The Growth of Retail Banking in India
Retail banking has always been an important part of the Indian banking sector. While it is not amongst the highest contributors in this sector, it has still showed a phenomenal growth trend. A significant part of the credit growth comes from retail banking only. Even though the growth of retail banking has not remained on a fast track, it has swiftly transformed a seller’s market into a buyer’s market. The Indian retail-banking sector offers a variety of products to multiple consumer groups through a range of distribution channels. However, the young population of India is contributing the most to the growth of retail banking. There are several dynamic factors that have been driving the retail growth in the country. These factors include the increasing disposable income, growing level of literacy, higher use of technology, fiscal incentives, growing consumerism, market competition, and changing mindsets toward improved lifestyles. Factors like above have also been changing the sector’s response to provide faster and improved services that are focused on consumer needs, as well as their preferences. The banking sector has been formulating several strategies that are oriented toward customers. It has also been building relationships well with them. All these efforts are indicating toward a better future of retail banking growth in the country. The area of retail banking may shine better than ever. There can be dramatic changes seen in this sector during the coming years. However, it is important for banks to lead on the performance and quality fronts and display efficiency in their processes. While overcoming challenges like the sustenance of customer loyalty, offering a wide range of financial advisory services, expanding on a cost-effective basis and bringing masses into the mainstream sector, banks can definitely show a much broader expansion in the retail banking area during the coming few...
Read MoreRetail Banking Services and Their Current Focus
There are many retail banking channels that look forward to meeting consumer demands, as well as optimizing the costs of channel distribution. For this purpose, they adopt different strategies based on the changing technology and business trends. The latest trend among such retail banking channels focuses on reducing their operational costs by improving client services. This is being done to remain competitive in a dynamic yet uncertain market. The improvement in client service practices is also important to survive in an economy where such channels play a major role in enhancing the experience of customers. There are many articles published by proficient researchers which tell about the major retail banking services. As a customer, you may expect a retail-banking channel to provide more convenience and accessibility to you. You may also expect them to give you a personalized experience and dependability assurance. Thus, it is becoming extremely important for such channels to make enhancements in their customer service models. While innovative technological solutions are playing an essential part in this drive, channel networks are also being worked upon. These networks are being made more user-friendly so that may contribute to increase channel efficiency and profitability. Such current changes are being reflected in the trends that you may also notice as a retail consumer. One of these trends is the rising investment in innovative mobile solutions for financial services. These solutions further help in reducing operational costs. Another similar trend is the improved presence of channels in online markets, which is being done using technological platforms like social networks and Web 2.0. More Web-based activities are happening to promote channels and their retail banking services. The client service is also being improved by seamlessly integrating multiple channels and using customer analytics tools. All such trends and efforts have been driving retail-banking services toward developing better relationships with their...
Read MoreRetail banking and its products
Retail banking refers to that division of a bank which deals directly with retail customers. The term ‘retail’ is used owing to its almost storefront shopping nature of commercial banking services and products. It is also popularly known as consumer banking or personal banking. Retail banking is the evident features of banking sector or industry to the general public or the common man. Customer deposits garnered by retail banking represent an extremely important source of funding for most banks. Retail banking caters an array of useful financial products; a few of them are here: 1. Savings accounts Retail financial institutions provide savings accounts. They pay an interest on them but generally cannot have checks written on them. Retail banking also provides checking accounts to its customers for which they have to usually pay a monthly fee. 2. Mortgages Mortgage also known as mortgage loans are used in property transactions. They account for a substantial part of retail banking profits, as well as the prevalent portion of an XYZ bank’s exposure to its retail clientele. 3. Personal Loans These banks offer loans for personal loans to their consumers for various things like buying a car or a property or an educational loan for their children. 4. Debit and Credit Cards They offer their bank’s debit cards or credit cards to their consumers for shopping and purchase of goods. They usually offer lucrative schemes for card holders and attractive gifts on crossing a limit of certain amount. 5. Certificates of Deposits (CD’s) These are a popular investment product and are certificates which entitle the bearer to receive interest. They also act as important source of funds for bank since the funds in the CD’s are available to the banks for a definite period of...
Read MoreProspects of retail banking in India
The scenario of banking is changing rapidly. Banking institutions have started introducing new and innovative plans to improve their services. Retail banking is one of the latest services that most of the banking institutions are launching. Banks in India are raising the bar on deposits and have also increased the minimum balance limit in saving account. All these things are to attract customers and make the retail banking a success. Banks are moving towards products and services that are focusing targeted customers. Still there is a strong relation in terms of business segmentations. In retail banking is the process of providing service to the customers by using local branches of large banks. As a part of their service, retail bankers have stepped ahead by providing management and financial consulting services. One of the prominent features of retail banking is the facilities that their customers receive. A number of private firm like meteredlife.org help customers by providing different kinds of banking services to their customers. Establishing a good relationship with the customers strengthens the financial base, which plays a very important role in making good deals. Customers should make sure that they review their bank statements on a regular basis to ensure that they are not paying any extra charges by making use of retail banking...
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