Retail

banking
BY:TANYA (546) &
SHILPI (1420)
B.COM(H) 3rd
YEAR SEC- “A”
Group-6
 ABOUT RETAIL BANKING!
 Retailbanking, also known as consumer banking, is
the provision of services by a bank to individual
consumers, rather than to companies, corporations or
other banks. Services offered include savings and
transactional accounts, mortgages, personal loans,
debit cards, and credit cards.
PRODUCTS OFFERED BY RETAIL
BANKS!
STEPS TAKEN TOWARDS
TRANSFORMING RETAIL
BANKING BY BANKS LIKE SBI
 Presence and availability
 Core banking
 Extended hours
 Quality and quickness in delivery
 Better infrastructure
 Make routine task easier and less time
consuming(Net banking, ATM centres,
Handy-fund transaction)
 Merger/Acquisition process(Imperial bank
of India,State bank of Saurashtra etc)
 Services,Product range(Capital
market,Mutual fund,Cards and payment
services etc)
Advantage
 Money is much more secure
 Offer wide range of services such as,
mortgages and insurance
 Offers a variety of ways in which you can
access your account and manage your
money
 Focus on individuals and small units.
 Riskis spread and recovery is good
 Surplus deployable funds can be put into
use by the banks
 Customizable and wide ranging products
are available
DISADVANTAGES!
 Charge for services
 Monitoring and follow up of huge volume
of loan accounts
 Huge investment and technology
 Spend heavily on human resource
developement
FUTURE OF RETAIL BANKING!
 Indian retail banking has been showing
phenomenal growth
 In 2004-05, 42% of credit growth came
from retail
 Rural areas offer tremendous potential
CHALLENGES OF RETAIL
BANKING!
 The issue of money laundering is very
important
 Take utmost care to retain the ongoing
trust of public
 Innovative strategies to meet customer’s
need
 Ensure security
 Maintain competitive edge through
efficiency of operations
 Customer retention
 Suitable manpower recruitment for a
modern banking sector
STRENGTH
o Provides diversified asset portfolio
 Improves standard of living
 Innovative product development
 Economies of scale
WEAKNESS
 Avoidcorporate sector
 Marketing(Internal & External)
 Changes in technology
OPPORTUNITIES
 Scope of Innovation
 Rise in per capita income
 Economic growth
THREATS
 Large disbursement of loans
 Issue of customer privacy
 IT
CONCLUSION!
 Retail banking offers opportunities to banks to
cross sell various other retail products like credit
cards, insurance, mutual funds, demat facilities
to the depositor.Before the reform, most of the
products offered by banks were multiple which
the customer had no option except to accept or
leave them.The financial sector reforms aimed at
deregulation,Liberalization,Gobalization of Indian
banking has changed the entire scenario &
satisfaction to customer in banking has given
way to innovation.