Retail Banking Essay Example | Topics and Well Written Essays - 1500 words

Retail Banking - Essay Example The process of such redefinition is by means of strategic relocation in the economic service sector. Augmented competition, expansion, innovative services, and new-fangled geographic markets construe to the fact that both the gamut of stakes or risks and the stake profile for the banks are considerably transforming. Banks are transforming with the incorporation of economic markets, thereby, facilitating with tremendous opportunities for expansion. The Western banks have accounted for generation of around 90 per cent of the revenue from the interest income which has depreciated to 60 per cent, and sometimes, as low as 40 per cent (Penza and Bansal, 2000). As viewed by Miller, Fee-based income by means of the investment services as well as derivatives are some new-fangled sources of income which are becoming increasingly pertinent for the income statements of commercial banks (Miller, 1988). ... Nearly, every nation, until the commencement of the twentieth century, possessed a domestic retail banking sector which was set apart from its fellow citizens, thereby, being dominated by a handful of developed banks (Ream, 1998). The core assets of retail banks are widespread branch networks where each branch is equal to the others, along with a manager and extensive back-offices. However, this was all limited until the advent of e-Banking. Even though, banks are commonly condemned for construing a customer as various account units, they lucidly comprehend to the fact that it is the customer who is the focus of everything they do. The retail banks which can easily make out the significance of an efficacious customer relationship approach and the requirement to be more customer-centralized for making sure they settle on long-term success. Chronologically, retail and investment banks have been managed along the tracks of business which has resulted in silo vicinity that inhibits banks from turning into customer-centric hubs. The retail and investment banks manage customer information in an efficacious manner by eradicating the storage authorities of the customer information by means of incorporating statistic systems and procedures across various product lines, which has helped in providing the sharing of modern information with the employees. This has helped the banks in comprehending to their customers in a better way, keeping in mind their future fundamentals as well. There is a devastating agreement regarding the