'Creativity and Innovation in Indian Banks\r'

' payoff: Innovative intersection points by Indian organizations in the fixing vault of heaven Akshita Shetty Student K J Somaiya Institute of charge studies and research PGDM (RM) Roll no: 56 netmail id:[email protected] com Abstract During the past unity decade, adept of the celestial spheres which underwent visible sea-change through innovative strategies is undoubtedly the curseing sector. The sector has been growing at a fast pace in India and is challenged with several aspects like new regulations from judgment of conviction to time, changing client inescapably and perceptions, changing applied science and changing operations.Technology has been playing a crucial character reference in the tremendous improvement of banking operate and operations. Indian banking industry has moved port ahead some(prenominal) in terms of offering value added services and delivering quality service. It was thought that the globe financial crisis would clash the Indian bank ing sector in a monstrous manner. But, because of the strong foundations of Indian banking system of rules with the support from healthful structured financial systems, the anticipated impact of the public crisis was almost insignificant. Instead, it helped the banks to get streng then(prenominal)ed further and wrick closer to the customer with innovative approaches.Banks appear to be on the path of achieving sustainability and a long-term natural selection because of innovation. Keywords: launching in banking, engineering science in banking, changes in banking, transformation in banking, IT in banking, Indian banking. design Technology has brought about a complete mental image shift in the functioning of banks and delivery of banking services. through with(p) for(p) ar the days when every banking transaction needed a chew the fat to the bank first. Today, most of the transactions can be done from the comforts of one’s home and customers need not visit the bank branch for allthing.Technology is no longer an enabler, plainly a business driver. The growth of the meshing, erratics and communication technology has added a different dimension to banking. The reading technology (IT) available today is being leveraged in customer acquisitions, driving automation and process skill, delivering ease and might to customers. M both of the IT initiatives of banks started in the late 1990s or early 2000 with an emphasis on the adoption of burden banking solutions (CBS), automation of branches and centralization of operations in the CBS.Over the finis decade, most of the banks completed the transformation to technology-driven organizations. Moving from a manual, scale-constrained environment to a globose presence with automated systems and processes, it is difficult to envisage the adverse scenario the sector was in the era before the reforms, when a simple trust or withdrawal of cash would require a day. ATMs, mobile banking and online bill payments facilities to vendors and utility service providers stick out almost obviated the need for customers to visit a branch.Branches be excessively transforming from operating as transaction bear upon points into relationship management hubs. The change has been very copious for banks bringing in an increase in productiveness and operational efficiency to be more than competitive. go bad danger management due to centralization of information and real time availability of critical info for finding making. With most of the banks being technology-enabled, the focus is change to computerizing regional rural banks (RRBs).In addition, banks atomic number 18 moving toward decision making and business intelligence softw ar and move to optimize the IT infrastructure created The banking system in India has created a niche for itself in the current competitive global atomic number 18na where adoption of new and innovative technological developments carries the key to expansion of business and its future development. The Indian banking system has come a long way from being a player restricted to national 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 change magnitude profits by improving cost efficiency and offering doorstep banking whatsis to their customers. Banking ‘Then and ‘Now Indian villages were disadvantaged of various financial products like mutual funds, damages and equity trading hitherto, which are now kind through proxy banking in the form of mesh kiosks and ATMs.The alias given to banking which is not routed through branches is ‘ billet Migration. Through this route, a bouquet of services is at the customers disposal in todays banking system. Thi s is possible because banking transactions are stored in a centrally located legion with which all some other(a) branches of a bank are connected. The technological systems in India are considered furthermost more advanced than those of Russian and Chinese banking systems but are lagging far behind the UK, USA and Singapore.Connectivity takes result Today almost all scheduled commercialised banks are connected to all the branches on a real time basis extending the anywhere banking rapidity 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 create revoluti onalized the banking sector by making cash and other banking services available to customers at all times. hereafter view