth management services and the likes other than the traditional banking service. Large banks provide commoditized products with ease of access to their customers, through their wide network of
One another major concern for bank is about counterfeit of their products for example if a bank comes up with an app of its own then many others will try to follow them and the others might have wrong intentions of misusing secure data of the customer. Some of the challenges that the banks are facing today are: • Managing broadened needs of customer: Needs of customer may diversify according to the service a customer wants from the Bank. A customer may demand the Bank official for POS facility on two mobile number of a single client. • Diminishing customer switching: Bank must focus on customer attrition rate. It's a sensitive market place and competitors are ready to cope up every opportunity that can lead to their increasing market
In the absence of a credit bureau, banks generally depend on customer documents like bank statements, business verification, audited financials etc. These in turn depend on market conditions, seasonality of business cycle etc. Further to this, banks depend on skills of its staff that underwrite or source these applications. Since, it is mostly customer and staff oriented, banks tighten their lending policies especially since this is a more dynamic segment as compared to the salaried segment where monthly incomes (depending on the employer) are quite
Indian banking today is in the mid of an IT revolution. However, new private sector banks and foreign banks have an edge over public sector banks with regard to the implementation of technological solutions. To be successful in this competitive environment, these banks have to take certain steps like cost reduction by economies of scale, better relations with the customers by providing better services and facilities to them. Pressure of performance and profitability will keep them on their toes all the times as the shareholders expect good performance along with good returns on their equity. The changing scenario and the new technologies like internet banking, mobile banking, improvement in payment technology, etc.
The Banking industry became one of the fastest growing sectors after the first phase economic reforms of 1991. The Banking sector has played a vital role in the overall economic development of the country right from the time of nationalization. Due to globalization the Indian Public Sector banks have been facing keen competition from the Private Sector and Foreign banks as well. As is well known, survival of the fittest is the core theme in the global market today. Sustenance and growth of public sector banking is very much essential for balanced and effective economic development.
Hence, commercial banks are not only financing the shadow banking industry, they also have a big part in the ownership of these shadow banking institutions. These stakes bring with them a host of conflicts of interest as well as affirming the need to ensure a sustainable shadow banking system in China, as if the system were to fail, the commercial banks wil be directly damaged as
It is also focusing at the top end of the market, on whole sale banking capabilities to provide India’s growing mid / large corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500
Banking sector is transforming itself, it has adopted wider technology the ideas of which never flashed in the minds of people just like phone banking, and net banking. Life in today’s era is quite competitive, time is more important than money that is the reason banks are trying to be more convenient and faster.in any sort of market ,customer is of vital importance, he holds the key of that market.. In any type of company be it a profit seeking industry or a service industry satisfaction of customers is of top most priority. By nature, banks are both profit oriented and service lending institutions. Customer relationship which holds a high place can be made effective by efficient customer services and timely handling of customer grievances tactfully.
Figure 6: Percentage growth of debit and credit cards A new trend has been found by Credit cards. In a nation regulated by hard currency for business these modern piece of plastic cards are gaining foothold. It is forecasted that outside US market the next largest market for credit card will be in India. Figure 7: Growth of credit card in India 1.1 RETAIL BANKING ADVANTAGES: Retail banking is a type of banking, where individual consumer’ needs are met at the primary level i.e. by offering numerous products.