Constraints Faced by Banks in New Product Development

Information Technology, Retail Banking

Banks encounter a variety of constraints when developing new products, including technological limitations, fragmented innovation practices, challenges in testing and learning, sluggish performance analysis, regulatory compliance complexities, and resource limitations. For banks operating on legacy core systems, adopting innovative technologies or launching new products can be particularly difficult. These limitations often lead to delays in…

NHAI to Replace FASTag with GPS-Based Toll Collection System from May 2025

Information Technology

The National Highways Authority of India (NHAI) has announced the phased implementation of a GPS-based toll collection system, set to replace the existing FASTag system beginning May 1, 2025. This strategic shift is aimed at enhancing operational efficiency, minimizing congestion at toll plazas, and promoting greater transparency in toll fee computation. Rationale Behind the Transition…

Fee-Based Services or Non-Interest Income of Banks

Ancillary Services, Retail Banking

Banks generate non-interest income primarily through a wide range of fee-based services. These services include monthly account maintenance charges, ATM usage fees, credit card fees, wire transfer charges, and investment advisory services. Below is a detailed overview of the various fee-based income sources for banks: 1. Account-Related Fees Monthly Maintenance and Service Charges:Banks in India…

Overview: Ancillary Products and Services Offered by Banks

Ancillary Services, Retail Banking

Ancillary services in banking refer to additional offerings beyond core financial products, aimed at enhancing the overall customer experience and financial inclusion. This includes card services, safe deposit lockers facility, foreign exchange transactions, and other Para-Banking activities. Para-Banking Activities Banks are permitted to undertake certain eligible financial services or para-banking activities either departmentally or through…

Overview: The Product Development Process in Banks

Retail Banking

Banking products constitute a fundamental component of the financial ecosystem, offering individuals and businesses a diverse array of services to effectively manage their finances. Core banking products include current (checking) accounts, savings accounts, credit cards, loans, mortgages, and investment instruments. However, in order to remain competitive, enhance customer satisfaction, and drive sustainable growth in a…

Applying Maslow’s Hierarchy of Needs to Bank Employees and Customers

Bank Staff, Retail Banking

Maslow’s Hierarchy of Needs outlines five progressive levels of human motivation that contribute to an individual’s overall sense of fulfillment. According to Abraham Maslow, individuals are driven to satisfy these needs in a sequential manner—starting with fundamental physiological necessities and ultimately aspiring toward self-actualization, the pinnacle of personal development and self-fulfillment. This psychological framework can…