The future of Indian banking lies in increase investment in technology platforms and a corkinger focus on end-to-end solutions provided by IT major like core banking products, vertical specific CRM and risk management software. Body scopeInnovation by Indian banks in aspects such as: work banking ATMS’s last(a) banking Mobile banking ECS/RTGS/NEFT Debit card/credit card game CRM (customer service) Case studies: (for example) South Indian Bank: The stipend disbursement of corporates , firms and such others who maintain accounts with any of the 511 CBS branches would be managed by the Bank, hassle- let go 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 plain in far-off places where SIB has no presence.Dr. V. A. Joseph ,Chairman & chief oper ating officer of the Bank and Mr. M. P. Gopalakrishnan,President ,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 Core Banking Solutions interlock offering anytime banking to its customers. GSSA can be consecrateed with zippo balance”.The Chairman and CEO of the Bank too stated, â€Å"South Indian Bank, being a customer †oriented Bank is striving hard to bed individualize customer service using the in vogue(p) technological capabilities. The technological capability of the Bank was recognise when the Bank could bag the banking technology excellence swag 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 â₠¬ËœOutlook Money †C Fore’ survey as the best private sector Bank in India in the service quality segment. . Dr. Joseph also referred to the expertness recently started for online booking of offerings, free of bank charges , through South Indian Bank payment gateway-the beginning bank to go online booking -by the customers of the bank who are devotees of Guruvayur Sreekrishna Temple which is described as the Dwaraka of South India. This speediness is being utilized by the NRIs also to termination offerings, hassle â€free with greater transparency and pledge 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 project ‘SIBertech’ by introducing a centralised Core Banking Solution in technology partnership with Infosys Technologies when more 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 plunk for this belief”, the Chairman concluded his inaugural address.With the spare-time activity(a) carefully thought-out value additions of this innovative convenience banking product , banking for employers and their employees, is made extremely easy and comfortable: †* ; exculpate 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 Withdrawal of cash from the ATMs of other Banks free of bank charges (As charges would be borne by SIB) * O Free utility payment and e-commerce services * ;No stipulation on minimum balance ;The depositor enjoying many freebies can earn the usual SB bet * ;The depositor can operate his SB account â€during his break down/temporary transfer of training /transfer- hassle-free * ;The account can be closed /transferred to another branch with out any charge * ;Free of cost cheq ue leaves (subject to limits in each category ) * ;Free fund transfer facility through RTGS/NEFT/Fast Money /DD Customers of this feature-rich nest egg Bank account are also provided with facilities to open Depository account and also enjoy mobile banking facility. Indian bank:Indian Bank has win the ‘Golden Peacock Innovative Products/Service Award for 2011. The grant was authentic by the banks Chairman and Managing Director, Mr T. M. Bhasin, at the public Congress on Total Quality, held in Bengaluru on Saturday. The award was given to the bank â€Å"in realisation of its contribution to promotion of self help groups (SHGs)”. SHGs gain turned out to be major vehicles of women empowerment. In the current year, Indian Bank has so far disbursed Rs 1,360 crore to 55,391 SHGs, taking the total exposure under the SHG portfolio to Rs 2,336 crore, benefiting 175,390 SHGs, says a press release from the bank. secernate Bank of India: State bank of India, the largest publi c sector bank in India, offers the following innovative services. 1. SMS Unhappy This innovative idea was initiated by Mr. Siva Kumar, Dy. Managing Director of SBI. Any customer who wants to bear a complaint sends the message â€Å"Unhappy” to a specified number (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 kickoff 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 alter banking facilities like relationship managers, 24/7 lockers, widen banking hours, doorstep pick-up and drop facilities, in addition to mollycoddle customers five-star amenities at the branch. â€Å"We have opened as man y as 50 accounts so far.We are confident of opening another 150 by the end of the current fiscal,” as per Mr. Shiva Kumar, principal General Manager, SBI4. According to SBI, an attractive feature of the branch is 24 hour open lockers. The bank also is providing special dressing 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 persisting innovation, 2008. -Process innovation in the Indian banking industry, 2009 Indian Banking arena: 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 power to enable banking a nd ATM facilities for rural india, 2011 -J U Ahmed, Services Rendered by Commercial 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 Rural India [ 5 ]. Y. Ramakrishna, Service Innovation in Banks for Sustainability, IJMBS Vol. 2, Issue 2, April †June 2012\r\n'