Académique Documents
Professionnel Documents
Culture Documents
Introduction:
Retail Banking is a banking service that is geared primarily toward individual consumers. It is usually made available by commercial banks as well as smaller banks. Retail banking focuses strictly on consumer markets. Today much of retail banking is streamlined electronically via Automated Teller Machines (ATMs), or through online banking.
Loans:
Home Loans Personal Loans Car Loans Commercial Vehicle Loans Loan against securities Education Loan
Advantages:
Retail deposits are stable and constitute core deposits RB increases the subsidiary business of the banks. RB results in better yield and improved bottom line for a bank. Improves lifestyle and fulfils aspirations of the people through affordable credit. Innovative product development credit. Retail banking involves minimum marketing efforts in a demand driven economy.
Disadvantages:
Designing own and new financial products is very costly and time consuming for the bank. Customers are attracted towards other financial products like mutual funds etc. Though banks are investing heavily in technology, they are not able to exploit the same to the full extent. A major disadvantage is monitoring and follow up of huge volume of loan
According to RBI:
There is a need of constant innovation in retail banking. This requires product development and differentiation, innovation and business process reengineering, microplanning, marketing, prudent pricing, customization, technological upgradation, home / electronic / mobile banking, cost reduction and cross-selling. How far the retail banking is able to lead growth of the banking industry in future would depend upon the capacity building of the banks to meet the challenges and make use of the opportunities profitably.
Conclusion:
Customers redefine the rules of the game. Universal banks and ultra focused niche players thrive. Changing workforce composition dictates new approaches. Regulatory burdens intensify. Technology improves inexorably to enable breakaway value.
Thank You