Introduction
A strong banking industry is important in every
country and can have a significant affect in supporting economic development
through efficient financial services. Omani banks, however, largely continue to
conduct most of their
banking transactions using traditional methods. In Oman
the role of the banking industry thus needs to change, both at the procedural
level and at the informational level. This change will include moving from
traditional distribution channel banking to electronic distribution channel
banking.
Innovation and creativity
Innovation
also challenges existing ways of doing things. It is a form of change, and
people will react as they do to any change. The more surprising the innovation,
the more extreme the reaction will tend to be positive or negative. Emotions
and organisational politics can run high in response to innovation and
creativity!
Creativity
“There is no doubt that creativity is the most
important human resource of all. Without creativity, there would be no
progress, and we would be forever repeating the same patterns.” — Edward de
Bono
“There is only one of you in all time, this
expression is unique. And if you block it, it will never exist through any
other medium and it will be lost.” — Martha Graham
“Creativity is thinking up new things.
Innovation is doing new things.” — Theodore Levitt
Meaning
and Definition of banking
Banking
means doing the work of a banker which primarily involves accepting deposits
from the public and lending to needy and capable persons.
The
definitions of ‘Banking’ as per the Banking Regulation Act, 1949:
"Banking" means the accepting funds, for the purpose of
lending or investment, of deposits of money from the public, repayable on
demand or otherwise, and withdrawable by cheque, draft, order or otherwise.
Banking on Innovation
High Impact Creative Thinking Training
You know the drill: Competition's up. Profits are down. And
everything you're doing is changing. It's the 21st century and most of us are
reeling — out of breath, out of time, and out of what's left of our minds. It's
business as unusual whether we like it or not — and it's time to do something
different. But what? And, more specifically, how?
Enter Banking On Innovation — a unique, creative thinking
training that gives absolutely anyone in your organization a unique opportunity
to step back, slow down, think big, and become a creative force for positive
change.
This highly interactive 1-3 day learning experience is
suitable for both intact work teams and open enrollment groups. And its impact
doesn't end after the happy sheets are filled out. We offer graduates a wide
range of post-workshop support to keep their commitment to innovate alive and
well
Participants
will...
- Use the training to focus on a
new business opportunity or challenge
- Become painlessly aware of
their inner and outer obstacles to innovation
- Identify and go beyond their
own limiting assumptions
- Learn and apply 7 powerful
creative thinking tools
- Gain deep insights into what it
takes to be an innovator
- Generate a wide range of new
ideas to make a difference on-the-job
- Brainstorm effectively with
peers
- Adapt best innovation practices
to their own sphere of influence
- Re-discover the sleeping genius
within them
- Take personal responsibility
for living the value of innovation
- Become refreshed, renewed, and
revitalized
Types of Innovative Banking
1.E-BANKING
Enables
people to carry out most of their banking transaction using a safe website
which is operated by their respected bank.
Advantage
ü Faster & more convenient transaction
ü No longer required to wait in long queues
ü Opening of account simple & easy
ü Apply for bank loan
ü Cost effective for banker side
ü Fund transfer become faster & convenient
ü Stock trading, exchanging bonds &
other investment
2. CORE BANKING
ü Depositing and lending of money
ü Core banking solution
ü Knowing customers needs
3. CORPORATE BANKING
Financial
services to large corporate & MNCs
Services:
ü Overdraft facility
ü Domestic and international payments
ü Funding
ü Channel financing
ü Letters of guarantee
ü Working capital facility for
domestic & international trade
4. INVESTMENT BANKING
ü Creating funds and wealth of clients
ü Professional sales person providing
advice on stock trading
5. RURAL BANKING
It provides & regulates credit services for the
promotion & development of rural sector mainly agriculture, SSI, cottage and
village industries, handicrafts and many more.
ü Examples Of Regional Rural Banks are
NABARD , HARYANA STATE COPERATIVE APEX BANK LIMITED , SYNDICATE BANK, UNITED BANK
OF INDIA
ü KIOSK BANKING
6.NRI BANKING
This facility is designed for diverse banking requirements of
the vast nri population spread across the globe.
ü NRE (Non Resident External Account)
ü NRO (Non Resident Ordinary Account)
ü FCNR (Foreign Currency Non Resident
Account)
7.RETAIL BANKING
It
refers to banking in which banks execute transaction directly with individual ,
rather than corporate banks. It is also known as “One stop shop”.
Services:
ü Saving and checking accounts
ü Mortgage
ü Housing Finance
ü Auto Finance
ü Consumer
ü Durable Loans
ü Personal Loans
ü Educational Loans
ü Credit Cards
1.TOTAL BRANCH AUTOMATION
Ø Speed up bank transactions and less
error
Ø More customer friendly and flexible
Ø Towards paperless transactions
2.ANY BRANCH BANKING
It is a acility for customers to operate their account from any
of the same banks network branch
Facilities available:
Ø Cash withdrawal & Cash deposits
Ø Account statement
Ø Facility to issue multi-city cheques
Ø Fund transfer
Ø Balance enquiry
Ø Purchase of demand drafts pay order
Ø Repayment of loan account
3. DEMAT SERVICES
Ø It offers secure and convenient way
to keep track your securities and investment over a period of time without the hassle
of handling physical documents
Ø It provide facility of online trading
4. MICRO FINANCE
It refers to a movement that envisions a world in which low income
households have permanent access to arange of high quality financial service to
finance their income producing activities, buildassets, stabilize consumption and
protect against risks.
