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Customization of Banks

Banking channels refer to the different methods customers can use to interact with their bank and access banking products and services. The main channels discussed are: 1) Branch banking, which is the most popular traditional channel but also the most expensive for banks. 2) ATMs, which allow customers to perform transactions like withdrawals, deposits, balance checks, and transfers without visiting a branch. 3) Internet and mobile banking, which are among the cheapest delivery channels for banks and allow customers to access account information and perform transactions remotely via online and mobile platforms.

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106 views10 pages

Customization of Banks

Banking channels refer to the different methods customers can use to interact with their bank and access banking products and services. The main channels discussed are: 1) Branch banking, which is the most popular traditional channel but also the most expensive for banks. 2) ATMs, which allow customers to perform transactions like withdrawals, deposits, balance checks, and transfers without visiting a branch. 3) Internet and mobile banking, which are among the cheapest delivery channels for banks and allow customers to access account information and perform transactions remotely via online and mobile platforms.

Uploaded by

swarnabhadey
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Banking Channels

Submitted by

Vivek Bhagat
IBS Kolkata
What are Banking Channels ?

Branch banking

ATMs

Products
Net Banking
/Services
Channels
Phone Banking

Mobile banking
Bank Customer

Different Banking Channels


Branch Banking
§ Most Popular Channel
§
§Involves large investment in-
a) Infrastructur
e
b) Employees

§Some Banks (e.g. Citibank) don’t


encourage the customers to use this Face to Face Interaction with Clients
channel in order to save cost.
§Scheduled Commercial Bank branches
in India:

Rural: 31,127
Semi-urban: 17,858
Urban & Metropolitan: 27,553
Total: 76,518*

*June 2008 data, Growth rate: 5.2%


Functions of a Branch
Automated Teller Machine (ATM)
§ Facilities offered by ATMs:
§

a. Balance Enquiry h. Bill Payment


a.
b. Statement of Accounts i. Currency Exchange
i.
c. Cash Withdrawal j. Loan Application

d. Cash deposit k. Investment Advice

e. Check deposit l. MF, Insurance sales

f. Check cashing m. Electronic Purse loading

g. Funds transfer n. Ticketing


 How do ATMs Operate?

• ATM’s communicate each other through a network


 ‘THIRD PARTY’ transactions are possible due to this network
• Previously a THIRD PARTY bank use to charge a fee income
• Recent RBI circular allows customers to make 5 transactions at third party ATM’s

ATM Players of the country:

Bank ATMs
State Bank Group 11250
ICICI Bank 4600
Axis Bank 3570
HDFC Bank 3,177*
Canara Bank
*As on December 31, 2008
2007

Source: http://www.business-standard.com/india/storypage.php?autono=353044
Internet Banking
 Ability to access banking services/products via the internet
•
• One of the cheapest channels for a bank

§Internet banking Offerings:


§
Static information about the bank’s offerings,
application forms

Specific account information: Statements, Alerts,

Ability to change/edit account information

Stop payments, cheque book requests/other
instructions

Payment transactions to other accounts within and
external to the bank

Bill Payments
Internet Banking (Example)
Mobile Banking
§ Technology: SMS or WAP

Bank Initiated Customer Initiated

Int
er
ac
tio
ns
 Thank You

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