Page 32 - BANKING FINANCE APRIL 2024

ARTICLE

maintaining a CASA account with a public sector bank can
contribute to deposit mobilization.

Relationship Building:
Building strong relationships with corporate clients, small and
medium enterprises (SMEs), and retail customers can lead to
bulk deposits in current accounts. Public sector banks should
focus on understanding the unique financial needs of different
customer segments and tailor their services accordingly.
(i) Create tailored packages for corporate clients with
special perks, incentives, and discounted fees for
maintaining higher current account balances.

(ii) Provide additional services like bulk payment facilities
and payroll management to attract business clients.
personalized services, user-friendly digital banking platforms,
and value-added products can enhance the overall banking Cash Management Services:
experience, encouraging customers to maintain their
(i) Offer efficient cash management services for businesses,
primary accounts with the bank.
including cash pickup and drop facilities, to streamline
their cash handling processes.
Technological Integration:
(ii) Implement solutions for faster clearance of checks and
Embracing cutting-edge technologies is essential for public
sector banks to stay competitive. Implementing advanced other payment instruments.
digital banking solutions, artificial intelligence-driven
Cashback and Rewards Programs:
customer service, and seamless online account management
can attract tech-savvy customers, thereby boosting the (i) Introduce cashback or rewards programs for businesses
CASA ratio. and individuals who maintain a certain minimum
(i) Develop user-friendly mobile and internet banking apps balance in their current accounts.
to encourage customers to manage their accounts (ii) Collaborate with merchants to provide discounts or
digitally. exclusive offers to account holders.
(ii) Introduce features such as easy fund transfers, bill
payments, and real-time account monitoring to make Collaboration with FinTech's:
digital banking more attractive. (i) Partner with fintech companies to integrate innovative
solutions that simplify financial transactions for
Financial Inclusion Initiatives: customers
Public sector banks can actively engage in financial inclusion (ii) Explore partnerships for offering digital invoicing, supply
initiatives to expand their customer base. By reaching out chain financing, and other value-added services to
to unbanked or underbanked populations through mobile businesses.
banking and other innovative channels, banks can tap into
new demographics and increase CASA deposits. Educational Initiatives:
(i) Conduct financial literacy campaigns to educate
Strategic Marketing Campaigns: businesses and individuals about the benefits of
maintaining higher current account balances
Effective marketing campaigns highlighting the benefits of
CASA accounts, such as lower transaction costs, higher (ii) Highlight the advantages of digital banking and
liquidity, and personalized services, can attract a broader showcase success stories of businesses that have
audience. Creating awareness about the advantages of benefited from efficient cash management.

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