Sunday, December 13, 2015

CAIIB - RETAIL BANKING - UNIT 11 DELIVERY CHANNELS IN RETAIL BANKING


UNIT 11 DELIVERY CHANNELS IN RETAIL BANKING



v  Advantages of a good branch layout are

(i)      Promotes efficiency as it will ensure smooth flow of services.

(ii)     Internal communication effectiveness increases thereby facilitating better coordination among the staff resulting in better customer service.

(iii)    Provides a comfortable and congenial work environment to the staff which results in high employee motivation and acts as a morale booster.

        (iv)   Serves as an image building tool for the bank

v  For opening of different liability accounts, branches in the brick and mortar format perform only the role of the marketing function and front office operations.

v  customers were provided with the facility of withdrawing from other banks' ATMs through a common networking arrangement "National Financial Switch"

v  Two of the important net working arrangements called "Cash Tree" and "INFINET-National Financial Switch offered networking facility across banks.

v  Functioning efficiency of ATMs has an impact on  reputation risk for the bank and may result in customer switching also.

v  Net Settlement when the transfer of funds actually takes place, may occur at the same time as the transaction or soon afterward, or it may occur later in the day in POS systems that operate Off-Line in a Store and Forward mode.

v  Globally, mobile banking initiatives were stared by Wachovia in 2005 and the full fledged mobile browser in 2007.

v  Union Bank of India is one of the very early Public Sector Banks to offer mobile banking facility to their customers.

v  Presently, the bank's Mobile Banking works on SMS, GPRS, and J2ME over GPRS facilities

v  General Packet Radio Service (GPRS) is a packet oriented mobile data service, through which the customer can access the services of the bank using his/her MPIN.

v  Reserve Bank of India has recently enhanced the transaction amount through mobile banking to Rs.50,000/ and this higher limit is definitely going to create a greater impact in the mobile banking marketing

v  Ernest. T. Parkins had observed that internet banking, going forward, would have great implications on (1) Internet commerce, (2) new types of electronic retail payments, (3) electronic retail banking, and (4) the movement more generally of retail financial services to electronic delivery, including insurance, discount brokerages, and mutual funds

v  The levels of banking services offered through INTERNET can be categorized in to three
types: Basic Level Service, Simple Transactional Websites, 'Fully Transactional Websites'

v  Security issues include questions of adopting internationally accepted state-of-the art minimum technology standards for access control, encryption/decryption (minimum key length etc), firewalls, verification of digital signature, Public Key Infrastructure (PKI) etc.

v  Merita Nordbanken (MRB) leads in 'log-ins per month' with l .2 million Internet customers, and its penetration rate in Finland (around 45%) is among the highest in the world for a bank of 'brick and mortar' origin.

v  Swedbank was the first bank in the world to introduce Electronic Bill Presentment and Payment (EBPP).

v  If you compare internet banking and mobile banking, mobile banking will score over internet banking as a complete remote channel because of the strong penetration of mobile services across geography including rural areas.

v  While internet banking is an attractive channel for the upper middle end customers who are tech savvy, mobile banking is a universal remote channel attracting bottom of pyramid customers as well as high end customers.

v  In the long run, mobile banking as a remote channel will be the king of delivery channels in retail banking because of its simplicity and reach.