banking channels FOR LIBRARY AND INFORMATION SCIENCE

AI final FOR LIBRARY AND INFORMATION SCIENCE

1. Topic: Banking channels Presented by Brajen Kalita Thulunga N arzary

2. Contents Introduction to Banking Channels. Introduction to Branch Banking. What are the Departments of Branch Banking? Conclusion.

3. Current trends across market segments point to a difficult low-growth environment for banks, which must respond by reducing branch-based costs and reinvesting in alternative low-cost channels. Previous attempts to develop a coherent multichannel model proved unsuccessful. Introduction to Banking Channels

4. Customers are now ready to adopt multichannel access points to transact with banks but they must be educated about alternative channel capabilities. Banks need to adopt integrated channel architecture and specific capabilities to support the mission of each channel. Introduction to Banking Channels, cont…

5. Invented in 1960’S by JOHN SHEPHERD-BARRON. FIRST USED BY BARCLAYS BANK IN 1967. First ATM in India was set-up in 1987 by HSBC in Mumbai. ATM Automated Teller Machine

6. An automated teller machine or automatic teller machine (ATM), also known as an automated banking machine, is an electronic telecommunications device. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe. Automated Teller machines

7. Automated Teller machines, cont.. a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN).

8. POS is the place where a retail transaction is completed. It is the point at which a customer makes a payment to the merchant in exchange for goods or services. The merchant will also normally issue a receipt for the transaction.

9. Online banking is an electronic payment system. It enables customers to conduct financial transactions on a website operated by the banks. Online banking is also referred as Internet banking, e-banking, virtual banking.

10. Mobile banking allows customers to conduct a financial transactions through a mobile device such as a mobile phone or tablet. The earliest mobile banking services were offered over SMS, a service known as SMS banking. The Mobile Banking was introduced in 1999.

11. It is one of the most prominent electronic funds transfer systems of India, Started in November 2005. NEFT is a facility provided by the bank to enable customers to transfer funds easily and securely on a one-to-one basis. This is a "net" transfer facility which is executed in hourly batches resulting in a time lag.

12. Real time= continuous settlement. Gross settlement= settlement of funds transfer instructions occurs individually.

13. A branch, banking centre or financial centre is a retail location where a bank, credit union. The other financial institution offers a wide array of face-to-face and automated services to its customers. A branch is a retail location

14. The Call Centre, being one of the delivery channels, will offer banking facilities through Interactive Voice Response (IVR) as well as through a human interface. Calls can be taken by the IVR in 7 Regional languages and besides Hindi and English. Call centre

15. Most banks accept cheque deposits via mail and use mail to communicate to their customers, e.g. by sending out statements. Mail

16. Mostly for private banking. Business banking, often visiting customers at their homes or businesses. Relation managers

17. It is a service which allows its customers to conduct transactions over the telephone with automated attendant. When requested with telephone operator. Telephone banking

18. It is a term used for performing banking transactions, professional banking consultations via a remote video and audio connection. DSA is a Direct Selling Agent, who works for the bank based on a contract. Its main job is to increase the customer base for the bank. Video banking

19. Branch banking is the act of doing one's banking business at a location that is separate from the bank's central business location. Many large and small banks use branch banking in order to extend the reach of their services to different locations in a community, state, or country. Introduction To Branch Banking

20. Smaller branches are also less expensive to operate, often easier for customers to access, while providing the features of a larger bank. Historically, branch banks were part of a larger building, often found in strip malls or even in grocery stores or discount stores, sharing the location with another business. Introduction To Branch Banking Cont.,

21. Each type of location is still considered a branch bank. Locations found in grocery and discount stores often do not have as many options as other branch services It is not possible to "drive-through" these locations, so the bank is located inside the store. Introduction To Branch Banking Cont.,

22. For many people, the only business they will ever do with their bank is through branch banking. The central location of the bank may be too far away to visit, and the branches of the bank will provide all the necessary services one may need. Introduction To Branch Banking Cont.,

23. It is also possible to apply for loans, such as personal loans, vehicle loans, or even mortgages, through branch locations. With all of these options, branch banking has made banking much more convenient for many people, in addition to the large numbers of people who simply do all their banking online. Introduction To Branch Banking Cont.,

24. Engaging in banking activities such as accepting deposits or making loans at facilities away from a bank's home office. Branch banking has gone through significant changes since the 1980s in response to a more competitive nationwide financial services market. Introduction To Branch Banking Cont.,

25. Rapid growth and wide popularity of branch banking system in the 20th century are due to various advantages as discussed below. Economies of Large Scale Operations Spreading of Risk Economy in Cash Reserves Diversification on Deposits and Assets Cheap Remittance Facilities Uniform Interest Rates Advantages Of Branch Banking

26. Proper Use of Capital Better Facilities to Customers Banking Facilities in Backward Areas Effective Control Advantages Of Branch Banking Cont.,

