Innovations in Banking Sector

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Innovations in Banking Sector

By | March 2011
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INNOVATIONS IN BANKING SECTOR
INTRODUCTION
The term innovation means”to make something new”. Banks no longer restricted themselves to traditional banking activities but explored newer avenues to increase business and capture new market. INDIAN BANKING SECTOR

From 1806 qualitative & quantitative changes have been taken place. With 1935 regulation RBI was proclaimed as central bank of India. In 1990’s greater emphasis was placed on technology & innovation. New concepts like personal banking, retail banking, total branch automation etc were introduced. INNOVATIONS IN INDIAN BANKING SECTOR

TYPES OF INNOVATIVE BANKING
1. E-BANKING
Enables people to carry out most of their banking transactions using a safe website which is operated by the respected bank Advantage
Faster & more convenient transaction
No longer required waiting in long queues
Opening of account simple & easy
Apply for bank loan
Cost effective for banker side
Fund transfer become faster & convenient
Stock trading, exchanging bonds & other investment

2. CORE BANKING
Depositing and lending of money
Core banking solution
Knowing customers needs

2. CORPORATE BANKING
Financial services to large corporate & MNCs
Services:
Overdraft facility
Domestic and international payments
Funding
Channel financing
Letters of guarantee
Working capital facility for domestic & international trade

4. INVESTMENT BANKING
Creating funds and wealth of clients
Fund creating in two ways:
‡ Corporate Finance
‡ M & A’s
Professional sales person providing advice on stock trading

5. RURAL BANKING
It provides & regulates credit services for the promotion & development of rural sector mainly agriculture, SSI, cottage and village industries, handicrafts and many more. Examples Of Regional Rural Banks are NABARD, HARYANA STATE COPERATIVEAPEX BANK LIMITED, SYNDICATE BANK, UNITED BANK OF INDIA KIOSK BANKING

6. NRI BANKING
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