Financial services through non branch delivery channels

With more than 70 percent of financial system assets owned by the banks, the banking sector continues to be the most dominant force in the Indian financial system. However, with the growth in the economy being sluggish, banks can no longer afford to rely on ‘corporate banking’ to ‘retail banking’, this move has given an impetus to the performance of practically all the banks, and it has also increased their market capitalization to a large extent. The trend in market capitalization reveals that, the banks that have placed greater thrust on retail banking activities have gained. From the staid to the savvy, each and every bank is singing the retail tune, and with a gusto. Even the laggards are reaping the benefits of the retail revolution. So, boon time for consumers also means boon time for banks. It has been observed that banks, which provide the entire product suite of liability, asset and wealth management products, have been successful in retaining their customers. In today’s scenario, though the competition fro garnering a sizeable share in retail market is intensifying it’s a win-win situation for the customer. Another key driver in creating this retail thrust is technology, while the differentiating factor being how well banks can use it to meet their customer’s needs. Today in addition to private and public sector banks, co-operative banks have also resorted to technology-driven banking and are offering services like ‘Anywhere Banking’, ‘24/7 banking’, ‘One-stop financial solution’ and so on. As a result customer have benefited immensely due to availability of world class banking services, lower interest rates on loans and array of electronic banking channels. With the entry of multiple banking channels over the last three to four years, retail banking has taken off. Multiple channels have enabled banks to goon with the entry of multiple banking channels over the last three to four years; retail banking per say has taken off. Multiple channels have enabled banks to gain massive customer acquisition modes, since the transaction volumes spread over multiple channels lessens the load on the branches.

[...] Most banks have clear strategy- to educate their customers about the benefits of this delivery channels and hope that they adopt it over time. Though Internet banking does not require physical infrastructure. Thus saving on prohibitive real estate costs. Private Banks like ICICI Bank, HDFC Bank, Axis Bank and ABN AMBRO Bank have seen steady surge in the number of users registered for Internet banking. Currently ICICI bank has 1.8 million registered users, and 10 percent of the total number of transactions takes place through the Net. [...]

[...] The bank has to bring awareness to the customers regarding the non Branch Delivery Channels and educate them about the benefits got from the same. The bank should give live demonstrations to various customers both at customers place and also within the bank premises. Promoting net banking service by sending brochures and necessary information to the customers. Educating the customers about the benefits got by using the Non Branch Delivery Channels in comparison to the regular banking methods. The customers need to be educated on how to exploit the features of the website for internet banking transactions. [...]

[...] Request Processed through BBP Provide information Products and services Loan approval / disbursal A/c related enquires On Line Processing ATM jot listing ATM / IVR pin issuance Cheque book request Courier requests Stop payments CC/ DD issuance and funds transfer Booking Fixed Deposits Account Statements/ Interest Certificates Off Line Processing Dispatch of brochures / schedule of charges Loan statements / Amortization schedules / disbursal letters Duplicate statement dispatch Transaction advices (CARTS is mostly used for inputting the following the following request) Complaints TDS certificates Statement cycle changes Copy of Auto loan agreement / statement/ amortization schedule Issuance of ATM cards TCD Booking Cash Delivery / CC/ DD issuance Statement / interest Certificate generation The automated BBP services are available to the customers 24hrs a day, 7days a week with a host of options. [...]