CAIIB RETAIL BANKING | MARKETING OR SELLING OF RETAIL PRODUCTS
RETAIL BANKING MARKETING:- In this article, we will read about the six main banking channels that are used to deliver the banking services, which are named as below:
- Branch Banking
- Mobile Banking
- ATM Channel of Banking
- Phone Banking or Mobile Banking, Tele-Banking
- Self Service Banking, PC Banking
- Online Banking, Internet Banking, E-Banking.
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The bank branch is it place, unit or office where banking operations are conducted. People simply go to branches to avail banking services. It is the most important and popular channel of the bank where customers visit personally and make use of different services and banking products in one place. It is where the customers personally ask for the advice of the banking staff to clear their doubts.
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The branch is exactly a channel that can entirely boost the image of the bank by making and developing personal relations with customers.
There are many business houses or institutions organisations, that might be government or private for which a bank has to perform banking transactions in bulk. In some of the cases, these organisations might not be located very near to the branch. In such a case, the dealing branch opens a counter in the organisations from Isis to provide easy access to the Banking requirements (in the form of extension counters) to them.
This counter-service opens a mini branch and provides all the banking services on the counter through the main branch known as counter functions. Banks required to obtain a licence from RBI to open these extension counters is but now the RBI has removed this requirement.
In the competitive era, every organisation wants to enhance its customer base. And the bank is no exception. To tackle this tiff competition, some of the banks have started providing mobile banking services. Indus mobile banking, the mobile bank which has all the necessary equipment and future staff members why should do to do service to its customers. These bank vans roam around the local areas and provide unlimited banking service which includes the September payment of cash only and some of the ancillary services such as balance enquiry, collection of cheques etc.
BANKING THROUGH ATM:
ATM, which stands for automated teller machine, is a mechanism to provide withdrawal service of cash 24 by 7 without having to go to a bank. It has given the excess of the banking services beyond the working hours of the bank.
ATM is a machine that is used popularly to receive and dispense cash. Although when it was introduced, it used to provide only cash withdrawal service. But with the passing of time, it has started to accept deposits also.
With technology advancement, eight games today multitask and are providing the following mentioned services:
- Withdrawal of Cash,
- Depositing the Cash,
- Balance Enquiry,
- Issue of Mini Bank Statement (Upto Last 10 Transactions),
- Depositing the Cheques, And
- Transfers of Funds.
Some of the advanced ATMs also provide services such as:
- Payment of Utility Bills,
- Recharge of Mobile Services,
- Cheque Book Requests. etc.
These ATM services are only available to those who have an ATM card. To receive an ATM card, one needs to apply with their bank for the issue of an ATM card. These cards carry a PIN, Personal Identification Number, which can also be generated by the bank computers at random.
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Now the working of ATM card is like this: ATM card has a magnetic strip fixed on its back which contains the customer’s account number and other data so that the ATM machine can access and operate the customer’s account.
When the customer swipes his or her card, it reads the information that is contained in the magnetic strip and find the valid account number which is linked with the PIN. After authenticating the user, ATM is ready to provide different services and customers can choose among be listed services and proceed with them.
PHONE BANKING OR MOBILE BANKING, TELE-BANKING:-
You might be surprised that many people are actually using mobile or phone banking without knowing the fact that they are using the phone or mobile banking. For example, when an amount is withdrawn from the bank through ATM or when you deposit cash or cheques or even the withdrawals done directly in the banks, one receives the SMS informing them of the transaction on their registered cell phone number. This phone service is all done by the banks themselves.
Customers can also prove their banks and request to use phone banking or Tally banking in which case the banks will enable its customers to receive this service through IVR computer system (interactive voice response) which automates the interactions with telephone callers.
IVR has reduced the cost of services relating to enquiries and support calls. In this system, input and response are gathered via spoken words with the help of voice recognition which enables the users to get and send information, make queries and requests.
This system also contains pre-recorded Solutions. Even on the landlines, underlying the bank number, the customer is guided through instructions for further procedures by pressing his or her account number or the information as a system has been set up.
The limited services which are provided through Phone banking are mentioned below:
- Asking for account balance,
- Status of a cheque that is deposited for collection,
- Request for a cheque book or account statement,
- To stop payments, and
- To get information on bank products.
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PC BANKING & SELF-SERVICE BANKING:
Internet banking had gone through many development phases. In the early 80s, it was home banking where Banking could be done while sitting at home. To avail of these home banking services, one was required to have either a telephone or cable connection through which one could have the banking services with the help of a terminal, monitor and a keyboard (PC).
With PC or self-service banking, one could access the bank services such as enquiry related to accounting balances, moving funds between accounts, making bill payments and buying or selling securities. All the services can be accessed through their own system while sitting anywhere.
This is the reason provided is also known as self-service banking where everything can be done online. It is a luxury for the customers. This service, first started in New York in the year 1981 and after that in the UK by the Bank of Stock Land in 1983. But this facility was limited to some restricted areas & also to only some selected customers.
But with the advent of internet banking, the entire scenario has changed the banking industry worldwide. It has transformed into a necessity from the luxury and the banks are no longer confined to Physical branches but have become worldwide phenomena.
INTERNET BANKING, ONLINE BANKING, E-BANKING:
Today, Indian banks have their own websites to offer banking services on the internet. RBI has also issued guidelines for this purpose which every bank is required to follow. So far, multinational and private sector banks have successfully set up internet banking while some public sector banks are still behind in this area due to their inherent difficulties.
Most of the PSBs have a large number of branches and a good number is located in remote areas where they lack internet connections. The customer base is very large and they also include illiterate customers. Some of these banks are still following outdated traditional banking methods and remain inflexible for change.
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To provide infrastructure so as to enable internet banking in this widespread network of branches at once is not really possible. But still, these banks are due for the credit for how far they have come and are near to the stage where they will all be web-enabled.
As per the planning of RBI, banks were required to be enabled so as to provide internet banking services in three levels:
- Basic level
It is the information only service where banks website would disseminate information about its various products and services today customers such as rates of interest, location of the branch, product features etc. It could also receive and apply to customers queries via emails.
- Simple transactional websites:
These websites allow customers to make applications for various services, submit instructions and put queries on their account balances but do not allow any fund-based transactions. It is also known by the name ‘electronic Information Transfer System’ which provides information such as balance is in the account transaction details in account statement etc.
- Fully–Transactional Websites:
Under fully-transactional websites, customers are allowed to transact through their accounts to transfer funds, make payments of different bills, subscribe to bank products and do the purchase and sale of securities. The system is also known as a Fully Electronic Transaction System.
It has a high degree of security controls because it is made up of technology that covers computerization, security and networking, interbank payment gateways and legal infrastructure.
So, we have seen some of the important banking delivery channels that are employed by retail banks. Today, the most convenient form of delivery channel that is popular among banking customers is internet banking whether it’s through a website or mobile application.