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INTRODUCTION:
“Retail Banking is a typical mass-market banking where individual customers use local branches of
larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal
loans, debit cards, credit cards and so”
Retail banking aims to be the one stop shop for as many financial services as possible on behalf of the
retail clients. The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable technology, improved
service and banking convenience. Higher penetration of technology and increase in global literacy levels
has set up the expectations of the customer higher than never before. Increasing use of modern technology
has further enhanced reach and accessibility.
India - 6%
China - 15 %,
Thailand - 24%
Taiwan - 52%
ADVANTAGES
Retail banking has inherent advantages outweighing certain disadvantages. The advantages are analyzed
from the resource and asset side.
Resource side:
Asset side:
Money Laundering:
This is one of the major issue in retail banking. This compels all the banks to consider seriously
all the documents which they accept while approving loans.
Outsourcing:
The various core banking activities like hardware and software maintenance , ATM setup and
operation etc are being outsourced by India.
Customer Services:
Banks are expected to retain the ongoing trust of the public. Customer retention is so important in
retail banking. The strategy of “Know Your Customer” is mandatory for any banks so that they
can meet their requirements and needs in terms of services/products etc.
Security:
The dependencies on technologies has brought IT department in managing and optimizing the
performance of retail banking networks. It is also important that banks should maintain their
security to the advanced level to keep the faith of the customer.
Insufficient Manpower:
Though the revolution in technology has made the banking sector modernized, there is a lack in
modern banking professionals to handle it in an elegant manner.