Banking Operations- Then And

Now

DR C S Dalvi
SIBER , Kolhapur
Banking Operations Before Core
Banking Operations
 Banking Operations Before Core
Banking Operations
• -Products:- Deposits, loans
• Accounts:- Savings, Current
• Loans:- Home loans, Business Loans
• Customer was not given Importance.
• It was sellers market.
 Interest Rates
• Interest Rates
• Deposits- Savings 8%, Loans 14 %
• Business Loans 17%
• Customer was at mercy of the Bank
Management
 Procedure
• Lengthy procedure to open account and
getting loans, lot of paper work.
• NOC required from the local bank about loan
• It was time consuming.
• More mental stress and physical stress
 Promotion
• No Promotion was done by the bank.
• Customers have to enquire about getting
loans or keeping deposits .
• Customers used to search references to get
loans. Acquaintance of Bank officer was
beneficial
 People and Environment
• People were somewhat not customer friendly.
• Waiting for long queues to deposit and
withdraw money.
• Going to bank was special work and time
required to allocate.
• Old, dusty, paper cumbersome work
• People seating behind big ledgers and books.
 New Age Banking
It is Buyers Market. Customer is King.
New Products as per the customer needs along
with existing ones.
Personal loans , loans for every purpose
Bank is after The Customer to attract them.
Door to door procedures
Door delivery system
Banking at Ease
 Promotion
• Paper promotion
• Face to face dialogues in Banks
• Customer New Account opening week campaigns
• Tele marketing ,SMS and emails
• Promotion of credit cards and savings account
with cashback or some other benefits
• Tie ups with other merchants for use of Debit and
credit cards E.g. Flipcart, Amazon
 Technology Based Banking
• Core banking, Digital Banking
• Bank at Any place
• ATM
• Tie ups with Paytm, Rupay, Visa and Master
card services
• Online Banking
• Mobile Banking
• Paperless Banking procedures
 People and Environment

• People are customer friendly. No more long

queues in banks
• Very bright and conducive atmosphere in
Banks
• No more barriers of Cages and mesh between
Customer and Banking person
• Proper services fro Customer- Seating,
Drinking water,
 Competition is Souring
• More and more banks are entering in the
business
• Attracting and retaining customer is difficult
for the banks.
• Ease of Banking is provided to the customer
Technology Threat