Page 54 - Banking Finance June 2025

ARTICLE

stricter Basel III norms requires substantial investments consumers are not having exposure to banking services.
to comply with these requirements. Resistance by Even though many amongst them are successfully
government to infuse any fresh capital make them take carrying out commercial activities, but are still not
stern steps to protect capital and plan expansion at the linked with mainstream banking. Moreover, they are
same time, while maintaining Capital Adequacy Ratio. unaware about special schemes of credit which
4) Customer Expectation - With increase in the adaption government has launched to promote women
of technology and availability of multiple avenues of entrepreneurship. This is the time where all commercial
availing financial services , it is essential to excel in activities get exposure to formal financial channel, so
service, so that Financial service provider can surpass that a sustainable and exponential growth can be
customer expectation and attain customer delight attained, which in turn will contribute to economic
,which is need of the hour, to survive and grow in this development of society and country.
era of cut throat competition.
7) Modern day banks to act as financial planners
5) Fair Conduct - Fair conduct and practices foster (Financial Planning awareness) - There are many
consumer confidence and trust in financial institutions financial products available in market to cater financial
and strengthen their stability. The Reserve Bank has needs of individuals, but still there is a huge chunk of
issued regulations from time to time to ensure fair and population, that is unaware about investments and
responsible conduct by the regulated entities. Many insurance products like mutual funds, life insurance,
instances of breach of guidelines had been brought into health insurance. Moreover, due to unawareness, they
light, which shatters customer confidence and needs to are left at exposure of agents for their financial
be addressed on priority. planning, who can exploit them by mis-selling wrong
6) Money Lenders & Financial Inclusion - In this era, instruments. To solve this problem, financial awareness
where we feel that banking is accessible to all, still there is necessarily to be spread amongst masses. Also,
is a need of systemic improvement in availability of various awareness campaigns are been carried out by
banking channels in remotest part of country, to cater government to safeguard interest of consumer, but at
financial needs till last mile. Due to stringent norms, the end awareness is the solution.
many citizens are still unable to take benefit of financial 8) Catering Youth - As India is country with substantial
services through proper channel. Money Lenders are
still in operation, who provide costly credit, which in youth population, the financial services need to be
customized as per their requirement, moreover, focus
turn is hindrance in path of inclusive growth. People
should be on digital delivery as they being tech-savvy
should be made aware about various credit schemes
available, on regular intervals, so that they can take want services at fingertips. We have to strengthen
digital delivery for Gen Z and millennials and be
benefits of lower interest rates, subsidies and most
updated, so that we can keep such customer base
importantly can be protected from falling prey to costly
credit provided by moneylenders. intact, otherwise in this era of multiple options being
available at a click, it is a huge challenge to retain the
Moreover, financial inclusion can't be restricted to
customer and acquire a new customer base.
merely opening of a bank account, but we should be
able to cater all financial needs of an individual till last India, being a land of diverse demographics, provides
mile. There should be an awareness amongst customer immense opportunity for banks and financial institution
about various products like Pradhan Mantri Jeevan Jyoti to flourish, by giving them a significant customer base,
Yojana (PMJJBY), Pradhan Mantri Suraksha Bima yojana still, the areas like cyber security, digital frauds and
(PMSBY), Atal Pension yojana (APY) and how they can financial illiteracy are huge cause of concern in way of
provide them financial stability along with securing their boosting economic development, which can be sorted
future. Moreover, financial inclusion in todays era by spreading awareness about products, services,
includes "digital inclusion". facilities and cyber security norms. Customized product

Here, Inclusion of women customers, also play a crucial and services as per the need of the consumer will also
role. Still, in many part of country, the women help in "survival of the fittest"

BANKING FINANCE | JUNE | 2025 | 49