Page 35 - BANKING FINANCE APRIL 2017

ARTICLE

NEW

PARADIGMS

IN RETAIL

BANKING

Introduction vices across customer's life cycle , in line with their chang-
ing needs , by offering standardized products, simplifying
The concept of Retail Banking is not new to banks but is
now viewed as an important and attractive market segment sales process through provision of multiple delivery channels.
The typical products offered in Indian retail banking seg-
that offers opportunities for growth and profits. Retail Bank-
ment are housing loans, consumption loans for purchase of
ing is a concept which allows households sector to meet
durables , auto loans , credit cards and educational loans.
their financial needs for various purposes through banking
From business perspective, retail banking contributes sig-
system. Retail banking encompasses retail lending and re-
nificantly to the bank's overall strategy of improving prod-
tail deposits. Retail banking and retail lending are often used
uct mix , expanding revenue streams , enhancing profitabil-
as synonyms but in fact, the later is just the part of retail
ity, ensuring better liquidity ,and risk management.
banking.
The higher growth of retail lending in emerging economies
In retail banking all the needs of individual customers are
taken care of in a well integrated manner. The main objec- can be attributed to the rapid growth of personal wealth,
favorable demographic profile, rapid development in infor-
tive of retail banking is to provide low cost banking ser-
mation technology, the conducive macroeconomic environ-
About the author ment, financial market reforms etc. The next decade in
banking will see both evolution and revolution. The industry
M. Ramamoorthy has historically changed slowly - evolutionary, incremental
BE(Mechanical), CAIIB, MBA (Banking
Finance), F.I.V change.
Senior Manager (Faculty- Credit Discipline )
Union Bank of India Staff College While the changes envisioned are less, the pace of change
Bangalore is intensifying rapidly. Advancement in technology continue

BANKING FINANCE | APRIL | 2017 | 35

Insurance Training Centre © Call 09883398055 / 09883380339