Next Generation Banking: Issues and Challenges

The next decade in banking will see both evolution and revolution. Banks must reinvent themselves, not just to respond the pressures of today, but to be flexible enough to offer products and services that match the customers’ needs, especially the increasing demand of Gen Y, or millennials. Bank will focus on great reach and profitability rather than revenue. They will emphasise on the production of new products and services that aligned to emerging client needs. In order to serve customers in a cost effective manner, they will go for using technology like internet and mobile banking which helps banks to serve the masses and under-banked areas. The paper is based on secondary data. The paper analysis the issues and challenges that banks are going to face in the future in serving customers, especially Gen Y. The paper finds that internet and mobile banking will not only serve the masses but also helps banks to reduce their cost in achieving the objective of financial inclusion. The paper also finds out solution for attracting new customers and retaining old customers.