REPORT

ON
FUTURE OF RETAIL BANKING

SUBMITTED TO SUBMITTED BY
SARIKA KESWANI Priyanka Shrivastava
MBA ,IITM

INTRODUCTION-
Retail banking in India has fast emerged as one of the major drivers of the overall
banking industry and has witnessed enormous growth in the recent past. The Retail
Banking Report encompasses extensive study & analysis of this rapidly growing
sector. It primarily covers analysis of the present status, current trends, major
issues & challenges in the growth of the retail banking sector. This report helps in
Banks, financial institutions, MNC Banks, academicians, consultants and
researchers to have a better understanding of the booming
opportunities in retail banking in India.

FUTURE OF RETAIL MARKRTING-

The Future of Retail Banking on current trends and technologies impacting the
retail banking industry suggests ways for banks to face the future. According to
Joseph DiVanna, a consultant and author of books on business and technology,
the future of retail banking is neither technological nor is it simply about
embracing customer’s evolving needs. He describes the future of retail banking as
“a complex task of transforming traditional banking institutions into agile
organizations that deliver financial services to facilitate a rising set of emerging
lifestyles.”

Taking a historical view of banking intermediaries formed to satisfy a need to

exchange goods and services; DiVanna establishes the fundamentals of retail
banking and describes how changing global lifestyles and technological advances
along with regulatory developments are impacting it.

DiVanna goes on to transpose basic business and marketing concepts such as

strategic vision and core competencies in retail banking stating that to prepare for
the future, banks need to develop cohesive strategic initiatives. A significant
section dwells on the relevance of retail banking technology and the impact of dot
com boom. The key to innovation and creating competitive differentiation for the
next generation of retail banks lies in understanding how to apply technology to
achieve superior product delivery and customer service. DiVanna identifies
operational excellence, customer intimacy and alliances as other elements
essential to a bank’s success in the future.

The ideas discussed are not new. However, put together, they present a cohesive
picture of how retail banks can compete in the future. The liberal use of examples
is the highlight of this book. The script is verbose and repetitious with ideas
lacking clarity. In this well-researched volume, DiVanna has skillfully woven
business concepts with examples to create an interesting, informative,
comprehensive and opportune analysis of the retail banking industry

OBJECTIVE
 Performance oriented leadership
 Sophisticated marketing and sales
 Efficient distribution channels
 Process efficiency and ease of scalability
 Superior credit policy, procedures and skills
 Sustaining Customer loyalty
 NPA reduction & Fraud prevention
 Avoiding Debt Trap for customers
 Bringing Rural masses into mainstream banking

METHODOLOGY-The data used, extensively draws from the in-house and

proprietary sources available at Cygnus as our research team regularly tracks the
sector. The other sources include Bank for International Settlements (BIS),
Reserve Bank of India, Banking related Journals, and Research papers, Industry
portals, Government Agencies, and Trade associations, monitoring of Industry
News and developments etc. The data has been cross-checked by theresearch team
and validated to provide the latest and unambiguous information.The detailed TOC
give the scope of coverage .

FINDINGS-Retail lending across the globe has been a showcase of innovation

in the commercial banking sector. Countries like China and India have emerged as
potential markets with huge investment opportunities. The higher growth of retail
lending in emerging economies is attributable to fast growth of personal wealth,
favourable demographic profile, rapid development in information technology, the
conducive macro-economic environment, financial market reforms, and several
micro-level supply side factors. . The retail banking strategies of banks are
undergoing major transformation, as banks adopt a mix of strategies like organic
growth, acquisitions and alliances. This has resulted in a paradigm shift in the
marketing strategies of the banks. Public Sector Banks players are adopting
aggressive strategies, leveraging their branch network and their customer vase to
earn a larger share of the retail pie. Banks are also going in for innovative
strategies like cross selling and packaged selling of retail products. At the same
time, new foreign players
are also entering this high growth sector.

REFRENCE
http://www.cygnusindia.com/images/TOC_synopsis_retail%20banking_.pdf
http://www.iimcal.ac.in/community/finclub/dhan/dhan6/1.pdf

www.iba.org.in/.../IMC-MrsSoundaraKumar-SBI(RETAIL%20BANKING).ppt