Volume : 4, Issue : 3, March - 2015

"Banking industry under transition"(Moving towards Customer Focused-Retail Banking)

Noor Alam Khan, Firoz Husain

Abstract :

<p>&lt;p&gt;&amp;nbsp;After privatization and liberalization the Indian Banking sector developed and diversified at individual reach. The&amp;nbsp;&lt;/p&gt; &lt;div&gt;RBI also nationalized the good amount of commercial banks and co&amp;ndash;operative banks for providing socio&amp;ndash;economic&amp;nbsp;&lt;/div&gt; &lt;div&gt;services at micro&amp;ndash;level. All around the world Retail Banking has been an established market; however its rise in emerging&amp;nbsp;&lt;/div&gt; &lt;div&gt;economies like India has been of recent origin. India&amp;rsquo;s retail banking is rising continuously where retail is contributing more than 30% of overall&amp;nbsp;&lt;/div&gt; &lt;div&gt;credit growth.&amp;nbsp;&lt;/div&gt; &lt;div&gt;Banking as a whole is undergoing change and consumer is getting transacted into a larger demand for retail banking products and services.&amp;nbsp;&lt;/div&gt; &lt;div&gt;Major product segments of retail credit include housing finance, auto finance, personal loans, consumer durables loan, credit card etc. In India,&amp;nbsp;&lt;/div&gt; &lt;div&gt;all the retail Banking segments are expected to witness a tremendous growth owing to the low cost of borrowing, changing customer&amp;rsquo;s attitudes&amp;nbsp;&lt;/div&gt; &lt;div&gt;towards borrowing and optimism regarding economic growth. Retail banking in India has to be developed in the Indian way, notwithstanding&amp;nbsp;&lt;/div&gt; &lt;div&gt;the long queues in front of the teller counters in the public sector banks.&amp;nbsp;&lt;/div&gt; &lt;div&gt;Retail banks provides e&amp;ndash;banking facilities for their high net worth and techno&amp;ndash;savvy customers which enables to do the banking transactions&amp;nbsp;&lt;/div&gt; &lt;div&gt;from anywhere in the world without physically going down to the anch. An attempt has been made under this study to observe the transition&amp;nbsp;&lt;/div&gt; &lt;div&gt;of banking industry toward customer focused retail banking.&lt;/div&gt; &lt;div&gt;Gone are the days when customer use to wait outside SBI Branches for different services. With privatization of banking industry and emergent&amp;nbsp;&lt;/div&gt; &lt;div&gt;of new technology based banks like ICICI, HDFC etc, the entire banking system is on transition mode where customer is King and they are on&amp;nbsp;&lt;/div&gt; &lt;div&gt;receiving end.&lt;/div&gt; &lt;div&gt;Present era is service era where banks have to give prompt service to their customer either being it anch banking or net banking or mobile&amp;nbsp;&lt;/div&gt; &lt;div&gt;banking.&lt;/div&gt; &lt;div&gt;In short banking now is shifting from leisure ick and mortar to quick and responsive banking. The banks which are quick in their metamorphosis&amp;nbsp;&lt;/div&gt; &lt;div&gt;will lead the industry others will only be follower.&amp;nbsp;&lt;/div&gt;</p>