Emerging Challenges in Indian Banking
Retail financial services, achieving financial inclusion and capacity building are some of the challenges faced by the Indian banking sector, according to Chairman and Managing Director of Union Bank of India, M.V. Nair.He was addressing the students of GRD School of Commerce and International Business here on Tuesday on ‘Emerging Challenges in Indian Banking.’He said banking was a sector that reached out to almost all sections of the society. Financial services sector would provide huge employment opportunities
The financial services sector would provide huge employment opportunities in the future. Indian banks should be able to get to the top 10 list of global banks by 2020 or 2030. With the current growth rate of the economy in India, it would bring in huge opportunities for India and the Indian banks.The new generation customers preferred to have several products apart from deposit and loan facilities. So there was “an exponential growth of consumer finance”. The requirements from banks included advisory services, wealth management, insurance products and mutual funds. Younger customers were coming in and they were innovative. So the products were tailored to be available at their doorstep.
However, services were restricted since there was still a section of people who were not covered by banking services.The economic growth seen in the industrial and services sectors was mostly in metros or was urban-based. Agriculture growth was low and to bring people in the rural areas under the banking net, the banks had financial inclusion programme.Further, bank products were now available through different formats such as manual, internet, card-based and phone banking. In such a scenario, it was a challenge to get an integrated view of a customer.And, banks had to focus on talent management – getting the right people and training them, he said.
