Banking sector

IMPACT OF GLOBALIZATION ON BANKING SECTOR:

PRE-GLOBALIZED SCENARIO OF SERVICE CULTURE IN THE INDIAN BANKS

SERVICE CULTUREWAS EXTREMELY

DEMOTIVATED & NON INTERESTED EMPLOYER& EMPLOYEE.

NON COMPETETIVE ATTITUDE.

PRODUCT FOCUSED & NOT CUSTOMERSERVICE FOCUSED.

CUSTOMER UNFRIENDLY

FORMALIZED

LIBERALIZATION & GLOBALIZATION MEASURES WERE INTRODUCED IN INDIA IN 1991-92.

SHRI M.NARASIMHAM RAO

Globalization Process

TWO WAY PROCESS.

INDIAN BANKS.FOREIGN BANKS.

BANKS IN GLOBALIZED COMPETITIVE WORLD.

Foreign Banks in India Indian banks abroad

ABN AMRO BANK

CITI BANK

BANK OF CEYLON

PUNJAB NATIONAL BANK

BANK OF BARODA

ICICI BANK.

GLOBALIZATION IMPLIES TO EXPOSURE TO COMPETETION

What do Customer Like Most???

Customer service personnel ask

Today’s customer likes, Flexibility. Answering the phone calls promptly. Meeting

commitments. Courtesy . Updates On Progress. Pleasant Attitude.

RATER technique by Parshuraman,

Reliability. Assurance. Tangibles. Empathy. Responsiveness.

COMPETETIONCOMPETETION

FOCUSED ON CUSTOMER SERVICE

FOCUSED ON CUSTOMER SERVICE

INNOVATIONINNOVATION

GOODS SERVICES

Innovation In Banking Product.

Core Product Basic Product Expected Product Augmented Product

Potential Product

The basic necessity to use banking services in order to handle finance more efficiently

Safety of depositsLoanable funds etc.

Timely serviceLong banking hours.Low interestRate.

Good waiting roomsfriendly employeesWelcome note.

Occasional greeting at home

Surprise gifts.

Mobile &

Internet banking

ATM N

etwor

k

Good Waiting room

Promotional

discountsLow

interest rates

Intro. Of new

schemes

Change inProduct line

Consulta

ncy

servi

ce

Financial service

Flower of banking service

External drivers compel banks to leverage the developments in Information Technology

and continuously innovate.

Regulatory change and consolidation

Competitive forces.

Changing Consumer Preference.

Technological developments.

Technological innovations in Banking sector.

Data Mining.

Tie up Arrangements

Plastic money.

Virtual banking-

don’t visit the branch

ATM

Insurance Product

Marketing Agents for Distribution of Products

Mobile Banking

Phone Banking

ADDITIONAL FINANCIAL SERVICES AVAILABLE TO BANKING SECTOR:

Merchant Banking

Loan Syndication.

Mutual Fund

Factoring.

Forfeiting.

Venture Capital.

These services are being initiated by banks like ,ICICI Bank Ltd., Citibank, Global Trust Bank Ltd.,UTI Bank Ltd., Bank of Citibank Bank of Madura Ltd., Federal Bank Ltd., etc.

Negative Impact of Globalization on Banking Sector.

Cyber crimes are, therefore difficult to be identified and controlled.Volatility or shackles in global markets have direct impact on the banking sector globally.

Theft

Conclusion Conclusion

The opening up of economy in 1991 paved the way for the next revolution in Indian Banking: the emergence of private banks. It has changed the face of retail banking , bringing in enhanced competitiveness, product mix & customer satisfaction.

The emergence of retail banking has also brought into focus the performance of the private banks & their aggressive banking practices. The new private banks have used technology to grow.The PSUs are now becoming more customer centric & tech savvy. The battle for the Indian consumer’s mind is in full swing.

The opening up of economy in 1991 paved the way for the next revolution in Indian Banking: the emergence of private banks. It has changed the face of retail banking , bringing in enhanced competitiveness, product mix & customer satisfaction.

The emergence of retail banking has also brought into focus the performance of the private banks & their aggressive banking practices. The new private banks have used technology to grow.The PSUs are now becoming more customer centric & tech savvy. The battle for the Indian consumer’s mind is in full swing.

That’s all That’s all Folks !!!Folks !!!Thank you!!!Thank you!!!