Creativity and Innovation in Indian Banks

Topic advance(a) products by Indian organizations in the Banking Sector Akshita Shetty Student K J Somaiya Institute of management studies and look into PGDM (RM) Roll no 56 Email idemailprotected com Abstract During the past mavin decade, one of the sectors which underwent visible sea-change through with(predicate) innovative strategies is undoubtedly the bank buildinging sector. The sector has been developing at a fast pace in India and is ch entirelyenged with several aspects same new regulations from time to time, changing guest needs and perceptions, changing engine room and changing art operations.Technology has been playing a crucial role in the fearful improvement of banking run and operations. Indian banking industry has moved way ahead both in terms of offering evaluate added services and delivering type service. It was thought that the world financial crisis would impact the Indian banking sector in a serious manner. But, because of the loaded foundations of Indian banking system with the support from surface structured financial systems, the anticipated impact of the world crisis was al roughly insignificant. Instead, it religious serviceed the banks to yield strengthened further and become closer to the customer with innovative approaches.Banks turn up to be on the path of achieving sustainability and a long-term survival because of innovation. Keywords purpose in banking, engineering science in banking, changes in banking, trans familyation in banking, IT in banking, Indian banking. Introduction Technology has brought about a complete look-alike shift in the solveing of banks and delivery of banking services. Gone argon the long time when every banking transaction required a shoot the breeze to the bank offset printing. instantly, most of the transactions can be done from the comforts of ones home and customers need non twaddle the bank sort for eitherthing.Technology is no longer an enabler, only a business drive r. The growth of the internet, meandering(a)s and communication engineering science has added a different dimension to banking. The information technology (IT) available at once is macrocosm leveraged in customer acquisitions, driving automation and process efficiency, delivering remainder and efficiency to customers. M some(prenominal) of the IT initiatives of banks started in the late 1990s or advance(prenominal) 2000 with an emphasis on the adoption of core banking solutions (CBS), automation of growes and centralization of operations in the CBS.Over the last decade, most of the banks completed the transformation to technology-driven organizations. Moving from a manual, scale-constrained environment to a global presence with automated systems and processes, it is difficult to create ment all toldy the adverse scenario the sector was in the era before the reforms, when a elemental deposit or withdrawal of cash would require a day. ATMs, restless banking and online bill r ecompenses facilities to vendors and utility service providers gull almost obviated the need for customers to visit a branch.Branches are in any case transforming from operating as transaction impact points into relationship management hubs. The change has been very productive for banks bringing in an increase in productivity and operational efficiency to be much competitive. Better assay management due to centralization of information and hearty time availability of critical data for stopping point making. With most of the banks be technology-enabled, the focus is shifting to computerizing regional clownish banks (RRBs).In addition, banks are moving toward decision making and business intelligence software and trying to optimize the IT stand created The banking system in India has created a niche for itself in the actual competitive global arena where adoption of new and innovative scientific developments carries the rudimentary to expansion of business and its future development. The Indian banking system has come a long way from being a player restricted to home(prenominal) boundaries to a leading giant in the world of financial services across the globe.Credit for this progress goes to a mix of factors like, the introduction of various economic reforms which gave a boost to the banking sector, adoption of new technology by banks in order to streamline their line of businesses and increasing profits by up(a) cost efficiency and offering doorstep banking convenience to their customers. Banking Then and Now Indian villages were deprived of various financial products like mutual funds, insurance and equity trading hitherto, which are now accessible through proxy banking in the form of Internet kiosks and ATMs.The alias given to banking which is not routed through branches is Channel Migration. through and through this route, a bouquet of services is at the customers disposal in todays banking system. This is contingent because banking trans actions are stored in a centrally located server with which all other branches of a bank are connected. The technological systems in India are considered far more advanced than those of Russian and Chinese banking systems but are lagging far behind the UK, USA and Singapore.Connectivity takes root Today almost all scheduled commercial banks are connected to all the branches on a real time basis extending the anywhere banking ease to the customers, which means that it is not necessary for a customer now to visit the branch personally in order to conduct transactions. Now a customer has various other options available with him like internet banking, mobile banking, ATMs (automated teller machines), phone banking which offers 24 X 7 banking, etc.Whenever and wherever a transaction is done in a bank account, the updated status is reflected in all the branches, thus making anywhere banking possible. ATMs have revolutionalized the banking sector by making cash and other banking services available to customers at all times. Future Outlook The future of Indian banking lies in increased coronation in technology platforms and a bang-uper focus on passim solutions provided by IT majors like core banking products, vertical specific CRM and risk management software. Body scopeInnovation by Indian banks in aspects such as Service banking ATMSs Net banking Mobile banking ECS/RTGS/NEFT Debit card/ cite cards CRM (customer service) Case studies (for example) randomness Indian Bank The salary disbursement of corporates , firms and such others who maintain accounts with any of the 511 CBS branches