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Part - V

With the large scale implementation of technology in the working of Banks, the need for the clerical staff is getting minimized as the work of 5-6 clerks would be done by one Computer Operator and the number of customers coming to Banks getting reduced (Infact, some of the banks charge money if a customer visits their premises- a disincentive for branch banking and incentive for Hi-Tech Banking). We expect that with the disappearance of big lenders and registers, the need for Sub-ordinate staff is also getting reduced. The role of supervisory staff would increase and not in the sense of controlling the staff working with them but in different areas.

The VRS scheme introduced in the year 2000 by the Banks was to reduce the redundant staff consequent to computerization. It is felt that one more VRS would be needed for the Banks to shed their excess flab and make them fit and trim. Until such time, the role for clerical staff would have to undergo a change from sitting under the roof in a branch to moving into the field and market the various financial services offered by their Bank and attract new customers and retain existing clientele.

Customized Financial Products

Banks have been offering various asset products (Loan) and liability products (deposit), to customers, taking the customers general needs like Fixed loans or Running Cash credit/Overdraft accounts or fixed deposit or cumulative deposit or recurring deposit as liability products. Now, the time has come for the Customer to demand a product that is not currently available in the Banker's kitty and the Bank has to literally create a customer-specific product. Here, comes the Banker in the role of Financial Engineer.

Remittance Tools

Most common tools through which the customers are remitting funds from one place to another are Demand Drafts & Telegraphic Transfers. After the advent of AAA Banking, the volume of these transactions has drastically come down as the customer, say in Mumbai, can issue a cheque from his Mumbai's Account to a customer in Bangalore who can encash it at Bangalore, as if it is a local cheque by sending through local clearing.

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