Indian banks need to look beyond Core Banking
Today Indian banking system is facing the IT revolution. The Indian banks are adopting the advance technology to address the competition threat and to meet customer expectations in terms of providing services and products. India has technologically advanced environment,every bank needs to upgrade and improve their risk management systems and provide better products and satisfactory services to customers by adapting fast growing technologies. IT can play very critical role for banks to be more efficient and innovative for surviving in the market.
A combination of government regulations and market forces has supported the implementation of technology and automation in the Indian banking industry. The reserve bank of India has taken multiple steps towards outreaching banking and financial services in India. A significant step in this direction was the introduction of RBI guidelines in January 2006 for engagement of Business Correspondents (BCs) by banks for providing banking and financial services. Small, medium, and large-scaleBanks have adopted Core Banking Solutions (CBS) which effectively address the strategic and day-to-day challenges faced by banks. CBS provided much-needed flexibility to bank for innovation and adaption to a dynamic environment. Due to high level of competition in Indian banking industry, Core Banking Services is not sufficient anymore for any bank to survive and focus on long term success in today’s competitive market. Bankshave reached a certain level, where they must think of new strategy to move into next level.
Now banks would need to look beyond core banking to stand out from their competitors, work efficiently and manage their risks better. Banks would need to look BeyondCoreBankingto serve their customers, devise an appropriate strategy to deal with the IT threat landscape, utilise the technology platform provided by Customer relationship management (CRM), analytics & big data. They may also look to manage their information in an effective manner, enhance Customer Lifetime Value (CLV) and increase their customer base while maintaining existing customer base. They need to innovate appropriately in terms of products, services, and strategies to stand out from the competition that is prevalent today. Banks will also need to align their IT and business perspectives to fully leverage on the benefits of technology. Implementing technology into banking itself is big game changer in this sector.
There is a famous proverb on technology and customer, “What new technology does is create new opportunities to do a job that customers want done”, Tim O’Reilly.
Apart from the technological aspect banking have improved the productivity by providing the financial assistance to its customers in home country and overseas to retain their loyal customers. Now banks are not only involved in traditional methods of accepting deposits and lending money, but it’s also working beyond that like assisting the customers to park their money in such a way that customer’s need gets full filled in a customized manner. Services like Investment banking, wealth management Insurance and assurance, selling gold have become other source of revenue to banks.
There is a famous proverb by Bill Gates – “Banking is necessary, banks are not”.Banks needs to look beyond core services to exist in society.
A combination of government regulations and market forces has supported the implementation of technology and automation in the Indian banking industry. The reserve bank of India has taken multiple steps towards outreaching banking and financial services in India. A significant step in this direction was the introduction of RBI guidelines in January 2006 for engagement of Business Correspondents (BCs) by banks for providing banking and financial services. Small, medium, and large-scaleBanks have adopted Core Banking Solutions (CBS) which effectively address the strategic and day-to-day challenges faced by banks. CBS provided much-needed flexibility to bank for innovation and adaption to a dynamic environment. Due to high level of competition in Indian banking industry, Core Banking Services is not sufficient anymore for any bank to survive and focus on long term success in today’s competitive market. Bankshave reached a certain level, where they must think of new strategy to move into next level.
Now banks would need to look beyond core banking to stand out from their competitors, work efficiently and manage their risks better. Banks would need to look BeyondCoreBankingto serve their customers, devise an appropriate strategy to deal with the IT threat landscape, utilise the technology platform provided by Customer relationship management (CRM), analytics & big data. They may also look to manage their information in an effective manner, enhance Customer Lifetime Value (CLV) and increase their customer base while maintaining existing customer base. They need to innovate appropriately in terms of products, services, and strategies to stand out from the competition that is prevalent today. Banks will also need to align their IT and business perspectives to fully leverage on the benefits of technology. Implementing technology into banking itself is big game changer in this sector.
There is a famous proverb on technology and customer, “What new technology does is create new opportunities to do a job that customers want done”, Tim O’Reilly.
Apart from the technological aspect banking have improved the productivity by providing the financial assistance to its customers in home country and overseas to retain their loyal customers. Now banks are not only involved in traditional methods of accepting deposits and lending money, but it’s also working beyond that like assisting the customers to park their money in such a way that customer’s need gets full filled in a customized manner. Services like Investment banking, wealth management Insurance and assurance, selling gold have become other source of revenue to banks.
There is a famous proverb by Bill Gates – “Banking is necessary, banks are not”.Banks needs to look beyond core services to exist in society.
