These are the times where we are witnessing path breaking innovations supported by technology and entrepreneurship approach in almost all walks of life. So be it in field of telecommunications, the way cricket is viewed and perceived, or be it the banking & financial industry.
Banking no longer is viewed as a stable and hence a non-innovative field, things have changed a lot over the last 15 years. That the ‘Customer is King’ truly holds good with the banking sector as well. Gone are the times when one had to walk into a branch to get their passbook updated, now customers have the delivery by pressing a few buttons on his mobile or their laptops.
The concept that a customer does not walk into a bank branch but the bank comes to the customer is reality now – doorstep banking where banks reach out to the customer for cash/remittance transactions is a ‘must have’ product.
Ease of transacting has become basic to banking – hence withdrawing from any bank’s ATM or receiving instant messages on your mobile on any transaction in your account or daily wealth portfolio movement and stock market updates are offered by any bank now. These are the times that India needs to be abreast with the global environment in the banking arena thus convenience at banking has to be given prime importance – thus, banking truly comes under the ‘service’ segment.
All new service channels are evolving, making things easier for the customer; but the ‘branch’ continues to be in existence and is a popular banking channel for transactions. Thus, innovations in branch banking are also evolving. Extended servicing hours, open on holidays/Sundays, premium servicing lounge are customer expectations in addition to non-branch delivery channels.
Customers now have ample choice, not just within banks but within segments of banks – foreign, private sector or public sector banks. While customers approach various types of banks depending on their requirements, the key to maintaining and increasing market shares by any bank is to customise themselves to customer needs.
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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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