RETAIL BANKING

When services are offered to individuals as their personal requirements, it is called Retail Banking. Retail Banking financial advice. Retail Banking consists of large volumes of low value transactions. Retail Banking refers to the mobilization of deposit from individual and lending to small business and in retail loan market. should encompass all institutional who provide a range of

banking services-money transmittion,deposit and credit service and some form of

Retail banking is banking that provides direct services to consumers. Many people with bank accounts have their accounts at a retail bank and banks that offer retail banking services may also have merchant and commercial branches that work with businesses. For people with high net worth and special banking needs, private retail banking services may be pursued. These offer a high level of service with a number of options that are not available to average members of the public. The most basic retail banking services include savings and checking account. Most retail banks, however, try to make themselves into a one stop shop for banking customers. This increases customer retention and loyalty, ensuring that

the bank has a steady supply of customers. Expanding banking services also provides more opportunities for the bank to turn a profit. Other services can include safe deposit boxes, home and car loans, certificates of deposit, retirement accounts, and investment services. Most retail banks provide customers with debit and credit cards, as well as financing options like home equity lines of credit. Depending on banking regulations, a bank may not be able to offer all of these services at one location but it can partner with other financial institutions to provide conveniently linked services for bank customers. Retail banking is designed to provide people with banking services for life, from college funds opened at the birth of a child to retirement trusts established to pay for old age. Retail banking is a highly competitive market. Many people need retail banking services and they are not afraid to shop around to find the bank offering the best incentives, rates, and deals. Banks can compete with interest rates, account perks such as credit monitoring, and other services designed to entice customers. Some even provide special incentives for customers switching over from rivals, such as bonuses awarded when transferring funds from a rival bank to open a new account. Some retail banks are international corporations with numerous branch banks all over the world. Others operate on a national level. Smaller retail banks may be regional or may even have single branches. Smaller community banks may offer services customized to community members and sometimes receive government incentives for community business reinvestment, such as offering small loans and home loans to people in the community. It is sometimes possible to get more favorable interest .

SURVEY CONDUCTED REGARDING CUSTOMERS USING SERVICES

Most of the customers visiting branches 2-3 times a month. Very much satisfied with the services. 24% are not satisfied with the minimum balance required to be maintained in their account. ATMS are most preferred virtual banking technique by customers. At ATMS preferred enquiry is balance and cash withdrawal. Internet is giving ground. Customers using telephone having opt for four types of functions Check account balance Cheque book request Check credit card balance Obtaining product information

RETAIL BANKING SERVICES

1) Saving Bank accounts 2) Fixed Deposit schemes 3) Current Accounts 4) Corporate Salary Accounts 5) Automated Teller Machines 6) Internet Banking Services

7) De-mat Services 8) Inter Branch Banking 9) 24- hour Loan Banking 10) 11) 12) 13) Bill Pay Safe Deposit Lockers Debit Cards, Credit Cards and Charge Cards Easy Loan,Free Investment Advisory Service

14.) Banking through Mobile Phone 15.) Free Home Services 16.) Bank assurance 17.) Kid e Bank

ADVANTAGE OF RETAIL BANKING

Resource Side 1) Deposit stable 2) insensitive and less bargaining for additional interest 3) Such deposit are loan cost funds 4) Strong customer base 5) Retail increases the subsidiaries business Assets side 1) Better yield and improved bottom line 2) Good avenue for funds deployment 3) Consumers loans presumed to the lover risk ,less NPA 4) Helps economic revival through increase in production 5) Innovative product development

6) Improve life style of people through cheap credit 7) Minimum marketing effort in a demand driven economy

EMERGING ISSUES IN HANDLING RETAIL BANKING

Knowing The Customer a) Easier said than practiced b) Branch data warehousing c) Customer preferences, spending patterns Technology Issues a) Huge investment in technology b) New delivery channels, ATMs, credit cards etc. Product Innovations a) New products may not become successful b) Product should create value not amusement c) Can not sell the product on shelf Pricing Of The Product a) Banking sector witnessing price war b) Transparency in pricing c) Minimum amount due, total amount due, processing charges not advertised in credit cards, so these are hidden charges

 HRD Issues a) Motivating frontline staff, project them as sales managers rather than as clerk b) Changing the image of the bank from transaction provider to solution provider Low Cost And No Cost Deposits a) Banks are in need of more s/b a/c and current a/c so that their cost of liability is less NEW BANKING SERVICES TO BE STARTED IN COMING YEARS BY NPSBS More Services through ATMS Smart Cards E-Cheques Wealth Management Services