Introduction to Retail Banking

Kartik JainAssistant Manager

Axis Bank

RETAIL BANKING“Retail banking is typically mass – market

banking where individual customers use local branches of larger commercial banks.

Services offered include savings and transactional accounts, mortgages,

personal loans, debit cards, credit cards and so”.

Important Points of Retail Banking Retail banks provide banking services to individuals and

small business. Retail banks deals with individual customers, both on

liabilities and assets sides of the balance sheet. Fixed/current/saving accounts on the liabilities side, and

mortgages loans on asset side. Financial institutions are dealing with large number of low

value transactions. It is typically mass-market banking.

Retail banking in the country is characterized by... Multiple Products The products included in retail banking

are— Various types of deposits/accounts. Credit and debit cards Loans (Personal, Auto, Housing etc.) Insurance, mutual funds etc.

Multiple channels of distribution Internet banking Mobile banking Call centers

Multiple Customer Groups Individual customers Petty businesses Small and Medium Enterprises (SMEs)

Omni-channel Banking will allow for seamless integration and a consistently pleasurable customer experience across all channels- ATMs, Internet Banking, Kiosk, branches,Mobile....You name it.

Multiple Retail Banking Products

Advantages of Retail Banking Your money is much more secure than in a box

under your bed and you can buy goods, be paid, and sell things without cash changing hands.

The bank you are familiar with and which knows you can also offer you a wide range of other services, such as mortgages and insurance. Your bank may be able to offer you competitive deals in return for your loyalty as a customer.

Retail banks offer a variety of ways you can access your account and manage your money, most notably via internet banking. This means that you can keep a close eye on your finances and avert many potential problems.

SCOPE FOR RETAIL BANKING IN INDIA

1. All round increase in economic activity.

2. Increase in the purchasing power. The rural areas have the large purchasing power at their disposal and this is an opportunity to market Retail Banking.

3. India has 200 million households and 400 million middleclass population more than 90% of the savings come from the house hold sector. Falling interest rates have resulted in a shift. “Now People Want To Save Less And Spend More.”

4. Nuclear family concept is gaining much importance which may lead to large savings, large number of banking services to be provided are day-by-day increasing.

5. Tax benefits are available, for example, in case of housing loans the borrower can avail tax benefits for the loan repayment and the interest charged for the loan.

Retail Banking in Retail stores way...

Challenges and Opportunities in Retail Banking

Future of Retail Banking

Future of Retail Banking is for the CUSTOMER.

Pricing is determined by Customer. Competition among Banks would

ensure him better service at cheaper rate.

Customer would be able to discount his future earnings as Retail Credit for his higher standard of living.

THANK YOU