Overview: Distribution of Third-Party Products by Banks
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…
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Bank’s Product Policy
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…
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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…
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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