The Role of Technology in Transforming Retail Banking

Information Technology, Retail Banking

IntroductionTechnology has become a cornerstone of modern retail banking, revolutionizing customer interactions with financial institutions and enhancing operational efficiency. Core technological advancements—including digital banking, artificial intelligence (AI), cloud computing, and automation—are reshaping the sector by improving customer experience, personalizing services, and streamlining internal processes. Below is a detailed examination of how various technologies are influencing…

Key Warning Signs of a Declining Credit Score and Strategies for Improvement

Loans and advances, Retail Banking

A declining or low credit score can significantly impact your financial well-being. Identifying early indicators and implementing corrective measures is essential to safeguarding and enhancing your creditworthiness. Key Warning Signs of a Declining Credit Score 1. Late or Missed PaymentsRegularly missing due dates or making delayed payments on credit cards, loans, or utility bills can…

Overview: Distribution of Third-Party Products by Banks

Retail Banking

The distribution of third-party products enables banks to diversify their revenue streams through fee-based services. In recent years, banks have evolved into comprehensive financial service providers, offering advisory and distribution services for various third-party products—commonly referred to as para-banking activities. In the banking context, third-party products refer to financial services and investment instruments not directly…

Bank’s Product Policy

Retail Banking

The product policy of a bank refers to the comprehensive framework of principles and guidelines that govern the development, management, and delivery of the bank’s financial products and services. It serves as a strategic blueprint to ensure that offerings are aligned with customer needs, regulatory requirements, and the institution’s operational capabilities. This policy framework encompasses…

Product Management in Banks

Retail Banking

Product management plays a pivotal role in the banking sector by ensuring that financial products and services are strategically developed, efficiently launched, and effectively managed. This discipline encompasses product discovery, planning, and development, with the aim of aligning offerings with both customer needs and institutional objectives. It involves gaining insights into customer behavior, conducting thorough…

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…

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…