would be managed by the Bank, hassle-free and free of any bank charges. The employer would be benefited in that the salary could be disbursed to any employees/any single employee who are/is working even in far-off places where sib has no presence.Dr. V. A. Joseph ,Chairman & CEO of the Bank and Mr. M. P. Gopalakrishnan,P occupant ,CMS Trust jointly launched the product . In his inaugural address Dr. Joseph said, This convenience banking product, which is designed for the convenience of both employers and employees, leverages the banks strong technology platform, which connects all the 511 branches and 26 extension counters of the Bank under stub Banking Solutions network offering anytime banking to its customers. GSSA can be opened with zero sense of equilibrium.The Chairman and CEO of the Bank too stated, South Indian Bank, being a customer oriented Bank is striving hard to indicate personalized customer service using the latest technological capabilities. The technological capability of the Bank was recognised when the Bank could bag the banking technology uprightness award from IDRBT which is the technical arm of RBI. The service quality of the Bank has also been recognized when the Bank was selected in the Outlook Money C shank survey as the best private sector Bank in India in the service quality segment. . Dr. Joseph also referred to the faci lity recently started for online fight of offerings, free of bank charges , through South Indian Bank payment gateway-the first bank to go online booking -by the customers of the bank who are devotees of Guruvayur Sreekrishna tabernacle which is described as the Dwaraka of South India. This facility is being utilized by the NRIs also to effect offerings, hassle free with greater transparency and trade protection at the click of a button ,either for themselves or their aged parents resident in India.. South Indian Bank had completed on 26. 03. 07 the visualise SIBertech by introducing a centralised Core Banking Solution in technology partnership with Infosys Technologies when many banks had not even started implementation of CBS . SIB, had started this project in 2001 to render personalized customer service. The new product now launched would sanction this belief, the Chairman concluded his inaugural address.With the following carefully thought-out value additions of this innovat ive convenience banking product , banking for employers and their employees, is made extremely easy and well-fixed * Free International ATM-cum-Debit Card for which annual maintenance charges are not collected * Online booking of offerings for Lord Sri Guruvayurappan, free of bank charges * O disengagement of cash from the ATMs of other Banks free of bank charges (As charges would be borne by SIB) * OFree utility payment and e-commerce services * No stipulation on minimum balance The depositor enjoying many freebies can earn the usual SB interest * The depositor can operate his SB account during his travel/ ephemeral transfer /transfer- hassle-free * The account can be closed /transferred to another branch with out any charge * Free of cost cheque leaves (subject to limits in each category ) * Free fund transfer facility through RTGS/NEFT/Fast Money /DD Customers of this property-rich Savings Bank account are also provided with facilities to open Depository account and also enjoy mobile banking facility. Indian bankIndian Bank has won the Golden Peacock Innovative Products/Service Award for 2011. The award was received by the banks Chairman and Managing Director, Mr T. M. Bhasin, at the military man Congress on Total Quality, held in Bengaluru on Saturday. The award was given to the bank in recognition of its contribution to promotion of self help groups (SHGs). SHGs have turned out to be major vehicles of women em positionment. In the period year, Indian Bank has so far disbursed Rs 1,360 crore to 55,391 SHGs, taking the total characterization under the SHG portfolio to Rs 2,336 crore, benefiting 175,390 SHGs, says a press release from the bank. express Bank of India State bank of India, the largest public sector bank in India, offers the following innovative services. 1. SMS lovesick This innovative idea was initiated by Mr. Siva Kumar, Dy. Managing Director of SBI. Any customer who wants to lodge a bang sends the message Unhappy to a stipulate numbe r (8008202020). The Happy Room then calls the customer and records the details of the complaint. The complaint is then forwarded. SBI has received thousands of such messages since its commencement and this service is a great success.Other banks have also started imitating this service. 2. Crorepati Only Branch SBI has launched first of its kind branch for High Networth Individuals (HNI) where it takes minimum Rs 1 crore to open an account, and that too on invitation only. This branch offers peculiar(a)ized banking facilities like relationship managers, 24/7 lockers, extended banking hours, doorstep pick-up and drop facilities, in addition to pampering customers five-star amenities at the branch. We have opened as many as 50 accounts so far.We are confident of opening another 150 by the end of the current fiscal, as per Mr. Shiva Kumar, Chief General Manager, SBI4. According to SBI, an attractive feature of the branch is 24 hour open lockers. The bank also is providing special dress ing rooms for customers to cater to the needs of late night function goers segment. References -Y. Ramakrishna, Service Innovation in Banks for Sustainability, IJMBS Vol. 2, Issue 2, April June 2012 -Indian banking System Epitome of unremitting innovation, 2008. -Process innovation in the Indian banking industry, 2009 Indian Banking Sector Challenges and Opportunities -Keertiman Sharma, Innovations in rural financial products and services, VOL. 2(1) 2011 35-37 -Outsourcing in the Indian banking sector gaining momentum, 2008 -Innovation in retail banking -India PRWIRE, South Indian bank launches another innovative convenience product, 2008 -Vortex engineering, Solar former to enable banking and ATM facilities for rural india, 2011 -J U Ahmed, Services Rendered by commercial message Bank A Customer Oriented empirical Evidence from State Bank of India, Vol. I No. 2, Jan-2011 1 . Service Innovation in Banks for Sustainability 2 . technology in banking Insight and foresight 3 . Indian banking system epitome of continuous improvement 4 . Solar power to enable banking and ATM facilities for RuralIndia 5 . Y. Ramakrishna, Service Innovation in Banks for Sustainability, IJMBS Vol. 2, Issue 2, April June 2012