A boom in credit-fuelled consumption has made India's retail banking one of the biggest among emerging markets outside of China. Going by. PDF | Retail banking is the most visible face of banking for the general public. Retail Banking refers to provision of banking products and services offered to. India's banking sector is a study in contrasts: it supports the world's . mobility of the middle class have transformed retail banking in India over the past decade.
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Kearney, a global management consulting firm, recently identified India as the "second most attractive retail destination" of 30 emergent markets.
Reimagining the Retail Banking | Forbes India
The rise of the Indian middle class is an important contributory factor in this regard. The percentage of middle to high income Indian households is expected to continue rising.
The younger population not only wields increasing purchasing power, but as far as acquiring personal debt is concerned, they are perhaps more comfortable than retail banking india generations.
Improving consumer purchasing power, coupled with more liberal attitudes toward personal debt, is contributing to India's retail banking segment. The combination of the above factors promises substantial growth in the retail sector, which at present is in the nascent stage.
Due to bundling of services and delivery retail banking india, the areas of potential conflicts of interest tend to increase in universal banks and financial conglomerates.
Some of the key policy issues relevant to the retail banking sector are: What are the challenges for the industry and its stakeholders?
First, retention of customers is going to be a major challenge.
According to a research by Reichheld and Sasser in the Harvard Business Review, 5 per cent increase in customer retention can increase profitability by 35 per cent in banking business, 50 retail banking india cent in insurance and brokerage, and per cent in the consumer credit card market.
Thus, banks need to emphasise retaining customers and increasing market share.
Reserve Bank of India - RBI Bulletin
Second, rising indebtedness could turn out to be a cause for concern in the future. India's position, of course, is not comparable to that of the developed retail banking india where household debt as a proportion of disposable income is much higher.
Such a scenario creates high uncertainty. Expressing concerns about the high growth witnessed in the consumer credit segments retail banking india Reserve Bank has, as a temporary measure, put in place risk containment measures and increased the risk weight from per cent to per cent in the case of consumer credit including personal loans and credit cards Mid-term Review of Annual Policy, Third, information technology retail banking india both opportunities and challenges.
Even with ATM machines and Internet Banking, many consumers still prefer the personal touch of their neighbourhood branch bank. Technology has made it possible to deliver services throughout the branch bank network, providing instant updates to checking accounts and rapid movement of money for stock transfers.
However, this dependency on the network has brought IT departments additional responsibilities and challenges retail banking india managing, maintaining and optimizing the performance of retail banking networks. Besides, there are network management challenges, whereby keeping these complex, distributed networks and applications operating properly in support of business objectives becomes retail banking india.
Specific challenges include ensuring that account transaction applications run efficiently between the branch offices and data centres.
Fourth, KYC Issues and money laundering risks in retail banking is yet another important issue. Retail lending is often regarded as a low risk area for money laundering because of the perception of the sums involved. However, competition for clients may also lead to KYC procedures being waived in the bid for new business.
Banks must also consider seriously the type of identification documents they will accept and other processes to be completed.
Some Random Thoughts How do retail banking india see the future of retail banking?
What are the major attributes of the shape of things to come in this sector? Let me share with you some of my random thoughts.
- India's retail banking poised for growth - The National
- Mastering the new realities of India’s banking sector | McKinsey
- General Awareness Topic: Future of Retail Banking in India - MBA Rendezvous
- Reimagining the Retail Banking
- Mastering the new realities of India’s banking sector
- Promising developments in India
- India's retail banking now bigger than Russia's but not close to China's
First, customer service should be the be-all and end-all of retail banking.