TRENDS IN BANKING SECTOR

BY
INSPIRE
TEAM NO.8
INTRODUCTION
 Faced with mutually interdependent forces of
competition, regulation, technology, and
expectations of the customers, banks are set for a
range of roles.
 The future mantra:

INTELLIGENT INTEGRATION
ADJUST, ADAPT AND CHANGE
CHANGING SCENARIO
 Electronic Payment Systems
 Predictability of Cash Flows :

Clients know when their accounts are debited or

credited.
 Increased efficiency:

Lower transaction costs

 Facilitates paperless inter and intra bank

settlements, both inter and intra city.

CHANGING SCENARIO(Contd..,)
 Successful transformation to a sales culture
 Branches as "stores”
 Emphasis on sales at all levels of the organization
 Focus on “Customer Experience”
 More stress on e-money, plastic money and internet

based delivery channel.

 Lower credit to manufacturing and productive sector

Higher growth in housing, auto loans etc..

 Outsourcing
TRENDS IN BANKING WRT SCM
 Bank provides integrated commercial and
financial solutions to the supply and distribution
channels of a corporate.
 Banks offer Channel financing products that

extend working capital finance to dealers or

vendors having relationships with large corporate.
 The products are designed to add value to supply

and distribution channels by providing unique

solutions to meet their working capital
requirements.
TRENDS IN BANKING WRT SCM (Contd.,)

Depending on the business requirements of the

corporate, banks provide the following models of
channel financing:
 Dealer Financing:

This product is designed to provide financing facility

to the dealers or distributors of a particular
corporate exclusively for their purchases made from
that corporate.
 Factoring of Receivables:

Factoring is the purchase of accounts receivable at a

discount which enables better cash management for
the seller.
TRENDS IN BANKING WRT SCM (Contd.,)
 Purchase Invoice Financing or Vendor
Financing:
The product is designed to provide
financing to vendors of a particular
corporate against sales made to the
corporate. It aids the cash flow of the
vendor and helps to improve the overall
supply chain reliability of the corporate.
TRENDS IN BANKING WRT SCM (Contd.,)
 Warehouse Financing:
It is a form of inventory financing in which
goods are held in trust as collateral for the
loan. Warehouse financing involves the use of
public warehouses in which the goods are
held in locations owned by third parties.
 Trade Cards:

Trade Cards work like a credit card with a

pre-loaded limit and facilitate the purchase
of goods by approved dealers.
TRENDS IN BANKING WRT SCM (Contd.,)
 Rent Receivable Financing:
These products are designed for companies
involved in renting out goods like computer
hardware, furniture, construction equipments
etc to other companies. The loans are
advanced against these future rent receivables.
 Cross Border Transactions:
Design products for providing supply chain
financing solutions to corporate involved in
international transactions.
THANK YOU