Innovations in Banking Sector

Only available on StudyMode
  • Topic: Bank, Banking, Retail banking
  • Pages : 6 (1143 words )
  • Download(s) : 1077
  • Published : March 7, 2011
Open Document
Text Preview
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
This facility is designed for diverse banking requirements of the vast NRI population spread across the globe. NRE (Non Resident External Account)
NRO (Non Resident Ordinary Account)
FCNR (Foreign Currency Non Resident Account)

7. RETAIL BANKING
It refers to banking in which banks execute transaction directly with individual rather than corporate banks. It is also known as One stop shop Services:
Saving and checking accounts
Mortgage
Housing Finance
Auto Finance
Consumer Durable Loans
Personal Loans
Educational Loans
Credit Cards

TYPES OF PRODUCTS & SERVICES

1. TOTAL BRANCH AUTOMATION
Speed up bank transactions and less error
More customer friendly and flexible
Towards paperless transactions

2. ANY BRANCH BANKING
It is a facility for customers to operate their account from any of the same banks network branch Facilities available:
Cash withdrawal & Cash deposits
Account statement
Facility to issue multi- city cheques
Fund transfer
Balance enquiry
Purchase of demand drafts pay order
Repayment of loan account

3. DEMAT SERVICES
It offers secure and convenient way to keep track your securities and investment over a period of time without the hassle of handling physical documents It provide facility of online trading

4. MICROFINANCE
It refers to a movement that envisions a world in which low income households have permanent access to a range of high quality financial service to finance their income producing activities, build assets, stabilize consumption and protect against risks.

5. PLASTIC MONEY
Plastic money is the alternative to the cash or standard money Convenient to carry
Generic term for all types of bank cards, debit cards, credit cards, smart cards 6. MOBILE BANKING
 The account that can travel with you.
Facility one can bank from anywhere, at any time, & in any condition or any how Facilities are:
‡ Balance enquiry
‡Fund transfer
‡ Chequebook request etc

Type of...
tracking img