Product Management in Banks
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…
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Constraints Faced by Banks in New Product Development
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…
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NHAI to Replace FASTag with GPS-Based Toll Collection System from May 2025
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…
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Fee-Based Services or Non-Interest Income of Banks
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…
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Overview: Ancillary Products and Services Offered by Banks
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…
Understanding Credit Products or Asset Products of Banks
Introduction to Credit Products Credit products refer to the range of commitments or obligations under which a bank agrees to make payments on behalf of or for the account of a borrower. These include various types of loans and advances, as well as non-fund-based facilities such as letters of credit, guarantees, and other arrangements designed…
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