27. Under the branch banking system, the bank with a number of branches possesses huge financial resources and enjoys the benefits of large-scale operations. Highly trained and experienced staff is appointed which increases the efficiency of management. Division of labour is introduced in the banking operations which ensure greater economy in the working of the bank. Economics Of Large Scale Operations

28. Funds are made available liberally and at cheaper rates. Foreign exchange business is done economically. Large financial resources and wider geographical coverage increases public confidence in the banking system. Economics Of Large Scale Operations cont.,

29. Another advantage of the branch banking system is the lesser risk and greater capacity to meet risks. Since there is geographical spreading and diversification of risks, the possibility of the failure of the of the bank is remote. The losses incurred by some branches may be offset by the profits earned by other branches. Large resources of branch banks increase their ability to face any crisis. Spreading Of Risk

30. Under the branch banking system, a particular branch can operate without keeping large amounts of idle reserves. In time of the need, resources can be transferred from one branch to another. Economy In Cash Reserves

31. There is greater diversification of both deposits and assets under branch banking system because of wider geographical coverage. Deposits are received from the areas where savings are in plenty Loans are extended in those areas where funds are scarce and interest rates are high. Diversification On Deposits and Asset

32. Since bank branches are spread over the whole country, it is easier and cheaper to transfer funds from one place to another. Inter-branch indebtedness is more easily adjusted than inter-bank indebtedness. Cheap Remittance Facilities

33. Under branch banking system, mobility of capital increases, which in turn, brings about equality in interest rates. Funds are transferred from areas with excessive demand for money to areas with deficit demand for money. It is prevented from rising in the excessive demand area and from falling in the deficit demand area. Uniform Interest Rates

34. There is proper use of capital under the branch banking system. If a branch has excess reserves, but no opportunities for investment, it can transfer the resources to other branches which can make most profitable use of these resources. Proper Use of Capital

35. The customers get better and greater facilities under the branch banking system. It is because of the small number of customers per branch and the increased efficiency achieved through large scale operations. Better Facilities To Customers

36. Under the branch banking system, the banking facilities are not restricted to big cities. They can be extended to small towns and rural as well as underdeveloped areas. Thus, this system helps in the development of backward regions of the country. Banking Facilities In Backward Areas

37. Under the branch banking system, The Central bank than have a more efficient control over the banks because it has to deal only with few big banks and nor with each individual branch. This ensures better implementation of monetary policy. Effective Control

38. Department Of Branch Banking

39. A key strength and differentiating feature at the bank is its knowledge driven approach. Which goes beyond the traditional realm of banking, and follows a diagnostic and prescriptive approach towards superior product structuring. Our Knowledge Bankers provide you with expert and in-depth analysis based on your financial needs and risk profile and help you grow your savings. Individuals

40. Savings Account has been designed with the singular purpose of helping you to grow your savings. Saving Account

41. Smart Salary Account is a power packed zero balance Corporate Salary Account with unmatched features. Smart Salary Account

42. Smart Salary Account is a power packed zero balance Corporate Salary Account with unmatched features. Smart Saver Account

43. Fixed Deposit Schemes offer you greater security, higher returns and flexible deposits. In order to provide you with greater earnings and the convenience of maintaining your funds in accessible units. Fixed Deposits Schemes

44. At Bank we understand that Senior Citizens have specific financial needs. We therefore offer customized and flexible banking solutions for Senior Citizens at preferential rates and personalized service. Senior Citizen Program

45. Backed by a team of experts along with an array of products, services and resources, YES BANK ensures that identified Small & Medium Businesses excel in the future. The core objective of Business Banking is to improve SME access to finance (including term finance), and business development services. Business Banking- SME

46. Offering a customized service proposition tailor made for high transactional volumes. Offering liability products like Cash Management Services (CMS), Payment Solutions, Net Banking, Phone Banking and Trade Services. Business Banking- SME C ont.,

47. Extending its distribution through alliances and partnerships with industry associations and chambers of commerce, Faster turnaround time because of the presence of local credit and documentation team. Dedicated trade desk for handling trade transactions. Specialized advisory team for catering to SME customers.

48. Retail banking is a framework that allows commercial banks to offer banking products and services in one place at virtually any of their branch locations. The retail banking aspect turns commercial banks into a kind of "store“ where clients are able to purchase multiple banking products. Retail Banking

49. Typical products offered by a retail bank includes: Transactional accounts Checking accounts (American English) Current accounts (British English) Savings accounts Debit cards Product offer by a retail bank

50. ATM cards Credit cards Traveller's cheques Mortgages Home equity loans Personal loans Certificates of deposit/Term deposits Product offer by a retail bank cont.,

51. Introduction to Banking Channels. Introduction to Branch Banking. What are the Departments of Branch Banking? Conclusion

52. Thank you