Emerging Trends and Developments in Banking Sector

Abstract

Indian Banking sector is the largest player, plays a dominant role in building the economy of an individual as well as a nation. The growth of banking sector depends upon the services provided by them to the customers in various aspects. The growing trend of banking services is found significant after the new economic reforms in India. Banking in Indian economy which reflects as a supporter during the period of boom and recession. A strong banking and finance sector are necessary for a country to emerge as a developed one. Today, Indian banking system has a fairly developed with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system. Today banking is known as innovative banking. Information technology has given rise to new innovations in the product designing and their delivery in the banking and finance industries. Customer services and customer satisfaction are their prime work. Recently, banks are focusingto shift their activities from mass banking to class banking with the introduction of value added and customized products.With the advent of electronic banking, electronic funds transfer and other similar products, funds transfer within time frames which would have appeared impossible a few years ago has made it reality. With networking and internet connection new challenges are arising related to security privacy and confidentiality to transactions. Finally, the banking sector will need to master a new business model by building management and customer services with a variety of products and controlled cost to stay in the long run and services.