BANKING SERVICES

HISTORY OF BANKING SERVICES IN INDIA

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process.

There are three different phases in the history of banking in India.

Pre-Nationalization Era. Nationalization Stage. Post-Liberalization Era.

KEY PLAYERS IN WORLD AND IN INDIA

SERVICES OFFERED BY BANKS

ELECTRONIC BANK SERVICES

• Direct Deposit

• Transfers between Accounts

• Transfers to a Third Party

• Online Banking

• Bank by Phone

• ATM

Other various types of banking services

There are other various types of banking services like:

1) Advances – Overdraft, Cash Credit, etc.

2) Deposits – Saving Account, Current Account, etc.

3) Financial Services – Bill discounting etc.

4) Foreign Services – Providing foreign currency, travellers

cheques, etc.

5) Money Transmission – Funds transfer etc.

6) Savings – Fixed deposits, etc.

7) Services of place or time – ATM Services.

8) Status – Debit Cards, Credit Cards, etc.

key areas of customer’s services

The key areas of customer’s services to be attended timely and regularly are:

i. Submission of statement of A/Cs to customers

ii. Updating of savings pass books.

iii. Teller system efficiency.

iv. Cleanliness and Upkeep of premises.

v. Intermediate Credit for institution cheques/land bills.

vi. Advance intimation to customers for rewards of Term Deposits

Receipts on maturity.

vii. Advance for Debit/credit to accounts.

viii.Punctuality of staff.

Why is Customer Service Important? Changing customer expectations: Today the customer is more

demanding and more sophisticated than he or she was thirty years ago.

The increased importance of customer service: With changing customer expectations, competitors are seeing customer service as a competitive weapon with which they differentiate their products and services.

The need for a relationship strategy: To ensure that a customer service strategy that will create a value preposition for customers should be formulated implemented and controlled. It is necessary to give it a central role and not one that is subsumed in the various elements of the marketing mix.

PRODUCTS USED DURING THE SERVICES

Credit Card: Credit Card is “post paid” or “pay later” card that draws from a credit line-money made available by the card issuer (bank) and gives one a grace period to pay. If the amount is not paid full by the end of the period, one is charged interest.

Debit Cards: Debit Card is a “prepaid” or “pay now” card with some stored value. Debit Cards quickly debit or subtract money from one’s savings account, or if one were taking out cash.

PRODUCTS USED DURING THE SERVICES

Automatic Teller Machine: The introduction of ATM’s has given the customers the facility of round the clock banking. The ATM’s are used by banks for making the customers dealing easier.

ATM’s are currently becoming popular in India that enables the customer to withdraw their money 24 hours a day and 365 days.

Electronic Funds Transfer (EFT): Many modern banks have computerised their cheque handling process with computer networks and other electronic equipments. These banks are dispensing with the use of paper cheques. The system called electronic fund transfer (EFT) automatically transfers money from one account to another.

PRODUCTS USED DURING THE SERVICES

Telebanking: Telebanking refers to banking on phone services a customer can access information about his/her account through a telephone call and by giving the coded Personal Identification Number (PIN) to the bank. Telebanking is extensively user friendly and effective in nature.

Mobile Banking: A new revolution in the realm of e-banking is the emergence of mobile banking. On-line banking is now moving to the mobile world, giving everybody with a mobile phone access to real-time banking services, regardless of their location.

PRODUCTS USED DURING THE SERVICES

Internet Banking: Internet banking involves use of internet for delivery of banking products and services.

Benefits of Internet Banking: • Reduce the transaction costs of offering several banking

services and diminishes the need for longer numbers of expensive brick and mortar branches and staff.

• Increase convenience for customers, since they can conduct many banking transaction 24 hours a day.

• Increase customer loyalty. • Improve customer access. • Attract new customers. • Easy online application for all accounts, including personal

loans and mortgages

CUSTOMER INVOLVEMENT STATUS

American Society for Quality (ASQ) conducted the survey to identify areas of concern regarding customer service in financial services. The survey finds:

96% of adults rate the customer service at their financial institution as above average or average.

85% are very satisfied or satisfied with the products and services available.

89% of adults feel that it is easy to open a new account. 27% of adults have experienced a problem with their account

in the past year. About two-thirds (68%) of adults who experienced a problem

are satisfied with the process to get the problem resolved.

FUTURE OF BANKING SERVICE INDUSTRY

Banking TechnologyInformation

StorageProcessing

Transmission

Tasks Common to Both

Technology and Banking

The Quintessence Nature of Banking harmonizes closely with Technology –

Many Benefits of Technology

Increased operational efficiency, profitability & productivity

Superior customer service Multi-channel, real-time transaction processing Better cross-selling ability Improved management and accountability Efficient NPA and risk management Minimal transaction costs Improved financial analyses capabilities

The future will be not be more of the same… 

… we need to be ready..