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Part - II

The conventional scenario of Bank is fast changing. The Banking Institutions have started revisiting their Visions. Should they have thousands of C class Accounts or a few A and B class Accounts. They have come to the conclusion that it is not economical to service the C class Accounts. Even in India, banks are raising the bar on deposits. They have increase the minimum balance so that they are out of reach of the common man.

Why is this so? This is a natural corollary to the competencies that are being built up at a significant speed in all banks. Examining them one by one will help us know where the banks are heading, in the near future: -

Who is a Customer?

All along the word "Customer" used to denote any person who is having an account with a branch of a Bank or using the services of a Branch. Now, we are seeing a new definition for customer. A customer is no more a customer of the Branch; he is the Customer of the BANK. With the advent of 'AAA Banking' (Anytime, Anywhere, Anyhow Banking) the new definition of customer has become relevant. Technology enables the customer to "help himself" through PC Banking, ATM Banking, Telephone Banking, etc.

Customer Focus

Banks are obviously for customer service. But banks are finding that they too need to segment and target high net worth individuals and companies if they have to satisfy the need of their stakeholders. Therefore, Banks are generally moving towards products that are focused on their targeted end customers. And this target is specifically the high end customers; as they do not find any leverage from the small accounts.

Skill-Levels

Higher level of Automation using a wide range of application of technology and computer and networking of branches, use of plastic money, ATMs, Net Banking, etc. is being witnessed. Have we seen any auto rickshaw drivers and their like at ATMs?

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* Contributed by -
Aditya Khemani, PGDM - II Year,
Tuhina Singh, PGDM - I Year,
IIM Lucknow.