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.