5. PLASTIC MONEY
Ø Plastic money are the alternative to
the cash or standard money
Ø Convenient to carry
Ø Generic term for all types of bank
cards, debit cads, credit cards, smart cards
6. MOBILE BANKING
·
The
account that can travel with you.
·
Facility
one can bank from anywhere, at any time, & in any condition or any how
Facilities are:
Ø Balance enquiry
Ø Fund transfer
Ø Chequebook request,etc
Type of Electronic Systems
1.ATM
v It stands for “Automatic teller
machine”
v In simple words, it is simple to use
self service solution
v Value added services like recharge their
mobile, pay the utilty bills, mutual fund transactions, etc
2. RTGS
v It stands for “Real time gross
settlement system”
v It is a fund transfer mechanism where
transfer of money takes place from one bank to another on a ‘real time’ and on
‘gross basis’.
v This is the fastest possible money
transfer system through the banking channel.
v It is different from EFT and NEFT
v It is primarily for large volume
transaction
v The time taken for effecting funds
transfer from one account to another is normally 2 hours
3. FINACLE
This system provides the holistic and integrated transformation
approach, complete with solutions and services
Finacle solutions addresses the requirements of retail, corporate
and universal banking world wide like
v Core banking solution
v E-banking solution
v Mobile banking solution
v Wealth management
v CRM requirements, etc
Innovations in Banking in next 5 years in India
Innovation
has always been an important area of focus for all industries, not just for
Banks. However, in view of the economic slowdown, it is common knowledge that
banks have been taking a very conservative approach over the last two years as
many have been consolidating their portfolio and innovating products had lost
its importance and has taken a back seat. We have not seen many innovative
products designed for customers during the consolidation phase, and rightly so,
as the primary focus of Banks has been in cleansing their portfolio and tightening
credit extension apart from being extremely guarded in getting only credit
worthy customers in their books.
The
scene in the Indian Banking industry is changing; the various global economies
have started showing signs of revival leaving behind them the worst
recessionary phase and moving towards growth. The Prime Minister of India,
during the recent platinum jubilee celebrations of Reserve Bank of India, has
encouraged Banks to be more innovative. Please recall the budgetary
announcement by the Finance Minister on opening up the Banking space by
offering additional banking licenses to private players and NBFC’s. It is
expected that at least 5 more International Banking giants will set up
operations in India in the next 1-2 years, bringing with them superior
technology. These are exciting times for customers in India and challenging
times for existing Banks, more so for the Public Sector Banks.
The
choice before the customer today is far wider both in the selection of banks as
well asproducts than ever before. The future growth is largely in retail
banking. Innovating products backed by superior service are vital to provide
the cutting edge.
Here’s
a quick look at some factors which may probably be the key drivers for
Innovation in Banking, keeping in mind customer expectations and behavior
changes:
v With
intense competition between banks which is going to be more severe in the
coming years and with more private players waiting to step in, adopting new
technology has assumed added importance, especially for public sector banks.
The key to success is adopting state-of-the-art technology and continuously
accelerating business processes.
v The
3G spectrum auction expected in mid 2010 across various circles to private
telecom providers in India will further open up immense migration possibilities
to more convenient channels. It may not be too long where the customer would
access his bank account using a secured application through his mobile phone.
Needless to say, a secured and fast internet banking platform will become a
basic necessity.
v Smart
Cards embedded with microprocessors or memory chips will become tamper proof
and replace the existing plastic cards, offering customers a secure digital
identity. This will also provide convenience to customers; provide access to
bank’s website and individual accounts, accurate tracking of usage, spend
analysis and manage long term customer relationships through efficient, timely
and valuable services to them.
v Biometric
ATM’s will replace the conventional ATM’s across the country, apart from all
banks investing in additional ATM’s. Banks can authenticate the identity of the
customer in three ways; most common being something the user knows (passwords
or personal identification numbers), something the user has (a security token
etc) or something the user is (a physical characteristic like fingerprint, palm
geometry etc., called as biometric). With increasing threats on compromise of
passwords and account take over’s and misuse of cards, biometric form of
authentication (which have withstood the test of scrutiny coming out as the
most secure form) for ATM and POS transactions would be the way ahead.
Statistics show that India’s ATM density is around 35 ATM’s per million people
which is abysmally low compared to the US’s ATM density of 1300. This is an
area of focus for many banks clearly, offering a branding and marketing
proposition for their investments apart from interchange revenues on usage.
v Cheques
will gradually be phased out and replaced by RTGS and NEFT and other electronic
forms of money transfers and payment mechanisms offering superior turnaround
times. Operational efficiency in processing electronic payment mechanisms will
undergo a radical change, with the beneficiary receiving the credit real time
online.
CONCLUSION
The BANKING sector in India has become stronger in terms of
capital and the number of customers. It has become globally competitive and
diverse aiming, at higher productivity and efficiency. Exposure to worldwide
competition and deregulation in Indian financial sector has led to the
emergence of better quality products and services. Reforms have changed the face
of Indian banking and finance. The banking sector has improved manifolds in
terms of Technology, Deregulation, Product & Services, Information Systems,
Etc.
Many banks have modernized their services with the facilities of computer and
electronic equipments. The electronics revolution has made it possible to
provide ease and flexibility in banking operations to the benefit of the
customer. The e-banking has made the customer say good-bye to huge account
registers and large paper bank accounts
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